Kuldeep Singh 26 September 2021

Can buy plot more than circle/dlc rate

Can i buy plot more than dlc/circle rate. In my case, circle rate of 240 sq mtr plot is 4700 per sq. mtr and i do not know market value of that area and i am buying plot from seller in 8700 per sq. mtr.

1. is there any mistake with this deal ?
2. any tax complications ?
3. any extra amount has to be paid at a time of sell after 20 years except capital gain tax ?

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5 Replies

SHIRISH PAWAR, 7738990900 (Advocate) 26 September 2021

Hello, You can buy plot more than circle rate. You have to pay the stamp duty on your purchase price.

Advocate Bhartesh goyal (advocate) 26 September 2021

Yes, plot can be bought on more than circle rate but have to pay stamp duty more.

kavksatyanarayana (subregistrar/supdt.(retired)) 26 September 2021

Your query is just confusing. However, the stamp duty shall be paid on the Market Value (Govt. value) or consideration whichever is higher. For capital gains consult a local CA.

Dr. J C Vashista (Advocate ) 27 September 2021

Circle rate of a property is the minimum rate for payment of stamp duty in the area/ circle, which is generally lower than market rate. It means that for getting the sale or any other similar deed registered with area Sub-Registrar you will have to disclose and pay stamp duty not less than that rate/ sq. yds or meters.

G.L.N. Prasad (Retired employee.) 27 September 2021

The market rate as fixed by Sub registrar has to be paid towards stamp and registration. The other transactions are in between the buyer and purchaser and is not connected and not treated as illegal.