Table of Contents
How are circle rates calculated?
The formula for calculating property value using circle rates is Property value = Built-up area (In sq. metres) x Circle rate for the locality (In ₹/sq. metres).
What is a circle rate?
Circle rate is the price per unit area that is affixed by government authorities for land or property in a locality, below which property transactions cannot be registered.
What is the difference between circle rate and market rate?
Circle Rate is minimum value at which the property can be sold or purchased. Whereas market value is the rate at which actual transaction takes place. Circle Rate is also known as Guidance Value, Ready Reckoner Rate, Govt Value, Floor Price etc.
What is the circle rate in Delhi?
Current Circle Rates in New Delhi 2021
| Area | Private builder flats | Multiplying factors for private colonies |
|---|---|---|
| More than 100 square metres | Rs.95,250 | 1.25 |
| 50 to 100 square metres | Rs.79,488 | 1.2 |
| 30 to 50 square metres | Rs.62,652 | 1.15 |
| Up to 30 square metres | Rs.55,440 | 1.1 |
Why is the circle rate important?
Important Points to Know About Circle Rate The price is decided by the state government or the development authorities. Different localities within the same city can have different circle rates. Circle rates help to keep speculatory prices in check. Real estate transactions cannot take place below the given circle …
How do you calculate property rates?
Property rates are calculated on the market value of a property by multiplying it by a cent amount in the rand, which is determined from the annual budget. For example: In the case where the market value of a property is R800 000 and the cent amount in the Rand is R0.
How land rates are calculated?
Note: ‘Possible price of land’ has been calculated using the following assumptions: Floor space index (FSI) of 1.5; construction cost of Rs. 1,000 per sq. ft. in 2007-2010; land cost = finished price minus construction price.
What are the tax implications if the circle rate is more than market value?
If the circle rate of the property is higher than the value mentioned in the agreement by more than 20\%, the circle rate is deemed to be the sale consideration. This difference is taxed as capital gains in the hands of the seller and as income from other sources in the hands of the buyer.
How do you find out the market value of your home?
Add the adjusted and final sale price of all three comparable properties and find their sum. Divide the sum by three to get an average adjusted final sale price. This amount is the estimated market value of your house.