Property valuation certificate is a legal document which certifies the details of the entry in the Register of Land Values. Property valuation helps to determine the fair market value of a property at the time of property sale or purchase. The value of the property estimated varies from state to state.
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.
Need for Property Valuation Certificate
- Property valuation certificate includes the property information like property size of the land and building, Property value, details on the construction.
- Property valuation Certificate is also used as collateral for the educational loan from the Bank.
- Property Valuation certificate is required for purposes of income and wealth tax For submitting annual returns in the Income Tax department.
Determinants of land market value
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.
Applicable Fee
The applicant does not need to remit an application fee for applying for a property valuation certificate in West Bengal.
Documents Required
The specified documents are to be furnished at the time of calculating property.
- Aadhaar Card
- Proof of Land Tax
- Copy of Encumbrance certificate.
- Proof of ownership of property.
- Voters ID
Online Application Procedure for Property Valuation
Step 1: Please visit the official website of West Bengal Government.
Calculate Market Value of Land
Step 2: Select “Market Value of Land” tab which is displayed on the home screen of the portal.
Step 3: On the next screen, the market value of the land page will open up.
Step 4: The applicant has to enter the details which are mandatory.
Step 5: Choose your district, Thana, local body and the name of the local body.
Step 6: To get the owner details of the property, you have to enter the plot number and Khatian number.
Step 7: Now, provide the details of your property like the type of your property, use of property, Area of Land and click on “Display Market Value” button.
Step 8: Finally your market value of land will be calculated and displayed on the screen.
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.