Given the daily volume of questions that we get on Guidance Value and its calculation, here are some tips to help you understand it and also do an approximate calculation. However, the rates or the calculation used here is illustrative and it is always advisable to check with your jurisdictional Sub-Registrar Office (SRO) to ascertain the accurate figures before going in for registration.
STAMP DUTY & REGISTRATION
Stamp Duty is currently applicable at the rate of 5% of Purchase value plus Surcharge and Cess.
Registration Charges are applicable at the rate of 1% of Purchase value.
Given that there is 10% Cess and 2% Surcharge on Stamp Duty respectively, it works out to 5.6% Stamp Duty inclusive of Cess and Surcharge. And adding Registration Fee at 1%, your total cost on Stamp Duty and Registration will come to 6.6% of the Purchase value of the property.
A higher surcharge of 3% on Stamp Duty may be applicable on properties on the outskirts that come under BMRDA or village panchayats.
GUIDANCE OR GUIDELINE VALUE
Step 1) Base Guidance Value
The Guidance Values are published by the Dept. of Stamps & Registration, Govt. of Karnataka and it gives the value based on locality and sometimes streets or even individual buildings / project names are mentioned. The inclusion of individual building names is a more recent phenomenon to better track premium apartments, villas, villaments etc. and the variations in their market values from time to time. The published list will provide a rate per s.ft. and sq.m. for empty land or land with building or apartment. The values also vary slightly depending on the wall structure and flooring used; mosaic, ceramic, vitrified, marble and granite flooring.
Take this as your Base Guidance Value for the super built up area.
Ex: So if your Base Guidance Value for your Flat is Rs.3500/- and the Super Built Up Area of the Flat is 2000 s.ft., then the value of your Super Built Up Area will be Rs.3500 x 2000 = Rs.70,00,000/- (Rupees Seventy Lakhs)
Step 2) Higher Floor Additional Value for Flats / Apartments
Just like builders charge a premium for higher floors, the Dept of Stamps accords a higher value for floors above 5. Upto 5 floors there is no enhancement that is required. But from the 6th floor onwards, you apply an enhancement to the value of Super Built Up Area as follows:
6th floor – 0.5% 11th floor – 3.0%
7th floor – 1.0% 12th floor – 3.5%
8th floor -1.5% 13th floor – 4.0%
9th floor – 2.0% 14th floor – 4.5%
10th floor – 2.5% 15th floor and above – 5.0%
Take this as your guidance value for Super Built Up Area plus enhancement for floor rise (if applicable).
Ex: If in the example cited above, if your Flat is on the 7th floor, then floor rise will be applicable and will be calculated at 1% additional on the value of the Super Built Up Area. i.e., Rs.70 Lakhs + 1% of Rs.70 Lakhs = Rs.70,70,000/- (Rupees Seventy Lakhs Seventy Thousand). If it is on the 2nd floor, then no floor rise enhancement will be applicable and even if your Flat is on the 18th floor, the enhancement applicable will be limited to 5%.
Step 3) Amenities Value
Next comes your amenities which are categorised into 14 categories and if you have any of the amenities in a group within your apartment complex, then it means that group is applicable to your flat. Let?s see what they are:
1. Club House, Community Hall, Conference Hall, Party Hall, Card room, reading room, Library, Banquet Hall, Party area, Party lawn & similar types of amenities.
2. Jogging track, Running track, Cycling track, Walking track, Pebble path way, Reflexology path & similar types of amenities.
3. Children play area, Children game area, Garden, Water body, Decorative pool, Plantation garden, Barbeque pits,Creche, Landscape area, Foundation & similar types of amenities.
4. Canteen, Mall, Commercial space, ATM, Bank,Hopcoms,JanathaBazar,NandiniMilk Outlet, Provision Store,Parlor, cafeteria, super market, plaza & similar types of amenities.
5. All types of outdoor play area, badminton, tennis, basket ball, volley ball, base ball, cricket, foot ball, hockey & similar types of amenities.
6. All types of indoor game area, squash, snooker, table tennis, carom room, indoor games area & similar types of amenities.
7. Swimming pool indoor, Kids pool, Wading pool, Aqua gym & similar types of amenities.
8. Cargo lift, Elevator, mechanical lift for car park, high speed elevator & similar types of amenities.
9. Surveillance of common area, manned security with video surveillance intelligent security, motion sensor based lighting multi camera security, CC TV, gated community, intercom,Wifiinternet,parlor, video conference facility, generator, UPS, Kiosk, visitor tracking system & similar types of amenities.
10. Helipad & golf field.
11. Outdooramphitheatre, open air theatre, openstage & similar types of amenities.
12. Health Clinic,Ayurvedic parlor, massageparlor, beauty parlour, spa, aerobics, yoga mediation, unisex parlour, steam & sauna Jacuzzi, Gym, day carecentre, health club & similar types of amenities.
13. Indoor amphitheatre, dance & Karaoke hall, drama stage, home theatre hall.
14. Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas bank, gas detector.
An enhancement is applied on the basis of the number of groups that are applicable to your Flat/apartment/villa after Step 2.
4 or less groups – No additional enhancement 10 groups – 4.50%
5 groups – 0.75% 11 groups – 5.25%
6 groups – 1.50% 12 groups – 6.00%
7 groups – 2.25% 13 groups – 6.75%
8 groups – 3.00% 14 or more groups – 7.50%
9 groups – 3.75%
Take this as your guidance value for super built up area plus floor rise and amenities enhancement.
Ex: Taking the same example cited above, for your 7th floor Flat with Super Built Area plus floor rise value at Rs.70.70 Lakhs, assuming you have 6 groups of amenities, then the guidance value inclusive of amenities will be Rs.70.70 Lakhs + 1.5% of that. i.e. 70.70 + 1.06 = Rs.71.76 Lakhs.
There are 2 category of amenities that are totally exempt from enhancement calculation and the reasons are obvious because they are required from the perspective of good town planning. They are as follows:
i) Rain Water harvesting,Solarpower, Solar Water Heater, Fire fighting, Fire prevention, Green building concept low carbon material usage & similar types of amenities.
ii) Sewage treatment plant, solid waste management, individual garbage chute, reflective roofs, water recycling / reuse plants.
Step 3) Car Park Value
Last comes your Car Park which has to be added to the above value. For which you should first determine the total value of step 1, 2 and 3 put together and then add the value assigned for Car Parks as follows:
Total Value Covered Car Park Open Car Park
Upto Rs.50 Lakhs – Rs.1.50 Lakhs Rs.1.35 Lakhs
Above Rs.50 Lakhs and upto Rs.1 Crore – Rs.2.00 Lakhs Rs.1.50 Lakhs
Above Rs.1 Crore – Rs.2.50 Lakhs Rs.2.00 Lakhs
Take this as your Guidance Value for the total value of the property inclusive of Super Built Up Area, floor rise, amenities plus Car Park.
Ex: Continuing with the same example, your 7th floor Flat that is pegged at Rs.71.76 Lakhs also has 2 Car Parks both covered then the guidance value will be Rs.71.76 Lakhs + Rs.2.00 Lakhs (x 2 times), i.e., 71.76 + (2×2) = Rs.75.76 Lakhs.
So through this method you have arrived at a value of Rs.75.76 Lakhs for your Flat on which Stamp Duty + Registration Fee of 6.6% will be applicable, which is Rs.5,00,016/- ( rounded off as Rs. 5,00,050/-)
We hope this calculation helps people to do it themselves to ascertain an approximate cost to Registration and Stamp Duty at Bangalore.
1) The Assessment Officer at the SRO may ascribe a different value based on interpretations of Base Guidance Value or amenities. Remember the Base Guideline Values may also differ between two apartment complexes on the same street based on quality of construction, builder, whether premium or budget etc.
2) If you are reporting a higher value for your property purchase in the Sale Deed/Deed of Conveyance, then you will be paying the Stamp Duty & Registration on the higher of both values, which means the Guidance Value loses relevance.
Expert Opinion: Advocate Lokesh Anjanappa