Revised Delhi circle rates to make home buying expensive for you

Real estate in the national capital received yet another blow with an increase in circle rates. This is the second revision in two years. While many are still unaware of the actual circle rate, lot of confusion prevails in the market with different opinions on what are the implications of the increase in rates would be on the real estate market.

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Circle rate is the minimum rate on which the stamp duty is charged on the entire cost of a property be it a plot, apartment, built-up house or a commercial property. However, the circle rate in Delhi differs for various colonies which are further divided into various categories. In Delhi, under the Registration Act 1908, minimum land rates for residential use have been divided under the category of locality from A to H.

“Considering that the existing circle rates in Delhi are higher than the market price, another revision is sure to increase the gap. Buyers and sellers will be the worst hit. Once the rates get implemented, the buyers will have to shell out extra money from their pocket to pay stamp duty and income tax,” says Vaibhav Sankla, director of H&R Block (India) Private Limited.

Source: http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/revised-delhi-circle-rates-may-add-pressure-on-your-pocket/74532.html