Karnataka Stamp (Amendment) Act, 2025: A Leap Towards Digital Property Transactions

Bengaluru, May 2025 — In a significant move towards digitization and transparency in property transactions, the Karnataka government has enacted the Karnataka Stamp (Amendment) Act, 2025. This legislation introduces provisions for electronic stamp duty payments, aiming to streamline the property registration process and curb revenue leakages.

Key Provisions of the Amendment

1. Introduction of Digital E-Stamping
   The amendment legalizes digital e-stamping and electronic signatures, allowing for the electronic payment of stamp duty. This move is expected to simplify the process and reduce paperwork, making property transactions more efficient and user-friendly .

2. Prohibition of Physical Payment Methods
   To enhance accountability and prevent revenue leakages, the amendment prohibits the collection of stamp duty through traditional methods such as demand drafts and pay orders by the Inspector-General of Stamps and Registration and their subordinate offices .

3. Integration with Trusted Entities
   The amendment facilitates property registration without the physical presence of the buyer and seller, provided the documents are presented electronically. Trusted entities like the Bangalore Development Authority (BDA), Karnataka Housing Board (KHB), Karnataka Industrial Areas Development Board (KIADB), and nationalized banks can now register properties on behalf of the parties involved .

4. Mandatory Electronic Khata for Registration
   To prevent fraudulent registrations, the amendment mandates obtaining an electronic khata, validated through the Kaveri software of the Stamps and Registration Department, before registering properties .

Implications for Stakeholders

• Property Buyers and Sellers:
  The digitization of stamp duty payments and the option for remote registration reduce the need for physical visits to sub-registrar offices, saving time and effort.

• Developers and Builders:
  Developers can now facilitate property registrations for RERA-approved projects through authorized entities, streamlining the process for buyers.

• Government and Revenue Authorities:
  The amendment enhances transparency, reduces the risk of fraudulent transactions, and improves revenue collection efficiency.

Looking Ahead

The Karnataka Stamp (Amendment) Act, 2025 marks a significant step towards modernizing property transactions in the state. By embracing digital solutions, Karnataka is setting a precedent for other states to follow in enhancing the efficiency and transparency of property registration processes.