The Karnataka government has now reduced the property registration fee for flats which cost less than Rs 20 lakh from 5% to 3%. The decision was taken following a cabinet meeting held by Karnataka Chief Minister BS Yediyurappa. The decision was taken to increase the demand in the affordable housing sector.
The new rate of 3% will also cover industries which are buying a property, whether it is a building or land, law and parliamentary affairs minister JC Madhuswamy told Times of India. The fee cut could reduce the price for home buyers by up to Rs 40,000. However questions were raised over the fact that there are few apartments in Bengaluru which cost less than Rs 20 lakh and that a figure of Rs 50 lakh should be covered by the new rate.
The development comes a month after Union Housing and Urban Affairs Secretary Durga Shanker Mishra asked states to reduce stamp duty on registration of properties and help increase housing sales.
In May, the state government had decreased the registration stamp duty for properties priced between Rs 21 lakh and Rs 35 lakh to 3%. The earlier rate was 5%. Last year, the state government had reduced the stamp duty for properties which cost up to Rs 20 lakh to 2%. In this case too the earlier rate was 5%.
The decision was among other ones taken by the cabinet including the upgradation of 10 gram panchayats to town panchayats including Anavatti in Shivamogga, Holehonnur in Chikkamagaluru, Bajpe in Dakshina Kannada and Srirampura in Mysuru. New court complexes will also be built in Devadurga in Raichur district and Somwarpet in Kodagu district.