Eclipse of inflation on property in Lucknow, circle rate will increase from August 1!

Lucknow: The real estate market in the capital Lucknow may soon see significant changes. It is reported that from August 1, there is a preparation to increase the circle rates controlling the purchase and sale of property in the city. The direct effect of this increase will be that buying houses or other properties in Lucknow will become expensive. However, this step is considered to be important in terms of increase in government revenue, as it is expected to “grow bumper” in income tax collection.

According to the new proposed rates, there is a proposal to increase the circle rate from 15% to 177% in different areas. According to the registration department estimate, about 60% of property buyers will have to pay more than 30 lakh rupees on the implementation of these new rates. According to the current rules, when the stamp duty on the registry of a property is Rs 30 lakh or more, then its information is sent directly to the Income Tax Department from the Registry Office. The Income Tax Department then checks the income of both the buyer and the seller on the basis of this information and collects tax from them. In such a situation, this increase in circle rates will not only make the properties expensive, but will also open a new and big source of tax collection for the Income Tax Department.

In many areas of the old city, the circle rate is proposed by about 15% to 20%, while this increase in areas such as Ansal and Emar Township can increase by about 177%, where the circle rate can be increased from Rs 18,000 per square meter to Rs 50,000 per square meter. Rates have also been increased in posh areas like Gomtinagar, making it even more expensive.

In addition, the Lucknow Development Authority (LDA) is also reviewing the rates of land in its new and old plans and plans to increase the rates where the LDA rates are lower than the circle rate. However, the prices of flats sold under the “first come, first serve” scheme are not expected to have a direct impact, as their prices have already been stabilized.

Experts believe that this step will bring more transparency in property transactions and will also increase the revenue of the government. At the same time, buying a house can make a little difficult for common buyers.