The new market-based guidance values for property registration will officially kick in on August 12 in Bangalore. While the new guidance values have already been implemented in 25 districts of Karnataka, the final notification for Bangalore Urban will be published on August 12, said Adoni Syed Saleem, inspector-general of registration and commissioner of stamps.
New guidance values for Bangalore from August 12
The Times Of India
The new market-based guidance values for property registration will officially kick in on August 12 in Bangalore.
While the new guidance values have already been implemented in 25 districts of Karnataka, the final notification for Bangalore Urban will be published on August 12, said Adoni Syed Saleem, inspector-general of registration and commissioner of stamps.
Builders and buyers are rushing to seal deals before the rates go up. The number of property deals has seen a sharp rise ever since the announcement that guidance values would be revised across the state. “We’ve already netted Rs 1,200 crore over the past four months,” Adoni said.
Around 7,500 properties are registered a day across the state, fetching Rs 19 crore in revenue, with 50% of that coming from Bangalore. In the past four months, the city recorded a maximum of 1.65 lakh deals.
In the districts where guidance values were revised, property registration has dropped. In revenue pockets, particularly the outskirts of Bangalore — Anekal, Hoskote, Rajanakunte, Nelamangala, Kanakapura, Magadi and Devanahalli — registration has already hit an all-time low.
A classic case is Hoskote. The sub-registrar offices, which registered about 100 properties a day just three months ago, recorded just 10-15 deals since June.
Registrations started declining after the rural development and panchayat raj department, in its January 4 circular, restricted the issue of tax assessment register extract (Form 9) and tax demand register extract (Form 11) to gram panchayats. This was intended to curtail conversion of agricultural land to non-agricultural purposes. These two extracts (forms) are mandatory, among other documents, for registration of new as well as old residential sites.
* Guidance value is the minimum value at which property can be registered.
* Stamp duty is 5% of the property registration value, registration fee is 1%.
* In 2011-12, govt revenue from stamp duty and registration was Rs 5,020 cr.
* Govt has set a target of up to Rs 6,500 cr this fiscal.
* With revision of guidance values, govt expects to mop up Rs 840 cr in additional revenue; this includes Rs 614 cr in Bangalore Urban district.
* A dedicated valuation cell will be set up soon to continuously monitor market values and advise on revision of guidance values annually.