KOLKATA: The Confederation of Real Estate Developers' Associations of India (CREDAI) today welcomed the West Bengal government's move to rationalise property valuations.
Officials of the apex body of real estate developers commended the state government for appreciating the seriousness of implications caused by difference in valuation of properties by the registration authorities and their actual market value.
"Rationalisation of property valuations by bringing in the circle rates to realistic market levels becomes extremely significant, considering that it was crucial to infuse a positive sentiment in the market to support the home owning aspirations of millions of buyers, especially in the LIG and MIG category," Harsh Vardhan Patodia, President, CREDAI Bengal, told reporters here.
The state finance department has corrected the valuation of built-up space in certain localities for residential sector as well as for offices in Sector V of Salt Lake.
CREDAI has also suggested an upward revision of property valuation in certain posh areas like Ballygunge and Alipore wherein the valuation figures were found to be lower than what it should have been.
The key issues in property transactions arose with the difference in valuations and the subsequent impact on stamp duty.
Added to this, was the introduction of new provisions of the Income Tax Act wherein a 32 per cent additional Income Tax was being charged on the differential amount between the valuation by the registration authority and the actual value of the transaction, considering this to be notional income.
Before the rationalisation, the industry was also suffering because high stamp values transactions were not happening as both buyers and sellers were affected because of the central law.