By Accommodation Times News Service
Property buying on Bangalore can become more costly as the government has quietly increase the guidance value i.e. officials cost of land by 40-50% to fund its populist schemes; the rates will be revised by August 1. The Inspector General of Registration and Commissioner of Stamps said, we have impressed the guidance value in 20 districts. Guidance Value is the minimum value fixed by Govt. for the property in respective area. The registration cannot be done on a value less than Guidance Value.
This revision will fetch the government additional revenue of Rs 1,000crore. “In the upcoming budget, it is proposed to increase the stamps and registration duties marginally and it will bring Rs 500crore to the coffers, the officials said that the revised rates came into effect in nine districts. The revision was effected in 11 more districts on July 1. Bangalore and four other districts will be covered in the final phase from August 1.
With the hike in guidance value, sources said that the cost of residential sites has increased by 50%, commercial properties by 60% and industrial properties by 25% in the districts.
The justification given is: the unprecedented growth of secondary cities and towns and the proportionate increase in the value of land.
The state government, through a gazette notification dated June 13, had directed the local valuation committees to increase the rates to fund its populist schemes. It gave instruction on details on the mode for valuation of the properties in gated communities and also those along state and national highways.