Availing Rebate on Stamp Duty & Registration
Are you buying a property in Kolkata? Are you on the process? Then, this would be the last chance to get the rebates going on for property registration. Government of West Bengal had come up with rebate last year for registering properties. The dates are already extended three times and it has a final date of 31st September, 2023 now. Nobody knows the date will further be extended or not, so why take a chance? If you have already finalized your property and if you are in the process, try to conclude it before the mentioned date i.e. 31st September, 2023.
What are the offered rebates?
The rebate is very lucrative and you can have a good amount to be saved. The offer is as follows-
- 10% rebate on property valuation: Whatever your property value is according to circle rate, the valuation will be 10% less than actual valuation of the property.
- 2% rebate on stamp duty: There will be a rebate of 2% on stamp duty. Property buyer has to pay 5% of property valuation instead of 7% which is normal.
Let’s make an illustration which explains how a property buyer would benefit with this rebates offer.
Let us assume Mr. Bose is going to purchase a property worth 50 Lakhs Rupees. The circle rate and Government valuation of the property is 50 Lakhs rupees too.
Deal Price = ₹ 50,00,000/-
Government Valuation (normal) = ₹ 50,00,000/-
Stamp Duty to be paid = 7% of Valuation = ₹ 3,50,000/-
Government Valuation after Rebate = ₹ 50,00,000 – ₹ 5,00,000/- (10% of 50,00,000/-)
= ₹ 45,00,000/-
Stamp Duty to be paid = (7-2)% = 5% of Valuation
= 5% of 45,00,000/-
Total savings of Mr. Bose = ₹ (3,50,000 – 2,25,000)/- = 1,25,000/-
Mr. Bose is very happy with a savings of One Lakh Twenty-Five Thousand Rupees. It is a good amount to be saved and this amount can be utilized for his home decoration purpose.
Like Mr. Bose, all property buyers may avail these rebates at the time of property registration. The amount is not a little amount. In the above illustration, the property price is Fifty Lakhs, but, if the property price is more, the savings will also be more.
For an example, if the property price is ₹ 1 Crore, double amount i.e. 2.5 lakhs rupees can be saved.
Conclusion: Don’t waste time as this is the last month when we have the rebates offer from Government of West Bengal. Time is running very fast. Conclude your property deal in December and get the rebates on stamp duty at the time of registration.