Stamp Duty and Property/Flat Registration Charges in Uttar Pradesh

Purchasing a property is the best form of investment an individual can make. However, a property buyer is obligated to make stamp duty payment to claim ownership.

The State Government sets the property registration and stamp duty charges. Hence, it is essential to know the current rates and the factors impacting these rates.

Individuals planning to buy a property in Uttar Pradesh can scroll down to know more about these taxes. It will help them to streamline their stamp duty in UP payment without hassle.

Section 17 under the Uttar Pradesh Registration Act, 1908 specifies that every property buyer in the state has to register their sale deed in the sub-registrar's office. This is applicable when the transaction is above ₹100.

Hence, every property in UP must be under registration to claim ownership.

Ideally, the stamp duty in UP is applicable if there is a transaction between a property seller and buyer. In UP, it is calculated based on the transaction value’s specific percentage.

The State Government had revised the property registration fee, making it 1% of property cost, formerly ₹20,000.

Homebuyers in Uttar Pradesh must pay stamp duty worth nearly 7% of transaction charges. In addition, they are mandated to register the purchased property under the current circle rate fixed by the Government.

Nevertheless, let’s check the current land registration fees in UP for a detailed understanding.

The stamp duty fees in UP are relatively expensive when compared to other Indian states. This is because every locality in UP follows a different circle rate.

This factor makes the stamp duty and Uttar Pradesh property registration different from that in other states. UP Government charges approximately 5%-7% of the market value of a property.

While nearly a property market value’s 1% is chargeable as registration fees. This makes the whole deal quite expensive.

Read more about what's covered in Property Insurance by Digit?

 The stamp duty calculation in Uttar Pradesh takes place on the percentage of the transactional value. Hence, if a property costs around ₹80 lakhs, the applicable stamp duty and registration percentage will be levied. This will specify the amount an individual needs to pay. Let us take an example to understand the stamp duty and property registry charges in UP:

An individual buys a property in UP that has a carpet area around 500 sq. ft. For instance, the circle rate, here, comes to ₹6000 per sq. ft.

Carpet area: ₹500 sq. ft.

Circle rate: ₹6000 per sq. ft.

Property value as per circle rate: ₹500 x ₹6000 = ₹30 lakhs

Hence, the stamp duty of the property will be 7% of the property value.

Property value as per circle rate: ₹30 lakhs

Stamp duty: 7% of ₹30 lakhs = ₹210000

Taking the same example, we can find out the land registry registration fees in UP.

Property cost: ₹30 lakhs

Registration charges: 1% of ₹3000000 = ₹30000

Let us compare it with the charges applicable for a female homeowner.

For instance, a property costs around ₹10 lakhs, then the stamp duty and registration charges will be:

Property cost: ₹10 lakhs

Stamp duty for female: 6% of ₹1000000= 60000

Stamp duty for male: 7% of ₹1000000= 70000

Property registration charges in UP for female and male: 1% of ₹1000000 = ₹10000

Individuals can find out the amount needed to be paid against stamp duty and registration charges by following the calculation method explained in the table. However, manual calculations can be time straining and filled with errors. In this regard, using a software-based tool such as a stamp duty calculator will be smarter.

Individuals can find a stamp duty calculator on most lending institutions’ websites. However, the specifications in these tools can vary from website to website.

The basic steps to use this smart tool are as follows.

• Step 1:  Visit a lending institution or public website and search for a stamp duty calculator. Select the Stamp Duty Details option and proceed.
• Step 2: Click on the respective state and the area, such as Gram Panchayat or Municipal Corporation.
• Step 3: Enter the respective property value or transaction amount.
• Step 4: The stamp duty will display on the screen as per circle rate.

After calculating the stamp duty and property registration charges in Uttar Pradesh, individuals can pay the amount on the official website.

Individuals can pay registration fees and stamp duty on a property in UP online and offline process by following the below steps:

Online Procedure

• Step 1: individuals have to go to the official portal of the Stamp and Registration Department UP.
• Step 2: Select ‘Apply for Registration’ and apply with a ‘New Application’ option.
• Step 3: After registration, log in to the website using the credentials.
• Step 4: Enter requisite details, including property size, area, location, city, etc. Upload the necessary documents for proof. Also, enter the witness and property seller’s details.
• Step 5: Click on ‘Save and Continue’ and select the mode of payment.
• Step 6: An acknowledgement slip will appear on screen after successful payment.
• Step 7: One can download the registration document for use in future.

Offline Procedure

Individuals must book a date to go to the sub-registrar's office. The property buyer must visit the office on the set date with the seller and a witness.

An SRO office operator will scrutinise the information and biometric data provided by an applicant.  The sub-registrar will also verify data supplied by an individual and check the document validity. So let us check what the factors that impact stamp duty charges in Uttar Pradesh are.

Here are a few essential points you need to consider before paying stamp duty in UP-

• All assets applicable for stamp duty must be stamped before registration or the next working day from the execution date.
• If a property deed is executed outside the territory, it can be stamped within 3 months.
• The date of the issued stamp paper must not be more than 6 months from the transaction date.
• A stamp paper must be in the name of individuals involved in a transaction.

The stamp duty on a property is based on multiple factors.  Some of the crucial elements have been discussed below.

• Age and Gender of Buyer: Many State Governments offer senior citizens a discount on stamp duty. In addition, women homebuyers receive a concession on stamp duty and registration charges.
• Property Location: The stamp duty for a property can vary in the case of property location. For instance, property in the municipal area will cost more than the ones outside.
• Use of a property: Depending on the property use, stamp duty is levied on commercial or residential properties.

Let’s check the tax benefits applicable on stamp duty And Registration Charges in Uttar Pradesh.

Every individual in UP can claim tax exemptions on registration charges and stamp duties under Section 80C of the Income Tax Act 1961.

This act allows a tax deduction for joint owners. However, the maximum deduction limit is up to ₹1,50,000.

Individuals can claim deduction only on new properties.

The discussions above will help an individual pay stamp duty in UP without confusion. They can also check the official website for terms and conditions.

It will be beneficial to keep a tab on updates on stamp duty and registration charges in Uttar Pradesh to streamline payment.