BY PARTIAL TRANSFER OF HOUSE AND FLAT : AVOIDING THE LUXURY TAX WILL CATCH ON

Trivandrum : The revenue department has imposed restrictions on further moves to avoid  luxury tax by registering parts of household  buildings inclusive of house and flats in the name of close relatives. For this purpose, even the kitchen, gas connection, water and electricity bill will be checked. The restrictions are based on the assessment that the tax revenue is decreasing due to the increasing trend of transfer of buildings in the name of close relatives on the basis of financial determination to get tax relief.

                It is proposed to refer the applications to the government to separate the buildings into different parts and assess them separately. Now the house owner has to produce a copy of the building permit, occupancy certificate and financial statement obtained from panchayat or municipality to verify the ownership of each building. Copy of ration card, cooking gas bill of last three months and details of electricity and water connection should be submitted to verify whether the ownership is actually occupied in two parts of the buildings even if the ownership is legally transferred.

  The circular issued by the special cell of the revenue department has stated that the site inspection report should be submitted along with a photograph to see if each building has a separate kitchen and a separate entrance for both floors and whether the owners can use it independently. As per the Kerala Building Tax Act, 1975, the luxury tax is levied annually by the Revenue Department on buildings having an area of ​​3000 sq.ft (278.7 sq. Meter) or more completed on 1st April 1999 or after that. There are different luxury tax slabs ranging from Rs.5000 to Rs.12500 depending on the plinth area.

                                             INPUTS BY – ANJANA Y U ON 04 march 2023