Transfer Memorandum: The Hidden Tax on Resale Flats in Noida

In Noida, a clean resale transaction isn’t just about paying stamp duty and registering with the sub‑registrar. Buyers must also cough up a transfer memorandum (TM) charge to the Noida Authority. Why? Because Noida works on leasehold land. The Authority owns the land; developers lease it. When a flat changes hands, another lease gets issued and that costs you. So, the second‑hand buyer is on the hook for this lease-rent ticket, a mandatory step to make the sale "real" in the Authority’s eyes. And unlike stamp duty, which is straightforward and predictable, this cost can swing wildly depending on how old the flat is, where it is, and who’s transferring it.

Breaking Down the Charges: From Slabs to Sectors

Here’s how the TM charge breaks out:

By Age Slab (as a percentage of original allotment price):

Flats allotted before 1990: 50 per cent

1991–2000: 20 per cent

2001–2011: 10 per cent

2011 onwards: 5 per cent

Allotments post 24 September 2021: 2.5 per cent

Add to that a flat-type surcharge, these are fixed sums:

Sharmik Kunj: Rs 10,000

EWS (Economically Weaker Section): Rs 30,000

LIG (Low-Income Group): Rs 60,000

MIG (Middle-Income Group): Rs 1,00,000

HIG (High-Income Group): Rs 1,50,000

Now, when it comes to plots and group housing, it's different: rate per square metre, plus 2.5 per cent of location premium. A corner plot or one facing a park or wide road could cost up to 20 per cent more. Sector A+ will break your bank; Sector E, the outskirts, will hurt less, but it's still not small money.

Who Pays Less or More for What Reason

Affiliations change your bill:

Immediate relatives (parents, spouse, children): They get 50 per cent off, or even full exemption if stepping in after death, depending on classification. But distant relations (siblings, cousins, grandparents) still owe half the usual fee.

A transaction via General Power of Attorney (GPA)? Prepare for sticker shock: the charge doubles. No waiver, no negotiation.

Let’s Anchor This in Numbers

Let’s say there is a 100 sqm apartment in Sector 30 on resale. Circle rate? Ask around it’s hovering at Rs 1,26,750 per sq m. TM charge at 2.5 per cent = approx. Rs 3,168/sq m. Multiply that’s a neat Rs 3.16 lakh just to transfer the lease. Stamp duty? Registration? Lawyer fees? The flat just nudged your bank account deeper. Buyers ought to budget for that, early.

How the Process Unfolds in Real Time

A simple transaction looks like this:

Sign the sale deed, complete stamp duty, and register at the Sub‑Registrar’s Office.

Gather documentation allotment letter, registration papers, ID, address proofs, sale deed.

Approach the Noida Authority office. Submit the papers, pay the computed TM charge.

Wait (could be days, could be weeks) for a Transfer of Memorandum certificate. That’s your proof that the Authority will now count you as the lessee, not the former owner.

Without that certificate, the flat’s yours on paper but not in the Authority's books. Risky.

Here Are Some Frequently Asked Questions

Q: Aren’t TM charges just stamp duty by another name? No. Stamp duty lines go to the state government. TM charges go to the Noida Authority for executing a fresh lease.

Q: Do I pay TM if I buy a new flat from a builder? Absolutely not. This whole cost is only attached to resale flats.

Q: Does inheritance cut me slack? If you’re an immediate heir, maybe. But cousins, siblings, grandparents still pay, albeit half. Spouses and parents sometimes get full waivers in death cases, but you'd better check the Authority’s current circular.

Q: What about GPA? Prepare for a higher bill, double, with no exceptions.

Why It Matters to You Right Now

As stamp duty rates rise, buyers in Noida who don’t account for TM charges are setting themselves up for unwelcome surprises. Compared to Ghaziabad or Delhi, this is a distinct friction that can trip up budgets, negotiations, even financing. Weekly property sites quote prices but many don’t emphasise this extra Rupee amount layered atop. A buyer in Sector A+ thinking they’re only paying circle rate × 2.5 per cent may wake up to a surprise Rs 3 lakh or more outlay.

Before You Sign Anything Checklist

Confirm the allotment year and related slab.

Identify whether your flat-type adds surcharge.

Locate the circle rate for the sector (published by the UP govt).

Calculate the TM charge early. Add it while computing your home loan or EMI.

Decide who’s paying the buyer? Seller? Split? And remember, if you're family, maybe you can pay less. If it’s GPA, you'll pay more.

Drop by the Noida Authority with complete documents; don’t go blank.