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Stamp Duty and Property Registration Charges in Kolkata

About Stamp Duty & Property Registration Charges

Kolkata is one of the major metropolises in India, with varying property prices based on location. Besides the price of a property, buyers also need to consider stamp duty in West Bengal and charges for registration. Both add to the overall cost of acquiring a home. These additional charges impact the property’s cost and are not necessarily covered by a home loan. This makes it essential for intending home buyers to find out about them in advance.

What is Stamp Duty?

Under Section 3 of the Indian Stamp Act of 1899, state governments are liable to levy a tax on the sale of property ownership or the property itself. This taxation is referred to as stamp duty. The exact tax amount is not only based on the property price but also on the norms applicable in that state. For instance, stamp duty in West Bengal is different from a similar tax in New Delhi.

Apart from the property valuation and state’s policies, stamp duty in Kolkata would also depend on additional factors. These are:

  • Location of the property
  • Property age

However, a homebuyer must not confuse stamp duty with registration charges. Flat registration charges in Kolkata are a separate cost that property buyers must bear.

What is the Stamp Duty on Property in Kolkata?

Stamp duty in West Bengal remains homogeneous throughout the state. Kolkata residents will need to bear 6% of a property's price as stamp duty if this particular property is valued at up to Rs.25 lakh. For properties priced over Rs.25 lakh, the applicable stamp duty would be 7%..

However, regardless of a property’s valuation, registration charges for a flat in Kolkata are limited to 1% in all cases.

How are Stamp Duty Charges Calculated?

Potential homeowners need to calculate this stamp duty, along with flat registry charges in Kolkata, to arrive at the final price of a property. Here is an example to simplify the calculation of both these additional charges.

An individual is planning to purchase an apartment worth Rs.20 lakh in Kolkata. In such a case, stamp duty would be charged at 6%. Moreover, as per the norms of property registration fees in Kolkata, individuals would need to bear an additional 1% fee.

Therefore, the stamp duty, in this case, would be 6% of Rs.20 lakh, which equals Rs.1.20 lakh. The registration fee would be 1% of Rs.20 lakh or an additional Rs.20,000.

Thus, apart from the property cost of Rs.20 lakh, this home’s buyer would have to bear an additional Rs.1.40 lakh in stamp duty and registration fees.

Understanding these factors is crucial when planning one’s finances before a Kolkata property purchase. Individuals must also keep in mind that the stamp duty and registration charges are included under the down payment that a buyer must bear.

Homebuyers can compute the stamp duty and home registry charges in Kolkata without going through any hassle by simply using an Online Stamp Duty Calculator.