West Bengal government offers 2% stamp duty rebate; slashes circle rates by 10%

In perhaps the most expensive residential real estate transaction in Kolkata and that too during COVID-19, a stockbroker purchased a 31,000-sq ft bungalow located in Judges Court Road for around Rs 100 crore.The deal was brokered by Sotheby’s International Realty. (Image: Moneycontrol)

West Bengal government on July 7 decided to offer a stamp duty rebate of 2% for registration of deeds and slashed circle rates by 10% as it presented its Rs 3.08- lakh- crore Budget in the assembly for fiscal 2021-2022.

Presenting the Budget, state industry minister Partha Chatterjee, who had placed the vote-on-account in the House on February, said the government has proposed to reduce stamp duty by two per cent for registration of deeds and slash circle rates by 10%. Finance minister Amit Mitra is unwell.

"We all are aware that due to COVID-19 pandemic our state along with the country as a whole is reeling under economic recession. This has resulted in curtailing the purchasing power of the people. The real estate sector also has been greatly affected due to this crisis. In this critical situation the state government is proposing to allow relief to the registrant public by reducing the rate of stamp duty for registration of deeds affecting sale/lease of land/house.sale etc," the Budget document said.

"I propose to reduce the rate of stamp duty by 2% from the present rate for such deeds. The circle rate/market value for registration of deeds for land/house and flat etc has been proposed to be reduced by 10%," it said.

Both the facilities can only be availed if the registration is completed within October 30, 2021, it said.

The current rate of stamp duty in the state is 7%.

Reacting to the announcement, Harshavardhan Neotia, chairman of Ambuja Neotia Group, said that the state government’s decision to reduce stamp duty by two per cent for registration of deeds, as also slash circle rate by ten per cent will boost the real estate sector in the state.

"It is heartening to see that the West Bengal Government has considered a long-standing demand for the real estate sector in West Bengal. We on behalf of the Credai West Bengal wholeheartedly welcome this move. We hope that it will help to boost the demand in the sector in this pandemic situation," said Sushil Mohta, chairman, Merlin Group and president, Credai, West Bengal.

"The reduction in the rate of stamp duty should help the end-users and this should boost sales and help the sector further. We hope that the overall collection of revenues of stamp duty will also go up. This announcement of the state government would encourage real estate sectors to launch new projects and infuse fresh investments in the sector also. The consumers will also come forward to expedite registration process with this big relief to them," he added.