Circle rate is the minimum rate of property that the authorities set for a particular area; the property can be registered at this rate in case of a sale or transfer. However, remember that buying or selling below the circle rate may enhance your tax liability. Things to rememberThe additional burden is essentially on the notional gains you may be making when transacting below the circle rate. However, you still need to show such income and the tax filed against it in your income tax return form, or else you may receive a notice from the tax department. So when buying property below the circle rate, make sure you factor in the additional tax burden as well.

Source: Mint November 18, 2019 00:00 UTC