Stamp duty collection to rise with high value property deals
With the increasing property deals of high value in the state, it has been forecasted that the stamp duty collection is also going to boost up.
As per Inspector General of Registration and Controller of Stamps, revenue generated from stamp duty will be around Rs 2000 crore in the financial year 2012-13.
However, the property registrations have remained the same as it was in the previous year but the revenue from the properties in Mumbai have increased due to hike in prices in recent times.
Also, another factor which adds to the more stamp duty collection is that there has been no revision in ready reckoner rates.
However, the RR rates were increased by 10% but the new property rates were in place only for the last three months of the last fiscal year.
Stamp duty is collected when a property is registered as per the ready reckoner rates fixed by the government. State government receives the second highest revenue from the stamp duty and registration fee generated after state sales tax.
As per reports, around Rs 14,700 crore revenue was earned by the state in 2011-12 after processing 23.13 lakh documents.
Till date in 2012-13, around 23 lakh documents have been processed and a revenue of Rs 16,700 have been generated. The final figures are yet to be verified.
The major cities which have contributed to the hike in revenue are Mumbai, Thane, Raigad, Pune and Nagpur, where many flats are sold at more than Rs 1 crore.
Also, as per reports, there have been a single sale deed in 2012-13 which fetched around Rs 40 crore as stamp duty.
Maximum number of deals are happening in urban areas where individuals do not deal with properties and property agents and civil lawyers come into picture.
Also, stamp duty is going to be dearer for flats in the city after the recent announcement of budget by state finance minister on 20th of March.
The hike in stamp duty will be applied for both rentals as well as leave-and-licence agreements. However, as a solution, stamp duty can be reduced if the security deposit on flats in Mumbai is lowered.
As of now, it has been decided that the state government will take 0.25% of the calculation of stamp duty which includes the annual rent, the security deposit and 10% of the security deposit.
Related Real Estate News:
Mumbai stamp duty officials admit faulty figures of RR rates
Flats in Mumbai to witness hike in stamp duty
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