Buying property in Delhi to get costlier
Buying property in the national capital Delhi is set to get costlier as the unified Municipal Corporation of Delhi (MCD) hiked the transfer duty by 1 per cent on all properties priced above Rs 25 lakh across the city, officials said on Wednesday. According to a PTI news report, post the hike, the transfer duty will be 4 per cent for men and 3 per cent for women.In a decision taken on May 31,2022, the proposal to increase the transfer duty by 1 per cent was moved by officials. Subsequently, the proposal was passed by the special officer of the MCD, who has been entrusted with the task 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 1 per cent. The proposal was approved by the special officer. After the hike, transfer duty will be 4 per cent for men and 3 per cent for women," an official told PTI.
Before the latest hike, the transfer duty on sale and purchase of property in the national capital was 3 per cent for men and 2 per cent for women.
What is transfer duty?
Not to be confused with stamp duty, a transfer duty is levied by a municipal corporation of an area on the sale of properties. The Statues (MCD Act or the NDMC Act in this case) allow the corporation/ council to levy a duty on transfers of immovable property situated within the limits of the Capital. The law states that "the said duty shall be levied in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899 (2 of 1899) as in force for the time being in the Union territory of Delhi". Transfer duty is levied on sale or exchange of immovable property, gift of immovable property, mortgage with possession of immovable property and lease in perpetuity of immovable property.
Hardeep Sachdeva, Senior Partner, AZB&Partners, told ET Online: "Transfer duty is levied in Delhi by municipal corporation of Delhi on every sale, exchange, gift etc. of immovable property. So, in a sale of property, one pays stamp duty as per the stamp act, registration fees as per registration act; and additionally one pays transfer duty as per requirements of MCD in Delhi."
This story originally appeared on: Muscle & Fitness - Author:Tax Cognition
