CHENNAI: The state government on Monday announced revision in the guideline value to the rates prevailing till June 8, 2017, as an interim measure, and to reduce the registration fee to 2%.
Finance Minister Palanivel Thiaga Rajan said for deeds of sale and gift exchange, 5% stamp duty, 2% transfer duty and 2% registration fee will be applicable. For non-family settlements, 7% stamp duty and 2% registration fee will be applicable,” he said while presenting the state budget.
The measure will greatly benefit the poor and middle class, especially those who avail of bank loans to buy houses. Guideline value, which was increased on April 1, 2012, was revised downwards uniformly by 33% with effect from June 9, 2017, and simultaneously, the registration fee was increased from 1% to 4% for the deeds of sale, gift, exchange and non-family member settlement.
The move of the government has been hailed by the industry. The key component of residential prices remains the taxes that state governments levy as stamp duty and registration charges at the time of a transaction. The government levies a stamp duty of 7% and a registration fee of 4% which now comes to 11% and is the highest in the country. These charges are paid by the buyers of land or built property.
A Mohammed Ali, the president-elect of Credai Chennai, said home buyers would greatly benefit from the drop in registration fees from 4% to 2%. Although home interest loan rates have been rising, the reduction will encourage more people to buy homes.