Thiruvananthapuram before it turns a costly affair –Nos of property registrations go up
THIRUVANTHAPURAM: With the revised stamp duty and registration fee for property transaction between family members to be effective from Monday, sub-registrar offices across the state have been witnessing an unprecedented rush.
In the one week that followed the budget presentation that announced that the charges would go up, the total number of registrations reached 29,634, more than double the figure in the preceding week (13,313).
This has resulted in the government earning Rs 7.37 crore more, touching Rs 11.81 crore, as against Rs 4.44 crore in the previous week.
The finance minister, in the budget presentation on July 8, had announced cancellation of concessions for all types of property transactions between family members, which has been a maximum of Rs 1,000 as stamp duty and a maximum of Rs 25,000 as registration fee. As per the revised charges, 3% stamp duty will be imposed on transactions between kin. Also, it lifted the cap on registration fee.
Such transactions include gift, settlement, partition and release. Of this, the existing stamp duty for gift and settlement is 2% (subject to a maximum of Rs 1,000), while for partition and release it is 1% (subject to a maximum of Rs 1,000. The registration fee will be 1% of property value.
According to registration department sources, ‘settlement’ would be preferred over ‘gift’ for multiple reasons. While ‘gift’ is given without any consideration, which also makes it irrevocable once executed, ‘settlement’ is both revocable as well as beneficial under the exemption clause of the Income Tax Act if given on charity.
On Saturday alone, the total number of documents registered across the state crossed 10,000, which is an all-time high. Usually, the average number of registrations per day comes around 2,500 to 3,500. The number of registrations under other categories – release and partition – have also doubled in the past one week.
According to registration department sources, the rich class have been enjoying the benefit of having an upper cap as only Rs 25,000 has to be paid irrespective of the value of the property.
In addition, the budget also announced that the stamp duty will be hiked by 2%, which means a customer will have to pay 10% of the property value as stamp duty and registration fee. The state exchequer is all set to mop up at least Rs 500 crore through the hike .