Buying a house in the country’s capital Delhi is everyone’s dream. You may also be planning to buy a house in Delhi in the coming days. In such a situation, this news may disappoint you, because buying a house in Delhi has become expensive. The Delhi government has increased the transfer fee for immovable property by 1 per cent. This increase will apply to properties above Rs 25 lakh.
Relief on property less than 25 lakhs
The Delhi government has clarified that there has been no change in the transfer duty charges for properties up to Rs 25 lakh. Since the change is applicable to all properties above Rs 25 lakh, it means that almost all property deals in Delhi will now become costlier, as there are very few properties within Delhi priced below this.
property transfer now this much fee
Transfer duty will be 3% on transfer of property worth more than Rs 25 lakh in the name of a woman or transgender. Earlier this charge was 2 per cent. Whereas, in the case of men, transfer of property worth more than Rs 25 lakh will attract 4 per cent transfer fee instead of 3 per cent. The government has issued a notification in this regard.
This is how the effect of growth will be
Transfer Duty is a part of Stamp Duty and Registration Fee levied by the Department of Revenue. In case of transfer of property by way of gift, conveyance or sale deed, this duty is levied on the sale proceeds. After the increase in the transfer fee, 7 percent stamp duty and registration fee will be charged if the property is registered in the name of a man and 5 percent if it is transferred in the name of a woman.
Transaction cost is already high
People associated with the real estate sector believe that the increase in transfer fees will affect the sentiment of home buyers, because the transaction cost of the property is already very high due to other things including GST, stamp duty and registration. . This increase has been done at a time when interest rates are already at a higher level. In view of inflation, the Reserve Bank has continuously increased the repo rate, due to which home loans and other loans have also become costlier.
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