In a recent cabinet meeting led by Chief Minister Yogi Adityanath, the Uttar Pradesh government has approved a significant exemption from stamp duty for family-related matters concerning the distribution of ancestral property among family members. This means that now, when executing a gift deed, partition letter, or family arrangement/memorandum of agreement, the stamp duty to be paid is only Rs 5,000. This exemption had expired last year after six months but has now been reintroduced for an indefinite period.
Earlier, when families distributed ancestral property among themselves through gift deeds, partition letters, or family agreements, they had to pay a substantial stamp duty of up to 7% of the property’s value. This expense often proved to be a significant hurdle for families seeking to divide their property fairly.
However, in a welcome move, the government has now reduced the stamp duty to just Rs 5,000 for such property transfers. This means families will now have to pay only a nominal fee of Rs 5,000 instead of the heavy percentage of the property’s worth.
Moreover, the good news doesn’t stop there! The government has expanded the eligibility criteria for this reduced stamp duty benefit. Previously, only a few family members were eligible, but now a wider range of relatives can avail themselves of this exemption. Family members like father, mother, husband, wife, son, daughter, daughter-in-law, son-in-law, real brother, real sister, and even grandchildren (sons and daughters of sons and daughters) are now included. Additionally, in the unfortunate event of the death of a real brother, his wife will also be covered under this scheme.
This inclusive approach ensures that more families will benefit from the reduced stamp duty, making it easier for them to transfer property fairly among their members without facing financial constraints.
The decision to extend this exemption indefinitely is expected to bring down legal disputes and litigation related to family property matters. It also opens up opportunities for families to use their property shares as collateral to secure loans from banks, thereby improving their financial prospects.
Last year, when the government provided this exemption for a limited period of six months, around 2.58 lakh families in Uttar Pradesh took advantage of the scheme, resulting in approximately Rs 1100 crore in revenue for the state.
The stamp and registration minister, Ravindra Jaiswal, confirmed that the official notification regarding the reduced stamp duty will be issued soon, bringing much-needed relief to families across the state.
This decision not only eases property transfers for families but also boosts the real estate sector and creates more employment opportunities as more people opt for legal property transactions. With this step, the Uttar Pradesh government aims to foster harmonious property divisions within families and strengthen the overall financial well-being of its citizens.