Property Transfer | Stamp Duty : Uttar Pradesh govt waives stamp duty if property transferred within family
A 7% stamp duty is being levied on such transactions currently.
The registry will now be done for Rs 5,000 with an additional processing fee of Rs 1,000.
The proposal states that if property is being transferred to parents, spouse, children, daughter in-law, son in-law, siblings and grandchildren, then a stamp registration duty of only Rs 6,000 has to be paid against 7% of the cost of the property.
“Earlier, as the owner of a property, if I wanted to transfer it to my child or another close relative, I could only either transfer it or sell it. In case of transfer before my death, even as there was no exchange of money and the same people continued to reside in the house, a high rate of stamp duty was being charged which prohibited people from dividing property or settling ownership before one’s death. This new rule resolves that issue,” Minister for stamps and registration Ravindra Jaiswal told TOI.
Because of the high cost of registration, families often use power of attorney to transfer properties, which was leading to a huge financial loss for the government, a senior government official told TOI.
He explained, for transferring a property worth Rs 50 lakh, stamp registration would cost about Rs 4.20 lakh. The power of attorney, on the other hand, costs only about Rs 100. To avoid the cost of registry, families were resorting to cheaper power of attorney.
Now, when registration is available at such a low cost, people would prefer to settle property issues properly rather than rely on power of attorney. This move would actually bring in revenue for the government, he added.