High property duty causing hindrance in selling
Imagine buying property and paying stamp duty far higher than the deal entails because the circle rate is much more than the market price? Many buyers in Delhi NCR in New Friends Colony, Kalindi Kunj and parts of Noida for instance and in smaller cities like Bhopal are doing exactly that as a piquant situation has emerged in the subdued realty market.
With market rates being far lower than circle rates when the opposite is usually true in these places, the buyer has to pay stamp duty on an amount higher than the price he has paid for the property, drawing the taxman’s attention to both buyer and seller in such deals.
Property consultant Sachin Garg, who is based in New Friends Colony, says there’s hardly been any transaction in the past one year when the market price has been higher than the circle rate. The circle rate in New Friends Colony is Rs 6.45 lakh per square yard against the prevailing market price of around Rs 5 lakh.
The property duty being high has become one of the many reasons why flats are not being sold in these regions.
Source: The Times of India
