Stamp Duty & Property Registration Charges in UP

Introduction

One of the best investments an individual can do is to purchase property. While doing this investment, one must keep in mind that stamp duty and registration charges have to be paid for the property purchased. These are a kind of taxes imposed by the State Government upon an individual.

Registration of immovable property is mandatory under Section 17 of the Indian Registration Act, 1908 if the amount exceeds Rs. 100/-. The stamp duty and registration charges differ from state to state.

Read this blog to know about the stamp duty and property registration charges in Uttar Pradesh.

What are the Stamp duty and property registration charges in UP?

Previously, if the property was within 10 lakh rupees, then the registration charges were 2% and where it exceeded 10 lakhs, the registration charges was 20,000/-. However, there was an amendment brought about in February 2020 wherein the stamp duty was made to 6-7% of the property’s value and the registration charges were 1% of the property’s value. But if the buyer is a female, she could get rebate in the stamp duty and registration charges in UP.

Gender	Stamp duty	Registration charges
Male	7 percent	1 percent
Female	6 percent	1 percent  (a rebate of Rs 10,000 is given on the final amount payable)
Joint (Male + Female)	6.5 percent	1 percent  (a rebate of Rs 10,000 is given on the final amount payable)
Joint (Male + Male)	7 percent	1 percent
Joint (Female + Female)	6 percent	1 percent (a rebate of Rs 10,000 given on the final amount payable)

There are various factors that influence the stamp duty upon the property. It depends upon the fact whether the property is owned by male or a female or there is joint ownership. However, the registration charges in UP are fixed at 1%. It remains constant.

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What are the documents required for registration of property in UP?

The documents required for the registration of property in UP are:

a) Sale Deed

b) Tax receipts of the last three months

c) Power of attorney, if any

d) A copy of all previous registered agreements (in case of resale of property)

e) Bank statements

f) Encumbrance Certificate

g) Sale Agreement

h) Electricity bill

i)  Sanctioned building plan

j)  Occupancy/Possession certificate from the builder

For the registration of the property, certain registration charges and stamp duty is to be paid along with submission of the aforementioned documents.

What is the stamp duty to be paid on different documents in UP?

Documents to be Registered	Stamp duty in ₹
Gift deed	₹60-₹125
Will	₹200
Exchange deed	3%
Lease deed	₹200
Agreement	₹10
Adoption deed	₹100
Divorce	₹50
Bond	₹200
Affidavit	₹10
Notary	₹10
Special power of attorney	₹100
General power of attorney	₹10-₹100

Apart from aforementioned charges, women are also given rebate upon the same as per the policy of the State Government of UP.

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How to calculate stamp duty and registration charges in UP?

Let’s understand how to calculate stamp duty and registration charges in UP through an example. Suppose, a person buys a plot in UP that has 1000 sq. ft. carpet area and the circle rate is 10,000 per sq. ft. Here, the value of property as per circle rate will be 1,00,00,000 (1000 * 10,000).

It is also to be noted that the stamp duty of the property would be 7% of the value of property that is 7% of 1,00,00,000 which will come to 7 lakhs. Accordingly, it has to be calculated.

The buyer of the property can figure out the amount to be paid as stamp duty and registration charges as per the calculation method mentioned above. To make it easier, stamp duty calculator software can be used.

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How to pay stamp duty and registration charges online in UP?

One can use the official Government portal to pay the stamp duty and registration charges online in UP. Stepwise procedure is mentioned below:

• Firstly, the individual has to visit the website.
• Then, he has to select the option of applying for registration and then again select a new application option.
• Once the registration is done, he has to login with the credentials.
• After login, he has to mention all the relevant details with regard to the property and upload the required document.
• Then, it must be saved in order to move to the payment method.
• Once payment is made, then receipt is generated for its use in future.

However, it is to be noted that even offline registration can be done before the office of Sub-Registrar with the witness present therein.

What are the factors that affect stamp duty in UP?

The following factors affect the stamp duty in UP:

i) The age and the gender of the buyer of the property.

ii) If it is in joint ownership or not.

iii) The location of the property.

iv) The use of property is residential or commercial.

All these factors affect the stamp duty to be paid by an individual.

What are legal and illegal stamp duties?

The court fees paid in Court for the purpose of filing a case is commonly referred to as legal stamp duties whereas the stamp duty paid upon the value of property are illegal stamp duties as it is a one time payment. 

How to request stamp duty withdrawal in UP?

The stamp duty that is paid can be withdrawn through the IGRSUP portal. On the portal, the user has to login and click on the “Stamp Vaapsi Hetu Aavedan” option and the screen will disappear. 

What happens if the stamp duty and registration charges are not paid in UP?

It is necessary to pay stamp duty and registration charges in UP under the Indian Stamp Act, 1899 and the Indian Registration Act, 1908 if the value of property is more than Rs. 100. If the charges are not paid, then the property will not be said to be registered and the owner cannot legally own the property. The owner may be charged with a penalty of 2% every month as well as double the deficiency amount. 

Is there any tax rebate available on stamp duty and registration charges?

Any person who pays stamp duty and registration charges in UP can claim tax rebate under Section 80C of the Income Tax Act, 1961 but the same can be claimed only in the case of joint ownership and that to up to 1,50,000. This can be claimed only by the purchase of new properties.

What is the recent update on stamp and registration charges in UP?

The UP Government has come up with a significant step of reducing stamp duty if the transfer of property is between the blood relatives. The change was brought on 4th August, 2023 with an aid to reduce the financial burden. The reduced stamp duty of only Rs. 5000 will apply on various deeds. This has led to the expiration of the previous step taken in December 2022 wherein the blood relatives were exempted from paying stamp duty which would have otherwise reached 7%. The step was taken to reduce the family feud. 

Conclusion

The stamp duty and registration charges are different for different states and can depend on a lot of factors so to gain full clarity over the situation, one must get legal advice before taking any step.

Frequently Asked Questions on Stamp Duty & Property Registration Charges in UP

1. Is there a concession on stamp duty in Uttar Pradesh for couples?

Ans1. There is no concession on stamp duty in UP for couples. They have to pay 6.5% of the value of property.

2. Is there a tax deduction for joint owners in Uttar Pradesh?

Ans2. For joint owners, there is a tax deduction upto a maximum limit of Rs. 1,50,000.

3. Which document proves the property construction year when paying stamp duty in Uttar Pradesh?

Ans3. Municipal tax bills must be shown in order to prove the property construction year.

4. What is the stamp duty and registration charges in UP?

Ans4. The stamp duty is 7% of the value of property and the registration charge is 1% of the value of property but there are also certain other circumstances that have to be seen.

5. How to calculate the registration charges in UP?

Ans5. The registration charges in UP is 1% of the value of the property. However, it also depends upon the age, gender and the type of property one is purchasing.

6. Can I avoid stamp duty and registration charges in UP?

Ans6. Paying of stamp duty and registration is made obligatory by law and it cannot be avoided. Strict legal action may be taken if the same is not paid.

7. Is my stamp duty refundable?

Ans7. The stamp duty is paid upon a transaction and it is not possible to get a refund of it.

8. Does stamp duty also include GST?

Ans8. The stamp duty does not include GST. It is to be levied separately.