After three years, the revenue from stamps and registration has grown over 20%.
As on March 24, the growth for the current financial year was about 26% over the previous year (2020-21), which was largely hit by the COVID-19 pandemic. In terms of revenue collection, the figure was around ₹13,406 crore. If one is to compare the current year’s collections with the previous high of ₹11,028 crore in 2019-20, the growth rate is still about 21.6%.
Officials cite a number of factors. Apart from economic recovery and revival of the real estate sector, attitudinal changes among property-buyers have made a difference. In the last couple of years, there was a perceptible reluctance on the part of people to buy properties. This year, they seem to have overcome this mindset. In addition to rigorous monitoring and review of the working of officials, the Registration Department has been taking steps towards systemic improvement.
A senior official points out that there has been no change in the guideline value or in the rates of stamp duty and registration fee since 2017.
However, the collections from commercial taxes have shown a modest growth of about 4%. But, in terms of absolute figures, they crossed the ₹1 lakh-crore mark. The official says this has exceeded the revised estimates for the year, which were ₹96,109.66 crore.
An official release issued on Friday, quoting Minister for Commercial Taxes and Registration P. Moorthy, said the current year had seen the highest-ever collections from commercial taxes and registration.
With a few more days to go for the end of the current financial year, the officials hope the growth rates, both for commercial taxes and stamps and registration, will be higher than the present figures.
Pointing out that there is an enormous potential for improving the revenue collections from commercial taxes, a taxation expert suggests that the authorities pay more attention to consumer and dealer education; prioritise ease of doing business; and improve the quality of enforcement. These measures will pave the way for increasing the conversion ratio of the demand raised to the actual collection.
