Jun 19, 2023

Circle Rates in Gurgaon | Know Recent Updates

by Godrej Properties Limited



A Comprehensive Guide to Circle Rate Gurgaon

Circle rates, also known as collector rates, play a significant role in the real estate sector. They are determined by the state government to prevent fraudulent activities and stamp duty evasion in property transactions. They also serve as a benchmark for calculating the minimum value of immovable assets. Let’s explore the implications of circle rates in Gurgaon and discuss the recent updates in 2023.

What are the Implications of the Circle Rate in Gurgaon?

The circle rate in Gurgaon has several implications for both buyers and sellers. Some of these include:

  1. Property Valuation: The circle rate is a reference point for a property’s market value. It helps maintain transparency in property transactions and prevents undervaluation.
  2. Stamp Duty and Registration Charges: The circle rate is used to calculate the stamp duty and registration charges payable during property transactions. Higher circle rates result in higher stamp duty and registration charges.
  3. Tax Implications: The circle rate also affects capital gains tax for property sellers. Selling a property below the circle rate can result in the difference between the circle rate and the sale price being treated as income and subject to taxation.

Recent Updates in New Circle Rates in Gurgaon 2023

The Gurgaon administration has recently revised the circle rates for the financial year 2022–23. The new circle rates in Gurgaon 2022 have been increased by up to 30% in sectors adjoining the Golf Course Road, Southern Peripheral Road, and Dwarka Expressway. Similarly, the rates for commercial hubs have gone up by 10%.

While the revision in circle rates may not immediately impact the cost of premium properties like Godrej Nature Plus, Godrej Aria, and Godrej Icon, as their market rates tend to be higher, buyers should stay informed about any future changes.

Effect of These Changes

The circle rate revision will directly impact buyers ofproperties in plotted areas. For example, a buyer opting for a commercial property valued at Rs 2 crores would pay Rs 14 lakhs as stamp duty (7%) and an additional Rs 2 lakhs to accommodate the 10% increase in the Gurgaon circle rate, totalling Rs 16 lakhs.

To Summarise

In conclusion, the registration charges for property transactions in Gurgaon depend on the property's value, which the owner must pay the government for legal registration. Refer to the collector rate Gurgaon 2022-23 to accurately calculate the value for registration purposes.

Frequently Asked Questions

1. How is the circle rate in Gurgaon determined?

Ans: The circle rate is determined by the state government based on factors such as location, property type, and amenities available. It is revised periodically to reflect changes in the real estate market.

2. Can I negotiate the circle rate in Gurgaon during property transactions?

Ans: No, the circle rate is a government-determined value and cannot be negotiated. However, you can negotiate the actual sale price of the property, which ideally will be above the circle rate.

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