Delhi Circle Rates Hiked by Up to 20%: How it Impacts You

The Delhi government on Monday announced up to 20 per cent increase in circle rates effective Tuesday. Circle rates are minimum rates below which a property cannot be registered and forms the basis of stamp duty and registration charges for a property.. Circle rates, introduced in 2007, are revised periodically. In Delhi, these rates were last revised in November 2012, when the rates were hiked by 200 per cent.. Most property transactions in India are opaque, with some black money component. Many times, actual transactions take place much above the government's prescribed rates. There are many instances when buyers are forced to register the property at government's prescribed prices (circle rate), but have to fork out additional cash to compensate for the actual transaction value.. For example, a 75 square meter DDA flat in Delhi's Dwarka has a price tag of Rs 50 lakh (according to revised circle rate), but its market value is at Rs 70 lakh. So, a buyer has to register his/her flat at Rs 50 lakh and pay the seller an extra Rs 20 lakh in cash for a total transaction value of Rs 70 lakh. The deal is beneficial for both the buyer and the seller as both save on taxes.. It is the government, which is the biggest loser here. A hike in circle rate will cut down the black money component in such transactions. In good times, a hike in circle rates generally leads to some increase in property prices as well. But considering the sluggishness in real estate, particularly in Delhi, the hike in circle rates will only result in higher revenues for the government and is unlikely to have significant impact on prevailing property prices. (Read the full story here). Details:. A. For land transactions, the entire city has been divided into eight categories on the basis of circle rates.. 1) For posh colonies such as Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas (category A), the circle rate has been hiked 20 per cent from Rs 6.45 lakh per square metre to Rs 7.74 lakh per square metre.. 2) Land rates in category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased to Rs 2.45 lakh per square metre as against current rate of Rs 2.04 lakh per square metre.. 3) Category C colonies (Alaknanda, Chittaranjan Park, Civil Line, East of Kailash. East Patel, Kalkaji and Lajpat Nagar), the circle rate has been hiked to Rs 1.60 lakh per square metre from current Rs 1.33 lakh per square metre.. 4) Category D (Anand Vihar, Daryaganj, Dwarka, Indraprastha Extension and Janakpuri) the new rates will be Rs 1.28 lakh per square metre as against existing rate of Rs 1.06 lakh per square metre.. 5) The rate for colonies under category E (Chandni Chowk, Hauz Qazi, Jama Masjid, Kashmere Gate and Khirki Extension) has been hiked from Rs 58,365 to Rs 70,080 per square metre.. 6) For F category colonies (Anand Parbat, Arjun Nagar, Daya Basti, Dilshad Colony, Dishad Garden and BR Amdedkar Colony), the rate will be Rs 56,640 as against current rate of Rs 47,140.. 7) In respect of category G colonies (Amber Vihar, Dabri Extension, Dakshinpuri, Dashrathpuri and Hari Nagar Extension), the new rate will be Rs 46,200 per square metre as against existing Rs 38,442.. 8) For H category colonies it has been hiked to Rs 23,280 from Rs 19,361.. B. Buying flats in the city will also be costly, according to the revised circle rates. The government has also categorised flats depending on the plinth area based on which minimum built-up rate has been finalised.. 1) Plinth area between 30 square metre and 50 square metre: Built-up rate for DDA colonies and group housing societies for residential use will be Rs 54,480 while for commercial use it will be Rs 62,520.. 2) Plinth area between 50 square metre and 100 square metre: Built- up rate will be Rs 66,240 per square metre while for commercial use it will be Rs 75,960 square metre.. 3) Plinth area above 100 square metre: Rate for residential use will be Rs 76,200 while for commercial use, it will be Rs 87,360.. C) For flats having more than four storeys, a uniform rate per square metre of Rs 87,840 will be taken as minimum value of built-up rate for residential purpose and around Rs 1 lakh square metre for commercial purpose.. (With inputs from PTI)

Delhi Circle Rates Hiked by Up to 20%: How it Impacts You

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