Revenue Collections Surge as Property Sales Consistently Increase

Amidst robust property registrations in the country, the state governments are able to earn higher revenues by collecting stamp duty charges. The aggregate revenue collection made from 27 states and one union territory of Jammu & Kashmir via stamp duty and registration charges (SD&RCs) was recorded in excess of Rs 1.71 lakh crore during the financial year 2021-22. The revenue collection is up by 34% versus the last year.

The average revenue collection on a monthly basis across these states and union territories during the financial year increased to Rs 14,262 crore. Last year, the average monthly collection stood at Rs 10,646 crore.

With respect to revenue figures, Maharashtra recorded the highest state revenue collection, worth Rs 35,593 crore collected via stamp duty and registration charges. Maharashtra, which comprises India’s largest and most expensive property markets of Pune and Mumbai, contributed about 21% of the all-inclusive SD & RCs revenue of the country.

The residential real estate sector marked a significant revival in FY22. In the last two years, the real estate sector witnessed an average growth of nearly 15%. The performance of the residential property market in FY22 is not likely to repeat the following year since the inflation is high and the economic uncertainty is also sharp.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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