What is the Stamp Duty in Kolkata?

Stamp duty is a mandatory tax imposed by the state government on property transactions. Read this guide for crucial information on Stamp Duty and Registration in Kolkata, West Bengal. In Kolkata, stamp duty rates are primarily determined by the market value of the property and its location.

A recent update from the State Government indicates a reduction of 2% in stamp duty rates for properties. Additionally, there's a 10% reduction in the circle rates of properties, which remains in effect until June 2024. This reduction was proposed during the State's Budget announcement for the fiscal year 2021-22 and has been officially approved by the West Bengal Government.

How Is Stamp Duty Assessed in Kolkata?

In Kolkata, the stamp duty for property transactions is assessed based on the property's value.

Properties Valued Less Than ?25 Lakhs:

In areas other than Corporations, Municipalities, Municipal Corporations, and Notified Areas, the stamp duty is 5%. In Kolkata, for properties valued less than Rs. 25 lakhs, the stamp duty is 6%.

Properties Valued Above ?40 Lakhs:

Stamp duty in Kolkata is 7% on properties valued at Rs. 40 lakhs or more.

The property's value is a major factor in determining property registration charges in Kolkata. If the property you wish to purchase is in the Panchayat area, a stamp duty of 5% will be levied on properties that cost less than Rs.25 lakh. Properties above Rs.40 lakh and in the Panchayat areas come with a stamp duty of 6%.

Factors Affecting Stamp Duty Rates in Kolkata?

Age of the Property

The property's age can influence stamp duty rates in Kolkata, with older properties potentially subject to rates different from newer ones.

Age of Owner

The stamp duty and registration charges are less for senior citizens than others at the time of property registration.

Objective

The purpose for which the property is being acquired, whether residential, commercial or investment, can affect stamp duty rates in Kolkata.

Location

The location within Kolkata can influence stamp duty rates due to variations in property values and demand across different city areas. Prime locations with high demand and better amenities have higher property values, which can result in higher stamp duty rates. The stamp duty rate for residential properties is lower in rural areas than urban areas such as Salt Lake or Park Street.

Amenities

Properties in Kolkata charge additional stamp duty if the housing project in which the unit is located offers high-end amenities such as elevators, swimming pools, clubhouses, gyms, community halls and sports areas. Some projects that offer such amenities in Kolkata are Bengal Urbana, Nirmala Jade and Mani Anantmani.

Documents Needed for Payment of Stamp Duty in Kolkata?

Documents needed for payment of stamp duty in Kolkata are as follows:

• Identity proof, such as an Aadhaar card, voter card, PAN card, passport, driving license, etc., of the parties.
• Assessment slips with market value and chargeability of stamp duty and registration fees.

How To Pay Stamp Duty in Kolkata

The process for paying stamp duty in Kolkata offers several accessible options:

• Purchasing Stamp Paper: One can procure stamped documents detailing the property transaction from authorized individuals by purchasing stamp paper. These documents must be submitted to the state's registration department's sub-registrar within four months of issuance. Both the buyer and seller are required to sign the stamp paper.
• Franking: Parties involved in a property agreement can have it printed on plain paper and signed. Subsequently, the agreement can be taken to an authorized bank, where it is further documented using a franking machine. The stamp duty payments are made at the bank, which also incurs a franking fee, typically around 0.1% of the property value.
• E-Stamping: Stamp duty payments can be conveniently made online through the Document Registration website in Kolkata. The website calculates stamp duty based on flat registration rates and allows payment via net banking, debit card, or credit card.

4 Ways To Save on Stamp Duty Charges

1. Avail Tax Benefits on Stamp Duty

Make savings at the time of income tax liability discharge. Under Section 80C of the Income Tax Act, a buyer can claim a Rs 1.50 lakh deduction against stamp duty and registration charge payment on property purchases. In the case of joint owners, each one can claim this deduction proportionate to his share in the property.

2. Projects With Fewer Amenities

Properties with fewer amenities or luxurious features may have lower overall costs, including stamp duty charges. Some options for such projects include Urban Green Phase 2, Ambay Utsav and Sun Dwarka.

3. Less Developed Areas

Properties in less developed areas or upcoming neighbourhoods, such as Topsia, Baghbazar or Kestopur, often have lower property prices and, consequently, lower stamp duty charges. Buyers considering such locations can benefit from reduced stamp duty expenses while potentially gaining from future development and appreciation of property values.

4. Invest in a Project that Offers Stamp Duty Exemptions

Some real estate properties in Kolkata may offer stamp duty exemptions or discounts as part of promotional offers or government schemes. Buyers can explore such projects to maximise potential savings on stamp duty charges.

Penalties for Not Paying Stamp Duty in Kolkata?

If there is a default, the penalty for non-payment of stamp duty can be between 2% and a maximum of 200% of the remaining amount of the West Bengal stamp duty. The West Bengal stamp duty is chargeable on all instruments related to immovable property.

Conclusion

How is Stamp Duty Assessed in Kolkata?

Stamp duty in Kolkata is assessed based on the value of the property. For properties valued less than ?25 lakhs, the stamp duty is 5%, while for properties valued at ?40 lakhs or more, the stamp duty is 7%.

Factors Affecting Stamp Duty Rates in Kolkata?

• Age of the property
• Age of owner
• Gender of owner
• Objective
• Location
• Amenities

Documents Needed for Payment of Stamp Duty in Kolkata?

Aadhaar card, voter card, PAN card, passport, driving license.

How to Pay Stamp Duty in Kolkata?

• Purchasing stamp paper
• Franking
• E stamping

4 Ways to Save on Stamp Duty Charges

• Avail tax exemption
• Projects with fewer amenities
• Less developed areas
• Invest in a project that offers stamp duty exemptions

Penalties for Not Paying Stamp Duty in Kolkata?

If there is a default, the penalty for non-payment of stamp duty can be between 2% and a maximum of 200% of the remaining amount of the West Bengal stamp duty.