Considering the recommendations of the authorities, the government is planning to increase the registration values keeping the current market value of the land in view The Cabinet sub-committee on resource mobilisation headed by Finance Minister T Harish Rao, which met decided to recommend to the government to increase land values and the registration fee. The government is likely to take a decision on this shortly.
The sub-committee, which met on Tuesday and attended by ministers KT Rama Rao and Vemula Prashanth Reddy and chief secretary Somesh Kumar, said the land values for property registrations were last revised in 2013. Though the land market rates have increased exponentially in the past few years and there was a provision in the Act to revise the rate every two to three years, the registration values have not been revised after formation of Telangana.
The hike may be between 20 to 50 per cent, depending on the location of the land or flat. If the stamp duty is six per cent and the government value of the property is Rs 20 lakh, the amount to be paid to the Registration Department will be six per cent of Rs 20 lakh. If the value of the property is doubled, then buyers have to pay six per cent of the stamp duty on Rs 40 lakh.
However, the market value of the land in the State is now much more than the registration value. This is not only causing severe revenue loss to the government but also posing a challenge to the denizens in the aftermath of demonetisation. Due to low registration values, people are able to avail only a small portion of their expenditure as bank loan. However, the officials are of the view that unless the government acts immediately and increases the land registration values, the situation could go out of hands causing unnecessary revenue loss to the State government as well as result in an irrational speculative market.
However, buyers will have an advantage too. If the values of the properties are increased, they could get more loan from the bank based on the upward increase in property values. It may be mentioned here that the values of lands and stamp duty had not been increased since the formation of the State in 2014, whereas the AP government has enhanced the value seven times.