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Current Circle Rates in Kolkata, 2021 Stamp duty and Registration Charges


There is no doubt that property is an important financial asset, especially in a country like India, where population density is high and the area to fit that population is less. This is why apartment and land values in India are sky-rocketing. Real estate is considered a very elite form of investment here. What determines the cost of a plot of land, is an important question that every person interested in buying a house/property should ask. This cost, as determined by the local authorities, is referred to as circle rates. Each state and in fact, each locality, has its own circle rate depending upon various factors. 

 

What are circle rates?

Circle rate is nothing but a monetary evaluation system of a piece of land. The government authorities usually decide the price per unit area of a plot. Any property transaction below that approved amount will not be sanctioned. Especially in vast cities like Kolkata, these prices differ from one locality to another. The circle rates in Kolkata are decided by the Kolkata Municipal Corporation. Circle rates also affect the flat/property cost along with the mortgage.

The state government of West Bengal has announced a 10% reduction in circle rates in Kolkata, to make up for the loss faced by real estate during the COVID-19 pandemic. Even the stamp duty has been reduced by 2%. This concession is valid up to October 30, 2021. Real estate sales in Kolkata dropped to 1,253 units in April – June 2021, compared to 1,317 units in the same quarter of the previous year. In 2019 the real estate sales were booming, with around 3,382 units sold. Real estate was one of the many industries that was heavily affected by the pandemic.

To tackle this loss period, the West Bengal government, in its budget 2021, announced slashing of circle rates in Kolkata and the entire state of West Bengal. This move has both, been criticised and appreciated. Due to the time period of three months put on the concession, the number of people who can benefit from this is limited. However, several real estate experts believe this move will definitely encourage people to purchase a property.

 

Source- Times of India

 

All about circle rates

Before knowing the rates, it is important to understand what factors impact circle rates in Kolkata.

  • Property location
  • Property area and size
  • Property age
  • Type of property – Independent house, flat, or plot
  • Type of occupancy – commercial or residential
  • Facilities and amenities available around the property

All these factors go into consideration while deciding the circle rates in Kolkata.

 

Circle rates

 

Circle rates in Kolkata

Below is the chart of circle rates in Kolkata that determines the property value.

Area Average circle rate (per sq metre)
Agarpara Rs 2,626
Action Area 1 Rs 4,882
Airport Area Rs 3,062
Action Area II Rs 4,8,58
Alipore Rs 12,689
Action Area III Rs 4,524
Ashok Nagar Rs 4,690
Andul Road Rs 3,148
Bablatala Rs 3,264
Baguiati Rs 2,995
Baghajatin Rs 3,858
Baguiati Rs 3,257
Bally Rs 2,769
Baguihati Rs 3,139
Ballygunge Rs 9,983
Baishnabghata Patuli Township Rs 4,786
Ballygunge circular road Rs 13,492
Ballygunge Palace Rs 11,322
Ballygunge Park Rs 10,051
Bangur Avenue Rs 4,881
Bangur Rs 4,823
Baranagar Rs 3,363
Barasat- Madhyamgram Rs 2,773
Baruipur Rs 2,281 
Behala Rs 3,644
Beleghata Rs 5,678
Belghoria  Rs 3,133
Bhawanipur Rs 9,096
Bansdroni Rs 3,584
Barrackpore Rs 2,534
Bata Nagar Rs 3,733
Behala Chowrasta Rs 3,475
Belgharia Expressway Rs 3,733
Beliaghata Rs 5,151
Birati Rs 3,264

 These are some circle rates in Kolkata, you can check out the property prices in Kolkata in other areas here. Ballygunge area circle rates are quite high, as compared to other areas. This area is located in south Kolkata and is one of the most developed areas of Kolkata, with urban facilities, famous colleges and important market spaces. The circle rates in Kolkata are still considered very affordable compared to other metro cities, like Mumbai or Delhi. 

See also: Posh areas in Kolkata

 

Circle rate vs market rate

The price at which a property actually sells or is expected to sell on the market is known as the market price. On the other hand, circle rates in Kolkata and even other cities are decided by government authorities. For the most part, market prices for real estate, especially in Kolkata, are much higher than the price set by the government.

There are no restrictions on registering properties at a rate higher than the circle rate. As a general rule, the stamp and registration fees are paid on the higher of the two. 

In case the buyer registers the property at a higher value, then even the stamp duty charges are increased. If the circle rate in Kolkata is higher than the market rate, you can ask the sub-registrar to charge the stamp and registration fees at market value. However, there is no guarantee whether or not they will give you that concession.

 

Stamp duty and registration charges

An important step towards buying a property is registering the same and paying stamp duty. This process of stamp duty being charged on your property is crucial for legal ownership. The registration charges are based on the cost of the property. For properties above Rs 25 lakhs, the registration charge is 1.1% and for properties below Rs 25 lakhs, the registration charge is 1%. 

See also: Stamp duty and registration charges in West Bengal

Stamp duty on property in Kolkata

Stamp duty is a form of tax that is put on the purchase of the property. Stamp duty charges are generally lower for women, not just in Kolkata but in many other places in India. In Kolkata, stamp duty varies from place to place and is determined by the circle of rates in Kolkata. As of now, it is divided into two categories – properties above and below Rs 25 lakhs.

Properties below Rs 25 lakhs:

  1. Areas that fall under corporation – 6%
  2. Areas that fall under a municipality or notified areas – 6%
  3. Areas that do not fall under either category – 5%

Properties above Rs 25 lakhs:

  1. Areas that fall under corporation – 7%
  2. Areas that fall under a municipality or notified areas – 7%
  3. Areas that do not fall under either category – 6%

You can check more information on stamp duty and circle rates in Kolkata here.

These were the stamp duty prices before the new budget announcement in 2021. So till October 30, 2021, the stamp duty amount will be 2% less for all categories. 

 

How to calculate property value?

Many people think that calculating the property value is complicated. However, it is not that hard. For example, if you are looking for properties in Kolkata, then, all you have to do is multiply the area of the plot in sq metres with the circle of rate in Kolkata. Make sure to check the locality. The property value will differ substantially for different areas, since the circle rates are different. 

Example of calculating property value and stamp duty

Let us say that you want to buy a 2,000 sq ft property in the Ballygunge area in Kolkata. First, you will have to convert 2,000 sq ft into sq metres, which is 185. Now all you have to do is multiply 185 sq metres with the circle rate area of Ballygunge. 

Property value: 185 x 9,983 (circle rate) = Rs 18.8 lakhs

Since the value of the property is below Rs 25 lakhs, a stamp duty of 6% will be applied. The stamp duty amount to be paid will be Rs. 1.1 lakhs.

However, if you buy the same property before October 30 in Ballygunge then, you will get 10% concession of circle rate and 2% on stamp duty. So the property value would be Rs 16.6 lakhs and the stamp duty would be Rs 66,000.

See also: A guide to paying property tax in Kolkata

 

FAQs

What is stamp duty?

Stamp duty is a form of tax that is put on the purchase of the property. The stamp duty rates typically range from 3% to 8% in different places in India.

What is the circle rate?

It is a monetary evaluation system of a piece of land. The government authorities usually decide the price per unit area of a plot.

What is the circle rate in Kolkata?

The circle rates in Kolkata differ from area to area. Check the table above.

 

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