Bengaluru central corporation imposes a 2% tax on Khatas in a bid to boost revenue, widen property tax base

A 2% tax on stamp duty for issuing new Khatas has been announced in the Bengaluru Central City Corporation’s budget as part of corporation’s push to increase revenue and widen the property tax base. This is the only new tax added on Friday.

Stamp duty is around 6% of the guidance value of the property. For instance, for a ₹60 lakh property, stamp duty will be ₹3.6 lakh. The new Khata rule proposes a 2% charge on this stamp duty amount, which works out to ₹7,200, explained property consultant K. R. Ramesh. However, he said there is no clarity whether Khata transfers and division from a builder to a flat buyer will incur this new tax or not.