Transfer duty on properties worth more than Rs 25 lakh in Delhi has been increased by 1%.

The unified Municipal Corporation of Delhi has agreed to increase transfer duty by 1% on properties priced above Rs 25 lakh across the city, according to official sources. Buying property in Delhi is about to become more expensive.

Officials claimed that after the increase, the transfer duty will be 4% for men and 3% for women buyers.

The initiative aims to improve the municipality’s financial health, which has been severely impacted in recent years, particularly owing to the Covid-19 pandemic. It is the first important decision following the unification of the three civic bodies – north, east, and south – last month.

A request to increase the transfer duty by 1% was moved during a meeting on Tuesday, and the decision was made.

The idea was approved by a special officer of the Municipal Corporation of Delhi (MCD), who has been given the authority to manage the civic body until a new House is elected.

“A proposal to increase transfer duty on properties priced above Rs 25 lakh by 1% was proposed to the special officer in charge of the standing committee. The Special Officer gave their approval to the proposal. After the increase, transfer duty will be 4% for men and 3% for women.” PTI obtained information from official sources.

The transfer duty on property sales and purchases in the national capital is currently 3% for men and 2% for women buyers.

The move comes amid the civic body’s dire financial situation, which has seen it struggle to even pay its employees’ salaries.

Officials stated that “the move would generate revenue and reinforce MCD’s coffers, which will be used to overcome financial issues and provide the finest services to the people.”

The Delhi government collects stamp duty on the sale and purchase of properties, which are classified into eight categories: A, B, C, D, E, F, G, and H.

Golf Links, Vasant Vihar, Sunder Nagar, and Jor Bagh are examples of posh and affluent colonies in category A and B. Middle-income neighbourhoods are classified as C and D, and include areas like as Lajpat Nagar, Alaknanda, Bhogal, and Amar Colony, among others.