Increasing circle rates in Delhi : Even now far away from reality

04 August, 2012

The Delhi Government has increased circle rates for registration of property deals. But the increased circle rates are still far away from actual market prices of land in Delhi. For example, properties listed in highest 'A' category in posh areas such as Defence colony, Hauz Khas, Gulmohar Park and Panchsheel Enclave have market values in multiples of new fixed circle-rate of just rupees 2.57 lakhs per meter leaving a big gap for role of black money in property deals.

CIRCLE RATES should be somewhat higher than prevailing market rates and should be reviewed and fixed after every three months.

Role of black money in property deals can also be minimised by sharp cut in stamp duty by charging it at just two-percent (one-percent for lady-purchasers) of such fixed higher circle-rates irrespective of the deal shown on papers. Capital gains tax should be reduced to ten-percent instead of present twenty-percent. Idea should be to have such low rates of stamp duty and capital-gain so that people may volunteer themselves for clean fully accounted property deals which in turn will give much more revenue through stamp duty and capital gain.

Government should further simplify tax laws by providing a permanent voluntary declaration scheme to declare as much income as possible from ‘undisclosed sources’ on payment of maximum tax slab of 30 percent. This will catch hold of those purchasing property from unaccounted cash when tax authorities persons will find ‘income from undisclosed sources’ in tax returns of those selling the property. A realistic tax regime with stop printing of higher denomination currency of rupees 500 and 1000 can be effective in checking black money regime.

Profitability of Indian banking sector projected to decline: CII survey

Gujarat registers maximum growth in per-capita food and non-food expenditure

COMMENTS (1)

Guest

Manu Sharma

I agree with the above. You ask any property dealer in Janak Puri, New Delhi about the cost of a floor and you will be surprised to be quoted at 3-5 Cr much much away the circle rates. Where will us poor people go? Even unauthorized colony like Uttam Nagar is quoting 30-50 lakhs for a floor on 250 square yard plot. The government it seems dreams the circle rates overnight and implements it come morning.