Under the registration Act 1908, property buyers must register the property. Payments of stamp duty and registration fees are a primary part of the entire procedure. Stamp duty in Kolkata allows residents to legalise property transactions.
Residents are required to pay stamp duty and registration fees to the West Bengal Revenue Department, generating revenue for the state.
What are the factors determining stamp duty charges in Kolkata?
The stamp duty in Kolkata depends on the following parameters:
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Age of the property
A property’s age impacts the stamp duty fee levied on the property value. Old property drives less stamp duty charges than new buildings, as the market value of the old building is considerably low.
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Owner’s age
Senior citizens are offered subsidize stamp duty charges by the State Government.
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Owner’s gender
A female property owner receives concession on stamp duty charges. The reduction in stamp duty is make to encourage property ownership among women. Men pay about 2% extra stamp duty charge than the female owner.
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Location of the property
The property’s location plays a significant role in determining the stamp duty fee. Properties in a municipal, upscale urban area attract a higher stamp duty fee than those in panchayat regions or towns.
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Purpose of the property
Individuals buying a property for residential use or commercial use affect stamp duty fees. Commercial property tends to attract high stamp duty charges compared to residential property.
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Type of property
Individuals have to pay an extra stamp duty fee for flats or apartments compared to an independent house.
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Amenities
The number of amenities that a property encompasses directly influences the stamp duty fee. Government charges an extra stamp duty fee from a property with more amenities. An individual need to pay extra if the property consists of amenities like a community hall, sports area, swimming pool, club, children play area etc.
How does stamp duty fee varies in different areas of Kolkata?
Stamp duty in Kolkata is charged based on the current market price of a property and its location. As per the new announcement by the West Bengal Government, there is a drop in a stamp duty fee by 2% and a 10% drop in ready reckoner rate.
Furthermore, 4% stamp duty will be charged if the worth of property is below Rs.25 lakh and 5% for a property whose worth is more than Rs.40 lakh, given the property is located incorporation area and Municipal Corporation or near municipality.
Additionally, properties cost below Rs.25 lakh located in the panchayat area will have 3% stamp duty fee and 4% on property worth more than Rs.40 lakh. Registration fee in Kolkata is charge at one per cent of the entire property value.
Potential homeowners can calculate the stamp duty charges and registration fees beforehand to decide on the property’s final pricing using an online stamp duty calculator.
Both stamp duty and registration fee impact the property’s cost and add to the homebuyer’s monetary burden. Availing home loans can offer borrowers financial support and help them manage finances better. However, a borrower needs to know everything about home loan eligibility criteria before availing it.
One of the vital eligibility criteria is maintaining a decent CIBIL score. A CIBIL score for a home loan must be 750 or more.
Borrowers with a low CIBIL score can boost it by paying out the EMIs on time. In this regard, borrowers can use the home loan EMI calculator, which will help individuals plan monthly budgets and arrange finances better.
However, it is imperative to note that a home loan is not going to cover stamp duty and registration charges for borrowers wondering how to apply for a home loan, and whether it will add the extra charge levied by the stamp duty and registration fee.
Additionally, potential borrowers can also check the pre-approved offers extended by leading financers. These offers are available on financial products, such as home loans, loans against property etc., and help to ease the lending process. Individuals need to enter their names and contact details to check the pre-approved offers.
Overall, the stamp duty in Kolkata acts as evidence to prove property ownership. State Government collects it to validate the registration agreement.
