Stamp duty and Registration charges are essential components of property value against which individuals can earn tax benefits. The calculation of the Stamp duty and Registration charges primarily depends on circle rates of the area in which the property is located. circle rates vary from one state to another and even within the locality.

If you are thinking of buying a property in Dehradun, you must have comprehensive knowledge regarding the various aspects of circle rates in Dehradun. Read on to know about the circle rates of different property types in Dehradun.

Circle rate, also known as ready reckoner rate, is the minimum price per sq. mt.t at which the transition of land or property has to be registered for sale.

The Uttarakhand Government notifies the circle rate and revises the rates based on demand, supply, and development of the area. This helps to evaluate stamp duty charges and to calculate capital gains tax for calculating Income Tax.

Now, the meaning of circle rates in Dehradun is clear to individuals; let’s learn about the circle rates on various property types.

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Circle rates differ on the usage of land and infrastructure.

Circle rates in Dehradun vary from one zone to another and depend on certain factors. These are-

• Type of occupancy – commercial or residential
• Amenities offered with the property
• Type of the property (flat, independent house, agricultural land, etc.)
• Location of the property
• Age of the property

Section 56 (2)(x) of the Income Tax Act states that individuals purchasing property below the prescribed circle rate have to pay capital gains tax. This gap between the market value of property and circle rate can be considered as ‘other income’; hence taxation is applicable.

Read the details carefully and learn the applicable circle rate in Dehradun in your zone/locality before selling or transferring any property.