Collections of stamp duty and registration fees on property transactions across the country could be more than doubled and be raised to about Rs 1.5 lakh crore through a new approach, growth policy and greater transparency with reorganization the system for the common man.
Maharashtra alone in the country accounts for over 25 pc of stamp duty and overall taxes on property deals as the state has largely arrange tax administration in the area, thereby curving elision.
Other states like Kerala, National Capital, Haryana and Punjab too maintain healthy collections, which are reflected on the real estate market in the respective states. The Maharashtra pattern of administration should be studied and followed by other states and should adopt necessary amendments also.
With property prices are rising in most of the cities and price of agriculture land too raising sharply, a progressive policy is must for the country.
The registration fees and capital deals form a huge component in the states revenue basket. In India, where property deals are regarded as shady and undervalued to avoid payments via stamp duty and registration fees, a new path to this aspect can bring good result in much larger collection.
Taxes on property deals cover two aspects stamp duty and registration fees, besides land revenue and tax on urban property tax. The segment covers a huge financial sector which determines the flow of savings, housing, and property holding.
A very close look at various aspects of revenue will result greater transparency in economy and also a good inflow of revenue. This can be implemented in both rural and urban areas.