Stamp Duty and Property Registration Charges in West Bengal

stamp duty in west bengal — (Source: indiabullshomeloans.com)

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.

What Are the Stamp Duty Rates in West Bengal?

St-amp duty and registration fees in West Bengal constitute a percentage of your property’s value. The current stamp duty is 4% for properties below ₹25 Lakhs in the corporation area. Below is a list of current stamp duty and registration fees (November 18, 2021).

Stamp Duty in Kolkata as Per Area Type

The stamp duty and registration charges of property in Kolkata based on its area are below -

[1]

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 registration fees across all places is the same, at 1% of the property value.

Stamp Duty on Different Property Deeds in West Bengal

The table below has stamp duty and registration charges in West Bengal based on the deed or status of your property -

[2]

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

Stamp Duty and Property Registration Fees in Important Cities of West Bengal

Below you can see the West Bengal stamp duty in some of the major cities -

[3]

Name of the City	Stamp Duty (Property Below ₹25 Lakhs)	Stamp Duty (Property Above ₹40 Lakhs)
Kolkata	4%	5%
Howrah	4%	5%
Kharagpur	4%	5%
Durgapur	4%	5%
Siliguri	4%	5%

Registration fee for all locations is 1%.

How to Calculate Registration Charges and Stamp Duty in West Bengal?

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
Total Value	₹60,00,000
Stamp Duty	6% of ₹60,00,000 = ₹3,60,000

The calculation for West Bengal property registration is-

Property Cost	₹60,00,000
Registration Fees	1% of ₹60,00,000 = ₹60,000

Steps to Use a Stamp Duty Calculator

You can simply choose an online stamp duty calculator instead of computing it manually. This saves both your time and effort. Follow the simple steps below to use an online calculator -

Step 1: Visit the West Bengal stamp duty calculator page. Select your required Transaction Major, Transaction Minor and Local Body.
Step 2: Enter the market value of your property as well as the captcha displayed on the page.
Step 3: By clicking on “Display”, you will see the computed amount of stamp duty and registration charges.

How to Pay Stamp Duty and Registration Fees in West Bengal?

You can pay West Bengal stamp duty both online and offline.

Online Procedure

Visit the official website of WB registration for e-Payment of Stamp Duty. Then click on “e-Payment of Stamp Duty & Regn. Fees” from “e-Payment and Refund” section.
Enter your query number as asked in the redirected page along with the query year.
Click on “Check Query Status”. A page will appear where you need to enter your bank details.
Then click on ‘Proceed for e-Payment’ to complete your e-payment of the stamp duty in West Bengal.

Offline Procedure

The other ways to pay stamp duty are-

Physical stamp paper
Franking

Points to Consider Before Paying Stamp Duty in West Bengal

below are some key points to keep in mind while paying stamp duty charges in West Bengal:

You must have all your assets stamped before registration or the next working day from the effective date. If both the parties sign the deed outside the territory of the property, it must be stamped within 3 months.
The stamp paper must be issued within 6months of the transaction date.
you can use adhesive stamps to pay West Bengal stamp duty. However, the registration official removes the stamps at the time of execution to prevent them from being reused.
It also must be issued in the name of both the parties involved in a transaction.

What Are the Factors That Affect Stamp Duty in West Bengal?

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.

Are Tax Benefits Available on Stamp Duty and Registration Charges?

You can claim a tax deduction on stamp duty and registration charges, including other fees directly related to the transfer. The maximum amount of deduction is ₹1,50,000 according to Section 80C of the Income Tax Act 1961.

Both individuals and HUFs can claim this deduction on-

Their income tax return.
The year in which they made the actual payment for these expenses.

West Bengal stamp duty is a mandatory duty that can be paid completely. It is not legally rightful to pay less stamp duty during a property registration procedure. Undervaluing property for and estimating a low market value to escape stamp duty is a punishable offence.

You may have to bear a massive penalty along with imprisonment for a certain period. And you may lose your reputation if you are a real estate or commercial property holder. Therefore, ensure to register your property with proper registration fees and stamp duty in West Bengal.

Frequently Asked Questions

All

Is stamp duty in West Bengal reduced?

The state government reduced West Bengal stamp duty by 2% and circle rates by 10% for a short span, which is up to October 30. This increased revenue of the state’s treasure and is a great relief to the property owners.

Can I refund my stamp duty in West Bengal?

Stamp duty is not refundable in general cases. But you can get a refund if the deal of purchase is cancelled.

Can I claim a tax deduction on stamp duty?

Yes, you can claim a maximum deduction of ₹1,50,000 under Section 80C of the Income Tax Act 1961.