The black money component in property transactions is set to dip. In a decision aimed at boosting the state government's dwindling revenue base, Delhi's cabinet on Monday raised the circle rates for valuation of land and immovable properties for charging stamp duty by up to 190.7%.Circle rates are the minimum rates at which land and property can be sold and bought in Delhi. The system was introduced in 2007.
The new rates will range from Rs 9,000 to Rs 1.25 lakh per sq metre, against the existing Rs 6,900 per sqm to Rs 43,000 per sqm. Under the existing system, Delhi was divided into eight categories `A' to `H' derived from the unit area property tax system of MCD. The old categorization has now been removed and colonies reclassified in 10 circles on the basis of assessed land costs in different localities.
As far as commercial and industrial transactions go the hike is much higher. It is three times of each slab in case of commercial and 2.5 times of incase of industrial. Also residential rates will apply to properties located on mixed land use streets.
Revenue minister Raj Kumar Chauhan said the new slabs of Rs 1.25 lakh and Rs 1 lakh seem like a big jump from the previous top slab of Rs 43,000 but given the actual market rate of properties in colonies under these slabs, the circle rate is not much. According to estimates, transactions in these areas are barely 5% of all the transactions in the city as the prices are steep and run into crores.
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with thanks : source : Times of India
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