A senior Kolkata Police officer said the man admitted to murdering the woman, who was sex worker.
The police also recovered a chopper alleged used in the crime after interrogating him, the officer said.
The body of the 35-year-old woman lying in a pool of blood was found last night following calls from locals and the man was arrested today.
The man alleged that the woman was squeezing money from him and he had given here a part of the money he had got by selling his house in the Andamans. He had become fed up and had decided to kill her, the officer said.