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What Are the Current Circle Rates in Lucknow?

  • Loans Against Property
  • 29 May 2023
  • Manya Ghosh
  •    2,850
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Circle rate is a crucial factor in property valuation as it determines stamp duty and registration charges. These rates vary across different areas, influenced mainly by the size and location of the property. If you are considering buying a property in Lucknow, knowing the city's current circle rates is important.  In this article, we will discuss the circle rate in Lucknow, the calculation process, and other relevant information.

Circle Rate in Lucknow

Circle rates in Lucknow, set by the state government of Uttar Pradesh, determine stamp duty and registration charges for property buyers. Also known as Ready Reckoner Rate (RRR), these rates vary based on the area and zone. Buyers multiply the circle rate by the applicable percentage to calculate charges. Awareness of circle rates is crucial for estimating costs and ensuring compliance. To calculate the circle rate in Lucknow, you can use the following formula:

Circle Rate = Base Rate + (Factor * Area Adjustment) + (Factor * Zone Adjustment)

Where:

  • Base Rate: The base rate set by the state government of Uttar Pradesh.
  • Factor: A multiplier determined based on various factors such as infrastructure, amenities, and demand in the area.
  • Area Adjustment: An adjustment factor based on the size or area of the property.
  • Zone Adjustment: An adjustment factor based on Lucknow's specific zone or locality.

Note - The specific values for the base rate, factor, and adjustments may vary and should be obtained from the relevant authorities or official sources.

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Current Circle Rate in Lucknow 2023

Here is the circle rates list for different areas in Lucknow in 2023:
AreaCircle Rate (per sq. m.)
Subhash Marg Medical College to Charbagh TirahaRs.31,000
Telibagh Nagar to PGI Nagar Nigam limitRs.31,000
Guru Govind Singh Marg Hussainganj Chauraha to Naka ChaurahaRs.31,000
Charbagh Station to Awadh HospitalRs.55,000
Kaiserbagh Chauraha to CharbaghRs.55,000
Singar Nagar Chauraha to Hydel ChaurahaRs.55,000
Mahatma Gandhi MargRs.76,000
Hazratganj Chauraha to Kalidas Marg ChaurahaRs.76,000
Vibhuti KhandRs.40,000
Faziabad RoadRs.36,000
Edelco Green, Vipul KhandRs.39,500
Vijay Khand, Vipin Khand, Vishal KhandRs.33,500
Gautam Palli, Gulistan Colony, Transport NagarRs.28,000
Rana Pratap MargRs.29,000
Gomti Nagar Phase 3, Gomti Nagar Extension, and moreRs.30,500
AP Sen RoadRs.26,000
Park Road, Mahatma Gandhi Marg, and moreRs.27,500
Gautam Budh Marg, CharbaghRs.25,000
Ashiyana, Jiyamau, Srijan Vihar ColonyRs.22,000
Saket Palli, Pirpur Square, Bandriya Bagh, and moreRs.22,500
Darbari Lal SharmaRs.21,500
Raibareli Road Yojna, Aishbagh, Eldeco, and moreRs.19,000
Havelock Road, La Martiniere Colony, and moreRs.20,000
Guru Nanak Market, Vrindaban YojanRs.21,000
MarutipuramRs.19,500
Omaxe City, AlambaghRs.16,000
Chinhat village to SatrikhRs.14,000
Sultanpur Road and Shaheed PathRs.25,000
Hardoi RoadRs.20,000
Chinhat village limit to Lucknow city limitRs.30,000
Sitapur RoadRs.39,000
Sushant City, Sector F to IRs.15,000
 

How to Calculate Property Value in Lucknow Using the Circle Rate for Stamp Duty Payment?

To calculate the property value in Lucknow for stamp duty payment, you need to multiply the per square metre circle rate by the built-up area of the house. For example, if the property covers an area of 800 square metres and the circle rate is Rs 6,500 per square metre, the property's value would be Rs 52 Lakh. To determine the stamp duty, multiply the property value by the applicable percentage (8% for a man, 7% for a woman). Additionally, there is a registration charge of Rs 60,000. This method allows you to accurately calculate the property value in Lucknow and calculate the stamp duty based on the circle rate.

Stamp Duty for Agriculture Land

Stamp duty for agricultural land involves submitting the paid stamp duty as a legal document and completing the registration process. In Uttar Pradesh (UP), buyers must pay a 7% stamp duty on the transaction cost.  It's important to note that properties cannot be registered below the circle rates set by the government. Even if the property is registered below the circle rate, the buyer must still pay the applicable amount calculated based on the circle rate.

Registry Charges in Lucknow

In Lucknow, registration charges are an essential component of property transactions. This charge is levied to register the property in the government records and transfer the title to the buyer's name. The registration charge is calculated as a percentage of the property value. The table below details the registration charges for different ownership scenarios in Lucknow.
OwnerRegistration Charge (%)Registration Charge (in Rupees)
Man1%Rs 10,000
Woman1%Rs 10,000
Man + Woman1%Rs 10,000
Man + Man1%Rs 10,000
Woman + Woman1%Rs 10,000
 

What Are Factors on Which Circle Rates Depend?

The circle rate in Lucknow varies based on the following factors:

Market value: Typically higher than circle rates.

Usage: Commercial properties have higher rates than residential.

Amenities/Facilities: Developed facilities affect rates.

Property Location Posh neighborhoods have higher rates.

Form of Construction: Private properties have higher rates than government ones.

Areas are divided into groups (A to H) based on these factors, with category A having the highest values and opulent facilities, while category H represents areas with lower values.


What Is the Impact of Circle Rates on Taxation in Up or Lucknow?

Circle rates play a crucial role in property taxation in Lucknow, as they determine the property's minimum value for taxation purposes. Here how circle rates can lead to increased tax benefits for property buyers and sellers.

  •  Income Tax Act:

Section 56(2)(x) states if a property is purchased below the approved price, the difference between the circle rate and the actual purchase price is considered 'other income' and subject to capital gains tax.

  • Compliance:

It is advisable to carefully review the circle rates for various areas in Lucknow to ensure proper tax compliance when involved in property transactions.

  • Government Decision:

In the Union Budget 2020, the government decided not to impose additional tax liability when the difference between the circle rate and market value is below 10%.

Conclusion

As the circle rates vary based on factors, such as property size, location, amenities, and usage. One can calculate the property value for stamp duty payment by multiplying the circle rate with the property area. Additionally, knowing the registration charges is essential for completing property transactions. Circle rates also impact taxation, and it's crucial to comply with the regulations to avoid additional tax liabilities. Overall, staying informed about circle rates in Lucknow ensures accurate property valuation and a smooth mortgage loan process.

FAQ

  • What is the rate of UP Land Registry?
 The rate of UP Land Registry is determined based on the value of the property being registered. It varies depending on the specific property and its transaction cost
  • What is the commercial registry rate in Lucknow?
 The commercial registry rate in Lucknow is determined based on the property type and its intended commercial use. It is generally higher than the registry rate for residential properties.
  • What is circle rate limit?
 The circle rate limit refers to the minimum value set by the government for property registration. It is the threshold below which a property cannot be registered. The circle rate limit varies based on the location, type of property, and other factors determined by the government.

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