CHENNAI :STAMP DUTY AND PROPERTRY REGISTRATION CHARGES RISE BY DECEMBER
If you are planning to buy a plot of land or a flat, get ready to pay more stamp duty and registration charges. The state government is all set to announce new guideline values for the four crore survey numbers in villages and 1.89 lakh streets in corporations, municipalities and town panchayats in the state. The registration department is expected to finalise the guideline values by the end of December.
Guideline value is an indicator of the market value of properties. It gives the government’s assessment of the value of a property while evaluating its stamp duty and registration charges.
Guideline values were last revised in August 2007, and the previous revision was in March 2003. “The real estate industry has seen a multifold rise in the recent years and revision is long overdue. Registration is among the top three revenue generators for the state and the government is keen on tapping this revenue stream,” a senior official told.
The state’s treasury received Rs 5,020.25 crore through stamp duty and registration charges during the last fiscal, and two third of this sum comes from the registration of properties alone. Had the guideline value been revised every year to be on par with market rates — as is done in neighbouring Karnataka and Andhra Pradesh — the revenues would have been two or even three times more. With the new guideline values in place, the government expects to raise another Rs 3,000 crore.
Sample this: The guideline value of Lattice Bridge Road in South Chennai suggests Rs 4,257 per sq ft, but the market value of the said piece of land is Rs 12,500. The rate of a square foot of land in Dr Radhakrishnan Salai remains Rs 5,587 while it is Rs 16,666 in the market.
Many buildings have come up in both these stretches in the recent past, and the government missed on collecting a significant sum of money. Taking note of this anomaly, the district collectorate told the registration department to raise the guideline value of 122 streets in Anna Nagar last year as a special case to match with market rates, sources said.
Valuation sub-committees set up for the purpose of estimating and revising the guideline value in districts are working with the revenue department and local bodies at the field level. Led by the district collector, the sub-committees consisting of staff from local civic bodies and revenue and registration departments have started surveys in all the 32 districts of the state. “As per schedule, the field survey to ascertain market values must be completed by December,” said a senior government official.
On completion of assessment, the valuation committee will invite suggestions and objections from the public at least twice, before making the new guideline value final. As many as 578 sub-registrars across the state are supporting the exercise.
Duty Bound
STAMP DUTY
It is the duty levied by govt on a real estate transaction. Tamil Nadu charges eight per cent of land value
(guideline value) as stamp duty
REGISTRATION FEES
Fees paid to the land registration dept to register a property document. TN charges one per cent registration fees
For example: For a property worth 1 cr (as per guideline value), stamp duty is 8 lakh and registration fees is 1 lakh
For a new flat, stamp duty is levied only on the undivided share of land and not on the built-up area
For an old flat, duty is levied on land and building when a transaction takes place.
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