1) according to Special inspector general (registration), transactions should not be affected by high circle rates. “Circle rate is just an indicative rate. If you have registered property on an amount lower than the circle rate, the sub-registrar will register it and the case will be sent to the registrar to verify the market value, 2) .the high circle rates have badly affected property transactions in delhi 3) section 50C of the Income-tax Act, 1961 clearly mentions that the liability on capital gains would arise on the value of the property as fixed by the state valuation authority which generally is the Sub-Registrar. Thus, capital gains tax would be calculated on the value of the property as fixed by the Stamp Valuation Authority especially when such value is higher than the declared value of the property as appearing in the sale deed. 4) Sub-sections (2) and (3) of Section 50C provides further safeguard to the assessee, in the sense that if the assessee claims before the assessing officer that the value adopted by the stamp duty authorities exceeds the fair market value and the value so adopted or assessed for the purpose of stamp duty has not been disputed in any appeal or revision before any authority, the Assessing Officer could refer the valuation of the capital asset to the Departmental Valuation Officer. On such reference, if the value determined by the Valuation Officer is more than the value adopted or assessed by the stamp duty authority, the Assessing Officer shall adopt the market value as determined by the Stamp duty authority. Thus, a complete foolproof safeguard has been given to the assessee to establish before the authorities concerned the real value. 5)PIL is pending before delhi high court that circle rate notifications and policy had violated the provisions of the Stamp Act and the Delhi Municipal Corporation (DMC) Act with regard to stamp duty and registration. “This leads to a pitiable situation where the prescribed circle rates are completely arbitrary and unreasonable and are much higher than actual/market rates. The objective behind the Stamp Act, as well as the Under-Valuation Rules, was to prevent undervaluation of instruments — not to create a reverse situation where the prescribed circle rates exceed the actual market value of the property. This illegality is further compounded by the fact that the prevailing circle rates policy (as set out above) denies parties the rights and safeguards expressly set out in the Act,” the plea says.