The UP government has fixed the stamp duty on property transfer within families at a flat rate of ₹5,000. Women will receive a concession of up to 7% on property up to ₹1 crore. The new rules will simplify the registration process, reduce disputes, and provide significant relief to families in rural and small towns.
Property Transfer: The Yogi government in Uttar Pradesh has brought about a major reform in property transfer for families. Now, only a stamp duty of ₹5,000 will be levied for dividing or transferring property within the family, while women will get a concession of up to 7% on property valued up to ₹1 crore. This will simplify the registration process, reduce property disputes, and increase legal clarity in rural and small towns.
Easier Transfer of Family Property
Under this new system, a fixed fee of just ₹5,000 will be charged to transfer property or share it with any family member. This will make the property transfer process simpler and faster. Previously, stamp duty had to be paid based on the property's value, which often amounted to a significant sum.
SK Jaggi, a member of CREDAI and COO of Eldeco, described this move as a great relief. He stated that it will increase transparency and reduce property disputes. This change will provide both legal security and convenience to people in rural and small towns.
Major Change for Women
The government has also made special provisions for women. Earlier, concessions on stamp duty were only available for properties up to ₹10 lakh. Now, this limit has been increased to ₹1 crore. Women will receive a concession of up to 7%, which can result in direct savings of approximately ₹1 lakh on property purchases. This is considered a significant step towards women's empowerment and has been implemented under 'Mission Shakti'.
Registration Process to Become Easier
The new rules have also made the registration process considerably easier. If there is mutual consent within the family, property division can be registered in just a few minutes. Previously, the same process would take several days and often remained pending.
However, in cases of normal property buying and selling, Uttar Pradesh is still considered one of the expensive states in the country. Men have to pay approximately 7% stamp duty and women 6%. Additionally, a 1% registration fee also needs to be paid. In cities like Noida and Lucknow, government circle rates are higher than market values, leading to a heavy tax burden on buyers.
Benefits for Rural and Small Towns
This change has brought significant relief, especially to rural and small towns. Previously, people hesitated to transfer property in these areas due to legal complications and high fees. Now, with a fixed fee of ₹5,000, more people will be motivated to transfer property.
SK Jaggi of CREDAI said that this step will increase transparency among families in rural and semi-urban areas and reduce property disputes. Furthermore, it will enhance women's share in property and offer them opportunities for financial independence.
