Prospects of property registration fees to come down?
Posted on: 27/Jan/2020 11:19:25 AM
The Tamil Nadu State Government has received appeals from various fronts to reduce the registration during the property transactions. The appeal demands that the present rate of 4% Property Registration Tax to be reduced to 2%.
Much earlier, the prevailing charges for stamped bond paper for property registration was 8% and the registration charge was 1%. The stamped bond paper registration charge was reduced to 7% a few years ago. Subsequently, during the year 2018, guidance evaluations were reduced. At that time, the property registration charge was revised upwards from 1% to 4%.
Thus, those who are doing property transaction now need to pay 7% for the bond-paper registration and 4% registration charge at a total high charge of 11%. This is a heavy burden on the property buyers! So, the public and the affected parties from various fronts have been appealing to the state Government of Tamil Nadu to reduce this.
Subsequently, the Tamil Nadu Chief Minister E. Palanisamy has acknowledged this and has been observing in various meetings that the present charges will be thoroughly reviewed.
The construction field experts observed regarding this issue:
‘Currently, the state of Tamil Nadu charges the highest rates for property registration in the country. This rather higher rate is a huge burden on the house buyers, especially those who belong to the middle and lower economic cadre.
In this regard, the state government has been initiating various activities to facilitate and encourage the public to buy their own property. Accordingly, it should come forward to reduce the property registration charges to a reasonable level.
Presently, the review of this issue is in progress among the senior officials of the Department of Property Registration. If a proposal is made regarding the reduction and it gets approved by the financial department, there will be no difficulties in implementing the revision.
In this scenario, we are eagerly expecting the government to take a positive decision in this regard.’
