Case made for an interest rate hike in the city | Nagpur News

Nagpur: With out-of-the-box calculation rates set to be revised like every April 1, field offices here said there is room for a hike in Nagpur. There has been virtually no major rate increase since 2017. While there was a marginal 2-3% hike last year, its impact was minimal.
Out-of-the-box rates are the benchmark real estate valuation. It is used both for calculating capital gains for income tax purposes and for paying stamp duty to the state government. For example, even if a property is sold at a lower price, customs duties and capital gains tax are calculated based on the rates for the given area mentioned in the ready-to-use calculation program.
Rates are published at the beginning of the financial year in Maharashtra. Inputs come from various field offices, which give the recommendation based on market trends. Even as the final decision is made by the state government, a case for upside has been pushed for Nagpur, sources said. The new rates are not published until April 1.
There has been an upward price trend over the years given the recommendation that was made, sources said.
Meanwhile, stamp duty collection figures show a reduction in the number of documents registered through the end of February compared to the same month last year. March figures have not yet been compiled and may be available next month.
These 65,512 tax ownership documents have been registered up to the end of February. This figure was 72,539 at the same time last year. The fee collected rose to Rs687 crore despite the reduced number of registered properties. Last year, Rs594 crore was collected as stamp duty.
Builders say collections were low last year because preferential rates were available due to Covid. It also led to more recordings, including those of earlier agreement documents. With rates back to 6%, collection is now greater, even though there are 7,000 fewer registrations in the city.
Deepak Trivedi, a consultant, said there has been a steady growth in demand for property in the city. Numbers may be low compared to last year solely due to the preferential rate scheme. This resulted in an increase in enrollment over the previous fiscal year. Even pending documents were registered to benefit from the reduced rates, which had fallen to 3% and then gradually increased to 6%. The 65,000 registered documents show a healthy trend.
The builders said they feared the duty could be raised to 7% in the next financial year. Indeed, the 1% relaxation on the metro tax was available until the end of March. As no notification for its extension has been released yet, there are chances that the rates will be 7% from April.
Gaurav Agrawala, Secretary of Nagpur Unit of Confederation of Real Estate Developers Associations of India (CREDAI), said there had been a price increase of Rs 300 per square foot due to rising prices. costs. However, there are some pockets where the rates are lower than the Loan Calculator.
Tejindersingh Renu, also a builder, said property demand had increased.

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