First property circle rate hike for Kolkata in seven years to push up registration fee, stamp duty
Times of India | 18 September 2025Circle rate is the minimum property price set by govt for registering property. Finance department sources said 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 a 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 said.
The massive upward revision in several localities, however, has not found favour 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 had 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 said, “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 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 said.
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 Jan and Aug 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.
