Transfer duty on purchase of properties in Capital above Rs 25 lakh hiked by 1%

new delhi: Buying property in Delhi is set to get expensive as the unified Municipal Corporation of Delhi has decided to hike transfer duty by 1 per cent on properties priced above Rs 25 lakh across the city, official sources said on Wednesday.

Officials said after the hike, the transfer duty will be 4 per cent for men and 3 per cent for women buyers.

The move is aimed at improving the financial health of the municipality which has been hit severely in past years especially due to COVID-19 pandemic. It is a first major decision after the three civic bodies north, east and south were unified last month.

The decision was taken in a meeting on Tuesday where a proposal to increase the transfer duty by 1 per cent was moved.

The proposal was passed by the special officer of the Municipal Corporation of Delhi (MCD), who has been entrusted with the power 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 SO (special officer). After the hike, transfer duty will be 4 per cent for men and 3 per cent for women, official sources.

Currently, the transfer duty on sale and purchase of property in the national capital is 3 per cent for men and 2 per cent for women buyers.

The move comes in the backdrop of the poor financial condition of the civic body as it has been struggling even to pay salaries of its employees.

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

Authorities said the hike in transfer duty will affect only those buyers who are to purchase property having the registered value above Rs 25 lakh.

Meanwhile, the AAP blamed the BJP-controlled MCD for running a huge scandal under its toll-tax collection regime. AAP leader and MCD in-charge Durgesh Pathak claimed that the MCD is suffering a loss of Rs 1,180 crore due to the collusion of BJP and toll tax companies. He said that though tenders worth Rs 1,200 crore were awarded in 2017, the amount that reached the MCD treasuries were only around Rs 250 crore, which according to him is a very large deficit. A deficit of Rs 232 crore can also be sighted in the 2021 tender which was worth Rs 786 crore, he said. According to Pathak, both the companies involved in the scam are owned by the same person which reflects the large magnitude of corruption in issuing tenders. He further added the possibility of BJP leaders being involved in the ownership of these companies.

With PTI inputs