Kolkata's Property Circle Rate Hike: Impact on Stamp Duty and Registration Fees
The government has revised property circle rates in Kolkata by 15% to 90%, leading to higher stamp duty and registration fees. This is the first hike in seven years, aimed at aligning circle rates with market prices.
Circle RatePropertyStamp DutyRegistration FeeReal EstateReal EstateSep 18, 2025
Circle rate is the minimum property price set by the government for registering property. Finance department sources stated that the rate revision, which comes after seven years, is justified in view of the gap between circle and market rates in most areas. “There are instances of properties being sold and bought at Rs 9,000/sq ft when the circle rate is Rs 6,000/sq ft. We have addressed this variance through the revision,” an official explained.
The massive upward revision in several localities, however, has not found favor with developers, who claim it could end up suppressing demand. For instance, the new circle rate for Mahishbathan at the edge of Salt Lake has been increased by 87% to Rs 12,065/sq ft, which is higher than Tollygunge, where the new rate is Rs 10,212/sq ft. In BT Road, Baranagar, where numerous high-rise projects are being developed, the circle rate has nearly doubled from Rs 4,708/sq ft to Rs 8,850/sq ft.
For most buyers, it is the higher stamp duty and registration cost that will pinch. In Kolkata and other urban areas, stamp duty is 6% for units priced below Rs 1 crore and 7% for those in excess of Rs 1 crore. At the revised circle rates, most three-bedroom units and some two-bedroom units in Kolkata will cost over Rs 1 crore.
Credai West Bengal president Sushil Mohta pointed out that for some areas, the revision has taken circle rates beyond market prices. “There is no issue where the circle rate has been revised to be at par with market price. But if the circle rate is higher, then there is income-tax implication,” he said. In such cases, the seller and buyer have to pay income tax on the difference in rates. Credai Kolkata president Apurva Salarpuria said it would have been beneficial if the industry was involved in the process.
Merlin Group managing director Saket Mohta stated, “If there is a mismatch between the circle rate and market rate, it becomes a challenge to conclude transactions, and eventually stamp duty and registration revenue will suffer.” Biplab Kumar, president (brand, consulting and sales) at NK Realtors, the largest realty consultant in the east, said that in localities where the market rate is less than the circle rate, sellers will have to increase their asking price to match the new benchmark. “Since the cost of buying increases due to higher payout of stamp duty and registration, there may be a short-term dip in sales registrations as buyers adjust or delay,” he added.
Vivek Rathi, national director (research) at realty consultant Knight Frank India, however, pointed out that Kolkata’s home registrations grew 37% year-on-year between January and August 2025, despite the pandemic-period rebate on stamp duty and circle rates being rolled back last year. “In this backdrop, the circle rate hike is likely to have a limited impact on sales volumes, as buyers primarily consider market prices, affordability, and home ownership sentiment as bigger factors,” he said.
Frequently Asked Questions
What is the circle rate?
The circle rate is the minimum property price set by the government for registering property. It is used to calculate stamp duty and registration fees.
Why has the circle rate been revised in Kolkata?
The circle rate has been revised to address the gap between circle rates and market rates in most areas, ensuring that the government's minimum property price aligns more closely with actual market prices.
How much has the circle rate been increased?
The circle rate has been increased by 15% to 90% in various localities in Kolkata and adjoining areas.
What is the impact of the circle rate hike on buyers?
The hike in circle rates will lead to higher stamp duty and registration fees, potentially increasing the overall cost of buying property for many buyers.
How do developers view the circle rate revision?
Many developers are concerned that the significant increase in circle rates could suppress demand and make it more challenging to conclude transactions, especially in areas where the circle rate exceeds market prices.
Related News Articles
Pune's PCNTDA Residents to Get Freehold Status, Promises Maharashtra Minister Uday Samant
Maharashtra Minister Uday Samant has assured PCNTDA residents that a decision will be made on freehold status without causing financial loss to the state government.
Veriff Boosts Biometric Security to Combat Account Takeover Fraud
Biometric authentication, account takeover fraud, identity verification, facial recognition, fraud prevention
Inside Mumbai's Luxurious Abodes: A Glimpse into the Homes of India's Elite
Mumbai, often dubbed the 'Billionaire Capital of Asia,' boasts a real estate landscape that mirrors its status as India's commercial and financial hub. From opulent mansions to sleek high-rises, the city is home to some of the most stunning and expensive
Kapil Sharma: From Rs 500 Salary to Rs 300 Crore Net Worth
Kapil Sharma, the king of Indian comedy, has come a long way from his humble beginnings. Today, he owns luxurious properties and cars, and his net worth is estimated at Rs 300 crore. Explore his inspiring journey from rags to riches.
Mumbai and Delhi Emerge as Leading Luxury Real Estate Markets in Asia-Pacific
India's real estate sector is witnessing a significant boom, driven by robust economic growth, infrastructure improvements, and changing lifestyle trends. Mumbai and Delhi, in particular, are ranking among the fastest-growing luxury real estate markets in
Important Steps to Ensure Your Apartment is Free from Legal Issues Before Purchase
MahaRERA has recently directed a real estate developer near Mumbai to disclose details about any pending litigation to the public. This highlights the importance of checking for legal issues before buying an apartment.