According to Revenue Minister Krishna Byre Gowda, the state will gain an additional Rs 2,000 crore from the modification in the form of stamp duty, which is assessed on the sale price of the property. Although the law mandates that the guideline value be increased by 15% annually, there was no modification after 2019, or for 4.5 years.
Source: Mint
Whether correctly or incorrectly, the Covid epidemic was blamed for the decision not to increase the recommended value. Chief Minister Siddaramaiah set a goal of Rs 25,000 crore for the Stamps and Registration Department for the fiscal years 2023u20132024 in his budget speech. A Geographical Information System (GIS)-based system for calculating guidance value had also been pledged by the Chief Minister.
While the new prices would be imposed at the district level gradually, they will go into effect in Bengaluru on October 1st. The actual market price at which a property is sold or registered and the guideline value on which stamp duty and capital gains tax are paid currently differ significantly.
The market price of a property in Electronics City and the adjacent areas is approximately 500 times the guiding value, according to the Revenue Minister. The market price is more than Rs 10 crore if the guiding value for properties near national highways is somewhere between Rs 5 and Rs 10 lakh per acre. The advice value will be modified by 50% in these cases. It is typical to pay the discrepancy between the guideline value and market value in cash to avoid paying stamp duty and capital gains tax.
Source: Public TV
The Income Tax administration has emphasised numerous times that failure to record transaction prices accurately results in the creation and investing of black money. Such transactions enable the buyer to transform undeclared riches into immovable property while transferring undeclared wealth to the recipient.
Due to the stamp duty component increasing along with the guiding value revision, there may be a small increase in real estate prices as a result of the modification. But because it would promote openness, reduce the use of dark money, and raise government revenue, the action is in the best interests of the state, the real estate industry, and property buyers.
What do you think about this? Comment below.
