BENGALURU: Property buyers have been thronging sub-registrar’s offices across the state and city in particular to get their property registered as the guidance value is set to rise from April 1. The increase would make property owners fork out more as registration fees.
The guidance value of the property is set to increase between 10 and 30%. If the value of the property goes up, the stamp duty or the registration will also automatically go up as the property owners would have to pay 7.5% on the total property value as the fee.
Sources in Banasawadi sub-registrar’s office said there is huge rush at all the sub registrar’s office to avoid higher registration fee. People are also looking for auspicious days, he added.
A senior sub-registrar said just because Department of Stamps and Registration is one of the highest revenue spinners it doesn’t mean that the government can fleece public by revising guidance value. An amendment to Karnataka Stamp (Amendment) Bill – 2014 authorised the central valuation committee to revise guidance value to bridge the gap with the market value. But, there is no rationality while revising guidance value. During a slump, the revision should be nominal if not downward, he added.
Because of the slump in real estate sector over two lakh flats are lying vacant across Bengaluru and the number of transactions has fallen. Revising guidance value is like rubbing the salt into their wounds, he said and added that officers are struggling to meet the target.
The hike in the guidance value was proposed in September last year. But, it was put off due to protest from the public, realty sector and some experts. Even the sub-registrars themselves had objected to the government’s move to hike guidance value just to increase the revenue. Recently, the Central Valuation Committee had met district registrars and other senior officials to make preparation to enforce increased guidance value.
Shocker! Property tax to treble!
The property tax is all set to double and even treble across BBMP jurisdiction, with the Palike revising property tax as well as zonal classification.
BBMP Deputy Commissioner (Revenue) Venkatachalapathy said that the revised property tax will come into effect from April 1. The revision will help BBMP net additional Rs 600 crore. The BBMP is making efforts to bring all properties under the tax net and is cracking the whip on those who are paying lesser than the actual property tax. Since the citizens are paying property tax under Self Assessment Scheme, such discrepancies are bound to happen, he said.
The property tax is being revised after eight years, though the Karnataka Municipal Corporation Act 1975 allows the BBMP to revise it once in three years. The tax was revised last in 2008. It was put off because of Assembly and BBMP elections, he said.
Some parts of the newly added areas have developed drastically. The guidance value has gone up and rents too have increased in these areas. The revision of zoning classification will help streamline levying of property tax, said a BBMP source.
Revision of property tax zones is another shocker for residents, which will burn a deep hole in their pockets. At presently, the BBMP has six zonal classifications (A, B, C, D, E and F) with different tax slabs. Properties falling under A zone pay the highest, while E zones pay the lowest. The zones will be revised based on the guidance value. Once an area is moved into a higher zone, automatically the property tax to be paid by the owners goes up. It will range from a few hundreds to a few thousands.
