Budget 2018: How Jaitley's circle rate move will impact real estate deals

If a property's sale value is up to 5 per cent below its circle rate, the buyer and seller won't need to pay additional tax

Property buyers and sellers in metros, especially in upmarket localities, won’t need to pay additional tax if the difference between the agreement and stamp duty values of the property is less than 5 per cent. The finance minister has proposed this relief in the Budget.
 
At present, if the sale price of the property is lower than the circle rate, the difference is added to the buyer’s income and taxed. Even the seller needs to calculate capital gains based on the circle rate and consequently, pay higher taxes due to the difference. Circle rates are state governments’ benchmark or