The West Bengal government has decided to extend the two percent exemption on stamp duty and a 10 percent reduction in circle rates of property in the state until December 31, 2022.
The existing relief is coming to an end on September 30, 2022. This was extended in March this year.
The state finance department has decided to extend the benefits to homebuyers considering the economic slowdown caused by the Covid-19 pandemic. The move is expected to provide further relief to people and generate more employment.
The order from the government of West Bengal Finance Department dated September 27 said: “In the interest of public service and also considering the interest of the homebuyers who have suffered extremely due to COVID 19 pandemic, it has been decided by the government in the finance department to further extend the benefits …. till 31 December 2022.”
Real estate developers welcome the decision
Sushil Mohta, President, Credai West Bengal and Chairman, Merlin Group said, “The decision of the government to extend the rebate in stamp duty and circle rate is a coveted Durga Puja gift. We welcome wholeheartedly the decision taken by the state government."
Mohta stated that the decision to provide a 2 percent reduction in stamp duty and 10 percent in circle rate, taken in the year 2021, had boosted the pandemic-hit real estate sector. "This extension, till December 2022, would help home buyers take their decisions to buy their own homes. It will also accelerate the sales of the real estate sector."
"Additionally, we also request the government to reduce the stamp duty on constructed properties by 2 percent," he added.
Knight Frank, a real estate consultancy, noted the registration of 6,238 residential sales documents in Kolkata Metropolitan Area (KMA) in August 2022, a 15 percent year-on-year (YoY) decrease over August 2021. August 2021 saw the highest number of residential sales agreements being registered in KMA since the inception of the stamp duty window in July 2021. Despite the annual decline, August 2022 becomes the month witnessing the third highest sales registration documents since the inception of the stamp duty window in July 2021. The stamp duty cut was initially proposed in mid-July 2021, post which, the market sentiment towards home ownership continued to improve.Since the stamp duty cut announcement, as many as 57,136 residential properties have been registered in KMA. The numbers capture all residential sales documents registered with flat and apartment sizes mentioned, the registration data comprised transactions in both the primary and secondary markets, the consultant said.