West Bengal Government Withdraws Relief Measures for Real Estate Sector
The West Bengal government has withdrawn the temporary relief measures provided to the real estate sector, including a 2% reduction in stamp duty and a 10% slash in the circle rate.
Real EstateWest BengalStamp DutyCircle RateCovid 19Real EstateJul 01, 2024
The withdrawal of the relief measures is effective from July 1. According to a government circular, the matter was reviewed further, and considering all aspects, the governor decided to discontinue the schemes for remission of stamp duty and reduction in circle rate.
Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group, expressed gratitude to the state government for the relief measures. However, he also urged the administration to reconsider the latest decision. Mohta pointed out that the rebate in stamp duty and reduction in circle rate significantly benefited the pandemic-ridden real estate segment, which is the second highest employment generator and a substantial contributor to the state exchequer. In 2023, the sector contributed Rs 7,500 crore from property registrations.
Mohta urged the government to consider revising the circle rate to help the sector reevaluate the pricing of residential units. He also suggested a reduction in stamp duty to further support the industry. According to Mohta, the sector is expected to continue its growth trajectory with increased urbanization and rising disposable incomes.
Information
The COVID-19 pandemic had a significant impact on the real estate sector, leading to a slowdown in the economy. To combat this, the West Bengal government introduced temporary relief measures, including a 2% reduction in stamp duty and a 10% slash in the circle rate. These measures were extended several times to support the sector.
CREDAI West Bengal is a real estate developers' association that represents the interests of the sector. Merlin Group is a real estate development company based in West Bengal.
Keywords real estate sector, West Bengal government, stamp duty, circle rate, COVID-19 pandemic, CREDAI West Bengal, Merlin Group.
Frequently Asked Questions
What relief measures were provided to the real estate sector by the West Bengal government?
The relief measures included a 2% reduction in stamp duty and a 10% slash in the circle rate.
When were the relief measures introduced?
The relief measures were introduced on October 30, 2021.
Why were the relief measures introduced?
The relief measures were introduced to combat the economic slowdown caused by the COVID-19 pandemic.
What is the impact of the withdrawal of the relief measures on the real estate sector?
The withdrawal of the relief measures is expected to affect the growth of the real estate sector, which is a significant contributor to the state exchequer.
What is CREDAI West Bengal?
CREDAI West Bengal is a real estate developers' association that represents the interests of the sector.
Related News Articles
Understanding Long-Term Capital Gains Tax on Real Estate: Clarification on Acquisition Cost
The I-T department has provided clarity on the acquisition cost of real estate properties purchased before 2001 for LTCG calculations, which is now taxed at 12.5%.
India's Independence Day Winners: Stocks That Made Investors Crorepati in Just One Year
Real estate, agriculture, and consumption sectors are expected to deliver superlative returns to investors in the long run.
Godrej Interio Launches 'Reserve Plus' and 'Gain Pro' for Enhanced Office Efficiency
Godrej Interio, a leading home and office furniture business, introduces the 'Reserve Plus' and 'Gain Pro' storage solutions to optimize workspace and enhance productivity.
Micromitti Unveils Innovative Investment Vehicles to Empower Micro-Investors in Real Estate
Micromitti, a leading PropTech firm in Central India, is set to launch Real Estate Investment Trusts (REITs), AIF Category 2 Real Estate Funds, and Private Equity (PE) investments, providing affordable and high-return opportunities for micro-investors in
India's Festive Housing Surge: A New Chapter in Real Estate
The festive season in India is poised to ignite the housing market, building on the robust sales trends of 2023 and 2024. With attractive offers and new property launches, the real estate sector is set for a significant boost.
APAC Investors Beef Up Presence in Indian Real Estate Market
Asia Pacific funds are increasingly investing in India's real estate sector, attracted by the country's robust economic growth and strategic location. This influx of capital is driving significant development and innovation in the Indian real estate marke