Administration puts its foot down on circle rates
The representatives of Gurgaon Property Dealers Association who urged the deputy commissioner’s office to roll back an increase in circle rates, came back disappointed.india Updated: Apr 21, 2011 01:06 IST
The representatives of Gurgaon Property Dealers Association who urged the deputy commissioner’s office to roll back an increase in circle rates, came back disappointed.
Dealers argued that the rates were increased twice, after a recent hike in October 2010, though it’s conventionally done every April after a gap of 24 months.
They said the unreasonably high rates were putting an extra burden of stamp duty and taxes on buyers.
However, deputy commissioner PC Meena countered them by saying: “We have increased circle rates to bridge the yawning gap between market prices and registered prices. The move was imperative to curb rising black money. An exercise was done by the administration to determine the circle rate.” Circle rate is the base price below which a property can't be registered.
When circle rates are increased, the buyers have to pay a stamp duty on the increased circle rate.
“We don’t mind the annual increase but why did they increase circle rates between 100-200 % in just one year’s time,” said Satish Kataria, president of Gurgaon Property Dealers Association.
But, Meena justified the act by saying: “There is no rule which stops us to increase the rate more than once. We have increased the circle rates to keep pace with soaring market prices.” Calling the move reasonable, he added: “Those who oppose increase in circle rates justify black money. We are trying to curb it so that the ‘right’ taxes can be put into coffers.”