Property transfers in Delhi could become more expensive as the combined Municipal Corporation of Delhi (MCD) proposes a 1% increase in transfer duty.
The consolidated Municipal Corporation of Delhi (MCD) has suggested a 1% increase in transfer tax on properties in Delhi worth more than Rs 25 lakh. Following the increase, the transfer duty will be 4% for males and 3% for women.
According to municipal officials, “The transfer duty increase would not affect properties having a registered value of less than Rs 25 lakh. A property worth roughly Rs 1 crore will face a net increase in transfer duty of Rs 1 lakh. The transfer duty has not been raised in the recent decade, and the company has the authority to charge up to 5% transfer duty.”
“Civic corporations depend largely on transfer duty as their primary source of income,” the rise in transfer duty suggests. “Alternative techniques are being studied to boost the united MCD’s income collection,” says an MCD official. He goes on to say that the continuing economic crisis will push policymakers in the North, South, and East MCDs together.
The idea was accepted by the Special Officer, MCD, who has been given the authority to manage the civic body until a new House is elected. However, the idea to increase transfer duty on properties would also require permission from the Delhi government before it can be implemented. Currently, the transfer duty on properties sold and acquired in the national capital is 3% for males and 2% for women.
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