THIRUVANANTHAPURAM: With the 10 percent increase in the fair price of land from April 1, the cost of real estate will increase significantly. The revenue of the registration department will also go up significantly. The expected revenue increase for the current financial year is over Rs 200 crore. Property transfer is the second-largest source of revenue for the government.

The department receives a stamp duty of 8 percent of the fair value and a registration fee of 2 percent. It received Rs 3300 crore till February of the financial year 2021-22 which is 173 crores more than the previous year. When the March revenue is added, the total revenue for the financial year will rise again. The fair value has been increased in view of the fact that the market value of land in the adjoining areas has multiplied as a result of the development of national highways and the implementation of metro rail projects. On April 1, 2010, the government set a fair price for land. It was later revised in several stages. The current fair value is 200% of the 2010 fair value. From April 1, it will be 210 percent.

Fee for Rs 2 lakh is Rs 22,000

The land with a fair value Rs 1 lakh in 2010 has doubled to Rs 2 lakh in 2020. From April 1, it will increase by 10 percent to Rs 2,20,000. Of this, 8 percent is stamp duty and 2 percent is the registration fee. That means the government will get Rs 22,000 through the transfer of this land. 'Are' (2.47 cents) is the basic unit for calculating fair value.

Criteria for estimating fair value

Land

Field

Garden land (with or without road access)

For domestic use (with or without road access)

For industrial use (with or without road access)

The roads will be divided into National Highway, panchayat road and public works road.

The fair price is fixed by the Revenue Department. The price will be determined by RDO on the basis of the site inspection report submitted by the Village Officer.

Gift deed

Two percent stamp duty (minimum Rs. 1000) on fair value and two percent registration fee.