HYDERABAD: In a move aimed at cash in on the prevailing real estate boom in AP, chief minister Chandrababu Naidu has given his nod for increase in the rate of land registration and stamp duty across the 13 districts. The move is expected to fetch an additional revenue of Rs 1,500 crore annually to the cash-starved exchequer.
The revenue department has finalized the rates and the revised rates are slated to be implemented from December 1. "The proposal to increase land registration rates and stamp duty has received the approval of the state government. We will issue orders in this regard soon," revenue principal secretary SP Singh told TOI.
As per the revised rates, stamp duty on all transactions will be increased to 5% from the current 4% and land registration fee, which is pegged at 0.5% of the market value, is to be doubled to 1%. All deeds executed between family members will attract a 2% fee as against the present 1%. Other deeds, including settlement, transfer and mortgage are to be subjected to higher fee ranging from 2 to 4%.
The last time land-related fee and duty was revised was in November 2013, effected by the Kiran Reddy government. By reducing the fee in some categories and increasing it in other, the then government has realized Rs 6,800 crore in the last financial year. Earlier, in March 2013, the Kiran Reddy regime had reduced the stamp duty from 5% to 4%. Faced with empty coffers, the TDP regime is now set to reverse the stamp duty to 5%.
After bifurcation, the TDP government had directed the sub-registrars in the 13 districts to review the land value as land rates had soared drastically in the wake of reports about the construction of the new capital and setting up of industrial hubs and premier educational institutions. As a result, across the state, revenue collection due to land-related activity doubled between June-October 2014 compared to the previous year. "In the wake of the boom in real estate activity, a hike in property rates was waiting to happen," said an official.