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In an effort to leverage the thriving real estate industry, the government plans to increase the guidance value and promote online property registration through the introduction of the web-based application, Kaveri 2.0. Due to the impact of the COVID-19 pandemic, the guidance value has remained stagnant since 2019, deviating from the annual tradition of a 15 percent upward revision.
The proposal to raise the guidance value has been approved by the BJP government and may be resubmitted to the new government if deemed necessary. Insiders suggest that Chief Minister Siddaramaiah is supportive of this measure as it would enhance government earnings by approximately 20 percent without significantly inflating real estate prices. The guidance value is the minimum amount at which property deals are registered and influences the calculation of stamp duty and registration fees based on property location.
Stamp duty rates vary depending on the property's value, with buyers paying 5.6 percent for properties above Rs 45 lakh, 3 percent for Rs 20-25 lakh, and 2 percent for properties below Rs 20 lakh. Additionally, a 1 percent registration fee is levied on top of the stamp duty, regardless of the property's cost. Increasing the guidance value is expected to boost government revenue accordingly.
Furthermore, the government has launched Kaveri 2.0, an online platform for property registration, in 45 sub-registrar offices on May 29. The phased implementation of Kaveri 2.0 began with a pilot project in other districts, and the final phase was saved for Bengaluru, the city with the highest number of registrations. The aim is to address any glitches and ensure a smooth registration process. Mamatha BR, the inspector-general of registration and commissioner of stamps, emphasized the government's commitment to exploring all possible avenues for generating additional revenue.
As the real estate industry continues to expand, there is an opportunity to capitalize on this positive momentum for further progress. By raising the guidance value and promoting online registration, the government aims to enhance its earnings while streamlining the property registration process. These measures are expected to benefit both the government treasury and the growing real estate sector in cities like Bengaluru.
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