After the Enactment of Real Estate Regulation and Development, Act 2016, the calculation method for calculating carpet area has been changed. Now, the area of inner walls of the Flat should be included in carpet area. The exclusion of area covered by external walls, services shafts, balcony, verandah, open terrace should be done while calculating carpet area.
Furthermore, Stamp duty for open balconies adjacent to the flat shall be charged only 40% of the total sale price of the said property. Now such revised calculation rate is meant to reduce the burden of paying registration fees upon buyers. This is seen as an important factor to boost up the Real estate sector. While calculating the built-up area, it is pertinent to mention that it shall include area of inner walls as well.
The Inspector General of Registration & Comptroller of Stamps vide circular issued by on Jan’2, 2018 stated that the stamp duty registration amount shall reduce by 10%. The IGR stated that the calculation rates have been revised. The built-up area will now be calculated as:
|Built-up Area = Carpet Area * 1.1|
Thus, revised rates for calculation of stamp duty, inclusion of inner walls within the ambit of built-up area and charges upon balcony up to only 40%, together is an upgrade to improve the real estate sector.
RERA application in Indian real estate sector has brought many positive impacts and another added benefit is the reduction of stamp duty. Hence, it is a feel good factor for the home buyers in India as now the need of taking out the huge funds for registering their property will come down by huge margin.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws