According to a study by Motilal Oswal Financial Services Limited, the cumulative revenue collection from stamp duty and registration charges (SD&RCs) from 27 states and one union territory (J&K) in India was recorded at INR 17,11,502 million (mn) / INR 1,711bn for FY22. This has recorded a surge of 34% from INR 12,77,548 mn in FY21. The average monthly revenue collection in FY22 was INR 1,42,625 mn as compared to INR 1,06,462 mn in FY21.
From the aspect of absolute revenue figures, Maharashtra leads the table with highest collection of state revenue from SD&RCs at INR 3,55,937 mn. The state contributed 21% of the overall SD&RCs revenue of the country.
Uttar Pradesh is placed second with INR 2,00,483 mn revenue from SD&RCs with a contribution of 12% to the overall collection. Uttar Pradesh witnessed an increment of 22% in revenue from INR 1,64,752 mn in FY21. Tamil Nadu is placed third with INR 1,43,310 mn with 8% contribution to the overall revenue accrued by the country. The state witnessed 23% increase in revenue in FY22 from INR 1,16,751 mn in FY21. Karnataka and Telangana are placed 4th and 5th on the SD&RCs table with revenue of INR 1,40,197 mn and INR 1,23,727 mn, respectively.
From the aspect of percentage growth in terms year-on-year, Telangana witnessed highest percentage increment of 136%, followed by J&K with 88%, Sikkim with 78%, Nagaland with 51%, Haryana with 47% and Gujarat with 41%.
Seven states namely, Telangana, J&K, Sikkim, Nagaland, Haryana, Gujarat and Maharashtra have recorded more than 40% increment in their revenue collection from SD&RCs.
According to Nikhil Gupta, Chief Economist, Motilal Oswal Financial Services Ltd. said, “There is no doubt that the residential real estate sector witnessed remarkable revival in FY22. Still, it is important to note that the average growth in the last two years was ~15%. Considering the facts that interest rates have bottomed out, fiscal incentives have expired, inflation is high and the economic uncertainty is also steep, FY22 performance in the residential property market is unlikely to be repeated next year.”
