When dealing with property transactions in Lucknow, one of the most crucial factors to consider is the Circle Rate. These rates significantly influence property prices, stamp duty, and registration charges. This guide will help you understand what Circle Rates are, how they are determined, and their importance in the real estate market of Lucknow.
What are Circle Rates?
Circle Rates, also known as Guidance Values or Ready Reckoner Rates, are the minimum property rates set by the state government for various localities within a city. These rates are used as a benchmark for property transactions, ensuring that properties are not undervalued for tax purposes. In Lucknow, Circle Rates vary depending on the location, type of property, and other factors.
What Are Lucknow’s Property Circle Rates?
The lowest price at which a residential or commercial property transfer or sale can be registered prior to the transfer or sale is known as the circle rate. The asset may consist of a built-up home, an apartment, or a piece of land.
Transactions below the authorised limit are not permitted at these rates. These rates affect the mortgage as well as the cost of the apartment or property.
The Circle rate is determined by the Lucknow State Government, often known as the Uttar Pradesh Government or the local development agencies.
The Circle rate in Lucknow has the ability to regulate property prices because the real estate sector lacks a set price index.
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Lucknow’s Updated Circle Rates for April 2024
Depending on the property’s location and classification, the circular rates in Lucknow were most recently adjusted by 10 to 15 %. It is now possible for residential, commercial, and industrial properties in Lucknow to use the updated circular rates.
The purpose of the circle rate modification is to increase transparency in real estate transactions and make sure that neither buyers nor sellers are taken advantage of by artificially inflating or devaluing their assets. The updated rates are meant to boost the state’s economy in the long run by enabling the government to collect more money from stamp duty and registration fees.
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Revised Circle Rates’ Effect on Property Owners
Lucknow property owners may be significantly impacted by the change of circle tariffs. If you own real estate, you need to know how the new circular rates will affect the value of your asset. Depending on the location and type of property, the new rates may make your home worth more or less.
The government has raised the minimum price of a property in that location if the revised circle rate is higher than the prior rate. It may lead to a rise in registration and stamp duty costs, raising the total cost of owning the property for you.
On the other side, the property’s value may drop if the updated circle rate is less than the old rate. It could be challenging for the owner to sell the property for more money or to get a mortgage for the same.
It’s critical to be informed about the updated circular rates and make the necessary updates to your property documentation. Penalties and legal ramifications may follow noncompliance.
Importance of Circle Rates in Property Transactions
- Stamp Duty and Registration Charges:
Circle Rates are crucial in calculating stamp duty and registration charges. Even if the transaction value of a property is lower, the stamp duty is calculated based on the Circle Rate. This ensures the government collects adequate revenue and prevents the undervaluation of properties.
- Property Valuation:
Circle Rates provides a standardised valuation for properties across different localities in Lucknow. This helps in avoiding disputes related to property prices during transactions.
- Loan Sanctions:
Financial institutions consider Circle Rates while sanctioning loans. If the Circle Rate is significantly higher than the transaction value, the bank may offer a loan based on the Circle Rate, ensuring the property’s fair valuation.
Factors Affecting Circle Rates in Lucknow
- Location:
Properties in prime areas like Gomti Nagar, Hazratganj, and Aliganj have higher Circle Rates compared to those in less developed areas.
- Type of Property:
Residential, commercial, and agricultural properties have different Circle Rates. Commercial properties generally have higher rates than residential properties.
- Infrastructure Development:
Areas with better infrastructure, connectivity, and amenities often witness higher Circle Rates. Upcoming projects, like metro extensions or new highways, can also lead to an increase in Circle Rates.
- Market Trends:
The demand and supply of properties in a particular area influence the Circle Rates. High-demand areas usually have higher rates.
- Location of the property
- Age of the property
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What Effect Do Circle Rates Have on UP or Lucknow Taxation?
The Income Tax Act’s 56(2)(x) states that if a person buys a property for less than the permitted price, the difference in the amount or rate shall be deemed “other income.” They must then pay capital gains tax as a result. In this case, capital gains tax on the property’s circular rate will be due by the seller.
Nonetheless, the government resolved to lessen the cost on both purchasers and sellers during the Union Budget 2020 conference. In accordance with the recent ruling, the government did not impose additional tax obligations in situations where the market value and circle rate deviate by less than 10%.
Now that we have covered the circle rate in Lucknow in such detail, the blog post has come to a conclusion. When selling or transferring real estate in Lucknow, pay close attention to the circular rates for the various neighbourhoods.
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Circle Rate in Lucknow: How to search online on IGRS UP?
Circle Rates in Lucknow are updated periodically by the Uttar Pradesh government and can be accessed online through the official website of the Department of Stamps and Registration. Here’s how you can check the Circle Rates:
- Go to the Uttar Pradesh government’s official website for the stamp and registration department. It is also the IGRS UP webpage.
- Locate and select the Mulyankan Suchi, or Circle rate list, option located in the upper right corner of the website. Navigate to an alternative website.
- This page has blank tabs where you can input details about the district, the subregistrar’s office (SRO), and the captcha code.
- After entering all the data, select the view circle rate list option located at the bottom.
- The website will display the appropriate list of Lucknow circular pricing.
Impact of Circle Rates on Property Buyers and Sellers
- For Buyers:
Understanding Circle Rates helps buyers make informed decisions. It ensures they are not overpaying for a property and helps in calculating the stamp duty and registration charges accurately.
- For Sellers:
Sellers can price their property appropriately by considering the Circle Rates. It helps in setting a realistic price that aligns with government valuations, making the transaction smoother.
Different Circle Rate in Lucknow
DM Circle Rate in Lucknow
| Area Between Roads | Circle Rate Per Sq. Meter (in ₹) |
| Faizabad Road | 30,000 |
| From Hazratganj Chauraha to Kalidas Marg Chauraha, Mahatma Gandhi Marg | 76,000 |
| From Subhash Marg Medical College to Charbagh Tiraha | 31,000 |
| From Kaiserbagh Chauraha to Charbagh | 55,000 |
| From Chinhat Village to Satrikh | 14,000 |
| From Charbagh Station to Awadh Hospital | 55,000 |
| Sultanpur Road, Shaheed Path | 25,000 |
| Hardoi Road | 20,000 |
| From Singar Nagar Chauraha to Hydel Chauraha | 55,000 |
| From PGI Nagar Nigam limitto Telibagh Nagar | 31,000 |
| From Guru Govind Singh Marg Hussainganj Chauraha to Naka Chauraha | 31,000 |
| Sitapur Road | 39,000 |
Circle Rates in Premium Areas in Lucknow
| Area | Circle Rate Per Sq. Meter (in ₹) |
| AP Sen Road | 26,000 |
| Butler Palace Colony, Butler Ganj, BBD Green City Shahpur | 18,000 |
| Cantt Road, Kasaibada, Pandariba | 18,000 |
| Eldeco Green, Vipul Khand | 39,500 |
| Gautam Palli, Gulistan Colony, Transport Nagar | 28,000 |
| DM circle rate in Gomti Nagar Lucknow (Gomti Nagar Phase 3, Gomti Nagar Extension, Gomti Greens) | 30,500 |
| Marutipuram | 19,500 |
| Miling Toniya Road, Vidhan Sabha Marg, Vivekanand Marg, Vikramaditya Marg | 27,500 |
| Park Road, Park Lane, Mahatma Gandhi Marg, Motilal Nehru Road | 27,500 |
| Sarojini Naidu Marg, Chitwapur Road, Canal Colony, Mangal Kheda | 15,500 |
| Sushant City, from Sector A to E | 18,500 |
| Vastu Khand, Vaibhav Enclave, Vikas Khand, Vikalp Khand, Vinagra Khand, Vinay Khand, Vinit Khand | 30,500 |
| Vibhuti Khand | 40,000 |
| Uday Ganj, Uday Ganj Road | 15,500 |
| Sushant City, From Sector F to I | 15,000 |
| Sharda Nagar, Sharda Nagar Yojana | 19,000 |
| Gurunanak Market, Vrindaban Yojan | 21, 000 |
| Gautam Budh Marg, Charbagh | 25,000 |
| Aabadi Kabristan Mall Avenue, Vindsor Palace | 16,500 |
| Havelock Road, La Martiniere Colony, Trilokinath, Manas Nagar | 20,000 |
| Raibareli Road Yojna, Aishbagh, Eldeco, Kanpur Road Pariyojana, Awadh Vihar Pariyojna | 19,000 |
| Vijay Khand, Vijay Khand, Vipin Khand, Vishal Khand | 33,500 |
| Vikrant Khand, Vishwas Khand, Vibhav, Vivek Khand, Vijyant Khand, Vishesh Khand, Virat Khand, Viraj, Viram Khand | 30,500 |
| Saket Palli, Pirpur Square, Bandriya Bagh, Banarasi Bagh | 22,500 |
| Darbari Lal Sharma | 21,500 |
| Faizabad Road | 36,000 |
| Ashiyana, Jiyamau, Srijan Vihar Colony | 22,000 |
| Omaxe City, Alambagh | 16,000 |
| Rana Pratap Marg | 29,000 |
Lucknow Registry Fees (April 2024)
| Proprietor | Charge for Registration | Charge for Registration |
| Men | 1 % | Rs 10,000 |
| Women | 1 % | Rs 10,000 |
| Men + Women | 1 % | Rs 10,000 |
| Men + Men | 1 % | Rs 10,000 |
| Women + Women | 1 % | Rs 10,000 |
How Can I Determine the Worth of a Property in Lucknow Using Circle Rates?
To determine the value of a property using circle rates, follow the instructions listed below.
Step 1:
Acquire knowledge about the property’s build-up area.
Step 2:
Determine the property’s age, the amenities it offers, among many other details.
Step 3:
Determine the kind of property.
Step 4:
Utilise the formula below after obtaining all necessary data. –
Property Value is calculated as follows: Built-up area (in square meters) x locality circle rate (in ₹ per square meter).
Recent Trends in Lucknow’s Circle Rates
In recent years, Lucknow has seen a steady increase in Circle Rates, especially in areas witnessing rapid development. The growth in real estate demand, coupled with infrastructure projects like the Lucknow Metro and new flyovers, has contributed to this rise. Buyers and investors should stay updated on these changes to make well-informed property decisions.
Stamp duty on Agricultural Land
In Uttar Pradesh (UP), purchasers must pay a stamp duty of 7% on the agricultural transaction cost. It is essential to understand that properties cannot be registered for less than the government-set circle rate.
In what ways do market rates in Lucknow differ from circle rates?
There is an intrinsic correlation between market rates and circle rates. As a result, the majority of homebuyers in Lucknow frequently mistake circle rates for market pricing while making a purchase.
- The circle rates are determined by the local government, but buyers and sellers and other external market forces typically determine the market value.
- In real estate transactions, market rates are applied. Circle rates serve as the basis for determining additional fees such as property registration costs.
- Real-time property prices are not significantly affected by circle rates, and market value is subject to change based on various market conditions.
Conclusion
Circle Rates play a vital role in Lucknow’s real estate market. Whether you are buying, selling, or investing in property, understanding these rates is essential for ensuring fair transactions and complying with legal requirements. By staying informed about Circle Rates, you can navigate the property market in Lucknow with confidence.
Frequently Asked Questions on Circle Rates in Lucknow
Q1. What are Circle Rates in Lucknow?
Ans1. Circle Rates in Lucknow are the minimum property rates set by the government for various localities. These rates are used to calculate stamp duty and registration charges during property transactions, ensuring properties are not undervalued for tax purposes.
Q2. How are Circle Rates in Lucknow determined?
Ans2. Circle Rates in Lucknow are determined by the state government, taking into account factors like the location, type of property (residential, commercial, agricultural), and infrastructure development in the area.
Q3. How do Circle Rates impact property transactions in Lucknow?
Ans3. Circle Rates impact property transactions in Lucknow by setting a minimum value for properties, which influences stamp duty, registration charges, and the overall cost of buying or selling real estate.
Q4. How can I check Circle Rates online in Lucknow?
Ans4. To check Circle Rates online in Lucknow, visit the official website of the Department of Stamps and Registration (IGRS UP), navigate to the Circle Rate list, enter the required details, and view the updated rates for your locality.
Q5. What are the current Circle Rates in premium areas of Lucknow?
Ans5. Circle Rates in premium areas of Lucknow, such as Gomti Nagar, Hazratganj, and Vibhuti Khand, vary but are generally higher than in less developed areas. For instance, the rate in Vibhuti Khand is ₹40,000 per square meter.
Q6. How do Circle Rates affect stamp duty and registration charges in Lucknow?
Ans6. Circle Rates in Lucknow are used to calculate stamp duty and registration charges. Even if the transaction value is lower, these charges are calculated based on the Circle Rate, ensuring the government collects appropriate revenue.
Q7. What factors influence the Circle Rates in Lucknow?
Ans7. Factors influencing Circle Rates in Lucknow include the location of the property, the type of property (residential, commercial, or agricultural), infrastructure development, and market demand and supply in the area.
Q8. How have Circle Rates in Lucknow changed in 2024?
Ans8. In 2024, Circle Rates in Lucknow were revised by 10 to 15% to reflect the current market conditions, ensuring transparency in property transactions and boosting the state’s revenue from stamp duty and registration fees.
Q9. Can Circle Rates in Lucknow be lower than the market value?
Ans9. Yes, Circle Rates in Lucknow can be lower than the market value. However, during property transactions, the stamp duty and registration charges are still calculated based on the Circle Rate, not the market value.
Q10. Why is it important to understand Circle Rates when buying property in Lucknow?
Ans10. Understanding Circle Rates when buying property in Lucknow is important to ensure you are not overpaying, to accurately calculate stamp duty and registration charges, and to comply with legal requirements for property transactions.
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