The Bengal government has extended the ongoing rebate in the stamp duty for registration of properties and circle rate till June 2024, continuing its policy to support the real estate industry of the state.

The latest nine-month extension was notified by the finance department on Friday. “In the interest of public service, particularly, to extend relief to home buyers, it has been decided by the government in the finance (revenue) department to further extend the benefits ...till June 30, 2024,” the notification read.

Stamp duty now stands at 4 per cent and 3 per cent in urban and rural areas for properties up to Rs 1 crore and 5 per cent and 4 per cent for properties above that ceiling. Additionally, the circle rate — the government-specified property price for a locality to compute stamp duty and registration charge — was reduced by 10 per cent.

The relief was first introduced in the state budget in July 2021 after Trinamul Congress stormed back to power for the third time, with the stated purpose of providing relief to homebuyers during the Covid pandemic and generating employment in the real estate segment. The relief has been extended from time to time since then.

According to a report published by Knight Frank India, more than 1 lakh property has been registered in two years since the rebate was introduced only in the Calcutta area.

Sushil Mohta, president of Credai West Bengal, said the decision would reduce cost of acquisition at a time mortgage rates are high and property prices are up.

Stamp duty is an important source of tax revenue for the state. Bengal is projected to earn Rs 7,117.89 crore in stamps and registration fees in 2022-23 according to the revised estimate, 3.37 per cent lower than Rs 7,336.44 crore it had earned in FY22. The state has projected to collect Rs 7,473.79 crore, according to the budget estimate for FY24.