Stamp duty and registration charges in Uttar Pradesh (UP)

[ecis2016.org] Here’s all you need to know about stamp duty and registration charges on property purchases in Uttar Pradesh

As is true of asset purchases in all parts of India, property buyers in Uttar Pradesh (UP) are also liable to pay stamp duty and registration charges for property registration in UP, to get the property registered under their names in government’s records. In this article, we will discuss the extent of expenses that buyers have to bear, towards stamp duty and registration charges in Uttar Pradesh.

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Stamp duty and registration charges in UP

UP is among the states in India where stamp duty is comparatively higher. Buyers in UP have to pay 7% of the transaction cost as stamp duty. Note that buyers cannot register a property below the circle rates in any state. If the property is being registered below the government-determined circle rates, the buyer will still have to pay the amount applicable on the value as determined by calculating the circle rate.

Source: IGRS UP

* Note: Even though women are offered a 1% reduction in stamp duty charges in UP, this reduction is applicable only up to Rs 10 lakhs out of the total value of the transaction.

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It is important to mention that UP, the most populous state in India, imposes one of the highest charges on land and property registration. It has, so far, made no reductions in stamp duty charges, in spite of consistent pressure from builders’ lobbies and industry bodies to do so in the aftermath of the first and second waves of the Coronavirus pandemic, which have severely damaged buyer sentiment. In February 2020, before the pandemic hit India, the UP government had also increased property registration charges from a standard registration fee of Rs 20,000 to 1% of the property’s value.

Stamp duty on other deeds in UP

One has to pay varying stamp duty on registering different kinds of documents in UP. Provided below is the exhaustive list of documents and the stamp duty you have to pay on it, in UP:

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Stamp duty laws in Uttar Pradesh

Under Section 17 of the Uttar Pradesh Registration Act, 1908, a buyer will have to register the sale deed in the sub-registrar’s office in case the worth of the transaction is more than Rs 100. This means all property transactions in the state must be registered, to attain legal validity under the law.

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Stamp duty for women in UP

Like many states where women enjoy a uniform reduced stamp duty on property registration, women in UP get a discount on this charge, only on the purchase of properties under a certain price bracket. In place of 7% stamp duty that is applicable if a male is the owner, women pay 6% stamp duty on registration of properties that cost Rs 10 lakhs or less. However, men and women both pay the same stamp duty if the property’s cost if over Rs 10 lakhs in UP.

Property registration charge in UP

In 2020, the UP government notified the new stamp duty rates and registration fee for property and other transactions and did away with the provision that capped the maximum charge at Rs 20,000 on transactions. Now, the registration fee is calculated as 1% of the sale consideration. This means that if the sale deed is being registered for a property valued at Rs 50 lakhs, the buyer should set aside Rs 50,000 as the registration charge.

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Stamp duty UP calculation example

Suppose that Ram Singh is buying a property of 800 sq ft carpet area in a location where the circle rate is Rs 5,000 per sq ft. Thus, the circle rate-based value of the property would be 800 x 5,000 = Rs 40 lakhs.

If the property is being registered at this amount, the buyer will currently pay 7% of this amount as stamp duty. This will amount to Rs 2.80 lakhs.

If the property is being registered at an amount lower than that, the buyer will still have to pay 7% of Rs 40 lakhs as stamp duty, since the property cannot be registered below the circle rate. If the property is being registered at Rs 50 lakhs, the buyer will have to pay 7% of Rs 50 lakhs as stamp duty, amounting to Rs 3.50 lakhs.

Ram Singh will also have to pay Rs 50,000 as the registration charge.

How to pay stamp duty online in UP?

Log on to the Stamp and Registration Department UP portal (click here). Note here that the page will initially open in Hindi. Once you select the ‘आवेदन करें’ option, you will have the option to switch to English.

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Now, apply for a registration and create an application number by selecting the ‘New Application’ option.

Once you register yourself using your credentials, you can login as a registered user. After this, you have to key in the details of the property, the buyer, the seller and the witnesses. Once you fill all those details, the system will calculate the stamp duty and registration charges for your property automatically. Once you pay the stamp duty, a receipt number will be generated. This number should be saved for future use and an appointment should be booked, for property registration at the sub-registrar’s office.

Property registration at sub-registrar’s office in UP

Following the online payment of stamp duty, the buyer and the seller along with two witnesses have to visit the Sub Registrar’s Office (SRO). At the Sub Registrar’s Office, property registration is finalised in two stages by two officials.

While an Operator at the SRO office verifies the details you have provided in your online application and capturing your thumb impressions and photo, the sub-registrar also views all the details in your application and matches it with your original documents.

Is paying stamp duty on property registration a must in UP?

For any property that is worth more than Rs 100, the buyer is liable to pay stamp duty and registration charges, to get the transaction registered in the government’s records. The buyer is mandated to do so under the provisions of the Registration Act of 1908. Apart from the fact that non-registration means the exchange of the property between the buyer and the seller has no legal sanction and thus provides no legal ownership of the property title to the buyer, it will also lead to non-compliance of the law and attract monetary penalty.

UP stamp duty office contact information

Stamps and Registration Department,

2nd Floor, Vishwas complex,

Vishwas Khand -3, Gomti Nagar, Lucknow, 226010

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