Flats, apartments to cost more from April 1, notification on stamp duty hike issued

Thiruvananthapuram: The cost of flats and apartments in Kerala is all set to go up from April 1 with the State Government announcing an increase in stamp duty.

According to the notification issued by the government in this regard, the stamp duty for registration of property within six months of the completion of the building construction has been hiked from 5 to 7 per cent.

Based on this notification, a customer purchasing an apartment which is priced Rs 25 lakh as per the title-deed would have to pay Rs 1.75 lakh as stamp duty instead of Rs 1.25 lakh, which translates into a hike of Rs 50,000.

The day when a new structure is given a building number by the local body is considered the date of completion and the 7-percent stamp duty will be applicable for transfer of ownership from the builder to the apartment owner within six months of this date.

At the same time, the stamp duty for registration of flats and apartments more than six months after the date of completion would continue to be 8 per cent.

It was back in 2010 that the state government had reduced the stamp duty for registration within six months of completion of construction from 7 to 5 per cent considering the lull in the real-estate sector at that time.

However, while presenting the latest state budget in the Assembly, Finance Minister K N Balagopal announced that the stamp duty of 5 per cent would be increased to 7 per cent and, now, the notification has been issued.