Circle Rates Hike May Double As Centre Clears Air Over Issue

Circle rates in the city are likely to double very soon. The Central government has finally settled the controversy over the revision of property rates after the issue had reached a deadlock with chief minister Sheila Dikshit, and lieutenant governor Tejendra Khanna locking horns over the matter. It is learnt that the Union home ministry on Monday evening conveyed the legal view to the state that the subject of circle rates falls under the transferred list of subjects and hence the L-G has to act with the aid and advice of the council of ministers of the state.

 

 

This means that the decision of the cabinet prevails and the state government's decision to double the existing circle rates is likely to become a reality soon. The L-G's role is limited to giving a formal approval in this case, considering the fact that the state has been unrelenting on its stance.

Smarting from the L-G's ticking off that she was wrongly claiming credit for the success of the Commonwealth Games, Dikshit had turned the circle rate issue into a case of Raj Niwas' overbearing behaviour. The CM had apprised the Union minister for home affairs, P Chidambaram, on the issue of circle rates in November.

with thanks : times of india : link above for detailed news.

Circle rates Vs. Property tax in Delhi

Metro or no metro, there are many other factors hurting the sentiments of Delhites, such as water scarcity, water logging, radiation through cell towers, parking facilities, pollution levels,  medical facilities, existing infrastructure etc., which were never considered while revising the circle rates.  It is really surprising that while raising the taxes, these are compared with the European & American countries & while providing infrastructure, these are not compared even with Bangladesh or Srilanka.

Anyhow, Delhi government has increased the circle rates of the property. As a result, it will get enhanced revenues on the sale & purchase of the property. But in normal terms it will not make any impact on the general public. The general public which is not willing to buy or sell any property in Delhi, will not feel any change. They will not get any additional income or facility. Things will remain as they are existing now. 

But it is really SHOCKING to find that just on the base of these enhanced circle rates, MCD is willing to revise the Property tax rates in Delhi. Delhites are already paying the enhanced costs of anything & everything on the name of  CWG. Now to crush them as the last nail in the coffin, MCD is revising the property tax. 

Do you think it is sensible ? 
Do you think that these practices are by the public, for the public, of the public ?

Please reply & add your comments.

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Delhi Hikes Circle Rates In Bid To Curb Black Money, Commercial Circle Rates Up 3-4 Times

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.

Detailed news can be viewed at the link in headline above.

with thanks : source : Times of India

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HIKE IN PROPERTY CIRCLE RATES

MCD must get its legitimate property tax and other taxes. Only authorities must ensure that they are not milking the same cows again and again. The number of houses and commercial establishments may be know to authorities as Delhi city has been in existence for more than 2500 years. A lot many times population survey, increase in population every year due to migration and plus natural growth(births minus death) has been carried out.
As back as 1960 first master plan envisaged one lac annual increase and 4.5 units(children and adults) per dweling unit criteria. So, minimum 20,000 dwelling units neeed to be added every year.
We have all data available .
Why only 3 lacs are paying property tax. Why others are not brought under tax net.
Why responsible officers incharge of property tax at zonal and corporation as a whole have NOT BEEN ARRESTED AND JAILED SO FAR.This applies to other taxation wings also.
A time is not far when general sentiment will be against administration and thus law and order situation will deteriorate further.
The easiest path to GOVERNMENTS APPEAR TO BE INCREASE IN PRICES OF EVERY THING AND FORGET ABOUT COLLECTION.
Why bhagidars cannot play active role.It is high time we raise our voice in all fora at our command.
Let us friends act because every thing is at stake.

kk ghei

Govt Set To Hike Property Circle Rates in The National Capital

The circle rates for sale and purchase of properties in the national Capital are going to be high. In order to meet the expenses and deficits, the Delhi Government is likely to increase the circle rate of properties ranging from 30 per cent to 100 per cent.

The new circle rates will be fixed according to the properties falling under various categories. The concerned department has sent the proposal to planning and finance department for comments. If sources are to be believed, the new circle rates of properties would be implemented in Delhi within two months.

Delhi Government had earlier introduced the circle rates in 2007, dividing the Capital into eight categories. The circle rate of properties is the system in which the Government fixes the minimum or maximum rate of the land depending on the categories of colonies.

Top sources said that there would be massive hike in the circle rates to improve the financial health of the Capital. The proposal for new circle rates will be brought before the Cabinet by next month.

"Under the new proposal, posh colonies would have to pay more ranging between Rs 1.25 lakh to Rs 1.50 lakh per square metre as circle rate. Currently, the circle rate is fixed Rs 43,000 per sqm for posh colonies falling in the category A. The Government has taken a fresh categorisation of colonies, added two new category-rich and super rich colonies dividing the Capital into 10 categories," a source said.

For instance, colonies like Vasant Vihar, Greater Kailash, Hauz Khas, Mahendru Enclave, New Friend Colonies, Sukhdev Vihar, Jor Bagh, Niti Bagh, Defence Colony, Civil Lines falling in super rich colonies would have to pay more circle rate during sale and purchase of properties. According to proposed rate, there would be over 30 percent increase in the circle rate to those colonies falling under D,E,F,G and H category.

DETAILED NEWS CAN BE VIEWED FROM THE LINK IN HEADLINE ABOVE.

With thanks : source : The Pioneer

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SC: No registration of property below govt circle rates

The Supreme Court has ruled that property cannot be registered below the circle rates fixed by the government.

A bench comprising Justices Dalveer Bhandari and Mukundakam Sharma, while allowing the appeal of state of Haryana, noted ‘It may be pertinent to mention that in order to ensure that there is no evasion of stamp duty, circle rates are fixed from time to time and the notification is issued to that effect.

‘The issuance of the said notification has become imperative to arrest the tendency of evading the payment of actual stamp duty.

‘It is a matter of common knowledge that usually the circle rate or the collector rate is lower than the prevalent actual market rate but to ensure registration of sale deeds, at least at the circle rates or the collector rates, such notifications are issued from time to time by the appellants.’ Justice Bhandari, speaking for the bench through his 17-page judgement further said, ‘It would have far reaching ramifications and consequences if the genuineness of the sale price entered into by the buyer and the seller cannot be questioned, then in majority of cases it is unlikely that the state would ever receive the stamp duty according to the circle rates or the collector rates. The approach of the High Court is totally unrealistic.’ In the present case, Manoj Kumar had purchased a commercial plot measuring 788 square yards in Faridabad on November 10, 1999 and paid only Rs 31,000 as stamp duty by under-valuing the price of the plot at Rs 1, 95,000.

Faridabad District Collector, however, demanded the stamp duty of Rs 5,13,050 at the circle rate of the plot (i.e., Rs 4,200 per square yard) and the value of the property worked out to be Rs 33,09,600. Authorities told Manoj Kumar to pay the balance stamp duty of Rs 4, 82,050.

Appeal of Kumar was dismissed both by the District Collector and Commissioner Gurgaon.

FOR DETAILED NEWS, PLZ CLICK THE HEADLINE ABOVE.

With thanks : source : indlawnews.com

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