The Stamps and Registration Department, as an annual exercise, is in the process of revising the guidance values of all commercial and residential units in Bangalore Urban, Rural and Ramanagara district.
Look upwards; pay more!
How has the new guidance value affected the realty market in Bangalore? What is the new guidance value criteria for apartment? Click here to read.
Last year, the Department received 19 lakh property registrations from April 1, 2012 to March 31, 2013, in all 47 sub registrar offices and realised an amount of Rs 5.265 crore. Of this, 17% of the applications were from Bangalore, and were mostly residential properties.
The stamp duty and registration fee are also expected to increase. So far stamp duty and registration fees together amounted to 6% of the registration value.
Speaking to Citizen Matters about this, Adhoni Syed Saleem, who is the Inspector General of Registration and Commissioner of Stamps and Chief Controlling Revenue Authority said: “Compared to last year, the guidance value has been increased by 40-50% in some areas. As per rules, revising the rates is an annual affair. Last year they were revised in the month of September.”
The Department issued a preliminary notification of revision of the market valuation guidelines for Bangalore urban, rural and Ramanagara district on July 17, 2013, on their website.
How does the govt revise guidance value?
Objections are being given to the sub-registrar, who further hands them over to district registrar. He goes through them and sits with the Central Valuation Committee (which comprises officials of Bangalore district heads, heads of various civic bodies like BMRDA, town planning and financial heads), to check the objections and take suitable decision.
This committee will go through all the objections and make the necessary changes in the notification document as per requirement. Final notification of revised guidance values will be released after August 12, 2013 at the official website http://www.karunadu.gov.in/karigr/
Less registration value, loss of revenue for govt
Saleem explains that the new guidance value is almost nearer to the market value. “Over time, we found that people would undermine their value to pay less stamp duty. So we did a survey of the areas for a duration of 3-4 months and we declared a document of the guidance value of each property, which is slightly lesser than the present market value (for example if a property costs Rs.1 crore, we have quoted a price of Rs 70 lakh). This has been done, so that people do not feel burdened,” says Saleem.
Stamp duty is levied based on the amount declared on the sale deed, that is the value of the property which both the buyer and seller are willing to declare on record. Usually there are some real estate deals where the registration is done for a lesser value than the actual market rate, hence paying less money to government as stamp duty and registration charge. In this deal, government loses money.
Guidance value much lesser than the actuals
Saleem points at one of the objections that says that the guidance value which the Department has proposed is much lesser than the actual value. All such suggestions are being incorporated and the necessary changes are being made in the notification.
He further adds that a person should show the guidance value of the property at least equivalent or higher than that while paying taxes. If not, the sub-registrar keeps it aside and refers it to the district registrar, who then issues a notice to the property owner and even inspects the property if necessary. After this, the district registrar gives his remarks and ascertains the guidance value of the property. This time, it could be higher than the value or equivalent to the market price. This then cannot be questioned.
How to suggest revisions in guidance value?
Saleem points that after the survey or even after the notification, if people are unhappy with the guidance value, they can write to the district registrar, after which the committee will scrutinise the case and come to a consensus.
As of now, the provisional notification can be seen by clicking at the scroll running at this website: www.karunadu.gov.in/karigr/
There are no other direct links available on the website. Also, the website doesn’t specify the last date for writing in the objections. However the date is August 12.
When you click on the running scroll, it will ask you to download a file archive, which is in .rar format.
Download it and unpack it using suitable software.
The files are in Kannada. If you don’t know the language, you cannot read it!
Look for your location and find the proposed guidance value. This will take lot of time, as the guidance value list is very detailed, with every main, every cross, every floor, every floor-type having different guidance value.
If there is any objection from your end, write to Adoni Syed Saleem, on email: email@example.com.
The list still contains many aberrations. For example, sites in J B Kaval in Vidyaranyapuram have a market rate of Rs.3,800-4,000/sqft, but the proposed guidance value is mere Rs.1,800/sqft, which is less than half the market rate.
The Department, till end of July 2013, has received 450 objections. There are more objections coming in. If you too want to object, do it now!