New guidance value for properties soon

New guidance value for properties soon

The upward revision of guidance value for immovable properties will come into effect in a couple of days. It was earlier scheduled to come into effect from Monday.

Official sources in the department of stamps and registration, on Saturday, said stamp duty on property registration would go up in Bangalore city by 15 to 20 per cent. The process of inviting objections from the public has been completed. The draft guidance value was issued about a month ago.

Inspector General of Registration N Prakash said that the gazette notification may be issued in next two to three days.

As per the instructions of the revenue minister office, the implementation has been deferred by two to three days, sources said.

Sub registrar offices in Bangalore had witnessed heavy rush from property buyers in the last one week.

However, the revision will not push up property tax paid as such. Properties are registered based on the guidance value fixed by the government. The last revision was one year and three months ago. The law permits the government to revise the guidance value on an annual basis. The government may go for upward or downward revision depending on various factors.

To curb black money investment in real state, the government is keen on taking up upward revision of stamp duty periodically, sources said. A property worth Rs 1 crore usually gets registered for not more than Rs 60 to 70 lakh. As soon as the stamp duty goes up, there will be slump in the registration.

However such development would be a passing phase, sources said.

Official sources said real estate was looking up in the capital compared to last financial year. In the current year, the collection of stamp duty is Rs 428 cr more compared to the last year. In 2012-13, the stamp duty collection was Rs 6,200 crore.

This also indicated that the properties worth Rs one lakh crore were registered. The demand for houses/flats is increasing in Bangalore North and South. arthur, Electronic City, Anekal, Hebbal, KR Puram, Bidarhalli and the surrounding areas have been witnessing phenomenal growth in terms of buildings, sources said.