With the Omicron variant posing a major threat, many State Governments like Karnataka, Delhi and Maharashtra, have either extended or declared new interventions on property taxes this New Year for helping maintain residential sales figures throughout 2022. These incentives, as per industry experts, may keep the positive sales momentum and home buyer sentiments intact. The Maharashtra Government waived off property taxes on residential units up to 500 sq ft in the Mumbai municipal zone on 1st January, benefiting more than 16 lakh properties within the BMC zone as per State Urban Development Minister, Eknath Shinde.
On 1st January, the Government of Karnataka reduced the guidance values of properties by 10% for three months to spur higher registrations. This offer will benefit those stalling GPA and agreements for real estate units or planning their registrations, effective till 31st March. Experts feel that cuts on stamp duty are timely measures which enhanced sales of properties in the earlier waves of the coronavirus and positive momentum will continue with such new interventions as well. The sector is anticipating some positive reforms in the upcoming Union Budget as well, including higher deductions on interest repayment under Section, a redefinition of the affordable housing criteria and more.
Property tax waivers come with riders however with just the general tax part (one out of multiple tax items in the bill) being exempted. This will lower property tax liabilities by 15-20% approximately, including sewerage and water charges. Co-Founder and Principal Partner at Square Yards, Sopan Gupta, stated that the reduction of 10% in guidance value throughout Bangalore will spark higher property registrations while offering great opportunities for buyers to get their homes registered at sizable discounts. Registration costs significantly add up to a major portion of actual ownership costs and this revision will relieve buyers to an extent according to him. The Delhi Government has also extended its rebate of 20% on circle rate for immovable property and land till the 30th of June, 2022.
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Published Date: Jan 04, 2022
