Guideline value of property registration in Tamil Nadu cut by 33%, but will homes get cheaper?
Registering properties in Tamil Nadu would get cheaper from Friday as the State Cabinet has slashed the guideline value for registration of sale deed of properties by a massive 33 per cent.
CHENNAI: Registering properties in Tamil Nadu would get cheaper from Friday as the State Cabinet has slashed the guideline value for registration of sale deed of properties by a massive 33 per cent.
The new value would be applicable to all categories of lands. The move is expected to cheer buyers and boost the sagging real estate sector that has been witnessing a steep fall in recent years.
“There were requests from all quarters to reduce the guideline value. The government weighed the pros and cons before arriving at this decision,” said Commercial Taxes Minister KC Veeramani. “We are expecting the registration of documents to go up by at least 10 per cent.”
However, realty experts feel the move will not help reduce prices and usher in a new boom. While the government has slashed guideline value by 33 per cent, it has increased registration fee by 3 per cent. This, they say, will more or less nullify any potential benefit for the consumer.
“This is a move by the government to ensure it does not lose any revenue,” says Suresh Krishn, president of CREDAI. “The increase in registration fee will make it impossible for the developer to pass on the benefits of guideline value revision to the buyer.”
Currently, the government charges seven per cent stamp duty and one per cent registration charges. But with the announcement of additional three per cent registration fee, the developer will now have to pay duties of 11 per cent for sale, exchange, gift and settlement of the documents.
Increase in registration of documents expected by Commercial Taxes Minister KC Veeramani. The decision was taken after assessing the value in other States.