Development tax likely on realty near infra projects

Buying a house near a Monorail line, Metro line or any major infrastructure project in Mumbai could get costlier as the state government is contemplating a 10% development tax on property transactions in such areas. The logic: properties in these areas will command a premium once the projects come up.

Chief minister Prithviraj Chavan has asked the Mumbai Metropolitan Region Develop-ment Authority (MMRDA) to send a proposal to the state planning commission on how this tax should be levied.

The move comes after the MMRDA complained that its resources were getting depleted and there were no new avenues of revenue generation.

The MMRDA plans an initial one-time 10% development tax on the ready-reckoner value. This tax will have to be paid while registering the property in new developments or existing structures. While 7% of the tax is likely to go to the MMRDA, the remaining 3% will go to the civic body.

A final decision on the move will be taken by Chavan.

 

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