In a major initiative, Delhi Government has proposed that rent and lease deeds will be based on the circle rates of properties, a move aimed at mopping up more revenue and curbing tax evasion.
As per the proposal moved by the Revenue department, stamp duties on lease deeds and rent agreements will be calculated as per existing circle rates of an area and no under valuation of properties will be allowed.
Divisional Commissioner Dharampal said that circle rate may be applicable on properties whose tenure of rent agreement is more than one year.
"Often the real rent amount is not shown to save on stamp duties. We are planning to impose taxes on rented properties based on circle rate of a particular area," he said.
Sources said 2 to 5 per cent circle rate may be imposed on rented properties which may raise the rents of commercial properties in areas like Khan Market, Connaught Place and Greater Kailash.
with thanks : Times of India : LINK : for more details
