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In the property registration cost, TN ranks second among all states
Posted on: 13/Jul/2019 10:02:51 AM
Among all the states in India, the state of Tamil Nadu is now second in the property registration cost. Information collected is TN levies one of the highest stamp duties and registration fees and this has caught the attention of many now. The state of Bihar levies 16 % charges and TN comes next to Bihar with 7% on stamp duty and 4% registration fees. The state of TN is followed by Kerala and Puducherry with 10 % registration charge.
To push administrative reforms and to attract investments, many states have taken progressive route and brought down the registration cost. The interesting information is in the states like Assam, HP and Odisha etc the total cost of registration is as low as 5 %. It is worthy to note that the state of Karnataka levies 5.6% stamp duty and 1% registration fees and Telangana levies 6% and AP levies 7.5%.
Point to be noted is some states like Assam and union territories like Puducherry, Delhi etc have different rates for males and female categories. On women, Assam levies 4% stamp duty and 1% registration fees. On men, Assam levies 5% stamp duty and 2% registration fees. Union territories like Puducherry and Delhi also levies less charge on women. In the last financial year, the state of TN recorded 21% increase in the registration revenue and 16% increase in the number of registered documents.
It was later mentioned by a developer from Chennai that the growth of TN might be dampened due to high stamp duty and registration fees. After the revenue from Tasmac, revenue from registrations is the second highest source of revenue for TN. It is now said that TN do not want to reduce the revenue by slashing stamp duty and registration fees. A senior bureaucrat expressed his thoughts and spoke about how the government is looking at the sector only from the revenue point of view.
He explained about how by reducing the rates the government would encourage more transactions and give boost to the economy. Finally he commented about how buoyancy in the economy would ensure better growth and revenue. Information gathered now is people instead of doing registration for property deeds are taking power-of-attorney route.
It is revealed that the centre has been pushing the affordable housing segment with incentive such as reduced GST, income tax exemption for the developers etc. The state must also look at bringing down the cost of affordable housing.
