Faced with a sharp fall in property registration revenue, the Karnataka government is weighing a 1% increase in stamp duty charges. This move, if enacted, will mark the first revision since 2013 and could push the total registration cost from 6.6% to 7.6% for property buyers.
At the same time, real estate activity in Bengaluru remains strong. TVS Emerald, the real estate arm of the TVS Group, has acquired a prime 7.18-acre land parcel near Rayasandra Lake in southeast Bengaluru. This marks the company’s seventh major land acquisition in the city, with a projected revenue of over ₹700 crore from the upcoming residential project.
Stamp Duty Hike: Why the Government Is Considering It
Revenue Shortfall Spurs Policy Action
Karnataka’s stamps and registration department has seen a significant revenue shortfall in Q1 FY2025. Of the ₹7,000 crore targeted for the quarter, only ₹4,556 crore has been collected—a 35% deficit.
- FY2024–25 Revenue Target: ₹28,000 crore
- Previous Fiscal Target (Revised): ₹24,000 crore
- Actual FY2024–24 Collection: ₹22,500 crore
To address this, the Chief Minister has directed the finance, stamps, and registration departments to formulate corrective measures. The proposed 1% hike in stamp duty aims to bridge the gap.
Current Property Registration Cost in Karnataka
| Component | Rate |
|---|---|
| Stamp Duty | 5% |
| Registration Charges | 1% |
| Cess | 0.5% |
| Surcharge | 0.1% |
| Total | 6.6% |
| Proposed Total | 7.6% |
The revision, if passed, would significantly increase transaction costs for homebuyers and investors—raising concerns about affordability and a potential market cooldown.
TVS Emerald’s Strategic Move in Bengaluru
Despite the looming policy changes, developers like TVS Emerald are doubling down on Bengaluru’s real estate potential. The company’s acquisition of a 7.18-acre site near Rayasandra Lake underscores its aggressive expansion strategy.
“This site presents an excellent opportunity to develop a premium residential community, given its superior location and accessibility,” said Sriram Iyer, Director and CEO of TVS Emerald.
Why Rayasandra?
- Proximity to Bengaluru’s IT corridor
- Rapid infrastructure upgrades
- Growing demand for premium housing
TVS Emerald has yet to disclose the launch date or configuration details of the new project.
TVS Emerald’s Recent Land Acquisitions
| Location | Size | Potential Revenue |
|---|---|---|
| Rayasandra Lake, BLR | 7.18 acres | ₹700+ crore |
| Sathnur, BLR (Feb 2025) | 10 acres | ₹1600 crore |
| Thanisandra, BLR | 4 acres | Not disclosed |
| Rachenahalli, BLR | ~3 acres | Not disclosed |
| Radial Road, Chennai | 12 acres | Not disclosed |
| Padur, Chennai | 4.8 acres | Not disclosed |
The company’s total development pipeline now exceeds 8 million sq. ft., reinforcing its bullish outlook on India’s top urban markets.
Summary Table: Quick Facts
| Topic | Details |
|---|---|
| Proposed Stamp Duty Increase | From 6.6% to 7.6% |
| Last Revision | 2013 |
| Revenue Shortfall | 35% in Q1 FY2025 |
| FY2025 Revenue Target | ₹28,000 crore |
| TVS Emerald New Acquisition | 7.18 acres in Rayasandra, Bengaluru |
| Expected Revenue (Rayasandra) | ₹700 crore |
| Total Projects in BLR | 7 land acquisitions to date |
Frequently Asked Questions (FAQs)
Q1: What is the current stamp duty on property in Karnataka?
A1: Currently, buyers pay 5% as stamp duty, 1% as registration charges, 0.5% cess, and 0.1% surcharge—totaling 6.6%.
Q2: Why is the Karnataka government planning to increase stamp duty?
A2: Due to a 35% shortfall in property registration revenue in Q1 FY2025, the state is considering a 1% hike to boost collections.
Q3: How will the increase affect property buyers?
A3: Buyers may need to pay an additional 1%, raising total registration costs to 7.6%, increasing the upfront cost of home ownership.
Q4: What is TVS Emerald’s latest project in Bengaluru?
A4: The developer has acquired a 7.18-acre land parcel near Rayasandra Lake for a premium residential project expected to generate ₹700 crore.
Q5: What other areas has TVS Emerald invested in recently?
A5: In addition to Rayasandra, the company has projects in Thanisandra, Sathnur, and Rachenahalli in Bengaluru, and Radial Road and Padur in Chennai.