The state government has reduced the property registration fee for flats costing less than Rs 20 lakh from 5 per cent to 3 per cent. The BS Yediyurappa cabinet, which met on Thursday, took the decision to drive demand in the affordable housing sector.
The new registration rate of 3 per cent will also apply to industries buying a property (building or land), said law and parliamentary affairs minister JC Madhuswamy.
The fee cut will help a new home buyer save up to Rs 40,000. But some realtors are not sure if the measure will help the sector as there are hardly any flats in cities like Bengaluru that cost less than Rs 20 lakh. They suggested that apartments costing up to Rs 50 lakh should be covered under the new rate.
Trade bodies and home buyers, in fact, have repeatedly urged the government to decrease the stamp duty and registration charges to 3 per cent for all properties above Rs 21 lakh.
In May, the government lowered the registration stamp duty from 5 per cent to 3 per cent for properties priced between Rs 21 lakh and Rs 35 lakh. Last year, it had brought down the stamp duty from 5 per cent to 2 per cent for properties costing up to Rs 20 lakh.
Meanwhile, the cabinet on Thursday also decided to upgrade around 10 gram panchayats into town panchayats. These include Anavatti in Shivamogga district, Holehonnur in Chikkamagaluru, Harohalli in Ramanagar, Bajpe in Dakshina Kannada, Srirampura, Bogadi and Kadakol in Mysuru.
In another step, it will outsource the management of Mandya Sugar Factory to private players under a public private model.
