The Delhi government on September 30 decided to extend till December 31 its current scheme of 20 percent reduced circle rates for all categories of properties, a revenue department notification said.
The move is aimed at boosting the real estate market, which has seen a slump as a result of Covid-19, and increasing government revenue.
“Lt Governor of NCT Delhi hereby notifies the extension of relaxation of 20 percent in the minimum rates (circle rates) till 31.12.2021 for valuation of lands and immovable properties in Delhi … Lt Governor further directs that they shall come into force with immediate effect…,” it said.
Cabinet minister, Govt of NCT of Delhi (Law, Revenue, Transport, IT and AR) tweeted that “with the city slowly recovering from the aftermath of COVID, here’s another good news for Delhiites!!! We have further extended the 20% slash in circle rates till 31st Dec 21 under Hon CM Arvind Kejriwal.”
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On February 5, the Delhi government reduced circle rates for all categories of properties for a period till September 30. Circle rates were reduced by 20 percent for residential, commercial and industrial properties across all categories of localities.
Circle rates refer to the minimum rate notified by the government through the registrar or sub-registrar office of Delhi for registration of property transactions. Stamp duty is to be paid on the higher of the declared transaction value and the value calculated as per the circle rate chart applicable for the sector or area of Delhi.
Circle rates tend to vary across various areas of Delhi depending upon the market value of the area and the facilities that are available in that area. Delhi government has divided the properties in the entire Delhi city into 8 categories – Category A, Category B, Category C, Category D, Category E, Category F, Category G, and Category H. The most expensive posh areas of the city are part of Category A while Category H has the lowest value areas of the city.
The government generally assigns a higher circle rate to commercial properties and lower rates for residential properties. Circle rates also depend upon the type of property. The registration value of apartments in Delhi are different from those of plots and independent houses even within the same area.