You are not liable to pay only the value of your property while purchasing it. You must pay stamp duty and registration charges to register your property against your name. This saves you and your property from any legal inconvenience in case of any dispute or fraudulent activity.
Registering your property in the municipal record is mandatory under the Registration Act. Therefore, consider reading to get a clear idea of West Bengal stamp duty.
The stamp duty and registration charges of property in Kolkata based on its area are below –
|Location of the Property||Stamp Duty (Property Below ₹25 Lakhs)||Stamp Duty (Property Above ₹40 Lakhs)|
|Corporation area (Howrah and Kolkata)||4%||5%|
|Notified area or Municipality Corporation or Municipal||4%||5%|
|Areas excluded from the above-mentioned categories||3%||4%|
The table below has stamp duty and registration charges in West Bengal based on the deed or status of your property –
|Property Instrument||Stamp Duty||Registration Fee|
|Transfer of lease of government land in family members’ approval||0.5% of the market value of the property||Same as the transfer deed|
|Transfer cost of lease property in all other cases||Same as transfer deed on the market value of the property||Same as the transfer deed|
|Gift deed to family members||0.5% of the market value of the property||Same as the transfer deed|
|Gift deed except for family members||Same as transfer deed on the market value of the property||Same as the transfer deed|
|Power of attorney of property having a market value below ₹30 Lakhs||₹5,000||Nil|
|Power of attorney of property having a market value above ₹30 Lakhs and below ₹60 Lakhs||₹7,000||Nil|
|Power of attorney of property having a market value above ₹60 Lakhs and below ₹1 Crore||₹10,000||Nil|
|Power of attorney of property having a market value above ₹1 Crore and below ₹1.5 Crore||₹20,000||Nil|
|Power of attorney of property having a market value above ₹1.5 Crore and below ₹3 Crore||₹40,000||Nil|
|Power of attorney of property of a market value over ₹3 Crore||₹75,000||Nil|
|Sale agreement on a property with a market value less than ₹30 Lakhs||₹5,000||₹7|
|Sale agreement on a property with a market value between ₹30 Lakhs and ₹60 Lakhs||₹7,000||₹7|
|Sale agreement on a property with a market value between ₹60 Lakhs and ₹1 Crore||₹10,000||₹7|
|Sale agreement on a property with a market value between ₹1 Crore and ₹ 1.5 Crores||₹20,000||₹7|
|Sale agreement on a property with a market value between ₹1.5 crores and ₹ 3 crores||₹40,000||₹7|
|Sale agreement on a property with a market value above ₹3 Crore||₹75,000||₹7|
|Partnership deed up to ₹500||₹20||₹7|
|Partnership deed up to ₹10,000||₹50||₹7|
|Partnership deed up to ₹50,000||₹100||₹7|
|Partnership deed over ₹50,000||₹150||₹7|
Below you can see the West Bengal stamp duty in some of the major cities –
|Name of the City||Stamp Duty (Property Below ₹25 Lakhs)||Stamp Duty (Property Above ₹40 Lakhs)|
West Bengal stamp duty is calculated either on the ready reckoner rates or consideration rate. However, you need to consider the rate which has the highest sum.
A ready reckoner rate is a minimum value to buy a property. Conversely, a consideration value is a total amount paid in any sale or purchase transaction as agreed between both parties.
Example: If the value of your property is ₹60,00,000 and the ready reckoner rate is ₹50,00,000, the stamp duty will be computed with the higher value. Here is how-
|Reckoner Rate||₹6,000 per sq. m|
|Flat Size||1,000 sq.m|
|Stamp Duty||6% of ₹60,00,000 = ₹3,60,000|
|Registration Fees||1% of ₹60,00,000 = ₹60,000|
Instead of calculating the stamp duty by hand, you may just use an online calculator. You’ll save time and work by doing this. Utilize the straightforward instructions below to use an online calculator:
Step 1: Visit the West Bengal stamp duty calculation page. Choose the Transaction Major, Transaction Minor, and Local Body that are necessary.
Step 2: Fill out the captcha that appears on the website and the market worth of your property.
Step 3: If you select “Display,” you will be able to see the computed stamp duty and registration fees.
You can pay West Bengal stamp duty both online and offline.
The other ways to pay stamp duty are-
Things to Think About Before Paying West Bengal Stamp Duty
The following are important considerations to bear in mind when paying West Bengal stamp duty fees:
|Factors||Effect on Stamp Duty Rates|
|Area of a Property||West Bengal property registration fees are usually higher in the municipal or corporation area.|
|Type and Use of a Property||Stamp duties vary on the type and usage of your property. It will always differ based on whether it is a flat, house or land. Also, it will vary if your property is commercial or residential. Commercial property will always have higher stamp duty.|
|Status of the Property||West Bengal stamp duty will be higher if your property has modern amenities and high-tech facilities like elevators, a fitness area, a swimming pool. It will also vary upon the age of your property.|
|Age of the Owner||The property owner’s age will influence the stamp duty as almost every state subsidises the charges for senior citizens.|
|Owner’s Gender||In most cities, stamp duty rates are slightly lower for women than men.|
Stamp duty, registration costs, as well as any other fees directly associated with the transfer, are tax deductible. According to Section 80C of the Income Tax Act of 1961, the maximum deduction is 1,50,000.
This deduction is allowable for both individuals and HUFs on-
West Bengal stamp duty is a required tax that is fully refundable. Paying less stamp duty during a property registration process is not permitted by law. To avoid paying stamp duty, it is illegal to undervalue real estate and estimate a low market value.
Along with a severe punishment, you can also spend some time in jail. Additionally, if you own real estate or commercial property, you risk losing your reputation. Therefore, be sure to register your property in West Bengal with the correct registration fees and stamp duty.
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