What Is the Stamp Duty in Lucknow?

Stamp duty is a government tax levied on the transfer of property ownership, payable by the buyer during property registration.

The stamp duty in Lucknow varies based on the gender of the property owner:

• For a male owner, the stamp duty is 7% of the property value.
• For a female owner, the stamp duty is 6% of the property value. However, this rebate is applicable only up to Rs 10 lakh out of the total value of the transaction.
• If the property is registered in the name of a husband and wife, the stamp duty is 6.5% of the deal value.

In addition to the stamp duty, you must pay a property registration charge levied at a 1% rate on the property value (rebate of 10,000 on the final amount for females).

How is Stamp Duty Assessed in Lucknow?

In Lucknow, stamp duty on property is assessed based on the circle rate, the minimum value set by the government. Thus, the stamp duty rate remains unchanged whether a property is bought at a circle rate or below. Additionally, keep in mind the gender regulations during calculation.

For instance, if the circle rate is Rs 5,000 per sq ft for an 800 sq ft property, the circle rate-based value would be Rs 40 lakh, resulting in a stamp duty (@7%) of Rs 2.80 lakh. Additionally, there's a registration charge of Rs 40,000 regardless of the property's value.

Factors Affecting Stamp Duty Rates in Lucknow

Age of the Property

The age of the property is a pivotal factor influencing stamp duty rates. In Lucknow, older properties typically attract lower stamp duty than newer ones. For instance, properties older than five years may enjoy a reduced stamp duty rate of around 5% compared to newer constructions.

Age of Owner

The age of the property owner is another aspect considered in stamp duty calculation. Senior citizens often benefit from concessions on stamp duty in Lucknow. The UP government offers rebates to senior citizens, reducing their stamp duty burden. For instance, individuals above a certain age threshold, usually 60 years, may be eligible for a discount of up to 1% on stamp duty.

Gender of Owner

Gender plays a role in stamp duty rates, with variations between male and female property owners. In Lucknow, women homebuyers typically enjoy lower stamp duty rates than their male counterparts. For instance, stamp duty for women may be set at 6%, while for men, it could be 7%.

Objective

The purpose for which the property is being acquired can impact stamp duty rates. In Lucknow, different rates apply for residential, commercial, or agricultural properties. Stamp duty rates for residential properties could be lower than commercial properties, reflecting the government's policies to promote residential development.

Location

The geographical location of the property significantly influences stamp duty rates in Lucknow. Properties situated within municipal areas like Mahona, Malihabad, Mohanlalganj and Nagram

tend to attract higher stamp duty than suburban or rural areas like Khagona and Kaliya Khera.

Amenities

The amenities and infrastructure surrounding the property can also impact stamp duty rates. Properties in areas with better amenities, such as schools, hospitals, and transportation facilities, may command higher stamp duty rates. In Lucknow, properties in well-developed neighbourhoods with superior amenities may incur higher stamp duty rates than those in less developed areas.

Documents Needed for Payment of Stamp Duty in Lucknow

• Sale Deed
• Tax receipts for the last three months
• Power of attorney (if applicable)
• Copy of all previous registered agreements (for resale property)
• Latest bank statements
• Encumbrance Certificate
• Sale agreement
• Electricity bill
• Sanctioned building plan
• Occupancy/Possession certificate from the builder

How to Pay Stamp Duty in Lucknow?

To pay stamp duty in Lucknow, follow these steps:

• Go to the UP Stamp and Registration Department website.
• Click on 'Apply' to start.
• Create a new application number and password.
• Log in using your application number and password.
• Fill in the required details in the form.
• Pay the stamp duty online through the treasury website.
• Save the payment receipt.
• Present the receipt at the sub-registrar's office as scheduled.

4 Ways to Save on Stamp Duty Charges

1: Registration Under A Woman's Name

One practical approach to reducing stamp duty charges in Lucknow is registering the property under a woman's name. In Uttar Pradesh, including Lucknow, there is a concession on stamp duty rates for properties registered in the name of women. This concession is 1% of the set stamp duty value.

2: Projects With Fewer Amenities

Properties in Lucknow with fewer amenities often attract lower stamp duty charges. Buyers can save on stamp duty expenses by opting for a project with fewer amenities. Additionally, such properties may have lower base prices, reducing the overall cost.

3: Less Developed Areas

Stamp duty charges in Lucknow vary depending on the locality and development status. Investing in properties in less developed areas or upcoming neighbourhoods can lead to lower stamp duty rates. These areas often have lower property prices compared to prime locations, resulting in reduced stamp duty expenses.

4: Invest in a Project that Offers Stamp Duty Exemptions

Certain government schemes and initiatives offer stamp duty exemptions to promote specific types of investments or developments. Investing in projects endorsed by such schemes can lead to significant savings on stamp duty charges. Additionally, under Section 80C of the Income Tax Act, you can claim up to Rs. 1.50 lakh against stamp duty and registration charge payment on property purchases.

Penalties for Not Paying Stamp Duty in Lucknow

Penalties for not paying stamp duty in Lucknow, Uttar Pradesh:

• Invalidation of house registry charges
• Fines of up to 2% per month on the deficit amount
• Maximum penalty of 200% of the deficit amount
• Jeopardising legal ownership of the property
• Risk of legal disputes and complications

Conclusion

How is stamp duty assessed in Lucknow?

In Lucknow, stamp duty is calculated based on the government's circle rate and the applicant's gender. The stamp duty is liable at 7% for males and a 1% concession for females.

Factors affecting stamp duty rates in Lucknow

• Age of the Property
• Age of Owner
• Gender of Owner
• Objective
• Location
• Amenities

Documents needed for payment of stamp duty in Lucknow

• Sale Deed
• Tax receipts for the last three months
• Power of attorney (if applicable)
• Copy of all previous registered agreements (for resale property)
• Latest bank statements
• Encumbrance Certificate
• Sale agreement
• Electricity bill
• Sanctioned building plan
• Occupancy/Possession certificate from the builder

How to pay stamp duty in Lucknow?

You can go to the UP Stamp and Registration Department website.

• Click on 'Apply' to start.
• Create a new application number and password.
• Log in using your application number and password.
• Fill in the required details in the form.
• The stamp duty and registration charges will be calculated automatically.
• Pay the stamp duty online through the treasury website.
• Save the payment receipt.
• Present the receipt at the sub-registrar's office as scheduled.

4 ways to save on stamp duty charges

• Registration Under A Woman's Name
• Projects With Fewer Amenities
• Less Developed Areas
• Invest in a Project that Offers Stamp Duty Exemptions

Penalties for not paying stamp duty in Lucknow

Failure to comply can result in fines up to 2% per month, maxing out at 200% of the deficit. Paying stamp duty is essential to avoid legal issues and ensure property legality.