The Registration Department of Tamil Nadu implementing new guideline values from April 1, 2012.
The last revision was in 2007 and the current revision rates in line with the prevailing market prices. This exercise will help increase the revenue from this levy.
Government of Tamil Nadu, after 2007 guidelines value did not increase since it increased the current value is about two to three fold.
Thus, the the black money transfer in property registor greatly reduced. At the same time, the amount will be spent by public significantly increasing
Before April 1, 2012 in Tamil Nadu, the stamp duty of 6%, surcharge of 2% and registration fee of 1%, total 9% are set for real estate property registration. After April 1, 2012, the stamp duty of 5%, surcharge of 2% & registration fee of 1%, total are set for plot of land and house property registration
In the Tamil Nadu state, land value is unlikely to be below Rs.1 lakh an acre anywhere. So, low land values have been largely corrected that is increased in many fold.
If Seller feels that why should he/she sell the property less than guideline value, then he/she may not sell the property.
On the other hand, if one says , whatever increase in new guideline value, I may not sell the property in near future, then it is only paper profit for them & they need not worry about increase in guideline value.
Definitely buyer of properties ( Residential, Commercial or Land ) will postpone their purchases thereby there will be noticeable decline in real estate business.
But those buy the properties also, will not register the property in their name instead they may go for Irrevocable power of Attorney, which cost only Rs.10,000 as stamp duty. In such sense, there will not be any sluggish in real estate business.
If a person buying used flat as second purchase , then he has to pay stamp duty (7%) and registration charges (1%) on entire Built up area of the flat, which will definitely be a huge burden for second purchase buyers.
The last revision was in 2007 and the current revision rates in line with the prevailing market prices. This exercise will help increase the revenue from this levy.
Government of Tamil Nadu, after 2007 guidelines value did not increase since it increased the current value is about two to three fold.
Thus, the the black money transfer in property registor greatly reduced. At the same time, the amount will be spent by public significantly increasing
Before April 1, 2012 in Tamil Nadu, the stamp duty of 6%, surcharge of 2% and registration fee of 1%, total 9% are set for real estate property registration. After April 1, 2012, the stamp duty of 5%, surcharge of 2% & registration fee of 1%, total are set for plot of land and house property registration
In the Tamil Nadu state, land value is unlikely to be below Rs.1 lakh an acre anywhere. So, low land values have been largely corrected that is increased in many fold.
Notional Increase..!
Some common people are very happy that by increase in guideline value their plot of land and house property price will be increased but it is a notional increase. You have to see whether any buyer for your property based on the new guideline value. Otherwise, buyer may want to buy the property at a price lesser than new guideline value which could be the actual market value, whereas property will be registered with new guideline value forcing buyer to pay stamp duty (7%) and registration charges (1%) on new guideline value.If Seller feels that why should he/she sell the property less than guideline value, then he/she may not sell the property.
On the other hand, if one says , whatever increase in new guideline value, I may not sell the property in near future, then it is only paper profit for them & they need not worry about increase in guideline value.
Sluggish Real Estate Business..!
But those buy the properties also, will not register the property in their name instead they may go for Irrevocable power of Attorney, which cost only Rs.10,000 as stamp duty. In such sense, there will not be any sluggish in real estate business.
Huge Burden For Second Flat Buyers..!
For flat buyers from salaried people, who are majority in numbers, will definitely be affected. Because they have to register the property for Un - divided Share (UDS) 0f Land with new guideline value . Stamp Duty 7 % & Registration charges 1 % has to be paid on new guideline value.
If a person buying used flat as second purchase , then he has to pay stamp duty (7%) and registration charges (1%) on entire Built up area of the flat, which will definitely be a huge burden for second purchase buyers.
Black Money controlled..!
It is a good decision to stop the black money into real estate which has irrationally increased the value and middle class people could not afford it any more. And, it will reduce flipping properties by real estate brokers and gobbling of real estates by corrupt politicians. So, black money will be controlled but we have to accept that guideline values have been increased erratically in so many areas.
This is a very good decision. In addition to controlling black money this will bring transparency in real estate deals as everybody can find the going price in an area without relying on real estate brokers.
Happy News to Home Loan Takers..!
Those who want to avail housing loan will have to shell out more and those who avail mortgage Loan will be benefited because of increase in guideline value the loan amount they will get will be higher. Guideline value increase would make easy for buyers to get loans from banks on buying plot of land and house property.
Accept the Tamil Nadu state government policy, genuine buyers will buy at any government fixed rate. Only thing is registration fees should be decreased. Tamil Nadu government should rethink and reduce the Stamp duty and registration fees from 8% to 6% or 5%.
Accept the Tamil Nadu state government policy, genuine buyers will buy at any government fixed rate. Only thing is registration fees should be decreased. Tamil Nadu government should rethink and reduce the Stamp duty and registration fees from 8% to 6% or 5%.
Price Will Come Down..!
Real estate price will come down to match the new tax rates. Government benefits..General public and real estate agents are affects for some time.
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