A brand new financial year has just begun. The changes proposed in the annual budget 2018-19 will be in effect. Let us look at the major changes in the Real estate sector, particularly in Registration and stamp duty, effective 1st April 2018.
Registration and Stamp Duty
- The current stamp duty rate for gift, partition, settlement and release deed is Rs.1000/-. These rates will be revised and these documents will be charged a stamp duty of minimum Rs.1000/- or 0.25% of sale value, which ever is higher.
- The fee for obtaining certified copy of documents from Sub Registrar Offices (SROs) will be increased to Rs.5 per page in case of documents of more than 10 pages. For documents of 10 pages or below, the existing rate will continue.
- Stamp duty of agreements executed for public works or service level agreements will be levied at 0.1 percent of the total contract value subject to a maximum of Rs.1 lakh.
- The valuation rules as per Income Tax Act will be enacted for valuation of all buildings other than flats or apartments.
- The existing fair value of land in Kerala will be increased by 10 percent.
- The existing stamp duty on Power of Attorney for transfer of immovable property between family members will be increased from Rs.300/- to Rs.600/-.
- Documents relating to surrender of leases before the lease period will be levied a stamp duty of Rs.1000/-.
- All fees and charges on services related to property transactions in Kerala will be increased by 5%.
Related Reading: Step by step guide on how to Register Land in Kerala.
Reference: Kerala Budget Speech 2018-19
Sir I would like to transfer our family land to my brother. Please advise me what to follow and the process to ensure that the document get processed at the earliest.
Dear Sir,
Could you please give us a call at +91 7594 800 900? We shall explain in detail.
Thanks,
Team Transform
If one of the heirs out of the three relinquishes his share to on of the two heirs can a family settlement be done between the other two heirs under the family settlement deed, please explain the process to avoid additional stamp duty.For your information the remaining two heirs have no dispute and would manage the property jointly. Thanks
Hi Murali,
Transactions between family members have lower rates of stamp duty and registration costs than normal transactions. We can make specific comments on the transactions only after seeing the full documentation.
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