Thiruvananthapuram: Protest against the increase in stamp paper and registration fees for property deals – that do not involve exchange of money – between family members is gathering strength across the state.
Most sub-registrar offices witnessed heated exchanges between the members of the public and officials as the budgetary proposal to increase the fees came into effect on Monday. Several people who reached the offices to register land based on the previous fee regime were left aghast on seeing the increased rate, and many of them sought to see the government order hiking the fare.
Registration officials, too, were in a fix since they had not received the order or instruction, increasing the fee.
The budget, presented on July 8, had increased to 2% the fee of stamp paper for registering land gifted from 1%. Earlier, a stamp paper for Rs 1,000 was enough to register land irrespective of the fair price of the property. According to the new norm, the government took away the Rs 1,000 ceiling, and fixed the stamp paper rated at 3%. The Rs 25,000 ceiling on registration fee too was cancelled, and instead, fixed the fee at 1% of the land’s fair value.
With the new norm, those donating or gifting properties (dealings that doesn’t involve transfer of money) to relatives have to shell out more for registering land. The previous government, too, had removed the ceiling, but rolled back its decision following widespread protests. Though the same was expected this time too, finance minister T.M. Thomas Isaac has been standing firm on his decision.
The budget recommendation has been forwarded to the subject committee after discussion in the House, and it would be passed in the next Assembly session after three months. However, even if the subject committee dissent to the proposal, the government would have the last say in the matter.
The government had also increased the stamp paper rate to 8% from 6% of the land’s fair price in property dealings outside the family. The registration fee, however, would continue at 2%.
Several organizations have demanded that the government withdraw its decision to increase the stamp paper and registration fees for non-monetary property dealings between family members.
Confusion in registration offices
Confusion prevailed in sub-registrar offices even though the new fares came into effect on Monday.
Officials allowed those who had already documented property deals on stamp papers to follow the earlier fee regime. Those who had bought stamp papers before Sunday, too, were excluded from the new fee structure based on a directive by the IG of Registrations.
The new structure, however, was applicable to those who bought stamp papers on Monday, and officials said this was in conformation with Section 17 of the Stamp Paper Act. Registration deals documented on old stamp papers will be allowed exemption from the new fee structure in the coming days.