Delhi Government's Circle Rate Hike Prompts MCD to Revise Property Tax
The Delhi government's decision to increase circle rates has prompted the Municipal Corporation of Delhi (MCD) to consider revising its property tax rates upward.
Expert Predictions on the Impact
Several experts believe the impact of increased circle rates will have a 2:1 correlation with property tax increases. In simpler terms, a 200% rise in circle rates could lead to a 100% surge in property taxes. However, in areas where the circle rate increase is less significant, the ensuing property tax revision may also be lower.
Property Tax Calculation in Delhi
Property taxes within Delhi are calculated based on the unit area of the property. The circle rates are typically set higher, taking into account the elevated property costs in affluent areas. This approach ensures that property taxes reflect the actual market value and relative desirability of properties in various locations throughout the city.