Property registration to be at flat 1%

Property registration to be at flat 1%

Mumbai: Revenue department has approved a proposal to levy a flat 1% charge on property registrations with immediate effect, doing away with the Rs30,000 ceiling.

Revenue minister Narayan Rane lifted a stay on an earlier order of the government.

The decision on the 1% property registration fee was taken by then revenue minister Patangrao Kadam early this year but was stayed ahead of elections.

Rane cancelled the cap of Rs30,000 for the registration fee, an official in the revenue minister’s office said, adding the measure is expected to earn the state exchequer Rs250 crore.

According to the new order, if the ready-reckoner value of a property according to the government is Rs1 crore, the registration fee to be paid will be Rs1 lakh, which earlier stood at Rs30,000. The revenue department has also cancelled its earlier decision of waiving stamp duty on transactions carried out by stockbrokers from other states.

“It was observed that many local brokers evaded stamp duty by listing office addresses outside the state. This decision will yield Rs1,185 crore as revenue towards stamp duty," the official said.

Ramesh Prabhu of the Maharashtra Societies Welfare Association has said his organization will challenge the decision to remove the Rs30,000 cap on property registration in court.

“It is not a source of earning revenue, but a service to society," Prabhu said.