The Delhi government is likely to extend the rebate of 20 per cent on circle rate of land and immovable property for another six months to boost the real estate sector in the city, officials said on Wednesday.
The rebate scheme was launched in February 2021 to revive the economy and help people hit by the impact of the COVID-19-induced lockdown. It was extended till June 30 by the government in December last year.
“We have been asked by the revenue minister to analyse all the factors and impact of the scheme and advise if it can be extended further,” said a senior revenue department officer.
He said that according to available information, the scheme has helped spur the number of land and movable property transactions and collect higher revenues despite the reduced circle rate.
According to revenue department officials, properties in Delhi are divided into eight categories from ‘A’ to ‘H’. While posh areas fall under the ‘A’ category, the least developed areas come under the ‘H’ category.
Under the government’s rebate scheme, the existing circle rate of land in ‘A’ category areas has gone down from Rs 7.74 lakh per square metre to Rs 6.19 lakh, the officials said. In ‘H’ category areas, the circle rate was reduced from Rs 23,280 to Rs 18,624 per square metre, they said.