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To avoid speculation over property prices in the state, the state government fixes the fair value for the land, based on which stamp duty and registration charges are paid on property transactions, to the Kerala Property Registration Department. The fair value of land is also applicable on flats and houses, where additional fee has to be paid for construction after adjusting against depreciation.
How to check the fair value of land in Kerala?
To check fair value of land, follow this step-by-step procedure:
Step 1: Visit IGR Kerala Portal and prepare all the information being asked.
Step 2: Select the district, RDO, taluk, and village from the drop-down menu, as these are mandatory fields.
Step 3: Now select Desam, land type, block number, survey number and other requisite information. These are not mandatory fields.
Step 4: Click on ‘View Fair Value’ and you will be redirected to a new page, where the results will be displayed on the screen.
Please note, these values were last updated as per the notification published on March 31, 2020. Also, as per the disclaimer given by the IGR Kerala, the department is not responsible for the incorrectness of the data on the website. Therefore, all users should verify the original notification issued by the RDOs/collectors, for confirming the rates mentioned on this website.
Difference between market value and fair value
The fair value of property or land is fixed by the state authorities. The market value is set by the marketplace, based on the overall demand and supply scenario. Usually, fair value of land is considered for stamp duty and registration of deeds, if the declared transaction value is lower than the fair value of land. In other cases, the consideration amount or fair value, whichever is the higher amount, is used to calculate stamp duty and registration charges in Kerala.
Applicability of the fair value of land
In transactions where the sale deed was executed by the parties prior to the revision of the fair value, the valuation only needs to be done as per the fair value existing on the date of execution of the document and the stamp duty for the purpose of registration will be calculated accordingly.
Stamp duty and registration charges in Kerala
The stamp duty in Kerala is levied on the fair value or the value of the consideration (declared property transaction value, as on the sale agreement and sale deed), whichever is higher. For example, if the fair value of the property is Rs 70 lakhs and the consideration value is Rs 65 lakhs, then, the stamp duty and registration charge will be calculated on the fair value.
Stamp duty and registration charges in Kerala
Stamp duty rates
|Joint (Male + Female)||8%||2%|
|Joint (Male + Male)||8%||2%|
|Joint (Female + Female)||8%||2%|
In a recent budget announcement, the state’s finance minister TM Thomas Isaac announced a massive cut in stamp duty and registration charges. The stamp duty on sale deeds has been reduced from 8% to 4% and the registration fee from 2% to 1%. However, the changes could be subject to election results which will be announced in May 2021.
Land tax in Kerala
Now, land owners in Kerala can easily pay the land tax online in a few simple steps. The Kerala Revenue Department has introduced a web-based application for revenue, integrated with registration. The app, Revenue Land Information System (ReLIS) can be used to make the payment, where users can register and pay their land taxes online. They can also get a soft copy of the payment receipt.
How to pay land tax online in Kerala
- Visit the Revenue e-Services portal and register yourself. Login once you have registered.
- Go to New Request and select ‘Land Tax’ option.
- Fill in all necessary details.
- Click the ‘View and Add’ button and make sure the details are correct.
- Click to submit the request.
- An approval message will be sent to the registered mobile after verification of the submissions.
- After receiving the approval message, Login and select My Request and click the ‘Pay Now’ button.
- You can download the receipt after paying the amount.
- To pay taxes in subsequent years, after signing in, select ‘Transaction History’ menu, click the Pay Now button.
Fair value of land in Kerala: Latest news
Update on February 15, 2021
Property tax in Kerala to be linked with the fair value of land
According to the latest order issued, the property tax assessment in urban local bodies in Kerala will soon be linked to the fair value of the land. The Local Self-government Department notified the reassessment, through an order issued on February 12, 2021.
The Urban Affairs Department has prepared a list of basic tax rates and fair values for buildings of various categories, like residential purpose, commercial purpose, industrial purpose, educational purpose, hospitals, theatres, assembly buildings, resorts, amusement parks and mobile towers.
The basic tax rate based on fair value, has been fixed for buildings for commercial purposes in the range up to 100 sq m, above 100 sq m and up to 200 sq m, and above 200 sq m.
Earlier, buildings were assessed, based on the annual rental value. Later, a new regime was introduced in which the tax was collected based on the plinth area
In February 2020, the Kerala government announced a hike in the fair value of land by up to 30%, in areas where large-scale projects had been identified. The entire exercise will attract more revenue from stamp duty payable on property transactions. A lot of realtors have been opposing and protesting the move, as the total cost of construction would go up considerably. Industry experts say the decision to hike fair value is a retrograde step, further pulling down an industry that has been struggling, post-demonetisation, the floods, the employment crisis in the Middle-East and now, the Coronavirus pandemic.
Apart from this, regular home buyers who buy plots for house construction would have to shell out extra for purchasing the land.
What is the fair value of land in Kerala?
Land valuation that is set by the Kerala government is called fair value of land.
How do you calculate the fair value of land?
You can use the IGR Portal to calculate the exact value of land.
What is the difference between market value and fair value?
Fair value is set by the state authorities while market value refers to the price of an asset in the marketplace.