Circle rates up, homes costlier
The state cabinet has approved the revision of circle rates of properties across the city. The hike ranges between 30 and 190 per cent depending on location.delhi Updated: Jun 15, 2010 01:09 IST
The state cabinet has approved the revision of circle rates of properties across the city. The hike ranges between 30 and 190 per cent depending on location.
Circle rate is the minimum price at which properties can be sold and purchased in an area. The government collects stamp duty (6 per cent for men and 4 per cent for women) on registration of properties at the selling price shown in the registration papers.
Earlier, circle rates were based on eight categories of colonies (A to H) prepared by the Municipal Corporation of Delhi to compute property tax. Abolishing the category system, the revenue department has prepared a comprehensive list of 2,480 colonies and categorised them in accordance to 10 different slabs.
In 2009-10, the government collected Rs 940 crore on stamp duty. With the new rates in place, it expects to generate an additional Rs 400-450 crore annually.
The new circle rates are likely to come into force in three weeks time after the issuance of notification in this regard.