Bengal may extend relief on stamp duty, circle rate till Dec 31

Kolkata: The state government is likely to extend the 2 per cent relief on stamp duty and 10 per cent reduction in the property circle rate at least till December 31. A notification in this regard is expected to come up soon.

The stamp duty now stands at 4 per cent and 3 per cent in urban and rural areas for properties up to Rs 1 crore and 5 per cent and 4 per cent for properties above that ceiling, respectively.

The state government in July had reduced the stamp duty for registration of deeds affecting sale or lease of land, house or flat by 2 per cent considering the Covid situation. At the same time, the circle rate or market value for registration of deeds of land, house and flat were also reduced by 10 per cent. Both the rebate in stamp duty and circle rate was applicable till October 31.

It needs mention that the stamp duty was six per cent and four per cent in urban and rural areas respectively. It was reduced by two per cent for both.

Knight Frank India, the leading real estate consultancy in the country, in a recent report noted that Kolkata Metropolitan Area (KMA) or Greater Kolkata's real estate market received a major boost since the Bengal government announced a 2 per cent rebate on stamp duty for registration of all documents (except the documents of amalgamation of contiguous land) in its state budget in July 2021. The stamp duty cut benefit is available for documents that complete registration between July 9, 2021, to October 30, 2021.

This move has been instrumental in pushing homebuyers to complete the registration of the properties purchased previously. It also creates a new demand for the residential sector. Buoyed by the stamp duty cut announcement, 6,861 units were sold in Kolkata's primary residential market in Q3 2021.

Credai Bengal — an advocacy group for real estate developers in Kolkata, West Bengal had written a letter to Chief Minister Mamata Banerjee on October 9, pleading for an extension.

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