The district administration of Gurgaon has revised its circle rates for real estate sale and purchase, and the new rates will come into effect from Monday, February 12.
The revised circle rates will remain effective until March 31, 2018. The government will revise it again in the next financial year starting April 1, according to news reports which quoted district authorities.
As per the instructions by Haryana chief minister Manoharlal Khattar, the circle rates will be revised twice a year to generate revenue for the government.
According to the revised rates, the circle rates in the licensed group housing societies (sectors 1-57) have been increased from Rs 4,300 per square foot to Rs 5,000 per square foot.
But the residential flats of Aralias and Ambience Island will have the highest circle rates, as they have been revised from Rs 6,000 per square foot to Rs 10,000 per square foot.
The residential plot circle rates have also been increased. The residential plots in DLF-2, DLF-4 and South City-1 will cost more with the circle rate being revised from Rs 61,200 per square yard to Rs 65,000 per square yard. However, the circle rates for the plots in DLF-1 and Sushant Lok-1 remained unchanged at Rs 65,000 per square yard.
Circle rate is the minimum price at which a property is registered when being transferred. This is set by the government in order to make sure there are no unaccounted transactions and the revenue is accrued to the government. Circle rate is the minimum amount of stamp duty that needs to be paid at the time of registration. Either circle rate or the value of the property which is officially declared, whichever is higher, will be the base for calculating stamp duty.
In the commercial category, the circle rates have seen more increase as compared to residential. The highest increase in circle rate for commercial has been from Rs 1,40,250 per square yard to Rs 1,50,000 per square yard in DLF-3.
Besides, the district administration has revised circle rate in tehsil Gurgaon from Rs 14,800 per square yard to Rs 17,000 per square yard for residential areas.
Usually, the circle rates were revised once a financial year on an average rate of 10-15%. The rates for 2015-16 were not changed though as they remained the same as in 2014-15. In 2016-17, the district administration proposed a 15% reduction in circle rates due to the slowdown in the real estate. Now, it seems there is a pick up in the sector, hence the government’s decision to revise the rates.