The transfer duty on transfer of immovable properties in Delhi has been increased by one per cent, according to authorities. However, this enhancement is applicable for registration of instruments having amount worth over Rs 25 lakh, according to an official document issued by Delhi government’s department of urban development.
The document refers to the notification dated July 10, “regarding increase of transfer duty on transfer of immovable properties by the Municipal Corporation of Delhi from 2 per cent to 3 per cent in case of female (including third gender) and from 3 per cent to 4 per cent in case of male and other (i.e., any other entity) with effect from the date of publication of this notification”.
The increase is applicable for registration of instruments ,having the amount more than Rs 25 lakh, but there is no change in transfer duty on instruments having registration amount up to Rs 25 lakh, it read.
The document also said that it has been directed by authorities to “facilitate the implementation of the above said notification in all offices of sub-registrars in GNCT of Delhi with immediate effect”.
Ashwin Chadha, CEO, India Sotheby’s International Realty, reacted to the development in a statement.
The decision to increase the transfer duty will “put a dent on the home buyers’ sentiment, as transaction cost of property including GST, stamp duty and registration already make a big total”, he said.
However, considering the strong demand witnessed in the market over the last few years, it is anticipated that while there may be little hiccups, the market may gradually adjust to this change over time, Chadha was quoted as saying in the statement.