Homebuyers, builders welcome move to allow online payment of registration fee

› The new system of online payment will save time spent on going to the registry department, to buy stamps, and arranging cash from banks. PRASHANT TIWARI, president, CREDAI’S west UP wing

NOIDA: The Uttar Pradesh stamp and registration department on Friday said that property buyers can now pay the property registration fee online instead of manually in cash. The state government’s move comes more than a month after it increased the property registration fee.

The Uttar Pradesh government had on February 5, 2020, hiked property registration fee from ₹20,000 (maximum) to 1% of the property cost. Earlier, the property registry fee was 2% on property that costs less than ₹10 lakh, and fixed ₹20,000 for a property valuing more than ₹10 lakh. The new rates were made effective from February 14, 2020.

“As per the new rate, those who buy property costing more than ₹10 lakh have to pay more fees, unlike earlier when the fee was fixed at ₹20,000. Paying the higher amount of fees in cash was not convenient for buyers. But now, with online payment method, they can do the same comfortably,” said SK Tripathi, assistant inspector general of UP stamp and registration department, Noida.

As per the rules, a property buyer has to pay stamp duty worth 5% of total property cost, along with a registration fee separately, in order to transfer the property title from seller to his or her name. “The department had already given an opportunity to pay 5% stamp fee via electronic stamp instead of cash. Now the registration fee can also be paid online. This means we are ready to carry out cashless registry. However, the option of cash will continue for property buyers from rural areas who find it difficult in executing electronic transactions. But slowly, cash transactions will be stopped at our office,” said Tripathi.

Property buyers and builders said they are happy as they can pay the property registration fee online unlike earlier when they had to pay the fee only in cash.

“So, paying ₹ 5 lakh as registration fee in cash, for example, was not easy. Now, one can pay the same via online transactions and show the slip. The online transaction will help, as arranging so much cash is not easy,” said Sachin Sharma, a buyer.

Confederation of real estate developers association of India (CREDAI), a builders’ body, welcomed the move. “Paying stamp fee and property registration fee in cash was not a better option in view of the new move. The new system of online payment will save time spent on going to registry department to buy stamps and arranging cash from banks,” said Prashant Tiwari, president of CREDAI’S Western UP wing.