The carpet area of apartments will be taken into consideration while computing stamp duty while registering a property, instead of the ongoing practice of using the built-up area for calculations.

The stamp duty payable while registering a property is based on the government notified circle rate. The migration to computation based on duty payable will reflect in the circle rate.

The new system is expected to bring transparency and consistency in real estate transactions, bringing it in-line with the provisions of the Real Estate Regulatory Authority (RERA).

RERA mandates that only carpet areas will find mention in the sale agreement and the deed of conveyance to ensure buyers know what they are actually paying for. However, the circle rate in Bengal was decided based on the built-up area, which includes the carpet area and more.

Real estate sources say the government would now give the option to buyers to choose carpet or built-up area while making the query for the stamp duty. The prevailing circle rates will continue if the transaction is being registered with a built-up area. To ensure the change is revenue neutral to the state exchequer, circle rates will go up if carpet area is chosen.

The change will come about as the carpet area is usually 20 per cent less than the built-up area. However, the buyer is expected not to pay more for stamp duty.

“There used to be confusion at times while registering properties. While the deed of conveyance or sale agreement must reflect the carpet area as per RERA, built up area was considered for stamp duty calculations. Now the system is changed to make it seamless,” Sidharth Pansari, president of Credai Bengal, said.

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. The special rate is in place till June 30, 2024.

“Credai Bengal had approached the finance department to calculate the stamp duty and register the document based on carpet area declaration.

“The finance department has agreed to the same. This will bring consistency and transparency in mentioning the areas of flats being sold,” Sushil Mohta, president of Credai West Bengal, said.