The West Bengal state government has temporarily reduced circle rates & stamp duty, making this the best time to buy real estate. In a bid to boost demand and turbocharge the realty industry, the government decided to reduce stamp duties and circle rates for homes booked before October 30, 2021. What does this mean for buyers and how to go about it?
Stamp duty reductions
The state budget has reduced the stamp duty by 2%. This duty is supposed to be paid at the time of registering the property and was listed as 6% in urban areas, 5% in panchayat areas (for properties within ₹1 cr.); this has changed to 4% and 3% respectively. Taking Gems City as an example, for a 2BHK flat valued at approx. ₹25 lacs, stamp duty of 4% amounts to ₹1 lac, as opposed to ₹1.5lac.
Circle rate reduction
Circle rates are the state-defined per sq. ft. rate of property for a given area. This rate has been slashed by 10% across the board, which serves as a double benefit to home buyers. This is the rate considered while calculating duties and taxes.
Benefits to home buyers
The state’s policy offers many benefits to home buyers, in terms of reduced payments, duties, registration fees and income tax benefits. For example, since circle rates are decreasing by 10%, the registrar will value all properties at 10% less. For example, if a 3BHK flat in Joka is priced at ₹50 lacs, it will be taxed based on ₹45 lacs. The stamp duty on this reduced rate will hence be even lower, resulting in greater savings. As per calculations, home buyers can save up to 3-4 months of monthly instalment on their home loan.
When the market value of the property is lower than the circle rate value, the new policy is very helpful. This will help complete many big ticket transactions which were pending.
Another major benefit is that this policy change encourages home buyers to engage with projects which are delivering in the next one or two years.
As one of the popular residential projects in South Kolkata, Gems Bougainvillas is offering 2bhk row houses and 3bhk bungalows starting at ₹45 lacs. We welcome home owners to come visit our site, experience the vastness and greenery of the area and discover the many facilities and conveniences we are offering.
