The fair value of land is determined by the Kerala Property Registration Department using the circle rates and locations of the immovable assets. Houses, apartments, and vacant land are all subject to this government price. Stamp duty and registration fees are computed based on the fair worth of the land during a real estate transaction. The State then collects this money in order to fund various infrastructure projects.
When a buyer and seller voluntarily agree on a price, the projected price at which an object is bought or sold is known as fair value of land .An individual or organization can estimate the predicted earnings of an item, calculate the cost of replacing the asset, or look at current market transactions for similar assets to assess the fair value of a product or financial investment.
How to find fair value on Fair value of land /IGRS Kerala?
- Go to the Inspector General of Registration’s (IGRS) Kerala official website.
- Locate the vacant tabs on this portal’s main page. Fill in the details in the tabs for the ensuing segments.
- Click the “View Fair Value” tab after all the data has been entered into the appropriate tabs.
- You are going to a different webpage. On that page, all pertinent results will be shown.
Fair value of land :How to calculate?
In Kerala, the State government determines the fair value of land after consulting with the local government. In order to maintain parity between the market value and the government valuation of land parcels, these fees are adjusted every few years. When determining the fair value, the government takes into account the number of transactions, the inflation rate, and demand-supply parameters.
How to pay land tax in Kerala?
- Step 1: Get online at https://www.revenue.kerala.gov.in/, Kerala’s Revenue e-Services website.
- Step 2: Create an account and use your login information to log in.
- Step 3: Select the “Land Tax” option under the “New Request” section.
- Step 4: Fill in all the necessary fields with your details.
- Step 5: Select “View and Add,” being sure to enter the information accurately.
- Step 6: To submit the request, click.
- Step 7: You will receive an acceptance message on the registered mobile number after the submissions have been verified.
- Step 8: After receiving the approval notification, log in and select “My Request.”
- Step 9: Select “Pay Now.”
- Step 10: You can download the receipt after making the necessary payment.
- Step 11: After logging in, select “Pay Now” from the “Transaction History” menu to pay taxes in the ensuing years.
Uses of the fair value of land
Land is valued at fair market value for a number of reasons, such as real estate transactions, taxes, and financial reporting valuation. A piece of land’s fair value is established by taking into account a number of variables, including its size, location, zoning, soil quality, and state of the local real estate market.
Based on the standards set forth by the government and applicable laws and regulations, the revenue department of the Kerala government has been tasked with establishing the fair value of land within the state. In Kerala, the district collector has the last say when deciding what a piece of land is worth fairly.
Fair value of land: Applicability on land transactions
The valuation will be done using the fair value in effect on that day for transactions where the sale deed was signed before the revision of the land’s fair value. There is no retroactive application of these charges.
Keralan real estate investors need to be up to date on land values in order to prevent future fraud and disputes. To maintain sufficient real estate demand and revenue, the state government may regularly adjust land values in accordance with market trends.
conclusion
The Kerala government has said that it may raise land values in the State Budget 2023–2024. The government established a special committee in June 2022 to examine and suggest modifications to Kerala’s fair land value. The State’s property values last increased twelve years ago.The Kerala government may also think about altering the property tax structure and stamp duty rates. Despite a six-year increase in the building tax rate, a thorough examination has not yet been carried out.
The registration department’s earnings will rise in tandem with the fair market value of land in Kerala. Kerala’s primary source of income is the money state receives from property registrations. Two percent of registration fees and eight percent of stamp duty are paid to Kerala’s registration department. These fees are determined using the land’s fair market value in Kerala.
