Homebuyers alert: Stamp duty now required at flat booking in Greater Noida; check details

Homebuyers in Greater Noida will now need to pay stamp duty at the time of booking flats, a move aimed at streamlining the real estate transaction process. Homebuyers in Greater Noida will be required to pay stamp duty for a property when booking a flat in new housing projects, as the Greater Noida Authority has mandated builders to register flats at the time of booking rather than at project completion. 

The new rule stipulates that in accordance with Section 13 of the Real Estate (Regulation and Development) Act (RERA), 2016, builders must enter into a registered bipartite 'agreement to sell' with buyers once 10% of the flat's cost is paid, along with the required stamp duty based on the property's value.

Additionally, a separate 'possession deed' must be signed on a Rs 100 stamp paper during the flat's handover. Generally, stamp duty on a property amounts to approximately 6% to 7% of the total flat cost. In the past, homebuyers paid stamp duty upon receiving the property from builders, but now they are obligated to pay at the time of booking.

Numerous group housing projects in Greater Noida have been stalled due to outstanding dues, some for over a decade. As a result, homebuyers have faced challenges in obtaining possession of their properties despite making partial or full payments.

This policy shift is intended to ensure compliance with regulations and reduce delays in property transactions. By requiring stamp duty at booking, authorities expect to enhance transparency and efficiency in the real estate market, impacting both developers and buyers. This significant adjustment in policy could alter the dynamics of Greater Noida's real estate sector, influencing buyer behaviour and financial planning. 

In November 2024, the Noida Authority introduced a rule requiring registration of sale agreements at the time of purchasing a flat. The YEIDA also has a similar rule in effect. On September 9, 2024, the Uttar Pradesh government instructed authorities to enforce RERA guidelines that prohibit developers from accepting more than 10% of the unit cost without a registered sale agreement.

Stamp duty

When buying a home in Noida, one of the biggest add-on costs you'll face is stamp duty—a mandatory tax you must pay to legally register your property. This fee legally validates your ownership and helps fund various state-level administrative functions.

Under Section III of the Indian Stamp Act, 1899, stamp duty is applicable on all real estate transactions. The exact amount varies across Indian states, and failing to pay it can attract penalties.

Stamp duty rates in Noida (Uttar Pradesh) – 2023

In Noida, stamp duty and registration charges are determined based on the gender of the buyer and type of ownership:

Ownership Type    Stamp Duty    Registration Fee
Male owner    7%    1%
Female owner    6%    1%
Joint (Male + Female)    6.5%    1%
Joint (Male + Male)    7%    1%
Joint (Female + Female)    6%    1%

Note for women buyers: The Uttar Pradesh government offers a 1% rebate on stamp duty charges for female owners, but only for property values up to ₹10 lakh.

Stamp duty calculation

Let’s break down the total cost for both male and female buyers purchasing a home worth Rs 75 lakh in Noida:

For a male buyer:
Stamp Duty (7%) = Rs 5,25,000

Registration Fee (1%) = Rs 75,000

Total Payable = Rs 75,00,000 + Rs 5,25,000 + Rs 75,000 = Rs 81,00,000

For a female buyer:
Stamp Duty (7%) = Rs 5,25,000

Less Rebate = Rs 10,000

Net Stamp Duty = Rs 5,15,000

Registration Fee (1%) = Rs 75,000

Total Payable = Rs 75,00,000 + Rs 5,15,000 + Rs 75,000 = Rs 80,90,000