Thiruvananthapuram: The stamp duty for flats or apartments transferred within six months from the date of allotment of building number by the local bodies was revised to seven per cent from five per cent in the Kerala budget presented on Friday.
Stamp duty had been reduced in 2010 in view of the impact of global economic recession in the real estate sector.
The additional stamp duty rates imposed for resale of land purchased within a period of 3 months and 6 months will also be waived off.
With an objective of bridging the gap between the market value for land and the fair value, the budget also proposed an increase in the existing fair value of land by 20 per cent.
The Finance Act, 2020, incorporated provisions to increase the fair value of land up to 30 per cent in areas where the market value has increased due to various reasons.
A detailed study will be conducted to determine the guidelines to identify the areas that need to be notified, Finance Minister KN Balagopal said.
The minister also announced that the existing compounding scheme for settlement of pending undervaluation cases will be discontinued from the financial year 2023-24 and alternative methods will be adopted for settlement of pending cases.
Maximum upper cap on stamp duty, with a cap of Rs 1 Lakh, will be fixed on Specific Power of Attorney for joint development agreements.
Registration fee for surrender of lease will be reduced to Rs 1,000.
The annual Basic Land Tax levied on the Patta land shall be considered for revision based on usage for commercial and industrial occupation.