The stamp duty rate in Kolkata is an essential fee that buyers must pay when purchasing property. It usually depends on the property’s market value and circle rates of the area. In July 2024, the West Bengal government pulled back certain reductions in stamp duty and circle rates. So, what has been the impact on home registrations? Let’s read below to know the details and the latest stamp duty and registration charges applicable in Kolkata.
What is the latest stamp duty rate in Kolkata?
Homebuyers in Kolkata must know the latest stamp duty and registration charges beforehand to avoid last-minute complications in property transactions. In July 2021, the State government had given a rebate of two percent on stamp duty and 10 percent on circle rates in West Bengal. However, the government in July 2024 decided to withdraw these incentives, which significantly impacted the home sale registrations in the State. Let’s know how?
Home sale registrations dropped by 13 percent (Latest update, August 2024)
After the roll back of stamp duty charges in July 2024, Kolkata saw a significant drop in home sale registrations, falling by 18 percent compared to June and 13 percent compared to the same month last year. This decline comes after five consecutive months of growth.
According to the realtors this decline is due to the withdrawal of two percent reduction in stamp duty and a 10 percent cut in circle rates, which had been in place since July 2021. Over the three years, more than 1.4 lakh residential properties were registered in Kolkata. However, with the incentives ending, only 3,506 units were registered in July, compared to 4,292 in June. This is also lower than the 4,036 registrations recorded in July 2023 and the 6,709 in July 2022.
The current stamp duty rates in Kolkata, West Bengal are:
| Location of property | Above Rs 40 lakh | Less than Rs 25 lakh |
|---|---|---|
| Corporation (Kolkata/Howrah) area | 7% | 6% |
| Municipal corporation/Municipality/Notified area | 7% | 6% |
| Areas not included in the above | 6% | 5% |
Source: Govt. of West Bengal
Earlier in February 2024, Chandrima Bhattacharya, the Minister of State for Finance, announced a maximum stamp duty of Rs 1,000 for intra-family property transfers through gift deeds. At present, the stamp duty payable on property transfers through gift in West Bengal stands at 0.5 percent of the property value.
How to pay stamp duty and registration charges in Kolkata?
Here is the step-by-step procedure to pay stamp duty and registration charges online in Kolkata:
Step 1: Visit the official website of Finance (Revenue) Department, Government of West Bengal.
Step 2: On the homepage, scroll down to the ‘e-services’ section on the right side of the homepage. Click on ‘e-Payment and Refund’ option.
Step 3: A pop-up menu will be displayed on your screen. Click on the ‘e-Payment of Stamp Duty & Registration Fees’ option and you will be re-directed to a new page.
Step 4: On the next page, enter details such as Query No, Query Year, and Security Code. Click on ‘Proceed’ option for further process.
Step 5: On the next page, you need to enter and submit bank details such as bank name, branch, account number, IFSC code, account holder’s name, and MICR code for the payment.
Step 6: Once your bank details are successfully saved, you will be redirected to the Government Receipt Portal System (GRIPS) where you need to select the ‘Payment of taxes and non-taxes revenue’ option.
Step 7: On the next page, select ‘Directorate of Registration and Stamp Revenue’ from department option and ‘Payment of Stamp Duty and Registration Fees, from the select services tab.
Step 8: Enter depositor and payment information including name, address, payment mode, date of query, and phone number.
Step 9: Follow on page instructions to complete the transaction and keep the receipt secure for the future reference.
How to apply for a refund of stamp duty and registration charges in Kolkata?
In case a property transaction is cancelled, a buyer may seek a refund of the stamp duty in West Bengal, provided that the property document has not been processed for registration at the sub-register office. Here are the steps to initiate the refund process:
Step 1: Visit the WB Registration Portal and select the e-Payment and refund section
Step 2: In the pop-up, choose the "Application of Refund of e-payment" option.
Step 3: After selecting the option, a new page will open, where the buyer must input the necessary details indicating the refund amount.
Additionally, when applying for a refund of stamp duty in West Bengal, the following documents will be required:
- The originally executed document
- A copy of the valuation report
- Documents substantiating the cancellation of registration
- A canceled blank cheque
- A copy of the e-challan for the deposit
It's important to note that the buyer must submit all the aforementioned documents and apply for a refund within three months of making the payment for stamp duty and registration charges.
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How are stamp duty and registration charges calculated in Kolkata?
Paying stamp duty and registration charges in Kolkata is essential to claim legal rights on the property and prevent encroachment or any other dispute in the future. The registration charges in Kolkata are one percent of the property value. It must be noted that these charges are calculated on the market value of the property and not the transaction value.
With effective from January 17, 2024, the government announced that the stamp duty will be computed based on the carpet area of a home rather than the built-up area.
Stamp Duty Calculator
The stamp duty charges in Kolkata vary according to the type of property transfer. It is dependent on the following factors:
- Location of the property: The stamp duty rate for residential properties is lower in rural areas in comparison to urban areas
- Cost of the property: The stamp duty in Kolkata for properties priced above Rs 40 lakh is six to seven percent, whereas the rates are five to six percent for properties with a price tag of less than Rs 25 lakh
- Gender of the owner: While most of the States offer discounts in stamp duty for properties registered in the name of a female, the stamp duty in West Bengal is the same for both males and females
- Property type: The type of property (residential or commercial) influences the stamp duty and registration charges
Know Your Neighbourhood Well
Key points to remember for paying stamp duty in Kolkata
You need to keep the following things in mind while paying the stamp duty and registration charges in Kolkata for a flat or any other type of property:
- All the property-related documents should be stamped before the registration of the property within the next working day. If the deed needs to be signed by the parties located outside India, , it should be stamped in less than three months
- The stamp paper must be obtained within six months of the transaction date
- In order to pay the stamp duty, adhesive stamps can be used that are removed later by the concerned authority for the prevention of fraud
- The stamp released should have the name of both the seller and buyer
Homebuyers should clearly understand stamp duty and registration charges for seamless transactions. These charges can now be paid using an online portal from the comfort of the home. The government's recent withdrawal of certain policies has affected property sales in Kolkata. However, future policies might change the scenario and encourage buyers and investors.
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