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It is anticipated that property rates will soon ascend in the city since the Delhi government has granted the Municipal Corporation of Delhi (MCD) consent to augment the transfer fee on property sales by 1 percent. The increase will be valid for any property that has a value exceeding Rs 25 lakh.
According to a government official, the proposal submitted by MCD has been authorized and the corresponding file has been returned to them. Although the MCD official claimed that they have not received the document yet, he emphasized that the Delhi government needs to issue a gazette notification and the sub-registrars must be notified by their divisional commissioners before the implementation of the change.
The transfer fee is determined based on the recorded selling price of a property and is imposed in addition to the stamp duty. The proposal submitted to the Delhi government stated that the MCD's portion of the transfer duty would be raised from 3 percent to 4 percent for male buyers and from 2 percent to 3 percent for female buyers. In the previous year, after the merging of the three municipal bodies, the proposal to increase was endorsed by the special officer and municipal commissioner and subsequently forwarded to the Delhi government for approval.
When a property is priced at approximately Rs 1 crore, the transfer duty increment will amount to Rs 1 lakh. According to the official, there has been no modification in the transfer fee for properties having a registered value below Rs 25 lakh.
The necessity to augment the rate was articulated by a representative of the municipality, who stated that over the last ten years there have been no modifications and the governing body has the authority to impose a transfer fee of up to 5 percent. Generating revenue is one of the principal functions fulfilled by MCD's obligations. We must search for tactics that can boost our revenue collection in order to enhance our financial status after the unification process.
Before the merger in May 2022, the former southern and northern corporations endeavoured to enhance the transfer levy; nevertheless, the suggestion was immobilized at the Delhi government level.
The registration fee in Delhi pertains to the payment required for the property's registration in the official government records. Preserving evidence and securing a property title guarantee are crucial measures to prevent disagreements over property in the future. Clear documents that have been stamped and registered are recognized as legal evidence in court when required.
All buyers must pay 1 percent of the deal value with stamp duty for sales deed registration, regardless of gender. Men pay 7 percent, while women pay 5 percent, on property costs for registration in New Delhi. When a house is jointly registered by a man and woman, they pay 6 percent of the property cost at registration.
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