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Stamp duty fee decrease this year was an advantage for Chennai property buyers

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Outlook for 2014
 
Are you buying a property in Chennai? When you factor in the costs involved in buying a house, you must keep in mind the registration and stamp duty charges which are integral to the total amount you shell out for the purchase. In Chennai, property buyers this year have an added advantage as the stamp duty fee has come down to seven per cent in April this year from the previous eight per cent.
 

While stamp duty is a tax levied by state governments on the property, registration value is levied for keeping the records of the sale document. Although these charges are compulsory but they vary from state to state depending upon the federal or municipality laws.

In Chennai, the registration charge is the usual one per cent, like in most metros. Experts believe that after the decrease in stamp duty fee, the sector is going to be more organized now as buying improves and the political control eases in the real estate sector. However, as the stamp duty has come down, the guideline value has increased. So, this decrease is like an ‘eye wash,’ experts say.

The stamp duty in the city is charged not on the basis of market value of a property, but on the basis of Guideline value set by the state government. The Government rate or the Guideline value is different from the market value and is calculated keeping in mind the volume and nature (primary or secondary sale) of transactions in a particular area. As for the revision of stamp duty, it is an activity which takes place once in about 5 or up to 10 years (at times).


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