The Uttar Pradesh government has waived stamp duty on property transfers between immediate family members. The government has taken an important step towards encouraging family property gifting by imposing a maximum stamp duty of Rs 5,000. Previously, the stamp duty was 5% of the cost of properties in the city and 7% of the cost of properties in other parts of the state.
According to the notification issued by principal secretary Leena Johri, ”such gift deed by which the donor transfers immovable property in favour of family members such as son, daughter, father, mother, husband, wife, daughter-in-law, real brother, son-in-law, real sister will be Rs 5,000.
The notification only applies to residential or agricultural properties transferred from one person to another and does not apply to a donor or receiver of a firm, company, trust, or institution. Furthermore, if a person receives a property as a gift, the notification does not apply if they gift the property to someone else until 5 years have passed since the property registration date.
The notification further stated that the governor has fixed the stamp duty until further instructions, in accordance with clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899. This change is designed to ease the process of transferring properties and establishing ownership during the owner’s lifetime, thereby reducing disagreements among family members over will. The government hopes to enhance ease of property transactions among blood relations and decrease financial constraints on families while ensuring a seamless transfer of ownership by reviving and expanding this inexpensive property transfer scheme.
