Ghaziabad May Raise Circle Rates To Meet Stamp Duty Target

The stamps and registration department in Ghaziabad is believed to have written to the Uttar Pradesh government recommending that circle rates be raised in the current financial year. Circle rates have remained unchanged in Ghaziabad since 2014.

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The stamps and registration department in Ghaziabad is believed to have written to the Uttar Pradesh government recommending that circle rates be raised in the current financial year. Circle rates have remained unchanged in Ghaziabad since 2014.

“We have sent our recommendations to the state government on circle rates. It is for the government to take a call on the matter,” said ML Patel, AIG (stamps). 

“In the last financial year, we could manage to meet 89% of the stamp duty target set by the state government,” he added.

In the 2018-19 financial year, the UP government had set a target of collecting Rs 1,626 crore as stamp duty, but could manage only Rs 1,442 crore. Officials said one of the reasons that led to a shortfall in stamp duty was a recent slowdown in the real estate sector. Another possible reason is that properties abandoned by homebuyers, tired of their struggle to get possession of flats, are often sold to second parties without informing the registry department. The department, thus, loses out on revenue.

“For 2019-20, the target set by the state government has been increased by Rs 48 crore to Rs 1,674 crore,” said Patel. Though officials refused to go on record on the recommendations made to the UP government, sources said the state might heed the suggestion, given that circle rates have remained the same since 2014.

Last year, rebates had been offered on existing circle rates in the area under two slots on plots for educational institutions. For an area between 1,000sqm and 20,000sqm, institutions were offered rebates of about 30% while land measuring more than 20,000sqm were sold with 40% rebate. The state government had last year also abolished a 5% discount on rainwater harvesting and instead made it compulsory. 

The current circle rate in Kausambhi is between Rs 72,500/sqm and Rs 79,700/sqm for residential plots. 

The rates under the commercial head in the township vary between Rs 1,26,000/sqm and Rs 1,38,000/sqm. Similarly, in Indirapuram, the rates for residential plots are between Rs 66,500/sqm and Rs 73,100/sqm and under the commercial head, it is Rs 96,000/sqm and Rs 1,86,000/sqm. 

In Vasundhara, the rates under the residential category are between Rs 56,500/sqm and Rs 62,100/sqm and under in commercial areas, they are between Rs 96,000/sqm and Rs 1,20,000/sqm.

Economic Times, Delhi/NCR

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