February 10, 2024: In Uttar Pradesh, property transfers among blood relatives will attract a standard stamp duty of Rs 5,000 only after the UP Legislative Assembly passed a Bill in this regard.
The Indian Stamp (Uttar Pradesh Amendment) Bill-2024— which has a provision that the transfer of a property between blood relatives can be done by paying a stamp duty of Rs 5,000 — was passed with the Uttar Pradesh Assembly on February 9.
An additional processing Rs 1,000 have to be paid as the processing fee along with the Rs 5,000 stamp duty.
For the uninitiated, the Registration Act of 1905 makes property registration mandatory in case the value of the transaction exceeds Rs 100. For property registration, the buyer must pay stamp duty and registration fee to the state. For gift deeds, this duty is paid by the doner.
Earlier, property owners in UP had to shell out 7% stamp duty on property transfers with their family, along with 1% registration charge. This means that for a property worth a crore, an owner would have to pay Rs 8 lakh as stamp duty and registration charges, even though he is transferring his asset to a family member without receiving any money in exchange.
See also: Stamp duty in UP in 2024
Who are considered blood relatives for this purpose?
Property transfers between the following family members are considered blood relatives for the purpose of levying the new stamp duty on gift deed among blood relatives:
- Son
- Daughter
- Father
- Mother
- Husband
- Wife
- Daughter-in-law
- Real brother
- Real borther’s wife in case of the death of the real brother
- Real sister
- Son-in-law
- Son of son
- Daughter of son
- Son of daughter
- Daughter of daughter
Also read: Stamp duty on gift deed in India
Curb on stamp duty evasion through power of attorney
The new law also has a provision to curb the use of power of attorney for sale and purchase of properties in the state.
According to UP finance minister Suresh Khanna, the state exchequer was suffering loss due to the use of power of attorney as an instrument of sale and purchase of land and property. As against 7% stamp duty on sale deed, the state charges only Rs 100 on registration of general power of attorney and Rs 10-100 on special power of attorney.
“The business of selling land worth crores of rupees by making ‘power of attorney’ at a nominal fee was going on in full swing, but as per the new provision people outside blood relations will have to pay a stamp duty of seven per cent of the circle rate on the power of attorney,” the minister said.
See also: Is property sale through power of attorney legal?
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
