Buying property in Delhi is likely to get costlier with the Municipal Corporation of Delhi (MCD) planning to increase transfer duty on the purchase of properties valued over ₹25 lakh by 1%.
A senior MCD official said after the proposal is implemented, the transfer duty on the sale and purchase of properties will increase from 2% to 3% in the case of women buyers and from 3% to 4% for male buyers.
“The reason behind this move is to increase the revenue generation of the civic body. This is also an indication that the Centre might not provide any financial relief, which was previously expected when the merger was first announced,” the senior official added.
Explaining the process, the official said, “The Delhi government collects the transfer duty chargers, 3.5% of which is taken as collection charges while the rest is given to the civic body.”
The official added that earlier, the Delhi government had not approved a proposal by the erstwhile South corporation, in 2020, to hike the transfer duty rates. “So, it will be interesting to see what the Delhi government decides now,” said the senior official.
Once the proposal is approved by MCD’s Special Officer, it will be sent to the Delhi government and will come into force when the government notifies it.
The Special Officer — appointed by the Centre after the merger of the three erstwhile municipal corporations (North, South and East) — currently holds the power of MCD’s Standing Committee and the house.
