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How to Calculate Property Circle Rates in Varanasi & Category Wise Rates List
Homebuyers of Varanasi have to pay stamp duty and registration charges to register the property to their name legally. Stamp duty is calculated on the basis of circle rate, which the Uttar Pradesh Government fixes and revises from time to time. These rates may vary across different localities within the same city.
Want to know about the circle rate in Varanasi? Read along!
What Are the Circle Rates in Varanasi?
Circle rate is a benchmark at which real estate asset sale or transfer has to be registered before being sold or transferred.
The circle rate in Varanasi acts as an indicator of property prices in a particular area of the city.
Knowing the circle rate is essential for every home buyer. Since there is no index to the governor to monitor property prices, the Government utilises these rates to keep a check on speculations in property prices.
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Table Explaining Circle Rates in Varanasi
| Major Areas | Circle Rate |
|---|---|
| Raisaheb Bagh to Azamgarh road from Pandeypur intersection | ₹ 32,000 |
| From BHU Gate to Sunderpur and Bhikharipur | ₹ 45,000 |
| Bulanala to Karnghanta, Kashipura, Gola Dinanath to Hirapur | ₹ 44,000 |
| Gurubagh to Laksa Police Station from Rath Yatra Crossroads | ₹ 55,000 |
| From Rath Yatra Crossroads to Mahmoorganj Police Outpost | ₹ 55,000 |
| Maidagin Crossroads to Benia Bagh Tiraha | ₹ 55,000 |
| Ram Mandir Square near Macharhatta Temple on Bhojubirn Sindhora Marg | ₹ 45,000 |
| From Maidagin Crossroads to Godowlia Crossroads to Sonarpur | ₹ 46,000 |
| From Kamchha to Bhelupur police station by Rath Yatra | ₹ 55,000 |
| Golgadda from Maidagin crossroads via Visheshwarganj | ₹ 35,000 |
Circle Rates for Projects in Varanasi
| Name of the Project | Circle Rate (₹ per square metre) |
|---|---|
| Kabir Nagar Yojna | ₹36000 |
| Jawahar Nagar Yojna | ₹36000 |
| Pandepur Yojna | ₹48000 |
However, property owners must know that circle rates are indicative prices, not the actual rate of the property. Additionally, they must remember that no property transaction can occur below the circle rate of the corresponding locality. Therefore, property buyers of Varanasi must check the gap between circle rate and market rate (price at which a property is actually sold, i.e. final price of a property), especially if they are purchasing it on loan.
As circle rate of major areas in Varanasi is known to individuals, let’s find out the ideal method of calculating circle rates.
How to Calculate Property Value Using Circle Rate in Varanasi?
To calculate property or land circle rate in Varanasi, individuals have to follow the steps mentioned below,
- Step 1 - Determine the usage of the property (i.e. residential or commercial).
- Step 2 - Find out property’s age, amenities offered.
- Step 3 - Next, identify property type (independent house, plot of land, apartment or flat).
- Step 4 - After collecting all information, use the following formula,
Property Value = Built-up area of the property (in sq. m.) x Circle rate of the locality (in Rs. per sq. m.)
- Step 5 - You will get the applicable circle rate in Varanasi.
Apart from calculating the circle rate in Varanasi manually, you can use an online calculator. Wondering how to use a circle rate calculator in Varanasi? Read along!
How to Use a Calculator to Find the Circle Rate in Varanasi?
Read the following section to learn about the process of using a circle rate calculator in Varanasi.
Firstly, visit an online portal to calculate circle rates in your respective city. Next, proceed with the following steps -
- Step 1 - Select ‘State’.
- Step 2 - Select ‘District’.
- Step 3 - Enter ‘Street name/area’ and click on ‘Search’.
- Step 4 - The calculator will display the results within seconds.
Individuals who have followed the calculation method for various areas in Varanasi may have found different circle rates. Here, they need not worry about certain factors that affect these rates across Varanasi. Let’s dig out these factors.
What Are the Top 5 Factors Affecting Circle Rate in Varanasi?
Here is a list of 5 factors that affect circle rate in Varanasi.
- Location of the property
- Age of the property
- Type of occupancy (commercial or residential)
- Facilities/amenities offered with the property
- Type of the property (flat, independent house, agricultural land, etc.)
As property buyers, individuals must know that they can claim tax benefits on the stamp duty and registration charges paid. Here, a question might arise regarding the tax implication of circle rate, which is the determining factor of Stamp duty. Let’s see!
What Is the Impact of Circle Rates on Taxation in Varanasi?
According to Section 56 (2) (x) of the Income Tax Act, if a property is sold/purchased below the benchmark circle rate, that rate will be considered the actual selling price. For this, sellers/buyers have to pay capital gains tax on the circle rate of the property.
Read the list of circle rates in Varanasi mentioned above carefully and keep these rates in mind before purchasing or selling a property within the city.
Frequently Asked Questions
Is the circle rate of commercial property higher than residential property in Varanasi?
Yes, the circle rate of a commercial property is higher than that of a residential property in Varanasi.
Is circle rate and ready reckoner rate the same?
Yes, circle rate and ready reckoner rate are the same.
Does an individual need to pay more stamp charges for commercial property in Varanasi?
Yes, one needs to pay more stamp charges for commercial properties as the property’s circle rate is higher than the residential properties in Varanasi. However, to calculate the circle rate one can use the online circle rate calculator in Varanasi.
Can an individual check circle rates in Varanasi?
Yes, to check circle rates in Varanasi one needs to visit the official website of the Department of Stamps and Registration of UP. Then input the necessary information including sub registrar office, district and so on. Then, click on “View details” in order to check the circle rates in Varanasi.
What is the stamp duty calculation depending on the circle rate?
Suppose, a Miss Sudha bought a flat in Varanasi, where the applicable circle rate is nearly ₹5,100 per sq ft. Taking the carpet area of 1000 sq ft into consideration, she has to register the property for ₹51 lakhs. Now if the government charges 5% stamp duty on this required amount and the amount goes up to ₹2.55 lakhs. Paying an additional registration amount of ₹15,000 the final cost of the property becomes ₹53.70 lakhs.