Stamp duty and registration fee are standard real estate vocabulary. Yet, investors, especially first-time buyers, do not find it straightforward enough.
Why?
Because these charges vary state to state.
Before you work your stamp duty and registration fee, you should know what these are to begin with.
What is Stamp Duty & Registration fee?
In India, when a buyer typically sets out to buy a property, the journey begins with identifying the property all the way through to its possession. Physical possession however is not the same as ownership.
Ownership can be claimed only after the investor gets the property registered in their name at the concerned municipal authority. The state government levies a certain percentage of the property value (or circle rate, whichever is higher) at the time as stamp duty, and another (much smaller) percentage as registration fee.
As a buyer, you must make sure these dues are paid in full and without delay to become the registered owner.
What is Stamp Duty in Noida & Greater Noida?
Stamp duty in Noida and Greater Noida is seven percent of either the circle rate or the property value; whichever is higher. Similarly, registration fee is one percent of the circle rate or the property value, whichever is higher.How to Calculate Stamp Duty and Registration Fees In Noida and Greater Noida?
If you are buying a property in Noida or Greater Noida, you would want to know your stamp duty and registration beforehand. Here is an example illustrating that.
Example:
Say you want to invest in commercial property in the best location of Noida Extension. Let us assume the property size to be 50 square metres valued at Rs. 20,00,000.
Assuming the current circle rate in Noida Extension to be Rs. 23,100 per square metre, the effective circle rate on this property comes out to approximately Rs. 11,55,000. Since this is lower than property valued at the time of registry, the registration fee and stamp duty will be calculated basis the property value since that is higher.
In this case, the registration fee would be:
Registration fee: 1% of Rs. 20,00,000 = Rs. 20,000
Similarly, the stamp duty would be:
7% of Rs. 20,00,000 = Rs. 1,40,000
Hence, the total cost of the property will be Rs. 20,00,000 + 20,000 + 1,40,000 = Rs. 21,60,000
Note: Uttar Pradesh mandates an additional 1% discount on stamp duty for women subject to the transaction not exceeding Rs. 10 Lakhs. The registration fee is the same as for males. (1%). In case of joint ownership (male & female), stamp duty is 6.5% with no changes to registration fees.
Paying Stamp Duty in Noida and Greater Noida?
Paying stamp duty in Noida, Greater Noida is easy and simple. It can easily be completed from the comfort of your home online. Below are all the steps you need to follow:
Step 1: Visit the official website of the Integrated Grievance Redressal System of Uttar Pradesh. (IGRSUP)
Step 2: Register as a user by clicking on the “Apply” dialogue box on the left side of the homepage.
Step 3: You will be directed to a form upon successful registration. Fill the required fields with the information about your property and attach the supporting documents as evidence.
Step 4: Upon successful completion, the portal will automatically show the stamp duty of your property.
Step 5: Make the payment and save the acknowledgement slip.
Documents required while registering your property:
It is required to have these documents handy for a hassle-free registration.
No certificate of dues
Builder Buyer Agreement or the Allocation Letter
Ownership letter
Financial institutions and bank account documents
Proof of Identity and address
Loan approval letter and No Objection Certificate (NOC) if the property is brought through financing
Things to Consider while Paying for the Stamp Duty in Noida and Greater Noida
Paying registration fees and stamp duty is a must to be the legal owner of the property. If a buyer fails to do so, the registration will be void and a fine of up to 200% of the shortfall and 2% per month will be levied.
Things to keep in mind while paying stamp duty:
The stamp paper should have the name of the person executing the transaction.
All assets of the stamp duty must be stamped before registering or on the date of execution.
The data of transactions should not be more than six months on the stamp paper.
Some recent developments in Stamp Duty and Registration Charges in Noida and Greater Noida in 2023:
In 2023, the Uttar Pradesh government made some major changes in the stamp duty and registration fees. Here are some developments that anyone looking to buy a residential or commercial property in Noida region must know:
Property transferred among family members will not attract stamp duty payment. Earlier a seven percent stamp duty fee was levied.
Stamp duty is to be calculated based on the carpet area of the residential unit, not on the super built-up area.
All budget segment properties will attract only one percent registration fees.
Stamp duty and registration validate legal ownership. Additionally, these instruments safeguard the owner from any discrepancies associated with the property. It is worth noting that delayed or non-payment attracts severe penalties.
Hence, it is best you get these out of the way towards a smoother investment journey. Doing that involves factoring in documentation and process flow and above all, the regulations applicable to the state in question.
For more on latest updates to stamp duty & registration, contact us.
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