The market value of land in West Bengal is a state government-declared minimum price for consideration against the land purchase at a particular locality and of a specific category. This article aspires to discuss salient points about West Bengal land valuation.
West Bengal land valuation: How is the stamp duty calculated?
The land buyers must pay stamp duty to the government during its registration on this minimum’ guidance value’, even if they have bought it below this value. However, if the purchase price is higher than the market value of land in West Bengal, the buyer will have to pay stamp duty on the purchase price and not on ‘market value,’ i.e., the higher amount between the two.
Determinants of land market value
It’s exciting that land market value is governed by several pertinent parameters and is also subject to revision. Development and promotion of land cause its market value to increase. On the contrary, the proposed construction of a graveyard may decrease the market value of adjacent land for residential purposes.
Availability
Land availability in a developing community is frequently more than in a well-established neighbourhood, primarily because there are many undeveloped lands. West Bengal land valuation at such places suffers badly for this. Unused land for an extended period may result in a drop in demand for the location in the future. As a result, one should look into the land’s absorption rate.
Future connectivity
Although assets in emerging real estate markets lack robust transportation connectivity and property accessibility, one should investigate the potential for future connectivity nodes in the area. This will aid in the escalation of future value. A proposed highway, railway station, or metro project may increase land market value in future connectivity.
Proposed land use
Lands intended to be used for different purposes are valued differently during the computation of market value. Land may be bought for residential or industrial purposes or a cinema hall. Market value will be different for all these cases.
Encumbrance
Land may be considered ‘encumbered’ if an existing tenant refuses to vacate the land before the intended sale by the owner.
Litigation
A landed property subject to an existing lawsuit pending in the court of law is ‘litigated’ and valued accordingly.
Bargadar
Agricultural land will be valued differently if a registered Bargadar tills the land.
You might ask a question here – Who is a Bargadar? According to the West Bengal Land Reform Acts of 1955, a Bargadar cultivates land on behalf of the owner of that respective patch of land.
In case the buyer is a tenant
This factor has long bugged West Bengal land valuation. A land with an already occupying tenant on it may sound a dubious choice to a new buyer. But when an existing tenant, who has caused an encumbrance towards the clear, marketable title of the land, intends to buy the same himself, the market value of the land will be affected by this factor.
Approach road width
The width of the approach road to the piece of land matters for its easy vehicular activity- 20 feet or 40 feet wide approach road means clear accessibility of the plot even by trucks, one way or both ways.
Proximity to the metal road
The proximity of an adjacent metal road increases the market value of a piece of land.
Nature of land (as recorded in ROR)
This may be construed as ‘category’ or ‘character’ of the land. ROR stands for the record of rights or a chronological registration of previous owners of the land and its history. If maintained meticulously, you can determine if a prior water body has been filled and converted to be sold as regular land.
Local body of jurisdiction
Land in the suburban area managed by a municipality, a village land in a Gram Panchayat area will have a lesser land market value than one operated by a Municipal Corporation in the city/town area.
After prospective buyers have enquired the market value of land from the government portal https://wbregistration.gov.in/, they are also advised to verify the same after filling up a proper e-requisition from the appropriate registration office.
See also: igrs.ap.gov.in market value in Andhra Pradesh (AP)
Market value of land in West Bengal: Covid-19 relief
The upsurge of West Bengal land valuation came to a halt with Covid-19 when there was a unanimously felt omnipresent demand for relief by the masses in the state owing to loss of jobs and unpredictability of incomes.
- The WB Government proposed to provide relief to the registrant public by lowering the stamp duty rates for registration of deeds affecting sale/lease of land/house/flat etc. by 2% from the current rate. Also, the circular rate/market value for the registration of deeds for land, houses, and flats, among other things, will be decreased by 10%. However, according to the budget statement, these incentives would be available only if the registration process is completed by 30 October 2021.
- As per that, the WB Government has declared a 2 percent stamp duty rebate for all documents for which stamp duty is charged under Article 23 (Conveyance) of Schedule IA of the Indian Stamp Act, 1899 (as applicable to West Bengal), except the document of ‘amalgamation of contiguous land’ for a temporary period. The aforementioned Order No IGR/116/2021 also specifies that the revised stamp duty rates are being updated in the WB Government’s e-Nathikaran system of registration.
Finding market value of land in West Bengal offline
To find out the market value of a property, one has to contact the office of the Sub-Registrar/Additional District Sub-Registrar in whose sub-district the entire or a portion of the property to which such document relates is located. Contacting the office of the Registrar to whom the said Sub-Registrar/Additional District Sub-Registrar is subordinate, or the office of the Registrar of Assurances in Kolkata is also an option.
Also read all about IGRS market value in Andhra Pradesh (AP)
Finding market value of land in West Bengal online
The prospective land buyer is supposed to visit the Inspector General of Registration and Stamps website https://wbregistration.gov.in/ and follow the below-mentioned steps:
- Click on the link “Calculator for MV, SD, and RF.”
This will open the splash window for selecting the market value for the enquiring prospective buyer.
- Now selecting ‘Market Value of Land’ here takes the buyer to the ‘Market Value of Land’ page.
- Here the buyer has to either select various options from the several combo boxes or enter specific values in respect of the land to be purchased. The ‘Nature of Land (as recorded in ROR)’ and ‘Proposed Land Use’ are the two most important determinants of the land market value.
- After selecting all the necessary parameters and entering the required values, click the ‘Display Market Value’ switch.
- The following page will return all the relevant details fetched from the database about the plot of land along with its ‘Existing Market Value’ in INR, as highlighted in the picture below.
Similarly, the buyer can find other relevant information about the stamp duty and registration fee, going back in the workflow and selecting the appropriate parameters.
This, in brief, concludes the process of finding West Bengal land valuation online from the State Government Portal.
FAQs
What is the definition of stamp duty?
Under the rules of the Indian Stamp Act, 1899, it is a type of tax that is paid for transactions carried out by way of document or instrument.
Why is it necessary to pay stamp duty?
The legitimacy of instruments is conferred upon them by paying sufficient stamp duty. These instruments acquire evidentiary value and are accepted as evidence in court. Instruments that have not been appropriately stamped are not admissible as evidence.
Should stamp duty be paid based on the market value of land in West Bengal or consideration amount?
Stamp duty must be paid on the land market value, not the purchase price.
When does stamp duty become due on an instrument signed in India?
Instruments chargeable with duty and executed by an individual in India must be stamped prior to or at the time of execution, according to Section 17 of the Indian Stamp Act, 1899. Also, section 18 of the Indian Stamp Act, 1899 states that every instrument chargeable with duty and executed out of India may be stamped within three months after being first received in India.
Who is responsible for the stamp duty payment?
The Indian Stamp Act of 1899 specifies who is responsible for paying stamp duty on any instrument under Section 29. In a nutshell, unless there is an agreement to the contrary, the recipient will meet the cost of delivering the appropriate stamp duty.
