Hike in circle rates to jack up property
After making substantial increase in fee for registration of properties, the Delhi government is now contemplating to increase circle rate by 25-30 per cent in different pockets of the Capital, reports Atul Mathur.delhi Updated: May 18, 2010 23:34 IST
Buying property in Delhi may soon get even tougher for middle class.
After making substantial increase in fee for registration of properties, the Delhi government is now contemplating to increase circle rate by 25-30 per cent in different pockets of the Capital.
Circle rate is the minimum price at which the property can be sold or bought in an area.
How much stamp duty and registration fee the buyer has to pay while buying the property depends on the prevailing circle rates.
Delhi Revenue Minister Rajkumar Chauhan said the proposal would soon be brought to the Delhi cabinet for approval.
While refusing to divulge the details, which he said could only be disclosed after the Cabinet approves it, Chauhan said the exiting circle rates are far less than the market price of properties and require immediate revision.
“When circle rates were first introduced in the Capital in 2007, we had decided that it will be revised in three years… when people can buy properties worth crores of rupees in Delhi, they can even pay some revenue to the government too,” Chauhan said.
Circle rates in Delhi are categorised on the basis of property tax assessment system in the Capital. Colonies falling in ‘A’ category have highest circle rate at Rs 43,000 per square metres while colonies falling in H Category (last category) have lowest circle rate at Rs 6,900 per square metre.
According to senior revenue department officials, there will be substantial increase in circle rates in posh localities such as Greater Kailash, Hauz Khas, Preet Vihar and Safdurjung among others.
The areas that see frequent sale and purchase of properties will also see substantial increase in circle rates.
Senior Delhi government officials say under the Jawahar Lal Nehru National urban renewal Mission, the state government cannot increase stamp duty on sale of properties, which is two per cent for women and three percent for men.
Revision of circle rates is the only way the government can increase its revenue.