Be prepared to shell out more for registration of plots in the city as the district administration is planning to increase circle rates by next month.
The rate is being revised to levy proportional stamp duty for sale and purchase of plots on market rates.
The government has been losing its revenue collected from stamp duty after the Noida Authority increased land allotment rate by 12.5% last month.
As per the land registration norm, circle rates are determined area-wise ranging from 20 to 30% of the allotment rate fixed by the authority.
"Circle rate is the difference between the price of a plot as fixed by the authority and the market. Circle rates are 20%-30% more than the land rate decided by the authority and 15%-20% less than the market rate for resale," said SN Rai, assistant inspector general (stamps).
"The more the circle rate is close to the market rate, chances of stamp duty evasion becomes less. It also helps in checking black money," Rai added.
"As the circle rates are not yet executed in proportion to the hiked land rate, the government is losing revenue. Sub-registrars have been asked to submit the revision proposal. In next one month we hope to complete the process and announce the new circle rates," said Rai.
{{/usCountry}}"As the circle rates are not yet executed in proportion to the hiked land rate, the government is losing revenue. Sub-registrars have been asked to submit the revision proposal. In next one month we hope to complete the process and announce the new circle rates," said Rai.
{{/usCountry}}Following the hike of 12.5%, the land allotment rate in D category sectors has increased to Rs 20,900 per sqm, more than the circle rate of Rs 20,000 per sqm. Similarly, in C category, the circle rate is Rs 26,500 per sqm and the allotment rate is Rs 24,873 per sqm. However, for A category sectors, the new authority rate is Rs 49,005 per sqm against the circle rate of Rs 51,000 per sqm. In B category sectors, the authority rate is Rs 34,155 per sqm and circle rate is Rs 36,500 per sqm.
According to the Stamps and Registration Act, the original allottee is given six months to register the property in his/her name.
If an allottee fails to register in this period, he will have to pay stamp duty at circle rate just like resale property rates.
The stamp duty will be charged as per the circle rate even if the allottee sells the property below the circle rate of a particular area.
But, if the selling rate is more than circle rate, then stamp duty will be levied on the rate on which the deal is signed.