Between the surging prices of every necessity, living in Delhi or getting a home is set to get more expensive. As the unified Municipal Corporation of Delhi has decided to hike transfer duty by 1 per cent on properties priced above Rs. 25 Lakh across the city, Officials notified on Wednesday, 1 June. After the process, the duty rate will scale to 4 per cent for male buyers and 3 per cent for female buyers, officials informed the PTI.
The step is vital and needs to be taken as per the officials to improve the deteriorating health/condition of the Municipal Corporation of Delhi– which was severely affected by the global pandemic that hit in 2020.
It is the first major decision after a unified meeting of North, South and East Delhi bodies, where the decision has been sanctioned. The proposal was passed by the special officer of the Municipal Corporation of Delhi, who has also been appointed to run the civic body until a new board leader is assigned. The decision was taken in a meeting on 1 June in Delhi, where the proposal to hike transfer duty on properties priced above Rupees 25 Lakh by 1% was brought to light.
The hike proposal was approved by the SO – Special Officer, Delhi MCD property tax department.
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What Difference will this Make?
Presently, a house in Delhi offers a transfer duty of 3 per cent for male and 2 per cent for female buyers. As informed, this sudden increase in transfer duty has been happening due to the poor financial condition of MCD, which now is significantly affected and needs to be restored. The corporation has even been struggling with paying the salaries of its employees since the pandemic. The following step taken by the authority will help get support and stabilise the deteriorating problems. The coffers will help with the challenges and provide the best service to the people, as informed by the authority.
Officials also stated that the increased transfer duty value, including the MCD property tax, would only affect those in the market to purchase land or property with a registered value of above Rs. 25 Lakh.
see also@ Property Tax in Delhi Complete guide about EDMC, NDMC, SDMC
MCD Sections Delhi
The given included properties are segregated into eight categories– A, B, C, D, E, F, G and H based on the area and location; MCD property tax collects stamp duty on the sale and purchase of properties.
Luxurious and posh colony properties like plots and houses in Vasant Vihar, Golf Links, Sunder Nagar and Jor Bagh fall under the category of A and B.
Middle and Upper-Middle class neighbourhoods like Lajpat Nagar, Bhogal, Amar Colony and Alaknanda, among others, fall under C and D.
Localities like Geeta Colony, Sheikh Sarai, and Anand Parbat come under the E, F, G and H categories.
Civic officials have stated that the transfer duty is collectable in addition to the stamp duty in Delhi. The hike will apply only on transfer duty and will not impact buyers aiming to purchase properties priced below Rs 25 lakh.
