- Karnataka raised property registration fees from 1% to 2% due to revenue shortfalls
- The Department of Stamps collected Rs 22,500 crore in FY25 against a Rs 26,000 crore target
- Registration fee hike increased total transaction cost to 7.6% from 6.6% in Karnataka
The Karnataka government has hiked the registration fees for all properties from 1% to 2%, reports said. The decisions comes after Department of Stamps and Registrations fell short of its revenue targets in the 2024-2025 period and also in the first quarter of fiscal year 2026.
In FY25, the department reportedly collected Rs 22,500 crore against an initial revenue target of Rs 26,000 crore. While in quarter ended June 2025, the department has reportedly fallen back by 35% against the proportional target of Rs 28,000 crore for the year.
Despite the doubling of fee, the total fee payable for any property transaction in Karnataka is among the lowest compared to adjacent states in South India, said Mullai Muhilan M.P, the state inspector-general of registration and commissioner of stamps, while speaking to The Hindu. He cited Tamil Nadu's 11% fee as an example.
With the hike in registration fee, the total payable for any property transaction has become 7.6%, compared to the earlier 6.6%. The rates were levied as follows: stamp duty of 5% of the guidance value of a property, 1% registration fee, 0.5% cess and 0.1% surcharge.
Along with property registration fee, the government has reportedly also doubled the registration fee for Joint Development Agreements (JDA) and General Power of Attorney (GPA) for JDAs from 1% to 2%; unlike the former hike, the latter is expected to have more impact since these lands are larger.
A section of builders in the state have expressed their displeasure with the new fee, arguing that doubling the fee will not solve the revenue shortfall.
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