If you want to purchase a property in Uttar Pradesh, the two main components you will come across are stamp duty and registration fees. It is vital for every property buyer in Uttar Pradesh to pay both of these in order to register their names in the government database.
In this article, you will learn all about stamp duty, how to withdraw it from the IGRSUP portal, and registration charges for property buying in Uttar Pradesh.
What are Stamp Duty and Registration Fees?
Any transaction you make involving real estate entails a certain tax known as stamp duty. This tax is charged as per the regulation of the Indian Postal Law of 1909 under Section 3. Both stamp duty and registration fees work as revenues to the government.
In Uttar Pradesh, when you pay the stamp charges during the land transactions, it gets recorded in the official documents. This makes the documents legally legitimate and can be used in a court as evidence. Conversely, any document not properly stamped is not accepted as legitimate evidence in the court.
The main objective of stamp duty and the registration fees is to transfer the property name legally from the seller to the buyer.
Charge for Stamp Duty and Registration Fees in Uttar Pradesh
The stamp duty and registration fee charges vary from state to state. As per Section 17 of the Uttar Pradesh Registration Act 1908, if there is a transfer of any immovable property with a value over Rs. 100, such as real estate properties, it must be recorded under the state’s sub-registrar office.
Generally, stamp duty accounts for about 5 to 7% of the total market value of the real estate, whereas registration fee is about 1% of the property’s value.
In Uttar Pradesh, you are required to pay 7% of the market value of the property as stamp duty. It is a relatively higher rate compared to other states. However, you must remember to register under the circle rate. Otherwise, you will require paying a lump sum as per the district collector’s rate.
What are Legal and Illegal Stamp Duties?
In Uttar Pradesh, there are two types of stamp duty fees: legal and illegal duties. The legal stamp duties are also known as court fees, as it is mainly required by appellants in the court. The stamp duties that are paid one time are commonly known as non-legal fees. It is generally on the property agreement.
Stamp Duty Fees in Uttar Pradesh for Females
The state of Uttar Pradesh offers a discounted stamp duty for women during property registrations. Therefore, they need to pay 6% as opposed to 7% as stamp duty plus registration fees.
However, this is only applicable for properties under Rs. 10 Lakhs, after which both men and women pay the same rate.
Stamp Duty Laws and Property Value in Uttar Pradesh
Before making a purchase, you need to register sale achievement with the sub-office registrar as per Section 17 of the Uttar Pradesh Registration Act, 1908, in case the cost of the immovable property is above Rs.100. This is essential to gain legal validity as a purchaser.
Things you need to keep in mind are:
- Stamp duty fees vary from state to state.
- Buyers must pay registration fees equal to 1% of the contract’s value.
- Stamp duty is calculated as a percentage of the transaction value.
Steps to Request Withdrawal of Stamp Duty in Uttar Pradesh through IGRSUP?
Through the IGRSUP site, you can withdraw the stamp duty that has been paid. You can make the registration online at igrsup.gov.in.
The IGRSUP portal stamp duty withdrawal application process is explained in detail here:
Step 1: login to the official IGRSUP website.
Step 2: Click on the “Stamp Vaapsi Hetu Aavedan” option
Step 3: Select it to start a new application, or use your user ID to login and view/modify an existing one.
Steps to Pay Uttar Pradesh Property Stamp Duty Online
Here are the steps to pay stamp duty online in UP:
Step 1: Visit the website, Enter into the official website of Uttar Pradesh Stamp and Registration Department.
Step 2: On the left, click on the “Apply” button under the “property registration”.
Step 3: Choose the New Registration option to create an application number.
Step 4: You will now be redirected to a form. There, enter your details such as city, area, unit property size, etc.
Step 5: After filling up the form, the system will calculate the stamp duty for the property you have selected. There you need to pay the amount displayed.
Step 6: It will send an automatically created receipt number, which you should keep for the future during asset registration.
Importance of Stamp Duty and Registration Fees in Uttar Pradesh
Paying stamp duty and registration fees in UP are important because:
- The Indian Stamp Act of 1899 and the Registration Act of 1908 has made it necessary in order to purchase any property over the value of Rs.100.
- If you fail to pay these charges and fees, there will no longer be any legal authorization of your ownership of the property and the UP house registry charges will cease to be valid.
- You may be required to pay a penalty fine which accounts for 2% each month and almost 200% of the amount you failed to pay.
Latest Updates about Registration Fees and Stamp Duty in Uttar Pradesh
In FY 2021, stamp duty and registration fees generated a 22% increase in revenue for Uttar Pradesh, based on research by Motilal Oswal Financial Services Limited (MOFSL). On the other hand, in case someone transfers property to a family member, the state of Uttar Pradesh does not levy any stamp duty, which earlier was 7%. Now, however, it will cost you Rs. 5000, plus Rs. 1000 for processing.
Finally, stamp duty in UP is an obligatory charge that you must pay immediately once the property is sold. It is calculated from the total value of the property as a percentage. It is an important aspect in order to legally be recognised as the owner of the property without dispute.
This article illustrates different angles and importance of these charges and how you pay them and withdraw applications through the IGRSUP portal online.