Buying property in Delhi is set to get more expensive as the unified Municipal Corporation of Delhi has decided to hike transfer duty by one percent on properties priced above Rs 25 lakh across the city, official sources said on Wednesday, 1 June.
Officials said that after the hike, the transfer duty would be four percent for men and three percent for women buyers.
The move is aimed at improving the financial health of the municipality, which has been hit severely over the past few years, especially by the COVID-19 pandemic.
First Major Decision After 3 Civic Bodies Were Unified
This is the first major decision after the three civic bodies – north, east, and south – were unified last month. The decision was taken in a meeting on Tuesday where a proposal to increase the transfer duty by one percent was moved.
The proposal was passed by the special officer of the Municipal Corporation of Delhi (MCD), who has been entrusted with the power to run the civic body till the new House is elected.
"A proposal was moved before the special officer in capacity of the standing committee to hike transfer duty on properties priced above Rs 25 lakh by one percent. The proposal was approved by the SO (special officer). After the hike, transfer duty will be four percent for men and three percent for women," official sources told PTI.
Currently, the transfer duty on the sale and purchase of property in the national capital is three percent for men and two percent for women buyers.
The move comes against the backdrop of the poor financial condition of the civic body, which has been struggling even to pay salaries to its employees.
"The move will increase revenue and strengthen MCD's coffers which will be used for overcoming the financial challenges and providing the best services to the people," officials said.
Authorities said the hike in transfer duty would affect only those buyers who were to purchase property having a registered value above Rs 25 lakh.
Properties are divided into eight categories, A, B, C, D, E, F, G, and H, depending on their location, and the Delhi government collects stamp duty on the sale and purchase of properties.
Posh and upscale colonies fall in the category of A and B, such as Golf Links, Vasant Vihar, Sunder Nagar, and Jor Bagh. Middle-income group neighbourhoods fall in the C and D category areas, which include localities like Lajpat Nagar, Alaknanda, Bhogal, and Amar Colony, among others.
Localities such as Geeta Colony, Anand Parbat, and Seikh Sarai fall in E, F, G, and H category areas.
Civic officials said transfer duty is collected in addition to the stamp duty. The hike will be applicable only on transfer duty and it will not impact buyers aiming to purchase properties priced below Rs 25 lakh.
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