NRI Selling a Flat in Kolkata (2026): West Bengal Stamp Duty, Market Value, Power of Attorney, KMC Mutation and TDS
When an NRI sells a flat in Kolkata, the buyer pays West Bengal stamp duty of 6% of the market value up to ₹1 crore and 7% above that, plus a registration fee of about 1%, because the 2% rebate and 10% market-value reduction ended on 1 July 2024. The market value is generated by the Directorate of Registration and Stamp Revenue’s database on the e-Nathikaran system, and it matters to the seller too: under section 78 of the Income-tax Act, 2025, capital gains are worked out on that value where it exceeds the price by more than 10%. The buyer deducts TDS on the full price, which can be reduced with a Form 128 certificate, and from 1 October 2026 an individual buyer can do this with PAN alone. This guide takes a Kolkata seller living abroad through valuation, the power of attorney, KMC dues and mutation, apartment dues, tax and repatriation.
At a glance
| Point | Position in October 2026 |
|---|---|
| Stamp duty in KMC, Howrah and other municipal areas | 6% of market value up to ₹1 crore; 7% above ₹1 crore; paid by the buyer unless agreed otherwise |
| Stamp duty in panchayat areas | 5% up to ₹1 crore; 6% above |
| Registration fee | About 1% of market value |
| Rebates | None; the 2% remission and 10% market value cut ended on 1 July 2024, and the 2026-27 Budget made no change |
| Market value | Generated on igr.wb.gov.in (e-Nathikaran) from the property particulars |
| Capital gains for an NRI | 12.5% on long-term gains, without indexation, plus surcharge and cess |
| TDS by buyer | On the full sale price at the rates in force; lower with Form 128 |
| Repatriation | Up to USD 1 million a financial year from the NRO account |
Step 1: check the market value first
- How it is set: under the West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001, the market value comes from a digitised database linked to e-Nathikaran. The “Calculation Assistance” tool on igr.wb.gov.in gives the value of a flat, and the stamp duty and fee, from the location, area, floor, age and amenities you enter.
- If the officer disagrees: under section 47A of the Stamp Act as it applies in West Bengal, the registering officer can determine a higher value and hold the registration until the deficit duty is paid.
- Why the seller should care: if the market value is more than 110% of the agreed price, section 78 of the Income-tax Act, 2025 (formerly section 50C) treats the market value as the sale price for capital gains. The value on the date of the agreement can be used instead if part of the price was paid by bank on or before that date, so take the advance by bank transfer and register the agreement.
Step 2: if you cannot travel, a power of attorney
- Signing abroad: sign the power of attorney before an Indian embassy or consulate, or before a notary with an apostille where the country is a Hague Convention member.
- Stamp it within three months: an instrument signed outside India can be stamped within three months of first arriving in India under section 18 of the Indian Stamp Act. Have it adjudicated and stamped in Kolkata within that window before your attorney uses it.
- Duty: a general power of attorney carries a fixed duty in West Bengal; a power of attorney to sell, particularly to a person outside the family, can attract a much higher duty. Confirm the duty with the registration office before drafting.
- Personal presence: the attorney still attends the registration office to sign and give fingerprints. E-registration has not replaced physical presence.
Step 3: clear KMC and apartment dues
- KMC property tax: pay all arrears and get the No Outstanding Certificate from the Assessment-Collection department, which the buyer will need for mutation.
- Apartment dues: under the West Bengal Apartment Ownership Act, 1972, unpaid maintenance and common expenses are a charge on the flat, second only to municipal tax, and the seller and buyer are jointly liable for dues up to the sale. Get a dues statement from the association; there is no statutory NOC, but buyers and banks ask for one.
- Papers to keep ready: your purchase deed or gift or inheritance papers, the KMC mutation certificate in your name, the completion or occupancy certificate, the latest tax receipts, and the apartment declaration under the Act where it was registered.
Step 4: registration
- The buyer files the e-requisition on e-Nathikaran, which gives the query number, market value, stamp duty and fee.
- Stamp duty and the fee are paid online through GRIPS, which generates a GRN. West Bengal does not use SHCIL e-stamp certificates for conveyances.
- Book an e-appointment at the Additional Registrar of Assurances or the District Sub-Registrar office for the area.
- Seller (or attorney), buyer and two witnesses attend, sign and give fingerprints, and the deed is registered.
Step 5: mutation in the buyer’s name
The buyer applies to KMC for mutation in Form A-42, online or at the assessment office, with the registered deed and the No Outstanding Certificate. Since a 2022 amendment to the KMC Act, the Commissioner can also record a transfer on his own, subject to a processing fee and clearance of the seller’s arrears, which is another reason to clear dues before the sale.
Tax on the sale
- Rate: long-term gains (flat held more than 24 months) are taxed at 12.5% plus surcharge and cess. The option to pay 20% with indexation on property bought before 23 July 2024 is only for residents, so NRIs cannot use it.
- TDS: the buyer deducts TDS on the whole price under section 393(2) of the Income-tax Act, 2025, whatever the price. Apply for a lower deduction certificate in Form 128 before the sale so that TDS is limited to the tax on your actual gain.
- Buyer’s compliance: from 1 October 2026, a resident individual or HUF buying from an NRI can deposit TDS with PAN, without a TAN, through Form 141 and issue the certificate in Form 132. Companies and firms buying still need a TAN.
- Exemptions: reinvesting the gain in a house in India (section 82) or in specified bonds within six months, up to ₹50 lakh (section 85), saves tax and should be planned before the Form 128 application.
Our guide to TDS when an NRI sells property and the lower deduction certificate explains the calculation in detail.
Taking the money abroad
- Receive the price in your NRO account; the buyer pays net of TDS.
- You can remit up to USD 1 million a financial year from NRO balances, including sale proceeds, with Forms 145 and 146 (formerly 15CA and 15CB) and a CA certificate.
- Proceeds of a flat bought in foreign exchange or from an NRE account can be repatriated for up to two residential properties. A flat bought while you were resident falls under the USD 1 million route.
See our guide to repatriation of sale proceeds by NRIs.
Common mistakes
- Agreeing a price well below the e-Nathikaran value, so capital gains are taxed on a higher figure than you received.
- Using a power of attorney signed abroad without stamping it within three months.
- Leaving KMC tax or society dues unpaid, which holds up mutation and the buyer’s loan.
- Selling without a Form 128 certificate, so the buyer deducts TDS on the whole price.
- Claiming indexation, which NRIs cannot use.
Frequently asked questions
What is the stamp duty on a flat in Kolkata in 2026?
6% of market value up to ₹1 crore and 7% above ₹1 crore in KMC and other municipal areas, plus a registration fee of about 1%. There is no rebate in 2026.
Who pays stamp duty when an NRI sells a flat in Kolkata?
The buyer, unless the agreement says otherwise.
Can an NRI sell a Kolkata flat without coming to India?
Yes, through a power of attorney signed at an Indian consulate or apostilled abroad, then stamped in West Bengal within three months of arriving in India. The attorney attends the registration.
Does the buyer need a TAN to deduct TDS from an NRI seller?
Not from 1 October 2026 if the buyer is a resident individual or HUF, who can use PAN through Form 141. Other buyers still need a TAN.
TAXAJ helps NRIs and OCIs with Form 128 applications, capital gains planning, CA certificates for remittance and returns. Talk to our Kolkata team, or see the state-wise stamp duty table.
Last updated 27 October 2026. Sources: Indian Stamp Act, 1899, sections 18, 29 and 47A and Schedule IA, Article 23 (West Bengal); West Bengal Finance Act, 2021; Directorate of Registration and Stamp Revenue circular discontinuing the remission schemes from 1 July 2024; West Bengal Budget 2026-27 and Finance Act, 2026; West Bengal Stamp (Prevention of Undervaluation of Instruments) Rules, 2001; West Bengal Apartment Ownership Act, 1972; Kolkata Municipal Corporation Act, 1980, section 183 as amended in 2022; Income-tax Act, 2025, sections 78, 82, 85, 197, 393 and 395; CBDT Notification 121/2026; RBI Master Direction on Remittance of Assets and FAQ on property transactions by NRIs. General information only; confirm the market value and duty on igr.wb.gov.in before you agree a price.
