Top authorities officers mentioned the stamp obligation and registration earnings for March 2019 was Rs 818 crore which it anticipated to rise to Rs 1,000 crore in March 2020. “As janta curfew was imposed on March 22 paving way for the lockdown, the state could clock a revenue of only Rs 501.09 crore, much below expectations,” the official mentioned.
The variety of property registrations in March 2020 stood at 78,584, a lot lesser than 1,20,821 registrations in March 2019. The lockdown got here into power from March 24.
Revenues from stamp obligation and property registration for April 2020 (till April 24) this 12 months stood at zero whilst the federal government had anticipated to earn Rs 800 crore. In April 2019, the state authorities earned a income of Rs 626.54 by way of property transactions.
Although the state authorities has allowed registration of property transactions from April 24, state income division officers are sceptical about any bounce again in earnings. This, whilst there’s a main discount in the demand for actual property after the lockdown was enforced.
“The Covid-19 outbreak and subsequent lockdown have hit state government revenues in the form of stamp duty and property registration. In March-April this year, the government will end up with a revenue loss of between Rs 1,300 crore and Rs 1,500 crore. More worrying is the fact that real estate transactions will take a while to gather momentum even after the lockdown is lifted,” a high authorities official mentioned.
Officials mentioned that the state authorities could think about decreasing stamp obligation and registration charges on actual property transactions, as the true property sector will take a while to recuperate from the lockdown. Earlier too, when a slowdown was skilled in the true property sector, the state authorities had diminished stamp obligation charges and registration charges to offer the sector a lift.