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The Ahmedabad Municipal Corporation (AMC) is considering the introduction of a fee for transferring names on property tax records for new commercial and residential units. The proposal suggests that the builder's name will appear first on the property tax bill before the buyer's name is registered after the sale deed. This would allow the AMC to charge a name transfer fee once the property is sold and Building Use (BU) permission has been granted. However, no official decision was made during the recent meeting, though a resolution is expected soon.
The revenue committee of the Ahmedabad Municipal Corporation (AMC) recently deliberated on a proposal to introduce a fee for transferring names on property tax records for newly sold commercial and residential units. The discussion, held earlier this week, did not result in any formal decision. However, an official from the AMC noted that the proposal would likely be finalized in the near future. Advertisement
In the past, builders often sold properties before receiving Building Use (BU) permission, a critical step in the process that signifies the property's compliance with regulations and its readiness for occupation. Under this arrangement, the AMC registered the buyer's name in the property tax records without imposing any fees. This system worked smoothly for both builders and buyers but did not provide the AMC with an additional revenue stream through name transfer fees.
The newly proposed system, which was discussed at length during the meeting, seeks to change this process. Under the new plan, once BU permission is granted for new residential or commercial developments, the builder's name would initially appear on the property tax bill. The buyer's name would only be entered into the records once the sale deed is formally registered, after which the buyer would be charged a mandatory name transfer fee.
A senior AMC official elaborated on the proposal, explaining that property tax assessments are typically done after BU permission is granted in new residential projects. Historically, the buyer's name would be entered into the records at this point, but without any charges for the name transfer. However, under the new guidelines discussed, the builder's name would be listed first on the property tax record. Only after the buyer completes the property registration and sale deed process would their name be transferred into the records. This change is designed to ensure that the AMC collects a name transfer fee for every new property transaction.
While no formal resolution has been passed yet, the matter is expected to be finalized in the coming weeks. If implemented, the new fee system could significantly alter the property transaction landscape in Ahmedabad, adding a layer of administrative procedure for buyers but potentially improving municipal revenues.
The Ahmedabad Municipal Corporation is considering a proposal that would charge a name transfer fee for newly sold properties in the city. Under this new system, the builder's name would be recorded on property tax records before the buyer's name is entered, following the registration of the sale deed. This shift would allow the AMC to generate revenue from name transfer fees, which were previously not collected. Although no decision has been made yet, the revenue committee is expected to pass a resolution soon, potentially reshaping the property transaction process in Ahmedabad.
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