real estate sector
The Uttar Pradesh government has implemented a unified circle rate list to make the process of determining property value and calculating stamp duty easier, cleaner and uniform across the state. This new system of the Stamp and Registration Department now adopts a single method instead of different rules in different districts. With this, people will be able to calculate the value of their property themselves and calculate the stamp duty without any technical help. Minister in-charge of this department, Ravindra Jaiswal has called it a big change to simplify and standardize the evaluation process. In the new system, the entire state has been divided into urban, semi-urban and rural areas. Let us tell you in detail who will benefit from the new circle rate and what are the important things related to it.
In the new rules, the list of circle rates has also been prepared on the basis of type of land. In this, different circle rates have been fixed for agricultural land, non-agricultural land and commercial land. The special thing is that where there is both agricultural and non-agricultural land in the same plot number, a rational and clean method will be adopted so that the right price can be determined and the disputes related to stamp are reduced. The range of assets has also been expanded. Now in the new list, different rates have been fixed for special properties like farmhouses, semi-commercial shops, house-with-shops, hotels, hospitals, petrol pumps, cinema halls and coaching centres.
system of depreciation
Keeping in mind the age of the building, a provision for depreciation has also been added. That means, depending on the age of the house, you will get 20% to 50% relief. Along with this, road distance has also been made the basis of evaluation. That is, how close or far the road is to a land will also affect its value. Earlier, main road rates were often applicable on street properties, but now main road rates will not be applicable on street properties. This will reduce unnecessary increase in stamp duty and disputes.
Answers to some important questions
- What will be the benefit of this system?- Property buyers will benefit greatly from the new system, because earlier there used to be confusion and confusion at many places due to different rate lists. Now having a uniform list will increase transparency and people will be able to do online valuation themselves. This will reduce the dependence on agents or private valuers and the disputes that used to arise regarding properties located near the main road or inside the street will also be reduced. This system will also be more reliable for investors and builders because uniform rules make it easier to plan for the future.
- What do the 15 sub-classes mean?- In the new system the entire state border is divided into urban, semi-urban and rural. It is divided into three major parts and 15 different sub-classes have been created within them. With this classification, clear and uniform rules are made for every type of area, due to which the method of valuation remains the same in every district and no arbitrariness or confusion is created.
- How will be the valuation of agriculture and non-agriculture?- Even in the matter of land, the new rules are quite clear. Agricultural, non-agricultural and commercial land have been kept in different categories and if both types of land are present in a plot, its valuation will be done in a scientific and rational manner so that there are no disputes later. This eliminates the problem of unequal rate list at the district level like in the old times.
- How will depreciation be calculated?- Now the age of construction will also be taken into account in the valuation of buildings. Depending on the age of the building, 20% to 50% depreciation allowance will be given. This means that the price of old buildings will now be determined by a clear formula, which will make valuation more equitable.
- How will the valuation of special properties be done?- In the new list, separate rates have been fixed for special types of properties like hotels, hospitals, petrol pumps, cinema halls, farmhouses, coaching centers and residential-cum-commercial buildings. With this, valuation of these properties can be done according to their nature and use and there will be no ambiguity like before.
- What happened to the rates of land near and far from the main road? The difference in rates between the main road and the streets has also been clearly decided for the first time. Earlier, main road rates were also imposed on properties built on streets, due to which buyers had to pay higher stamp duty. Now this disparity has been eliminated and only the street rate will be applicable on the street property. This is expected to reduce the number of disputes and lawsuits related to stamp duty.
- How much is done now on property registration?- After the implementation of the new list, property registration will also become easier than before. People will be able to know in advance what will be the valuation of their property and how much stamp duty they will have to pay. The government is also preparing an online system where people will be able to see this information themselves. This will also make the work in registration offices more organized.