Acquiring property in Delhi may become more expensive as the government implemented a 1 percent increase in transfer duty effective July, 2023. This increase is applied to the purchase of properties valued above Rs 25 lakh. The hike was approved in principle in May 2022 but the official notification by the Delhi government was issued on July 10, 2023.
The official notification mentioned, “…increase of transfer duty on transfer of immovable properties by the Municipal Corporation of Delhi from 2 percent to 3 percent in case of female (including third gender) and from 3 percent to 4 percent in case of male and other (i.e., any other entity) with effect from the date of publication of this notification,” reads the official notification.
The transfer duty, a component of stamp duty and registration fees, for property purchases now increases from 2 per cent to 3 per cent for women and the third gender persons and from 3 per cent to 4 per cent for men and other entities.
The Municipal Corporation of Delhi (MCD), which proposed the increase, expects this move to enhance its revenue collection. However, it has sparked concern among prospective property buyers and real estate firms who argue that it adds to the significant transaction costs and imposes additional tax burdens on the people planning to buy a new property in Delhi.
