The levy of stamp duty, registration fees, penalty under Karnataka Stamp Act 1957

Karnataka Stamp Act extends to the whole of the State of Karnataka. As per this Act, a kind of tax called ‘Stamp Duty’ is levied on the documents executed in Karnataka. There are 55 articles (instruments/documents) described in the Schedule to the said Act for which the stamp duty is to be paid at the prescribed rates.

 

List of documents for which Stamp Duty is to be paid

The list includes, but is not limited to Affidavit, adoption deed, sale deed, gift deed, lease deed, mortgage, license, partition deed, settlement deed, partnership deed, etc. Similarly will, marriage certificate, share certificate, trust registration, society registration, etc also attract stamp duty.

 

When to pay stamp duty (E Stamping)

Generally stamp duty shall be paid before or at the date of executing a documentE-Stamping

 

Who has to pay stamp duty?

In case of sale deed, purchaser is liable to pay stamp duty. In case of lease, lessee (tenant) has to pay the duty.

 

What is the consequence of non-payment of stamp duty?

When Stamp duty leviable on a document is not paid i.e. such document cannot be accepted or received in evidence in the court of law.

 

How much to pay?

Levy of stamp duty and registration fee on some important documents are as under. Please note that the fees mentioned below are as per Karnataka Stamp (Amendment) Act, 2015 which came into force from 1st April 2015.

  • Affidavit  – Rs.20 stamp duty
  • Sale deed (also called as conveyance) – 5% on the market value + surcharge + cess and 1% registration fee.
  • Gift Deed – if Donee (the person receiving the gift) is a specified family member – a fixed duty of Rs.1000 + surcharge + cess and Rs.500 regisration fee. If Donee is not a family member, then the stamp duty is 5% on the market value plus surcharge plus cess and 1% registration fee.
  • Mortgage of property (or deposit of title deeds) to the bank/lending institution – If the loan amount exceeds Rs.10 Lakhs, the duty payable is 0.2% of the loan amount subject to a maximum of Rs.10 Lakhs.
  • Articles of Association of a company during incorporation or increase in capital – Rs.1000 for every Rs.10 Lakhs or part thereof subject to a maximum of Rs.5 Lakhs.
  • Limited liability Partnership (LLP) – constitution of LLPor conversion of firm/private company to LLP, where the capital does not exceed Rs.10 Lakhs – Rs.1000 and where the capital exceeds RS.10 lakhs, duty of Rs.500 to be paid.
  • Rental agreement – the stamp duty depends upon the tenure of the lease. For example; renting residence is for a period less than 1 year,  0.5% of the total rent paid or maximum of Rs.500

 

One can get the entire list of stamp duty in the website of Department of Stamps and Registration, www.karnataka.gov.in/karigr/

You can also download the latest amendment to stamp act here https://www.karnataka.gov.in/karigr/aboutus/KarnatakaStamp(Amendment)Act2015.pdf

 

Thought for the day

In this world nothing is certain but death and taxes – Benjamin Franklin  

 

 

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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Santoshkumar
Santoshkumar
2022 years ago

In recovery of mony unregistered how much stamp duty payable if amount is one lakh.

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