Telangana government has recently increased the prices of the TSRTC bus charges seems to be making another key decision. It is looking at revising the land registration charges in Telangana, cities such as Warangal and Karimnagar as well as the surrounding districts of Hyderabad where real estate is flourishing. Some officials held a meeting with real estate developers and informed the proposals of the government as it would increase the land value for registrations. Committees have already been set up to work out TS land registration improvements.

How Much Can the Land Registration Fee Be Raised?

Officials are considering plans to raise the TS land registration fee to at least 30 percent and in some cases go up to 50 percent on the existing land registration value. Now the registrations and stamps department charges a 6 percent fee on open plots and flats. These prices were revised in 2013 according to market value. 

Chief Minister K Chandrasekhar Rao made clear his intentions to increase property tax in gram panchayats and municipalities but hurried to add that the poor would be spared. The rich and commercial establishments will have to pay more to make the local urban bodies self-reliant.  From the coming April, 1 people may have to pay more property tax and property registration fee. 

The government also plans to increase the power tariff for domestic as well as industrial customers. The DISCOM's have not provided the Annual Revenue Requirement (ARR) to Telangana State Electricity Regulatory Commission (TSERC). For industrial users, the hike is expected to be at least Rs 1 per unit to Rs 5.

Telangana Southern DISCOM's Chief General Manager said the energy department is buying power and providing a 24x7 supply to all categories of people including agriculture. There's a huge gap between demands for sales and earnings. The government may allow them to tariff upgrade.

Chances to Increase Stamp Duty

This is shocking news for people wanting to invest in land and properties in Hyderabad. Nevertheless, there has been no final decision. The government can increase the value of land where there is a huge difference between the registration (government) value and prevailing market rates. If the value of the land rises, this will raise the stamp duty substantially due to the cost of registration in all parts of Telangana including the East Hyderabad.

Generally, property owners pay 6% of the market-value registration fees for their properties, comprising 4% stamp duty, 1.5% transfer duty, and 0.5% registration fees. The increase in the land value will raise the Telangana property registration charges automatically. Officials in the registration department said that the targets were set to Rs 6,100 crore for the current year (2019-2020), but until now, only around Rs 5,000 was raised. Going according to the current trend, the department could collect 500 crores. In the last fiscal year, the department was able to earn Rs 6,600 crore, while its goal was Rs 5,100 crore.

Meanwhile, the government would revise land values on August 1 every year as per the existing rules. As it aims to improve in about a month after forming land revision committees at Mandal, revenue division, and district level, the rules of the registry department must immediately be amended to apply the increased rates. By already rising bus charges, the Government would generate additional revenues, and now it is expecting more revenue by raising the value of the land too. Hyderabad real estate is exceptionally reliable for the past three years, which leads to a higher demand for residential properties. The strong demand for space results in growth in terms of appreciation and activity in the real estate industry.

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By: Shailaja K