Property Sale and Purchase: Karnataka govt give bad news, issued new guidelines

The Karnataka government is going to give another shock to the people who have already been shocked by the price hike. The Property Tax new guidelines has been published in Bengaluru and the property buyers and sellers are upset after seeing the increased Property Tax rate.

Yes, in the state property purchase and sale prices have increased by an average of 30%. New Rates Revised guidelines come into effect from October 1. The government has issued an order revising the guideline rates of land, building, land and other immovable properties in the state. Since there was a holiday on October 1 and 2, the new rate of property registration tax will be implemented in the state from October itself.

There was no property rate revision for the last five years due to many reasons including Corona. Now after 5 years the price revision order has been issued. According to the new order, the price has been increased by 500 to 2,000 times the market price and people have been shocked. Guideline price for land on national highways is Rs 5 to 10 lakhs.

In areas where the fixed market rate is above Rs.10 crores, the guideline rate is 1%. 50% increase. Earlier in 2018 the guideline rate was revised and there was no revision for the last four and a half years. Districts near Bangalore including Chikkaballapur, Tumkur, Ramanagara, Kolar have also increased to a large extent.

In rural areas, there has also been an increase in the guideline rates of approved plots in the panchayat area. There has been a huge change in the guideline rates of agricultural and non-agricultural lands. This rate change has come as a shock to the middle class property buyers. In areas where the market rate and the guideline rate are similar, the guideline rate has been increased by 10% only.

Also Read: 7th Pay Commission: 5 Days Work In Week For Government Employees

In areas where the market rate is 200 times higher than the guideline rate, the revised rate has been increased by 20 per cent to 25 per cent. In the Electronic City part of Bangalore, the market rate has been increased by 500 to 2000 times the guideline rate. Krishna Bhairegowda, who had held a press conference a few days ago, had hinted that there would be a price revision.

The revenue department is confident of collecting huge amount of revenue from this guideline rate revision. In this budget too, the registration and stamp department has set a target of collecting 25 thousand crores of tax in the year 2023-24.