June 14, 2023: In a move that would jack up the cost of property acquisition in the national capital, the Delhi government has approved a proposal to hike transfer duty by one percentage point.
According to a circular issued on July 10, the new rates are applicable on properties worth over Rs 25 lakh. Properties worth less than that will continue to attract the old rate.
As the new rates kick in, women and transgender homebuyers in Delhi will have to pay 3% transfer duty on property registration as against the previous 2%. Similarly, men buyers will pay 4% transfer duty as against 3%. Authorities have been directed to facilitate the implementation of the hike with immediate effect.
What is transfer duty?
Transfer fee is a fee homebuyers in the capital have to pay over and above the stamp duty and registration charges at the time of property registration on gift deed, sale deed and other conveyance deeds. The transfer fee is calculated based on the registration value of the asset.
Impact of transfer fee hike in Delhi
While the developer community is of the view that the move will adversely impact buyer sentiment, The union territory government expects to generate an additional Rs 300-400 crore in the ongoing fiscal due to the transfer fee hike.
See also: Delhi stamp duty and registration charges
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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