The West Bengal government shifts to charging registration fees and stamp duty based on carpet area, not super built-up area, for property transactions. Learn about the significant change, its financial implications for buyers, and the broader context of the real estate sector in the state.
West Bengal Adopts New Stamp Duty Rule for Property Transactions
In a notable development, the West Bengal state government has introduced a transformative change in the calculation of stamp duty and registration fees for property transactions. Effective immediately, these fees will be determined based on the carpet area, a departure from the conventional practice of using the super built-up area. This initiative aligns with the guidelines set by the Real Estate Regulatory Authority (RERA).
Transition to Carpet Area Calculation
The Inspector General of the Registration Department in the State Finance Department implemented the decision on Wednesday. This move signifies a shift towards modernizing the flat and house registration module, bringing it in line with RERA recommendations.
Financial Benefits for Buyers
Under this new system, houses and flats in West Bengal will be registered according to the carpet area, a practice already mandated by RERA for real estate companies. Notably, the stamp duty will be lower for buyers as it is now based on the carpet area, excluding common facilities like stairs and open spaces.
Market Valuation and Adjustments
Going forward, the state government will determine the market price of flats based on the carpet area. This strategic shift is expected to provide significant financial advantages to property buyers. The revision also includes stamp duty payments for mechanical garages, a change from the previous practice.
Circle Rate Adjustments
While the stamp duty paid on carpet area will be reduced compared to the super built-up area, a slight adjustment in circle rates has been made to prevent losses to the exchequer. The circle rate, indicative of the minimum property valuation, has been revised slightly to maintain overall consistency in buyer expenditures.
Continuation of Earlier Concessions
It’s essential to note that the state had earlier announced stamp duty concessions and reductions in circle rates for homebuyers in February 2021. These concessions, applicable until June, include a 2% reduction in stamp duty and an average 10% cut in circle rates for property registration.
Addressing Past Complications
The move to carpet area valuation addresses past complications arising from variations in the calculation of super built-up areas. This change is particularly significant for properties with mechanical garages, providing clarity and streamlining the valuation process.
This strategic shift is poised to streamline property transactions, offering financial relief to buyers and fostering transparency in the real estate sector in West Bengal.
Now You Can Follow Our Channel On WhatsApp!