You can challenge the letter before high court under writ petition.
Waiver of land transfer fees for same blood transfer in salt lake kolkata
My father gifted me a portion of his lease hold land and the same registered and put up for mutation following due process in Bidhannagar Municipal Corporation ( BMC ) in Kolkata West Bengal. I have recently received a letter from BMC asking for a large amount as a surcharge on land transfer under section U/S 133 of West Bengal Muncipality ACT 2006. I understand that land transfer fees are exempted for same blood transfer in BMC. Please advice on nextension steps.
Asked 5 years ago in Property Law
Religion: Hindu
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10 Answers
You are liable to pay only one and half percentage of the market value of the property towards stamp duty and approx 1.1 % registration fees.
Sec 133 provides for additional stamp duty to be levied for any transfer of land , as per rate and method as prescribed by notifications .
First try to get a copy of the notification or ask BMC to provided the basis of calculation and charging the additional surcharge.
You further have go through the final judgement of HC which stayed the collection of the additional surcharge in 2015, on the ground of its being unconstitutional.
You should track the final judgment in this regard .
You can also challenge the same in HC.
Addition to reply:
For all over India immovable property transfer attract two fees one is stamp duty and other is registration fee.
No additional fees are charged.
And thats why that particular Bengal govt rule was stayed by HC on ground of unconstitution.
Track the 2015 judgement.
Section 133 Levy of surcharge on transfer of land
(1) The Corporation shall levy a surcharge on the transfer of immovable property situated within the Corporation area concerned, in the form of additional stamp duty.
(2) The rate of surcharge, and the manner of -
(a) collection of the surcharge,
(b) payment of the surcharge to the Corporation, and
(c) deduction of the expenses, if any, incurred by the State Government in course of collection of the surcharge, shall be such as may be prescribed.
Are you sure there the levy for transfer within relationship is not to be charged, if aggrieved you may file a protest as per provisions of section 125 and 126 which is given below:
Section 125 Application for review
(1) Any person, who is dissatisfied with the assessment as appearing in the assessment list referred to in section 124, may prefer an application for review before the Corporation within a period of one month from the date of service of the written notice under sub-section (2), or within three months from the date of publication of the assessment list under sub-section (1), of section 124.
(2) No such application for review shall be entertained unless the amount of property tax on the basis of the previous valuation of any land or building has been paid, or has been deposited in the office of the Corporation, before such application is preferred, and every such application shall stand rejected unless such property tax is continued to be paid, or deposited, in the office of the Corporation, till such application is finally disposed of.
Section 126 Hearing of objection by Review Committee
(1) Every application under sub-section (1) of section 125 shall be heard and determined by a Review Committee to be constituted by the Corporation in the manner hereinafter
provided in this section :
Provided that where the Review Committee reduces the valuation of any land or building, such reduction shall not be more than 25 per cent. of the annual valuation of such land or building, except in the case of gross arithmetical or technical mistake, and the Review Committee shall, in every such case, record in writing the reasons for such reduction.
(2) Every Review Committee shall be presided over by the Mayor or the Deputy Mayor and shall consist of not less than two, but not more than four, Councillors appointed by the Corporation at a meeting :
Provided that no Councillor of the ward from which the application for review is made shall be a member of the Review Committee :
Provided further that no decision of the Review Committee shall be invalid or called in question merely by reason of any vacancy in the composition of the committee or absence of any member, other than the presiding officer, from a meeting thereof.
(3) The Review Committee shall give notice to the applicant of the time and place at which his application will be heard and the committee shall dispose of the application in such manner as may be prescribed
U/S 133 is a Muncipality Act 2006 rules that is surcharge on transfer of ownership of immovable property.
Section 133 Levy of surcharge on transfer of land
(1) The Corporation shall levy a surcharge on the transfer of immovable property situated within the Corporation area concerned, in the form of additional stamp duty.
(2) The rate of surcharge, and the manner of -
(a) collection of the surcharge,
(b) payment of the surcharge to the Corporation, and
(c) deduction of the expenses, if any, incurred by the State Government in course of collection of the surcharge, shall be such as may be prescribed.
Now you can reply to them accordingly same section 133(2)(c) , that state government had not take any stamp duty so on that how you could charge a surcharge amount.
Surcharge amount is additional duty on stamp duty.
For E:g. if state government has charges stamp duty Rs.100/- and corporation is charging 5% surcharge on stamp duty then you need to pay Rs 5/- to Corporation.
The property was gifted to you by your father. Therefore write an application explaining the issues. Engage a lawyer if you want.
Needs to be answered by a Kolkata based lawyer.
Stamp duty is exempted or levy half when gift effects between blood relative but no exemption of surcharge. Language only talks about transfer of immovable property which has vast implications and include al kind of transfer without any exemption.
May challenge the recovery on the ground of limitation.
1. In Bidhan Nagar, most of the land allocated are on lease hold basis for which the allottees do not own the title of the said allotted/leased piece of land.
2. The Govt. has started allowing claim of ownership of the said land and its transfer/sale on collecting fees per Cottah of the land in question.
3. The surcharge on land transfer is on account of the same as explained above.
It cannot be avoided even in case of gift among blood relations pls consult local property lawyer in this regard.
1. You should send reply with the notification in which it is mentioned that No stamp duty is applicable for transfer of property between Blood relations.
2. As per my knowledge you have to pay a stamp duty of 0.5% of market value of property in west Bengal and if you have not paid the stamp duty then BMC can charge the penalty from you.
