Officials in Mumbai have clarified fifteen criteria in assessing stamp duty on a real estate transaction. Before this, the revenue officials were using arbitrary measures to come up with a number.
Here are those fifteen parameters.
1. Property will be more valuable if it is close to railway station, a bus stop, a market, multiplex.
2. Property close to the sea will cost more - due to cleaner air and sea breeze.
3. If the property is closer to crematoria or other polluting units, then the property will cost less.
4. If the title is disputed, then property value will be lower.
5. If the property is closer to schools or gardens then will cost more.
6. Uninterrupted supply of water, power, proper sewage service would add to the value of the property.
7. Higher the Floor Space Index (FSI), higher the value of the property.
8. The property is more valuable if it on a level land instead of a hilly area.
9. If the property is free of debt then the stamp duty will be higher.
10. If the property is well connected with the approach roads, then the value of the property will be considered higher.
11. Clear view of the surroundings will add to the value of the property.
12. Ownership property will be more valuable that leased.
13. Properties on irregular shaped parcels will cost less.
14. non-agricultural land will cost more.
15. smaller plot will be proportionately cheaper than the larger plot.
Property value determination is important because in Mumbai the stamp duty is nearly 5% of the higher of property value or the market value.