International Journal of Management, IT & Engineering
Vol. 7 Issue 2, February 2017,
ISSN: 2249-0558 Impact Factor: 7.119
Journal Homepage: http://www.ijmra.us , Email: editorijmie@gmail.com
Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial
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International journal of Management, IT and Engineering
http://www.ijmra.us , Email: editorijmie@gmail.com
CASE STUDY: PROPERTY TRANSFER TAX (PTT)
Prof. Babasaheb R Jadhav
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ABSTRACT
‘A transfer tax is a tax on the passing of title to property from one person (or entity) to another’.
This kind of tax is typically imposed where there is a legal requirement for registration of the
transfer, such as transfers of real estate, shares, or bond. Examples of such taxes include some
forms of stamp duty, real estate transfer tax, and levies for the formal registration of a transfer.
As we are aware that, real estate industry is at boom (pick) level, PTT is already implemented by
many countries and earning high revenue, if state government implements PTT, it will generate
high revenue to state governments.
A property transfer tax would allow local government to capture some of the increase in land
value each time a property is sold. It is an efficient way of capturing a small percentage of the
increase in land value.
How PTT generate revenue for British Columbia- The provincial property transfer tax is
budgeted to bring in $900million in revenue for the provincial government in the 2010-2011
fiscal year. The tax is applied to the sale of each property at a rate of one per cent on the first
$200,000 in value, and two per cent of the value greater than $200,000. The revenue generated
by this tax is very closely correlated with the fluctuations of the real estate market. As real estate
values in British Columbia have climbed steadily in recent years, the property transfer tax has
become a larger contributor to government revenues.
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Assistant Professor, MAEER’s, MIT College of Engineering’s- CMSR, Kothrud, Pune,
Maharashtra, India