Bengal prod on mutation to fill tax hole

TT, Calcutta: The Bengal government will persuade people who bought land but did not complete mutation to wrap up the process at the earliest, the nudge aimed at bridging a projected revenue shortfall from stamp duties and registration, sources said.

The state government aims to earn Rs 5,600 crore from this source in 2017-18 but only 60 per cent of the target could be achieved by the end of the third quarter till December 2017, finance department sources said.

"From January 1 this year, mutation has been made mandatory at the time of registration of land deals. But the government is concerned over the backlog of mutation. A campaign will be launched soon to urge people to complete the process at the earliest," said a senior official.

According to the finance department, around 12 lakh land-related transactions were sealed in 2016-17 but mutation was completed in only 4 lakh, or 33 per cent, of these deals. Officials believe that if these old mutation cases are completed, they could fetch the government around Rs 750 crore in addition to the revenues accruing in the normal course.

"There is a slump in land-related transactions following demonetisation. But mutation of past deals can help us reach, or even surpass, the target," said another official.

The official pointed out that the mutation fee was nearly doubled last year to generate more revenues. "But that didn't help. We have to let people know that mutation is must for future transactions of land after automatic mutation was introduced from January 1," said the official.

Earlier, purchasing land and mutation of the property were two different exercises. Selling land with the title record - commonly known as dalil - was possible. But mutation - change in the title ownership - is now mandatory for selling land after the new system was introduced. As a result of the change, only the owner mentioned in the records of rights - or known as parcha - can sell land.

A section of officials expressed doubts whether the latest initiative would succeed given that most land transactions of the past were without mutation and, therefore, incomplete.

"For example, one may have bought a parcel of land based on title records but while applying for mutation, the person finds that the seller had not completed the mutation. In such a case, the buyer cannot get the mutation done unless the earlier buyer (the seller in this case) completes the procedure. It is a complicated and tough process," a source said.