UP law to allow Rs 5,000 stamp duty on property transfers among relatives


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.

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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

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Curb on stamp duty evasion through power of attorney

The new legislation also includes a measure aimed at restricting the use of power of attorney in property transactions within the state.

As per UP Finance Minister Suresh Khanna, the state's revenue was being impacted due to the prevalent use of power of attorney as a means for buying and selling land and property. In contrast to the 7% stamp duty levied on sale deeds, the state currently imposes a mere Rs 100 fee for registering a general power of attorney, and Rs 10-100 for a special power of attorney.

Minister Khanna stated, "The practice of selling high-value land through the creation of 'power of attorney' at a nominal charge was widespread. However, under the new provision, individuals outside of familial relations will be required to pay a stamp duty equivalent to seven percent of the circle rate on the power of attorney."

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