Delhi government hikes registration fee for properties

NEW DELHI: Owning a house in the city is now going to be costlier with the Delhi government on Monday deciding to increase the registration fee for properties valued above Rs 50 lakh.

The Delhi Cabinet, presided over by Chief Minister Sheila Dikshit, decided to lift a cap of Rs 50,000 as maximum registration fee which will result in increase in registration fees for high-value properties. “We have decided to lift the upper cap of Rs 50,000 as registration fees,” Dikshit said after the meeting.

The government currently charges 1% of total value of a property as registration fees. For a property worth Rs 50 lakh, the registration fees charged is Rs 50,000 which is the upper cap. “Because of the cap, the fees was same for a property worth Rs 50 lakh as well as a property worth Rs 1 crore or Rs 2 crore.

But with the cap gone, fees for a property worth Rs 1 crore will be Rs 1 lakh and for a property worth Rs 2 crore, it will be Rs 2 lakh instead of earlier Rs 50,000,” explained an official.

Officials said the decision was taken to increase collection of revenue through registration of properties. Officials said the government would earn an additional revenue of Rs 100 crore through lifting of the upper cap in registration fees. They said the Cabinet has decided to keep the lower cap for registration fees at Rs 1,000.

“Even for property worth less than Rs 1 lakh, the fees have been fixed at Rs 1,000,” said the officials. Currently there is no minimum cap on registration fees.