What is the stamp duty for a sale agreement in Karnataka?

Stamp Duty for sale agreement without possession is 0.5% of consideration amount

For example:

• The consideration amount is Rs. 95,00,000
• Stamp Duty is 95,00,000 X 0.5% = 47,500/-

(Minimum Stamp Duty isRs.500 and maximum Stamp Duty is Rs.20,000)

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Let me share my experience of paying stamp duty for sale agreement:

My client, booked a resale flat in Bangalore. The buying price is Rs. 95 lakhs. We paid an advance of Rs.11 lakhs to seller and executed a sale agreement on non-judicial e-stamp paper to process our home loan application

We followed the below steps to execute a sale agreement:

• Drafted the sale agreement in Word documents
• Non-judicial e-stamp paper is available in most co-operative Bank, near court premises & Registration office premises.
• Most of the stamp vendors have checklist that consists of following questionnaire. We need to fill it with pen and hand it over to stamp vendor.

1. Seller Name
2. Buyer Name
3. Stamp paper purchased by (usually buyer name)
4. Contact number of stamp paper Purchaser (Buyer contact number)
5. Consideration amount (Buying price)

• The Stamp vendor shows a preview copy for your cross-verification. We should carefully look into the preview copy for any spelling mistakes and corrections in following factors:

1. Description of Document
2. Property Description
3. Seller Name
4. Buyer Name
5. Consideration amount

(We may be unable to correct the errors once printed. If you want to claim the refund, the process could be cumbersome and it's hard to convince stamp vendor to process the refund)

• Based on my consideration amount of Rs. 95 lakhs, the stamp duty is Rs. 95 Lakhs * 0.5% = 47,500. We paid Stamp Duty of Rs. 47,500 to vendor through UPI
• The vendor printed the e-stamp on bond paper and handed it to us
• We printed the sale agreement draft on e-stamp paper
• Seller, buyer and two witnesses signed the sale agreement

We highlighted the Stamp Duty in our below sale agreement. Refer to the arrow mark in image below

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Advantages of e-Stamp Paper:

The main advantages of e-stamp paper are self-reliant and time-saving:

• You can execute a sale agreement on your own and you don’t need an agent or broker to assist in execution process. The process is to buy e-stamp paper and print the draft on it.
• We can execute sale agreement in e-stamp paper in around 30 minutes whereas the registration of sale agreement in sub-registrar office may take around 2–3 days to submit an application, get an appointment and complete the registration
• It's easy and convenient to access e-stamp paper, we can find stamp vendors near your home and don’t need to travel long to access.

Disadvantage of e-Stamp Paper:

The main disadvantage of e-stamp paper is processing cost, which is highly variable from vendor to vendor.

• If the Stamp Duty is more than Rs. 10,000, few vendors charge fixed processing fee of Rs. 1000–2000 and others charge 5–10 % of stamp Duty.
• I paid Rs.1500 as my processing fee for the stamp duty of Rs. 47,500. Instead, I could have registered the sale agreement in sub-registrar office which cost just Rs. 200 for registration and Rs. 200 for scanning

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Please note, we can denote the stamp duty paid for sale agreement.

I will save Rs. 47,500 for my client when I pay stamp duty for sale deed registration

We assist with sale agreement execution, please WhatsApp to +91-97424-79020

Thank you for reading…