Lucknow, the capital of Uttar Pradesh is one of the smart cities that has been selected for the Government's various housing programs and schemes in the last few years. The reason why buyers are making Lucknow a hub for buying property is for a number of factors. The main factors include the infrastructure of the city, affordable prices, better cost of living, and better amenities along with satisfactory properties.
A significant increase in more and more people searching for properties in Lucknow, and the prediction for the real estate sector to grow multi-folds in 2022-2023, makes us feel it is our responsibility to ensure that you are familiar will all kinds of charges, registrations, and other information that there is to know for the easy and seamless purchase of a property.
One such piece of information that we feel is important and worth sharing with both buyers and sellers is that of Stamp Duty and Registration Charges. If you want the purchased property in your name, you cannot make it happen without paying these registration charges. In other words, they are mandatory expenses and should be considered when you are making a list of all the areas where you would need to spend additional money.
Whether you are a first-time buyer or have been purchasing properties for a while now, you need to make it a point to not just be informed but also understand what these charges mean. Think about it - you are the one paying these charges, would you not want to know why you are supposed to be paying this extra money from your pocket?
When you purchase a property, you sign a handful of legal documents that validate you as the new owner of the said property. This is where stamp duty comes into the picture. During the transfer of properties or assets, stamp duty is the tax that the government imposes on these legal documents.
Along with the stamp duty, buyers are also required to pay the registration charges. Once you have signed on the legal documents and taken over the ownership, you would need to make sure these documents become a part of the government records. For this purpose, the buyer will pay registration charges as a fee to ensure that the contract or the deed is a part of the government's records.
Do you now understand why this is a mandatory expense? Simply because you cannot get away without the signing of legal documents, and once you do sign them, you would naturally need them to appear in the records of the government!
Stamp duty and registration charges vary from state to state. There are various factors that these charges depend on - especially based on the gender of the owner. The stamp duty and registration charges for both men and women are different in Lucknow too. The sole reason for this is to encourage and increase ownership among women in India. This initiative was taken a few years ago and has been adopted by a majority of the cities all across India.
Specifically for Lucknow, if the property owner is a woman - she will be required to pay a stamp duty tax fee of 6%. However, if the owner is a man - he would be entitled to pay a stamp fee of 7%. Note that this obligation for women to pay a lower fee is only applicable for properties that are priced at Rs. 10 Lakh or less. When the price of the property is more than Rs.10 Lakh, women too have to pay a stamp duty fee of 7%. Moreover, people who buy a property in Lucknow also have to pay 1% of the deal value in the form of a registration fee.
Now that you have background knowledge and all the basic information that you need to understand this concept, here is a detailed account of the stamp duty rates and the registration charges you need to pay specific to the nature of ownership that you decide for your property.
Gender | Stamp Duty Rates | Registration Charges |
Male | 7% | 1% |
Female | 6% | 1% |
Joint (Male and Female) | 6.5% | 1% |
Joint (Male and Male) | 7% | 1% |
Joint (Female and Female) | 6% | 1% |
Are you still confused? Don't panic, let us try and explain it to you with an example too.
For instance, there is a property for sale that is priced at Rs 50 lakhs in total.
In the example given above, notice that a woman is saving a total of Rs. 50,000 as compared to males. This is the exact aim of reducing the fee that women are obligated to pay - the goal is to empower women and encourage them to take charge even when it comes to the real estate industry.
Remember that there is absolutely no way that you can get away with paying these additional charges as a fee to gain ownership over your chosen property. Even if there arises a situation in which you fail to pay the required fee, there is a mandatory penalty that is charged and is necessary to pay within a given frame of time. To avoid this, the best solution is to consider this charge in your budget list beforehand!
Now that you have understood how stamp duty fees and registration charges work in Lucknow, you have already taken a step forward in buying your dream property in this city! We think you are ready and prepared to take the plunge!
Also Read: 6 Advantages of having property in Lucknow
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