Steep hike in cir­cle rates

Delhi gov­ern­ment in­creases cir­cle rates by 50% to 200% HOW IT WORKS OUT

HT Estates - - Front Page - HT Es­tates Cor­re­spon­dent

Prop­erty prices in Delhi are all set to go through the roof fol­low­ing the gov­ern­ment’s de­ci­sion to in­crease cir­cle rates by 50% to 200%.

The cir­cle rates are charged on the ba­sis of the cat­e­gories pre­scribed by the mu­nic­i­pal cor­po­ra­tions for cal­cu­la­tion of prop­erty tax un­der unit area method, wherein the city has been di­vided into eight cat­e­gories (from A to H, where A stands for posh colonies). Cir­cle rates are the min­i­mum rates be­low which no prop­erty can be reg­is­tered This en­sures in­crease in the gov­ern­ment's rev­enue in the form of stamp duty and re­duces the black money com­po­nent as the dif­feren-

Cir­cle rates are the min­i­mum val­u­a­tion of land and im­mov­able prop­er­ties in the city. They were first in­tro­duced in Delhi on July 18, 2007. They were fur­ther ra­tio­nalised in Fe­bru­ary 2011 and No­vem­ber 2011.

There has been a 200% in­crease for Cat­e­gory A, a 50% hike for Cat­e­gory B and a 22% rise for Cat­e­gories C to H. The cir­cle rate in Cat­e­gory A ar­eas will jump from R2.15 lakh per sq m to tial be­tween mar­ket price and min­i­mum price gets nar­rowed For an av­er­age per­son look­ing to in­vest in im­mov­able prop­erty, the hike in cir­cle rates shall trans­late into in­creased costs as he/she shall have to pay a big­ger amount for stamp duty R6.45 lakh per sq m. This means that in Cat­e­gory A ar­eas such as Golf Links, Au­rangzeb Road, Am­rita Shergill Marg, Vas­ant Vi­har and Panchsheel En­clave, no one can buy land and im­mov­able prop­er­ties for less than R6.45 lakh per sq m.

Sim­i­larly, for Cat­e­gory B ar­eas such as Greater Kailash I and RK Pu­ram, the cir­cle rate has been in­creased from R1,36,400 per sq m to R2,04,600 per sq m.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.