Home buyers In Indore Are Upset Over The Proposal Of Increase In Stamp Duty On Property Registration?
INDORE. The revenue department has kept the minimum target of Rs 1,150 crore from property registration in Indore, but only revenue department says it has hardly received the half of the targetted amount. And now to achieve its revenue target the state government is planning to increase the stamp duty on property purchase in Indore by at least 1%.
Experts suggest that this decision is likely to push the recession in Indore real estate market deeper into distress. Actually, Indore contributes 30 percent of the total revenue collected by Madhya Pradesh from real estate market. This is already much below the expected collection and state is suffering huge losses. As per official figures from registrar office, this fiscal a target of Rs 1,150 crore was estimated from Indore, only Rs 613 crore has been received by the department.
Still, during the current fiscal year, we are lacking a great deal, though “In the next 30 days Indore’s revenue department is expecting the collection of Rs 100 crore. While the condition of real estate in Indore is getting worse with each passing day. Adding to the woes of home buyers, online registration is creating difficulties on their behalf,” says a consultant at registrar office. Scanning documents, filing stamp papers and completing another documentation is a long process. Registrar office is doing not more than five registries daily. “Earlier guidelines rates have created many problems for the buyers. Within this budget, the government increased the stamp duty which will burn a hole in common man’s pocket,”. Especially those who booked flats in Housing projects of Indore coming up in its outskirts and are soon to be delivered and get registered. Property developers have been facing a slump in the market due to less quantity of registries
Confederation of Property Developers’ Associations of India (CREDAI) claimed that real estate sector is facing huge slump and the like policies of government would worsen the problem. “After purchasing a house of Rs 50 lakhs now you will need to add almost Rs 1.5 lakh more. One per cent stamp duty from your state budget and 15 per cent service tax from the central budget would make it hard to purchase your dream home,” said Sandeep Shrivastava, Chairman, CREDAI.
Earlier, the e-filing procedure for the registries had made the procedure tedious for buyers. “Even after 1 year it takes considerable time to scan documents and after that consumer has to wait in the long queue at the registrar office. It turned out to be a huge loss for the government. Well, it was expected that the new system of property registration would facilitate and expedite online registration and make the procedure more transparent, hassle free and secure.
Nowadays, purchasing a home is one of the major priorities for any common man. And after the booking of flat if the registry is not done, then it may affect the disbursement of home loans from banks,” he added. “I haven’t got my land registered. It is worth Rs 60 lakh. I guess I will need to shell out more for the registration. There are so many documents that need to be scanned and uploaded to the website,” said GK Singh, a businessman who is waiting for the registry of his land at Mahalakshmi Nagar.