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Delhi Increases Transfer Duty on Immovable Properties

Rishabh Chamoli | 2023-07-13

According to authorities, the transfer duty on the transfer of immovable properties in Delhi has been raised by one per cent. The increase applies to the registration of instruments with a value exceeding Rs 25 lakh, as mentioned in an official document from the Department of Urban Development of the Delhi government.

Details of the Notification
The document references a notification dated July 10, which announces an increase in the transfer duty imposed by the Municipal Corporation of Delhi. The duty has been raised from 2 per cent to 3 per cent for females (including the third gender) and from 3 per cent to 4 per cent for males and other entities. The new rates come into effect immediately upon the publication of this notification.

Applicability and Exemptions
The transfer duty increase applies only to the registration of instruments with a value exceeding Rs 25 lakh. According to the document, no changes have been made to the transfer duty for instruments with a registration amount of up to Rs 25 lakh.

Implementation of the Notification
The authorities have directed all sub registrar offices in the GNCT of Delhi to implement the notification immediately, ensuring compliance in all offices.

In response to the development, Ashwin Chadha, CEO of India Sothebys International Realty, expressed concern. He stated that the decision to increase the transfer duty would negatively impact home buyers sentiment, as the transaction costs for properties, including GST, stamp duty, and registration fees, already constitute a significant amount. However, Chadha also noted that given the strong demand witnessed in the market over the past few years, the real estate market may gradually adjust to this change over time.