With infrastructural developments like Jewar Airport, the demand for properties in Noida and Greater Noida is on the rise. Hence, all interested buyers need to have a detailed understanding of the stamp duty, registration process, and charges before making a purchase.
Noida’s Department of Stamp Duty and Registration Charges will organize a special camp. It will be on 16th March 2024 to resolve stamp duty-related issues. The camp will assist residents with their queries and provide guidance on stamp duty and registration charges.
Cracking Down on Stamp Duty Evasion
The Noida stamp duty department has taken a new initiative to tackle around 1500 cases of stamp duty evasion. They have issued notices to the relevant parties. Some of which are related to the incorrect usage of properties in Noida and Greater Noida. These properties are categorized as residential, commercial, agricultural, industrial, and institutional. The stamp duty charges are different for each kind of property. Using a commercial property as a residential one is illegal, and vice versa. Those who do so must pay the difference in stamp duty charges. To address these issues, a camp has been arranged for discussion and resolution.
Understand Stamp Duty Registration Charges
Registering your property with the respective municipal authority is an essential step in the home-buying process. It safeguards your assets against any infringement and provides legal protection. To complete this process, you’ll need to pay stamp duty and registration charges to the Registration and Stamp Department of your state. The charges are based on the higher value of the property price registered or the circle rates/ready reckoner rate. In Noida, the stamp duty and registration charges are seven percent and one percent, respectively.
Documents Required for Property Registration in Noida & Greater Noida
When registering a property in Noida or Greater Noida, it’s important to have the following documents:
- Ownership letter: This document is issued by the builder or previous property owner to confirm the transfer of ownership.
- Loan approval letter: If you’re financing the property purchase, you’ll need to provide loan statements and approval letters.
- Address and identity proof: Documents such as Voter ID, driving license, passport, and Aadhaar Card
- NOC: If you’re buying the property through financing, you’ll need a No Objection Certificate (NOC) from the bank or financial institution.
- Due clearance certificate: The builder issues this certificate to confirm that all payments and dues have been cleared.
- Allocation letter or builder buyer agreement: The builder provides this document to the buyer to outline the terms and conditions of the property transaction. This includes the possession date, payment schedule, and price.
Stamp Duty & Registration Charges in Noida 2024
Registration Charges & Stamp Duty in Greater Noida in 2024
Stamp Duty in Noida & Greater Noida for Women
The current stamp duty charge for women homebuyers is 7%. In Noida and Greater Noida, women homebuyers receive a rebate of ₹10,000 on stamp duty charges. However, the registration fee is a percentage for both male and female owners.
Can you avoid Stamp Duty & Registration Charges in Noida?
If you’re planning to purchase property in Noida or Greater Noida, it’s important to be aware of the Indian Stamp Act 1899 and Registration Act 1908. These laws require you to pay a stamp duty and registration fee, which is mandatory throughout the country. Failure to pay these fees will invalidate your property’s registration. Also, you may face penalties of up to 2% per month and up to 200% of the deficit.
Tips for Paying Stamp Duty & Registration in Noida
Here are some crucial points to keep in mind before paying stamp duty in Noida or Greater Noida.
- It is advisable to get the stamp paper in the name of the person who will be carrying out the transaction.
- All stamp duty-applicable assets must be stamped before the registration or on the next working day from the date of execution.
- The stamp paper should not be more than six months old from the date of the transaction
Deciding Factors for Stamp Duty
- Market value of the property: The stamp duty charges in Noida depend on the property’s market value. If the market value of your property is high, you will have to pay higher stamp duty charges. It is important to note that stamp duty is applied to the higher value between the market value and the agreement value of the property.
- Gender of Owner: Women in India are eligible for a rebate in stamp duty if the property is registered in their name.
- Age of Owner: Senior citizens can benefit from subsidized stamp duty charges offered by the State Governments, including Uttar Pradesh.
- Location: The stamp duty charges in Noida vary depending on the property’s location. If the property is in a premium area, the charges will be higher. On the other hand, if the property falls under Panchayat limits or is situated on the city’s outskirts, the charges will be lower.
- Type of Property: Commercial properties attract higher stamp duty charges than residential properties due to their larger space and better features and safety.
- Amenities of the Property: The government charges an additional registration fee for additional amenities provided on the property. In Noida, owners are required to pay an additional fee for more than 20 amenities. Amenities include a swimming pool, gym, club, lifts, community hall, and sports area.
Flat registration and stamp duty should be based on carpet area: Noida Authority
Registration of flats in Noida will now be based on the carpet area, not the super-built-up area. This is a much-needed relief for home buyers in Noida who have been complaining about builders using the super-built-up area to price properties and calculate stamp duty. This practice often increases the cost of purchasing a home for the buyer.
Stamp duty is calculated on the size of the property. Expressing the size of a flat in super built-up area terms will always make it appear larger. If the stamp duty is calculated based on the super built-up area, buyers will have to pay higher stamp duty and registration charges. For a flat price up to ₹50 lakh, the stamp duty could be higher by up to ₹1 lakh to ₹3 lakh.
It is important to remember that the Real Estate Regulation Act (RERA) has made it mandatory for builders to sell flats based on their carpet area and not on built-up or super-built-up areas. This move will help ensure that buyers are not misled about the actual size of their property. Additionally, they are charged fairly for their purchase.
Super Built-up Area Vs Carpet Area
The carpet area is the usable floor area in a flat where one can lay a carpet. It does not include space occupied by external walls, balconies, verandahs, service shafts, and open terraces. The super built-up area, on the other hand, includes common areas that are not exclusively allocated to the buyer.
As per the UP RERA, developers must sell a unit based on its carpet area and not the super area. The agreement between the buyer and developer should also be based on the carpet area. If the flat is registered based on the super area, it is against the law. Any agreement, sale, or registry that does not take into account the carpet area is deemed illegal.
The Noida authority has released a circular on the registration of flats that will benefit customers. According to Rajive Kumar, the chairman of UP RERA, this circular will help to clear any confusion regarding the sale of flats.
Boosting Property Sales in Noida & Greater Noida
Understanding and transparency regarding stamp duty and registration charges play a pivotal role in boosting property sales in Noida and Greater Noida.
Clarity and Confidence:
When potential buyers are well-informed about the stamp duty and registration charges, they approach property transactions with greater clarity and confidence. Knowing the exact costs involved allows them to plan their budgets more effectively, thereby reducing uncertainties that might otherwise deter them from making a purchase.
Legal Compliance
Awareness of the legal obligations regarding stamp duty and registration charges ensures that buyers proceed with transactions in a compliant manner. By attending special camps organized by the Department of Stamp Duty and Registration Charges, buyers can address any queries or concerns they may have. This instills trust in the process and encourages more transactions.
Incentives for Women Buyers
Offering rebates on stamp duty charges for women buyers incentivizes more women to invest in properties. This promotes gender equality in property ownership and expands the pool of potential buyers, thereby stimulating demand in the market.
Alignment with Market Trends
By keeping abreast of market trends and factors influencing stamp duty charges, such as property location, type, and amenities, buyers can make informed decisions that align with their preferences and financial capabilities. This alignment fosters a healthier market dynamic where properties are priced competitively and attractively.
Fair Pricing Practices
Reforms focusing on carpet areas for flat registration ensure fair pricing practices in the real estate sector. Assuring buyers that they pay for the actual usable space boosts property sales.
Government Support and Regulations
Government initiatives aimed at curbing stamp duty evasion and promoting transparency. By cracking down on incorrect property usage and enforcing RERA regulations, create a conducive environment for property sales. Buyers feel reassured by the authorities’ commitment to maintaining fairness and legality in real estate transactions.
In conclusion,
As the real estate landscape evolves with infrastructural developments, property buyers must stay informed about their obligations and entitlements to ensure a smooth transaction process.
Individuals can avoid penalties and safeguard their investments by attending special camps organized by the Department of Stamp Duty and Registration Charges and adhering to legal requirements. Additionally, recent reforms, such as the focus on carpet areas for flat registration, underscore the authorities’ commitment to transparency and fairness in real estate transactions.