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.
Increasing property tax base
Both the east and central corporations intend to increase their property tax revenue by identifying tax evaders and ensuring defaulters pay using technology.
The east corporations intends to use artificial intelligence (AI) to identify property tax defaulters and expand the tax base through data integration, with a target of generating an additional ₹100 crore annually. A campaign to convert B-Khata properties to A-Khata, under way from November 2025, is expected to generate ₹225 crore annually.
