Property Taxation: Buying property in UP and new circle rate in expensive Ghaziabad, know the impact today

News India Live, Digital Desk: Property Taxation: Now a big change is coming in the property market of Uttar Pradesh! If you are thinking of buying or selling land or house in a district of the state, especially Ghaziabad, now you may have to do your pocket and lighter. The Ghaziabad district administration has implemented new circle rates in the district, which directly means that now you have to pay more on property purchase and sale. This step has been taken by the district administration to increase revenue and show real estate actual market rates.

What is the circle rate and why it is important?

The circle rate is the minimum rate on which the government registers a piece of land or property. You cannot register your property in less than that rate. It is decided according to different areas in every district or city. When the circle rate increases, the government price of the property increases, which also increases the stamp duty and registration fees on purchasing property. Simply put, it makes the purchase of the property more expensive.

Why increased circle rate in Ghaziabad?

• Revenue enhancement: This is a major way for the government to increase revenue. Increased circle rates bring more money in the government treasury through stamp duty and registration fee.

• To show market values: It is often seen that the circle rates are much lower than the actual market rates. The aim of the new circle rates is to get closer to the growing market value of the land and property.

• Ban on black money: It is also a purpose of discouraging the transaction of black money by bringing more transparency.

Which will affect the most?
The new circle rate will directly affect those who are buying or selling new houses. On purchasing property, you will have to pay more stamp duty and registration fee, while if you are selling, the cash you get may be reduced (if you are completely dealing with government records). Also, it can affect housing finance and bank loans as they depend on the valuation of the property.

However, to some extent it can also help in making the property market more stable and transparent. But at present, it is certain that the purchase and sale of property in Uttar Pradesh has now become a more expensive deal.

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