Buying property in Delhi to get costlier as MCD hikes transfer duty

A senior official said that once the hike comes into effect, the transfer duty will be 4 per cent for men and 3 per cent for women buyers.

The transfer duty, calculated on the basis of registered sale value of property in addition to stamp duty, is being increased with an aim to improve the financial health of the civic body, which has been hit particularly hard by the pandemic. The move has been in the pipeline for long, officials said.

This is also the first major decision taken by the civic body after the unification of the north, east and south municipal corporations last month.

The decision was taken in a meeting on Tuesday. A proposal was moved in this regard, and passed by the special officer of the MCD, who has been entrusted with the power to run the civic body till the new House is elected.

The move will increase revenue and bolster the MCD’s coffers, which will be used for overcoming financial challenges and providing the best services to the people, officials said.

Properties are divided into eight categories in the capital – A, B, C, D, E, F, G and H – depending on their location, and the Delhi government collects stamp duty on the sale and purchase of properties.

Upscale colonies fall in categories A and B, such as Golf Links, Vasant Vihar, Sunder Nagar and Jor Bagh. Middle-income group neighbourhoods fall in the C and D categories, and include localities such as Lajpat Nagar, Alaknanda, Bhogal and Amar Colony.

Localities such as Geeta Colony, Anand Parbat and Sheikh Sarai fall in the E, F, G and H categories.

The hike will be applicable only on transfer duty and will not impact buyers aiming to purchase properties priced below Rs 25 lakh.