New jantri has made your dream home costlier in Gujarat

Get ready to stretch your budget for your dream home. You will now have to pay twice to five times higher stamp duty on property sales deed registration, than what you would have paid under the
previous jantri.

The new jantri rates announced by the state government on Friday are drastically higher than the previous rates announced in 2008-09.

The stamp duty for different properties is decided on the basis of the jantri rates for their respective areas. Earlier, as per jantri rates of 2008-09, someone purchasing a 2-BHK flat of 100 square metre area in Naranpura was required to pay stamp duty at the rate of 6%. The stamp duty he would have had to pay would have come to between Rs54,000 and Rs57,000.     

Now, as per the jantri rates of 2011-12 announced on Friday, a buyer will have to pay anywhere between Rs1.14 lakh and Rs1.59 lakh for the same flat because the rates for Naranpura have been fixed at between Rs19,000 and Rs26,500 per square metre by the new jantri. Under the previous jantri, the rates were between Rs9,000 and Rs9,500 per square metre for Naranpura.

On the positive side, the higher jantri rates will reduce the amount of black money in property deals Further, buyers will be able to obtain larger amounts as home loan.  This is expected to bring greater transparency in property transactions.

The state government has also increased the rate of depreciation of buildings from 1% per year to 1.2% per year. It has also introduced 5% discount in jantri rates for the first and second floor, and 10% discount from the third floor upwards.

This means if your flat is on the first or the second floor, you need to pay only 95% of the jantri rate as stamp duty. If your apartment is located on the fifth floor, then you will have to pay stamp duty at 90% of the jantri rate for your area.