Bengaluru: Property prices in the state may mostly rise immediately after the government is looking at the revising guidance value.
The Central Assessment Committee (CVC) consisting of senior officials of the income department is assessing the values of guidance in all districts and can submit their report this month, a senior income department officer said.
Guide value is the basic price of the property set by the government, and property registration cannot go below it.
Karnataka collects tasks of 5.65%, including CESS and additional costs about transaction values, and 1% registration fees at the Guide value.
Mohan Raj, Inspector General Registration and Stamp Commissioner, said, “Revised Guide Value is scheduled every year, but it does not happen for the past two years because Covid-19.
Now, this is truly a correction to improve the gap between the guidance value and the market level Valid.
“Although the quantum of increases is not resolved, the source of the income department says it can increase at least 5% -10%.
In some places, it can go down because it has reached a saturation point.
This revision is expected to increase income that has seen a decrease in stamp duty registration fee Property because of the pandemic and locking, other officers said.
For 2020-21, the target of the income department is Rs 12,655 Crore.
The real estate sector has been surprised because he hopes to cut in the value of the guidance and stamp duty of the property above the RS 45 Lakh.
Former Revenue Minister R Ashoka often said the department will cut the guidance value of 15% -20% synchronous with correction in property prices.
Bengalaru Chapter from the Confederation of the Indian Real Estate Developer Association (Credie) is looking for a 30% reduction in the guideline value, quoting Maharashtra and Delhi which cut the value of the guidance to encourage transactions.
Sait Shabeer, Head of Executive Operations, Property Problems Irshads, said the values of guidelines in several places were slightly lower (15% to 20%) from the market level and higher (20% to 25%) in several places.
“The necessary corrections are needed and reducing uniforms in all zones, even if they are small, it will help drive sales and produce savings for customers.
This savings will return to the market through other expenses by consumers, so that the government will effectively lose a lot,” he added.
Monica Matthias, Director, Hoysala Project, said: “The reduction in the value of guidelines helps buyers reduce the overall price load through the payment of lower stamp duty and sellers (in the second transaction) benefit from the decrease in the increase in capital increases.”
The government will revise the value of property guidance at K’Taka soon
