NEW DELHI: Property buyers in the national capital will soon have to shell out more, as the newly-reunified Municipal Corporation of Delhi (MCD), has approved a proposal to hike transfer duty by 1 per cent on properties that cost above Rs 25 lakh, civic officials said on Wednesday.
According to officials, the transfer duty on sale and purchase of properties will now be 4% for male buyers and 3% for women, which currently is 3 per cent and 2 per cent, respectively. The decision was taken after a long-drawn meeting presided over by the special officer on Tuesday. The proposal was approved by the special officer, who has been entrusted with the power to run the civic body till the new House is elected.
“The proposal to hike transfer duty was earlier approved by the erstwhile south and north corporations while the east corporation had not approved it and hence the proposal was moved again by the property tax department, which was approved by the special officer. The file will be sent to the state, which collects stamp duty on sale and purchase of properties,” said a senior official, who didn’t wish to be named.
The move is aimed at addressing the financial crisis in the civic body, which has been badly hit over the past two years because of the pandemic. The erstwhile corporations have been alleging that the Delhi government did not release the funds due to them, which caused a severe fund crunch to the point where a section of employees have not been paid for the past five months. Previously, proposals to hike property tax by the executive wing could not be implemented, as the political wing vying public support would always turn it down and even rollback any hike approved.
In Delhi, properties are divided into eight categories --- A, B, C, D, E, F, G and H depending on the location. The upscale colonies fall in the category of A and B such as Golf Links, Vasant Kunj, New Friends Colony, Vasant Vihar and Sunder Nagar, among others. Middle income group neighbourhoods fall in the C and D category which include localities like Lajpat Nagar, Amar Colony, Ashok Vihar, Mukherjee Nagar and Laxmi Nagar among others. Localities in trans-Yamuna areas such as Geeta Colony etc fall in E, F, G, H category.
Sale & purchase of property
1% Hike applicable only on transfer duty
Rs 25 lakh Will not impact buyers aiming to purchase below C25 lakh range
Properties divided into eight categories A, B, C, D, E, F, G and H, based on which stamp duty is collected on properties
Posh and upscale colonies fall in A and B the category
Middle-income group neighbourhoods fall in the C and D category
Civic officials said transfer duty is collected in addition to stamp duty