Realty firms can't move price below circle rate; want changes in I-T law

Circle rate is the minimum value that state governments have set for the sale or transfer of a plot, built-up house, apartment or commercial property

Indian real estate builders cannot sell flats and homes below circle rates as income tax law does not allow that, realtors' associations have said in response to Commerce Minister Piyush Goyal's call to builders to lower home prices to clear inventories.

Realtors body CREDAI and NAREDCO, which together have 25,000 members, said there is an additional tax burden on home buyers and developers if the transaction/deal value is lower than the existing circle rates by 10 per cent or more.

Circle rate is the minimum value that state governments have set for the sale or transfer of a plot, built-up