Karnataka on Saturday slashed property guidance values by 10% across the state for a period of three months, opening up a lucrative window for homebuyers.
Revenue Minister R Ashoka called it a New Year’s gift for citizens.
“From January 1 to March 31, for all properties that will be bought - dry land, irrigated land, site, building or flat - the guidance value will be reduced by 10%. This gift is valid for three months in all sub-registrar offices,” Ashoka said.
Guidance value is the base price on which property transactions have to take place. Usually, guidance values see an upward revision. In September, Ashoka had revealed the government’s plan to slash guidance values.
“There are many who are sitting on a general power of attorney (GPA) and an agreement. There are those waiting for the right time to register their properties. They can now go ahead and register their properties,” Ashoka said, adding that the discount will benefit lakhs of people.
The minister added that the move will benefit farmers, many of whom hold properties that are not registered.
Transaction on properties is a source of revenue for the government. Before the end of the current fiscal, the government wants to mop up Rs 12,655 crore through stamp duty and registration fees. By the end of October, the government had collected Rs 7,183 crore.
“Slashing guidance value may result in some loss to the treasury, but we expect more property registrations,” Ashoka said, adding that the decision was taken after extensive talks with Chief Minister Basavaraj Bommai, the departments of finance and stamps & registration.
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(Published 01 January 2022, 10:54 IST)
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