Stamp/transfer duties slashed, but market values of properties hiked
The government on Saturday enhanced the market values of properties for registration all over the State, pushing up the registration charges payable on sales/purchases of properties.
The hike in market values ranges up to 150 per cent in places where the real estate value has reached peak levels. This is expected to fetch a sum of Rs.500 crore annually in addition to Rs.6,400 crore accruing now.
The new market values, which will come into force from April 1, are being displayed at all the 432 sub-registrar offices. The proposal for the hike, submitted by the Stamps & Registration Department three months ago, was cleared by Chief Minister N. Kiran Kumar Reddy on Friday.
Offering some relief, the stamp duty payable on market values at the time of registration has been reduced from 5 per cent to 4 per cent and transfer duty (now 2 per cent in urban areas and 3 per cent in rural areas) to a uniform 1.5 per cent. The registration fee, the third component of registration charges, has been retained at 0.5 per cent.
Consequently, the overall percentage of these three components will come down to a uniform 6 per cent hereafter compared to 7.5 per cent now in urban areas and 8.5 per cent in rural areas. The reductions are made in compliance with Central guidelines to encourage maximum property registrations in the country.
Nonetheless, the people will have to shell out heavily as these reductions will not be able to neutralise the enormous burden caused by the market values hike.
Dr Vijay Kumar, Commissioner & Inspector-General, Stamps & Registration, sought to dispel the apprehension that the market values had been hiked indiscriminately. They were reduced in some areas of Narasaraopet, Anakapalli and Nellimarla, he said. Details about the reductions in and around Hyderabad etc. were not immediately available.
Meanwhile, there was last-minute rush for registrations at the sub-registrar offices on Saturday as it happened to be the last working day before the new rates come into force from Monday. The disposal of the day’s applications continued till late in the evening.
The government is increasing the market value of lands after a gap of two years. Sources said that the reduction of stamp duty would result in more registrations. “We expect more registrations now for sale deeds and other registration of documents such as GPS, gift deed, mortgage etc.