Property deals in K'taka set to cost more as state plans 20% hike in guidance value
Bengaluru: Property transactions across Karnataka are set to become more expensive from April 1, with the state government initiating steps to revise the guidance value of land and buildings, a move that will have a direct bearing on stamp duty and registration charges.
Acording to sources in the government cited by Deccan Herald said the average increase in guidance value is likely to range between 15 per cent and 20 per cent, though a final decision is yet to be announced. The Department of Stamps and Registration has been instructed to complete the necessary formalities and publish the draft revised rates at the earliest.
A senior official told Deccan Herald that existing rules permit annual revision of guidance value in view of rising property prices. The last revision was carried out in October 2023 and the process for the current revision began after a meeting of the Central Valuation Committee on January 12.
Officials associated with the exercise were quoted as saying that the proposed revision aims to narrow the gap between prevailing market prices and government-notified guidance values. They maintained that the exercise is routine and not directly linked to the state’s revenue position.
The state had initially set a target of ₹28,000 crore from property registrations, which was later reduced to ₹25,000 crore. The reduction was made following difficulties in registrations after e-khata was made mandatory. Noting that property registrations typically increase in the closing months due to tax considerations, officials indicated that there is currently a shortfall of around ₹3,000 crore, which they expect to bridge by the end of the financial year.
An upward revision in guidance value would raise the minimum value at which properties can be registered. At present, buyers pay 5 per cent of the guidance value as stamp duty, 2 per cent as registration fee and 0.60 per cent as cess and surcharge, taking the total levy to 7.60 per cent.
Deccan Herald quoted Suresh Hari, former secretary of CREDAI, as saying that a revision in guidance value may be justified in line with market trends. He also cautioned that if it becomes the basis for calculating stamp duty, overall transaction costs for buyers would increase.
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Deputy Lokayukta Justice B. Veerappa conducts surprise inspections in Udupi, pulls up officials
Udupi: Deputy Lokayukta Justice B. Veerappa carried out surprise inspections at multiple locations in Udupi early Friday morning and expressed dissatisfaction over shortcomings in maintenance and sanitation.
The inspection began at the wastewater treatment plant in Nittur, where Justice Veerappa observed what he described as serious lapses in its functioning. He questioned the concerned officials, including the Municipal Commissioner, over the alleged discharge of untreated wastewater into the sea.
“You, who receive Rs 3 lakh every month for the maintenance of the unit, are discharging the wastewater directly into the sea without treating it,” he said during the inspection. Officials from the Environment Department were also pulled up in connection with the matter.
The Deputy Lokayukta later visited Malpe Port to review sanitation conditions. He noted the presence of accumulated waste, sewage flow and foul smell in and around the port area, and directed the authorities to take immediate corrective steps to improve hygiene.
Justice Veerappa also inspected the KSRTC bus stand at Bannanje, including the cleanliness of the canteen premises. During the visit, women staff working at the canteen brought to his notice the absence of facilities such as ESI benefits. He directed the contractor to address the issue without delay and indicated that further action would be taken if compliance was not ensured.
