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According to officials, the Delhi government is seeking feedback from the public and has initiated the process of revising the circle rates. The circle rates of different types of landed properties are being evaluated by a committee of senior officials. As per feedback in the media by a senior Revenue Department official, chances are that the committee would submit its report to the government within this month. The term ‘landed property’ refers to the properties for which the owners do not have to do the work for the estate but can keep earning revenues.
The last time circle rates were increased was back in 2014. The committee has categorized the circle rates into eight classes, from A to H. The A category areas are posh, with circle rates around INR 7.74 lakhs per sq. m. The H category areas are the least developed, with circle rates of INR 23,280 per sq. m. For any property, the circle rate acts as a threshold rate. It is not possible to register the sale of the property at a rate below the circle rate. Earlier, the government of Delhi had reduced the circle rates for residential, commercial, and industrial properties by 20% during the lockdown.
It is expected that revising the circle rates would help to boost revenue for the government. Earlier, stamp duty fees had declined as a result of the pandemic and the lockdown. The Revenue Department collected INR 3,297 crore as stamp duty fees from 2020 to 2021, which fell short of their planned target of INR 5000 crore. Now, they are aiming to collect revenue of INR 4,997 crore from stamp duty fees. These changes are likely to result in positive effects on the economy.
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