Taking a cue from Noida, the Revenue Department of the Delhi Government is mulling to introduce 2 to 5 per cent circle rate on such properties where tenure of rent agreement is more than a year. As per an estimate, over 5 lakh properties are rented in Delhi.
The plan is expected to generate sizable revenue for the city Government. This will be the first-ever move by the Government to fill its coffers.
Top sources told The Pioneer, “The Revenue Department has set its eyes to generate revenue from the rented property. Those who have rented their property will have to pay circle rate on their rent. If rent agreement is for more than one year, the tenant will have to pay circle rate. The move is also aimed at realising tax on property where the exact rent amount is hidden.”
The Government has focused on agricultural land and rented properties to bring them under the ambit of the new circle rate of properties.
Circle rates are indicative prices below which properties cannot be bought or sold.