Karnataka government cuts property registration fee from 5% to 3%

BENGALURU: The state government has cut down the property registration fee for flats cost less than Rs 20 lakh from 5 percent to 3 percent. The BS Yediyurappa cabinet decided to demand in the affordable housing sector. Parliamentary affairs minister JC Madhuswamy said that the reduced registration rate of 3 percent will be applied to industries buying a property (building or land). The fee cut will save the money of home-buyers up to Rs 40,000. A few realtors are not sure whether the measure will help the sector because there are very few flats in cities like Bengaluru that comes under the price range of Rs 20 lakh. They also mentioned that apartments cost more than Rs 50 lakh should be covered under the new rate. Besides that, the trade bodies and homebuyers urged the government to reduce the stamp duty and registration charges to 3 percent for all properties cost more than Rs 21 lakh. The government has cut down the registration stamp duty from 5 percent to 3 percent for properties priced between Rs 21 lakh and Rs 35 lakh in May. For properties costing up to Rs 20 lakh stamp duty was reduced from 5 percent to 2 percent last year. On Thursday the cabinet has also decided to upgrade around 10 gram panchayats into town panchayats. It includes Anavatti in Shivamogga district, Holehonnur in Chikkamagaluru, Harohalli in Ramanagar, Bajpe in Dakshina Kannada, Srirampura, Bogadi, and Kadakol in Mysuru. In addition to that, it will outsource the management of Mandya Sugar Factory to private players under a public-private model.