FM's move on circle rate-deal value gap may not help much in Mumbai, Delhi

Most homes in the two cities are worth more than Rs 2 cr and fall outside the ambit of the relaxation; smaller cities such as Bengaluru, Pune to benefit more

The Finance Minister’s move to increase the differential between circle rates and agreement value — from 10 per cent to 20 per cent for homes up to Rs 2 crore — is unlikely to have any major impact in Mumbai and Delhi-NCR as majority of houses are above Rs 2 crore in the country’s two largest property markets, top developers said.

Earlier, if the difference between circle rate and agreement value exceeded 10 per cent, it was treated as income and, hence, taxed. The new relaxation is allowed till June 30, 2021.

“It won’t have a big impact in big