Date:16/02/2008 URL: http://www.thehindu.com/2008/02/16/stories/2008021653410400.htm

Karnataka - Bangalore

Revised building valuation rates from March 1

Staff Reporter

People will now have to pay more towards stamp duty

For the first time, a uniform structure for building valuation has been introduced
The rates were last revised in 2005

Bangalore: The Department of Stamps and Registration has announced revised rates for valuation of various categories of buildings across the State while, for the first time, introducing a uniform structure for building evaluation.

The revised rates, which are about 20 per cent higher than those prevailing now, will come into force from March 1.

As a result of this increase, the people will have to pay more towards stamp duty while buying a building, besides paying higher property tax.

The rates were last revised in 2005. However, Inspector-General of Registration and Commissioner of Stamps H. Shashidhar said the revised rates were about 30 to 40 per cent lower than the actual market rates of buildings under various categories depending upon the materials used for construction.

Market value

He said that the market value of an RCC building with teakwood windows and doors and granite flooring would be around Rs. 1,300 to Rs. 1,500 per sq ft whereas the rate fixed by the department was only Rs. 950 per sq ft for such buildings in Bangalore city.

Meanwhile, the department has introduced a new category of buildings — constructed with black tiles, mud floors and walls — and fixed a lowest rate of Rs. 100 per sq ft for the benefit of the poor people.. This is for the first time that the department has introduced a uniform structure for building valuation classifying the structures based on five different types of locations — Bruhat Bangalore Mahanagara Palike; city corporations of Mysore, Mangalore, Hubli- Dharwad, Gulbarga, Bellary, Belgaum and Davangere; city municipal councils; town municipal councils and town panchayats; and other areas. Till now, the building rates varied for different taluks.

However, the value of the building would have to be calculated by taking into consideration the standard rates of depreciation, Mr. Shashidhar said.

He pointed out that the department had brought in several reforms in its functioning based on the report given by Lokayukta N. Santosh Hegde, who has been reviewing the initiatives of the department to make its functions transparent.