New Delhi: The Yogi Adityanath led state government of Uttar Pradesh has taken a big decision that will benefit lakhs of people in Uttar Pradesh. In a cabinet decision, the UP government announced to waive off stamp duty on property transfers within family members. Such transfers of property among family members include property transfer to spouse, mother, father, children, siblings, daughter-in-law, son-in-law and grandchildren.
As the UP government has cleared the proposal, now no money will be charged on stamp registration duty in cases where a particular property is to be transferred within the members of the family. Previously, a 7 percent stamp duty on the cost of the property was levied if the property was transfered. However, after the UP government the new proposal, people will have to only pay Rs 5,000 as registration fee or transfer fee and Rs 1,000 as processing fee.
It has been widely reported that due to high stamp duty, many people would not register the property when they transferred it to their family members. They would only pass it on with a power of Attorney to save money on stamp registration duty charges. Experts believe that on one hand while this will enable people to legally transfer property within their family at a minimum cost, on the other hand it will also add more revenues to the state government's coffer.
Last week, a report by Motilal Oswal Financial Services said, states' revenues from stamp duty and registration fees jumped 34 percent in FY22 to Rs 17.11 lakh crore, with Maharashtra leading all the states.
Maharashtra witnessed a 40 percent growth in the revenue collection from the two sources at Rs 3.55 lakh crore, and was followed by Uttar Pradesh at Rs 2 lakh crore (up 22 percent) and Tamil Nadu at Rs 1.43 lakh crore (up 23 percent), the domestic brokerage firm said.
