Karnataka Agreement Stamp Duty: A Guide to Understanding the Taxation Rules in Karnataka
If you are planning to enter into an agreement in Karnataka, you must know the stamp duty and registration fees that you need to pay. Karnataka is one of the states in India that has specific rules and regulations regarding the stamp duty payable on agreements.
Stamp duty is a state subject, and each state in India has its regulations on the stamp duty payable on agreements. The Karnataka Stamp Act, 1957 governs the rules and regulations regarding the payment of stamp duty in Karnataka. The Act specifies the different types of agreements and the stamp duty payable on each of them.
Types of Agreements and Stamp Duty Payable in Karnataka
1. Sale Agreement:
A sale agreement is a legal document that outlines the terms and conditions of the sale of a property. The stamp duty payable on a sale agreement in Karnataka is 0.1% of the market value of the property, subject to a maximum of Rs. 20,000.
2. Gift Deed:
A gift deed is a legal document that transfers the ownership of the property from one person to another as a gift. The stamp duty payable on a gift deed in Karnataka is 2% of the market value of the property, subject to a maximum of Rs. 50,000.
3. Lease Agreement:
A lease agreement is a legal document that outlines the terms and conditions of leasing a property. The stamp duty payable on a lease agreement in Karnataka is 0.1% of the average annual rent, subject to a maximum of Rs. 20,000.
4. Mortgage Deed:
A mortgage deed is a legal document that outlines the terms of the mortgage of a property. The stamp duty payable on a mortgage deed in Karnataka is 0.1% of the mortgage amount, subject to a maximum of Rs. 20,000.
5. Partnership Deed:
A partnership deed is a legal document that outlines the terms and conditions of a partnership. The stamp duty payable on a partnership deed in Karnataka is 0.1% of the capital contribution, subject to a maximum of Rs. 20,000.
6. Power of Attorney:
A power of attorney is a legal document that authorizes a person to act on behalf of another person. The stamp duty payable on a power of attorney in Karnataka is Rs. 100.
Registration Fees Payable in Karnataka
Apart from the stamp duty payable on agreements, you also need to pay registration fees to register the agreement with the Sub Registrar in Karnataka. The registration fee is payable at the rate of 1% of the market value of the property, subject to a maximum of Rs. 30,000.
Conclusion
In conclusion, if you are planning to enter into an agreement in Karnataka, you must be aware of the stamp duty payable on the agreement and the registration fees payable for registering the agreement. The stamp duty and registration fees payable will depend on the type of agreement and the market value of the property. It is advisable to consult a legal expert to understand the rules and regulations regarding the stamp duty and registration fees payable in Karnataka.
