The Uttar Pradesh government has gone against expectations to propose a sharp increase in circle rates in Noida, its hunger for revenues superseding calls for a correction to lift the realty market out of the dumps. The government has also decided to implement the 2% point increase in stamp duty it had approved earlier this year from 5-7%.
As a result, registering new homes in Noida has become costlier, a double whammy, if circle rates also go up, in election season. Circle rates in various parts of Noida are already higher than market rates, affecting both buying and selling of property because stamp duty and (for the buyer) and capital gains tax (for the seller) are calculated on the basis of circle rates. Acknowledging this problem, the Haryana government has slashed circle rates by 15% in a premium market like Gurgaon, saying the correction was necessary to improve buying sentiment. But UP, clearly, thinks otherwise.
According to the proposal prepared by the district administration, circle rates in Noida are to be increased by 14% in the residential category, 6.2% in group housing, 14% in corporate and 30% in IT. The proposal to revise circle rates has been prepared and the administration has invited public feedback on it till July 25. If revised, they will be applicable from August 1.
Source: ET Realty