Hyderabad: In a boost to individual property buyers and the overall realty sector in the state, Chief Minister N. Kiran Kumar Reddy gave his go-ahead on Wednesday to reduce stamp duty significantly, which will bring down property registration charges.
Realtors said that the government’s decision will legalise property registration activities and check “shady transactions”, which had been prevalent in the realty sector due to higher registration charges.
This will be a win-win situation for both consumers and the government since the revenues for the government will also increase significantly.
Stamp duty reduced
Hyderabad: In a boost to individual property buyers and the overall realty sector in the state, Chief Minister N. Kiran Kumar Reddy gave his go-ahead on Wednesday to reduce stamp duty significantly, which will bring down the property registration charges.
Realtors said the government’s decision will legalise property registration activities and check “shady transactions” which had been prevalent in the realty sector due to higher registration charges.
This will be a win-win situation for both the consumers and the government since the revenues for the government will also increase significantly. “It’s the end users (costumers) who were adversely affected on account of higher registration charges all these years.
The developers used to pass on the burden of higher registration char-ges to the customers. With this, properties had became unaffordable for people of middle-income groups. Moreover, it also encouraged builders and buyers to engage in shady transactions to avoid paying higher registration charges.
“Instead of registering the properties, people opted for ‘on-paper’ tran-sactions. The reduced stamp duty rates will legalise the entire registration process in the state. We consider it as a historical decision taken by the CM. We have demanding this for years,” said M. Vijaya Sai, secretary general of APREDA.
The higher stamp duty on gift deeds had also prompted people not to go for registration of properties if it was transferred to members within the family. This issue has also been addressed by reducing the duty to 1 per cent from 5 per cent.
Mortgage without possession in favour of government or local bodies or UDAs to ensure compliance to building/layout rules has been fixed uniformly at Rs 5,000 inst-ead of the earlier 0.5 per cent; “other than above” has been kept unch-anged at 0.5 per cent.
