9 hours ago
Karnataka weighs 1% increase in stamp duty amid revenue shortfall from property registrations
Faced with a decline in property registration revenue in the first quarter of the current financial year, the Karnataka government is considering a proposal to hike stamp duty by 1%, officials said. If approved, the total cost of property registration for buyers could increase from the current 6.6% to 7.6%. Faced with a decline in property registration revenue in the first quarter of the current financial year, the Karnataka government is considering a proposal to hike stamp duty by 1%. (Representational Image)(Souptik Datta )
The stamp duty was last revised in 2013.
According to sources familiar with the matter, the Chief Minister has directed the finance, stamps, and registration departments to devise concrete measures to address the revenue shortfall.
Also Read: Bengaluru's property registrations dip 21% amid E-khata implementation woes
At present, property purchasers in Karnataka are required to pay a 5% stamp duty calculated on the guidance value, which is the minimum property price set by the government. In addition, they incur a 1% registration charge, a 0.5% cess, and a 0.1% surcharge.
The shortfall in collections has raised concerns about a potential slowdown in the real estate sector, which could be contributing to the decline. The state had initially set a revenue target of ₹ 26,000 crore for the stamps and registration department for FY2024–25, but later revised it to ₹ 24,000 crore. Even with the reduced target, the department closed the fiscal year with only ₹ 22,500 crore, a report published in the Times of India said.
For the ongoing financial year, the target has been raised to ₹ 28,000 crore. To stay on course, the department needed to generate around ₹ 7,000 crore in the first quarter, which ends June 30. However, it has so far collected just ₹ 4,556 crore, reflecting a steep 35% shortfall, it said.
