From 17th January, the Inspector General of Registration (IGR) has already initiated the process of registering properties according to the carpet area. However, these rules are temporary and you must consult an experienced property lawyer in West Bengal to find out if these rules are still applicable for the sale/purchase of your properties.
The decision to base stamp duty calculations on carpet area instead of super built-up area is expected to have several implications for the real estate market in Kolkata and West Bengal. Firstly, it is likely to make homeownership more affordable, particularly for middle and lower-income groups. The super-built-up area normally includes shared facilities like a landing, staircase, and open areas and tends to be 20% higher than the carpet area, which means a super-built-up area of 1000 square feet provides only 800 square feet of carpet area. This revised stamp duty for homebuyers in Kolkata and West Bengal will significantly streamline the process.
Stamp duty payments computed on the carpeted surface are anticipated to be less compared to those determined on the super-constructed area. To counterbalance potential revenue deficits for the state, circle rates might be increased, thereby ensuring that the total expenditure for purchasers stays relatively consistent. Real estate participants, such as CREDAI West Bengal, have embraced the change, expecting improved transparency and uniformity in real estate dealings. The updated approach adheres to RERA regulations, which require solely carpeted areas to be included in sales agreements and conveyance documents. However, do consult an experienced property lawyer in West Bengal to guide you in this regard.
Purchasers will now be offered the choice between carpet and constructed area when assessing stamp duty computations. Should the transaction be recorded with a constructed area, existing circle rates will persist. To maintain revenue balance, circle rates may rise in the case of carpet area selection, acknowledging the standard 20% decrease in carpet area compared to the constructed area. West Bengal government has also provided a reduction in stamp duty by 2% and circle rate by 10% till June 30, 2024. The revised stamp duty for homebuyers may get extended further in the future. This measure is anticipated to streamline property registrations, ensuring smooth adherence to RERA directives. However, without an experienced property lawyer in West Bengal, you should not process the property registration yourself as you may create errors in the process.
The updated registration process determines stamp duty according to carpet area, as stipulated by RERA, deviating from the previous method of utilizing a super built-up area. The stamp duty owed by purchasers will now be computed based on the government-notified circle rate, showcasing the transition to a clearer and more uniform methodology. This shift towards carpet area-based stamp duty calculations underscores Kolkata’s dedication to harmonizing with evolving real estate standards and nurturing a more transparent property registration procedure. For more help regarding revised stamp duty for homebuyers in West Bengal, do contact an experienced property lawyer in West Bengal here.