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What are Stamp Duty Rates & Charges in Kolkata on a Property?

Stamp Duty in Kolkata
In: Business

Sitting on the banks of the Hoogly River, Kolkata is one of the leading commercial hubs of this country and one of the 5 metropolitan cities. Resultantly, property demands here are skyrocketing every year. However, to purchase any land in this city, one needs to pay stamp duty and registration charges, as they are an indispensable part of this process.

Therefore, before moving ahead, one should learn more about stamp duty in Kolkata and its importance.

What are stamp duty and registration charges in Kolkata?

As per the Indian Stamp Act of 1899 and under Section 3, state governments impose necessary tax during the transfer of property ownership, known as stamp duty. This tax is applied to residential, commercial and leasehold properties. The tax amount does not entirely rely on the property’s price but also on the rules applicable in that particular state, which means it varies across states.

The residents of Kolkata are required to pay a 4% stamp duty over the property’s price if the value of the property is up to Rs.25 lakh. For properties that are more than Rs.40 lakh, the applied stamp duty charges would be 5%.

Moreover, registration charges in Kolkata would not rely on a property’s value. It is fixed at 1% of the property’s overall cost. Besides, properties located in the Panchayat areas will draw a stamp duty of 3% if the value is less than Rs.25 lakh and 4% for the value more than Rs.40 lakh.

Borrowers can avoid fraudulent activities or legal disputes if their property is registered under the books of the state government. However, stamp duty in Kolkata depends not only on where a property is situated or its current value in the market but also on other factors. Some of them are mentioned below:

  1. Property’s status
  2. Gender of the owner
  3. Type of property
  4. Property’s usage

Alongside this, prospective homebuyers should also learn about stamp duty calculations.

How are stamp duty charges calculated?

Prospective borrowers need to evaluate both stamp duty and registration charges in order to know the actual property price. Follow the example below to understand the calculation of these additional charges.

If an individual purchases a property of Rs.20 lakh where the stamp duty in Kolkata will be 4%. Moreover, as per property registration rules, one would need to pay 1% as an additional fee. Therefore, the stamp duty charges would be equal to Rs.80, 000 and the registration fee would be Rs.20, 000.

Thus, except for the property’s cost, individuals are required to pay an additional amount of Rs.1 lakh as stamp duty and registration fees. However, the calculation process will be similar if the property price is more than Rs.40 lakh.

Alternatively, borrowers can use a stamp duty calculator to evaluate the stamp duty charges that one needs to pay on their property by inputting details like a property’s value and location. 

It is crucial for the borrowers to consider these charges before knowing how to apply for home loan. As already mentioned, these charges do not include the housing loan sanctioned by the financial institution.

Besides knowing these stamp duty and registration charges, applicants should know the home loan eligibility criteria to avoid facing rejection.

Additionally, when going through the eligibility parameters, borrowers must not forget about the ideal CIBIL score for home loan. Since credit score is an essential determinant in assessing a borrower’s creditworthiness, one must try to improve it if required to ensure a hassle-free loan approval.

Eligible borrowers can also avail of pre-approved offers extended by leading financiers on a wide range of financial products such as home loan, loan against property etc. These offers significantly reduce the hassle of extensive documentation and accelerate the loaning procedure. To check your pre-approved offers, mention your name and contact information.

Understanding the stamp duty in Kolkata, along with the registration charges, will allow borrowers to avoid facing any legal troubles in future related to their property ownership. Additionally, keeping these details on point can prove to be helpful during a housing loan application as well.

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