After proposing an increase in LPG rates,bus and Metro fares,the Delhi government is now looking at a proposal to increase circle rates,which will affect property rates in the Capital. The state revenue department has prepared a proposal to increase circle rates by 10 per cent; this is the first revision since these rates were introduced in 2007. The move came after stamp duty collection dipped drastically and authorities in adjacent Gurgoan and Noida hiked circle rates,Finance department officials said.
Officials said the governments revenue earning from stamp duty decreased by Rs 100 crore this year,compared to the same period last year.
Circle rate is the minimum amount at which one can buy a property it includes the cost of land and the cost of construction. At present rates,male property owners need to pay a one-time stamp duty of 8 per cent of the propertys value for registration; women have to pay 5 five per cent. Delhi is divided into eight categories for calculating circle rate,ranging from Rs 6,900 to Rs 43,000 per square metre as cost of land,and Rs 2,370 to Rs 14,960 per square metre as cost of construction.
According to officials,the Revenue department has submitted the proposal to the Finance department for approval; it is under review at present. While Revenue department suggested an increase of 10 per cent across all eight categories,officials said the Finance department has suggested a few changes in the proposal. The official said,The proposal borrows elements from Gurgaon,where circle rates were increased by 10 per cent to 12 per cent in June.
The move will have to be cleared by the Cabinet before it can be implemented.