Motilal Oswal Financial Services Ltd. (MOFSL) in a study shared that the cumulative revenue collection from stamp duty and registration charges (SD&RCs) for all states in India was recorded at INR 1,001bn for the first 8 months of the financial year 2022 (8MFY22) i.e. April-November 2021.
The total SD&RCs collection for FY21 was recorded at INR 1,277b. The average monthly SD&RCs collected by 28 states stood at INR125b in the first eight months of FY22, which was slightly lower than INR128b suggested by the pre-COVID growth trend (FY19-FY20). However, the average was higher than monthly average of INR106b recorded in the year FY’21.
Maharashtra recorded the highest collection of INR 171b contributing 17.1% of the total collection recorded during 8MFY22. Uttar Pradesh, Tamil Nadu and Karnataka registered INR 128b, INR 87b and INR 84b respectively during 8MFY22.
According to MOFSL study, Telangana, Sikkim and Jammu & Kashmir are the only states whose revenue collection for the first 8 month of FY22 have out past the revenue collection from SD&RCs achieved during FY’21. Telangana recorded SD&RCs collection of INR 70b in 8MFY22 against INR 52b during FY’21 and INR 67b in FY20. This also translated in overall collection constituency increase from 4% in FY’21 to 7% in 8MFY’22.
Nikhil Gupta, Chief Economist, Motilal Oswal Financial Services (MOFSL) said, “The residential real estate sector has bounced back strongly since 2HFY21 and it continues to perform well in FY22. In fact, it is doing better than anticipated. We hope that the Government provides some incentives to this sector in the upcoming Budget. Considering its massive forward and backward linkages to the real economy, it has the potential to boost GDP growth substantially.”
