Tamil Nadu recorded the third-highest revenue collection from stamp duty and registration charges among the states in FY22, aided by a recovery in the real estate sector.
Maharashtra occupied the top position, followed by Uttar Pradesh.
In 2021-22, revenue collection from stamp duty and registration charges (SD&RCs) for Tamil Nadu stood at Rs 14,331 crore, reported to be the highest-ever annual collection.
Revenue surged 23 per cent from Rs 11,675 crore in FY21. The state’s average monthly revenue collection in FY22 was Rs 1,194.2 crore as compared to Rs 972.9 crore in FY21.
In FY22, Tamil Nadu contributed 8 per cent to the overall revenue collection from stamp duty and registration charges, said a study by Motilal Oswal Financial Services Ltd.
Maharashtra recorded the highest collection of state revenue from SD&RCs at Rs 35,593.7 crore. The state contributed 21 per cent of the overall SD&RCs revenue. Uttar Pradesh was placed second with Rs 20,048.3 crore revenue from SD&RCs with a contribution of 12 per cent to the overall collection.
Meanwhile, the Tamil Nadu Government’s Budget 2022-23 has pegged the revenue collection from stamp duty and registration at Rs 16,322.73 crore, as it expects higher collections given the pick-up in real estate activity.
The State Minister for Commercial Taxes and Registration, P Moorthy, recently announced several measures to improve collections this fiscal.
“There is no doubt that the residential real estate sector witnessed a remarkable revival in FY22. Still, it is important to note that the average growth in the last two years was about 15 per cent. Considering the fact that interest rates have bottomed out, fiscal incentives have expired, inflation is high and economic uncertainty is also steep, FY22 performance in the residential property market is unlikely to be repeated next year,” said Nikhil Gupta, Chief Economist, MOFSL.
RBI’s recent rate hike may push up home loan interest rates. The hike is expected to have an impact on residential sales volumes in the months to come, particularly in the affordable and mid-segments.
“The silver lining is that the Indian housing market is still largely end-user driven, so investors are not looking at the lowest possible entry point. Genuine demand comes from an underlying aspiration for homeownership,” said Anuj Puri, Chairman, Anarock Property Consultants.