Circle rate is an essential component of property valuation that helps decide the stamp duty and registration charges. These rates vary from one area to another and depend on the size and locality of a property.

If you are willing to purchase a property in Lucknow, it is imperative to know the current circle rates of the city. In this piece, we have discussed circle rate in Lucknow, its calculation process and many other things.

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Circle rate is the lowest price at which the transfer or sale of residential or commercial property can be registered before transferring or selling it. The property can be a buildup house, apartment or a plot of land.

As per these rates, transactions below the approved limit is not permissible. These rates impact flat or property costs along with the mortgage.

The State Government of Lucknow, i.e. The Uttar Pradesh Government or the local development authorities, set the Circle rate.

As the real estate market has no specific price index, the Circle rate in Lucknow can control the price of property prices.

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Follow the steps mentioned below to calculate property value using circle rates.

• Step-1- Learn about the build-up area of the property.
• Step-2- Identify the age of the property, provided amenities and many other things.
• Step-3- Find out the type of property.
• Step-4- After gathering all the essential information, use the below-mentioned formula -

Property Value = Built-up area of the property (in sq. m.) x Circle rate of the locality (in ₹ per sq. m.)

You will get the results.

Alternatively, you can use a circle rate calculator in Lucknow to get accurate and fast results. The following section gives a step-by-step guide to using Circle Rate Calculator.

Using a circle rate calculator for property valuation is simple. Individuals can complete the process by the steps mentioned below.

• Step-1- Enter property built up area.
• Step-2- Provide details of property age, facilities available, etc.
• Step-3- Enter information regarding property type.
• Step-4- Once you provide all data in the calculator will display the circle rate in Lucknow.

Till now, individuals have gained detailed knowledge about circle rate lists, property value calculation processes using circle rate. In the following section, let’s learn about deciding factors of circle rate in Lucknow.

Here is a list of 5 factors that affect circle rates in Lucknow.

• Type of property- independent house, flat,
• Type of occupancy- commercial or residential,
• Location of the property,
• Age of the property,
• Amenities provided with the property.

According to the 56 (2)(x) of the Income Tax Act, if an individual purchases a property below the approved price, the difference or gap in rate/ amount will be considered ‘other income’. Subsequently, they have to pay capital gains tax. Here, the seller will have to pay capital gains tax on the circle rate of the property.

However, in the meeting of Union Budget 2020, the Government decided to lower the burden on both buyers and sellers. As per the new decision, the Government did not impose additional tax liability in cases where there is a difference between circle rate and market value of below 10%.

With such a detailed discussion on circle rate in Lucknow, we have reached the end of the blog. Read the circle rates for various areas attentively while selling or transferring property in Lucknow.