The land transactions in the State have gained momentum and even without enhancement of the stamp duty and market values of the land, the stamp and registration revenue has registered a growth of about 20% in the year 2017-18 over that of previous year.
Telangana is the State with the least stamp duty at 6% while in the neighbouring Andhra Pradesh, it is 7.5 %. The market values have also been revised in AP while in Telangana they remained unchanged even after formation of the State.
The trend continued in April and May of this year with a jump in revenues by 35 % over that of corresponding period in 2017-18. April 2017 was a bad period, though due to demonetisation announced in November of 2016 and unavailability of cash in the market.
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Interestingly, a section of buyers is driving the trend for registering at the considered value of the property even as the market value of the property fixed by the government is much lower. Software professionals, bank and government employees and other middle class people who seek bank loans to finance up to 80 % of the apartment value do not mind paying higher amount towards stamp duty for the considered value. For it ensures transparency in transaction and makes accounting hassle-free. The department earned more stamp duty for the year 2017-18 in the agricultural and non-agricultural land transactions. Because the parties registered properties for an enhanced value of ₹12,217 crore more than the market value, preferring ‘white’ transactions.
However, when it came to agricultural land and open plots, cash transactions still rule though people these days, post demonetisation impact, do think twice before accepting cash transactions. “Retired people, elderly persons with children living overseas, rather prefer transparency and bank transactions,” sources say.
In the last financial year 2017-18, sale deed documents in respect of agricultural land in the State were 2,38,582 for 2,29,745 acres of land. While the market value fixed by the government for this agricultural land is ₹7,615 crore, people actually registered for a total value of ₹9,177 crore. That is, the registered value was more by ₹1,562 crore. But sources reveal that the actual worth of these lands would be way above.
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In non-agricultural land like flats and open plots, the sale deeds registered last year were 3,71,968 accounting for 7,47,36, 570 sq. yards. The market value of the property was ₹36,103 crore while the considered value shown by the parties was ₹46,758 crore. The registered value here was more by ₹10,655 crore.
Ranga Reddy, Medchal/Malkajgiri and Hyderabad continue to be top revenue earners for stamps and registration department.