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The Karnataka government tabled a bill in the Legislative Assembly Thursday proposing a two to six times rise in stamp duty for mortgage deeds, limited liability partnerships, certified copies of documents, and other agreements.
The Karnataka Stamp (Amendment) Bill, 2023, tabled during the Assembly’s Winter Session in Belagavi, has made separate provisions regarding the stamp duty levy on bank guarantees. Revenue Minister Krishna Byre Gowda piloted the Bill to shore up revenue and fill the coffers of the cash-strapped government.
In deeds related to the amalgamation of companies, stamp duty is proposed to be hiked from three per cent on the company’s market value to five per cent, or an amount equal to one per cent of the value of shares to five per cent. This applies even when a subsidiary is amalgamated with the parent company. As per the Act, the maximum duty levied for such a transaction is Rs 25 crore.
Similarly, for the partition of properties where the property involved is converted for non-agricultural purposes, the Bill proposes to increase the stamp duty from Rs 1,000 per share to Rs 5,000 per share.
This applies to properties falling under municipal corporations, urban development authorities, municipal councils and town panchayats. For properties in gram panchayats and other local bodies, the stamp duty is proposed to be hiked from Rs 500 per share to Rs 3,000 per share.
For the partition of agricultural properties, the Bill proposes a hike from Rs 250 per share to Rs 1,000 per share.
Stamp duty for certified copies of various documents and divorce papers is also proposed to be revised. For certified copies where the duty was Rs 5, it will be Rs 20 once the Bill is passed; for copies where the duty was Rs 10, it will be raised to Rs 50. Duty for divorce papers, currently at Rs 100, will be hiked to Rs 500 as per the proposed Bill.
The Assembly’s Winter Session began on December 4 and will end on December 15.
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