Mentoassociates.com – Legal Articles

The Department of Stamps and Registration of the government of Karnataka has revised the valuation of building rates throughout the state. The new rates are applicable from 1-03-08. The increase in the rates has been almost double in some cases. The same rates have to be used as guideline values while registering transactions in buildings and the stamp duty and registration fee has to be paid on the basis of the new revised rates.

The rates range from Rupees 100 to Rupees 950 per square feet. The buildings have been classified as per their locations like those coming under the jurisdiction of BBMP, other corporations in Karnataka, other Municipalities, other TMCs, other Town Panchayaths and other areas of the state. Different rates have been fixed for different areas. Further there is variation in the rates for Ground and Upper Floors. All upper floors within the same area have same rate.

The revisions in the building rates will cause a major setback to genuine home purchasers looking for a shelter. The increase in building rates will set a chain reaction, further increasing the market rates of properties and the registration and stamp duty expenses. This will further burden the overpriced property market in Karnataka.