Delhi - Government to End Rebate on Circle Rates

Policy Update Jul 1, 2022

The circle rate of a property is the minimum rate at which that property can be bought or sold. Circle rates are also called “Guidance Values'' or “Ready Reckoner Rates” in other areas. Circle rates serve as a tool for the assessment of stamp duty and registration charges - both fees that are to be paid by the buyer on top of the transaction value at the time of registration of the property in question.

In Delhi, the Revenue Department of the Delhi Government decides the circle rates. The Delhi Master Plan of 2021 demarcates eight categories of residential colonies, from ‘A’ to ‘H’. Circle rates of properties are decided based on the colony category. The circle rate in colony ‘A’ is highest; it decreases from colony ‘A’ to colony ‘H’. A more in-depth understanding of how circle rates are calculated in Delhi can be found here.

In a bid to increase property registrations, the government of Delhi in February 2021 introduced a 20% reduction in circle rates of properties [1], originally, for a period of 6 months. However, with a substantial increase in sales reported after the implementation of the change, the government decided to twice extend the period, initially till December 31, 2021, and then till June 30, 2022. [2] [3]

Citing a recovery economy, the government has decided to not continue with the reduction [4]. The circle rates last amended in 2014 [5]  will be applicable from July 1, 2022.

The circle rates for land used for residential purposes in the Delhi is given below:

Category of the Locality

Circle Rate (INR per sq. m.)

A

774000

B

245520

C

159840

D

127680

E

70080

F

56640

G

46200

H

23280

             Data Sourced from Revenue Department, Government of Delhi [5]

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[1] https://www.hindustantimes.com/cities/delhi-news/delhi-govt-reduces-circle-rates-by-20-for-next-six-months-101612556086823.html

[2]https://economictimes.indiatimes.com/industry/services/property-/-cstruction/delhi-government-extends-20-reduction-in-circle-rates-till-december-31/articleshow/86652454.cms

[3]https://economictimes.indiatimes.com/industry/services/property-/-cstruction/delhi-government-extends-lower-circle-rates-benefit-till-june-30-2022/articleshow/88598710.cms

[4]https://www.livemint.com/news/india/property-prices-are-likely-to-go-up-in-delhi-after-30-june-here-s-why-11655818563957.html

[5]https://srams.delhi.gov.in/docs_avail/c_28ab375a72f800406822233e3497e649_ircle1.pdf


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