Property registrations revenue touched a new high, with 12,700 crore revenue generated till the second week of March this fiscal.
This is a leap with respect to revenues of 1,672 crore and 2,057 crore in 2019-20 and 2020-21. Chennai and Coimbatore zones have together contributed around 60% of the total income. Revival of the real estate sector post-Covid appears to be the key driver in pushing up property registrations.
The Chennai zone comprising the city, Chengalpet, Kancheepuram and Tiruvallur districts contributed about 45 % of the total income, followed by Coimbatore zone (comprising Coimbatore, Erode, Tirupur and Nilgiris districts), which recorded a share of 12% to 15%.
An increase in sale of apartments was a major factor in Chennai zone, and the registration department is expecting an income of 13,500 crore by the end of the current fiscal. Revenue through stamp duty and registration fee account for 10%-12% of the revenue generated in the state that directly goes to the state government coffers.
In a statement, minister for commercial taxes and registration P Moorthy said the revenue of 12,700 cr this year was the highest ever recorded by the registration department. Pointing out that the sub registrars and public should register properties as per the guideline value, he said action is being initiated against those found to be registering properties with a lesser guideline value.
Registration secretary B. Jothi Nirmalasamy said that revival of the realty sector was a major factor since property registrations that could not be transacted after the outbreak of Covid-19 in 2020 were registered a year later.
Suresh Krishn, president of CREDAI (Tamil Nadu chapter) said the state government should reduce stamp duty and registration fee as this could be an incentive to have more property registrations, he added.