The government of Uttar Pradesh (UP), which is now led by Yogi Adityanath, has made it possible to permanently transfer or donate property to loved ones via the use of a document known as a gift deed. In the previous calendar year, the gift deed was put into practice in a pilot programme for a period of six months, beginning in March and ending in September. As a consequence of the positive findings of this trial, the cabinet of the state of Uttar Pradesh (UP Cabinet) has given its approval to the proposal of the Stamp and Registry Department to carry out the full implementation. After this choice has been made, a gift deed, partition letter, and family arrangement or memorandum of agreement may be completed in favor of the relevant members for the distribution of family property among family members in UP for only Rs 6,000. All of these documents are required for the distribution of family property. The split of property, including between families, was subject to a stamp fee of seven percent up until recently. Stamp duty on this document will cost 5,000 rupees, and there will be a processing charge of 1,000 rupees.
Initially, a 7 percent premium was demanded.
Stamp and registration fees of up to seven percent of the entire worth of the property were required to be paid in such circumstances as of right now, where the register of the sale deed was concerned. At this time, the administration has come to the conclusion that the exemption should only be granted for a period of six months. Reports indicate that for the very first time, anybody, even widowed daughter-in-laws, would be allowed to gift property for the low price of just Rs 5,000. One use of the gift deed is permitted every five years.
The majority of wills in the past were challenged in court because of family disagreements, despite the fact that earlier dads used to write wills in an effort to prevent family arguments. Because of the high stamp duty, the father was unable to transfer ownership of the property to his son while he was still living. Because of this, the son was unable to begin a new career or business venture. In the process of dividing property between brothers, a seven percent stamp fee was also had to be paid.
CM Yogi’s stamp was used.
During the meeting of the UP cabinet that took place on Tuesday and was presided over by Chief Minister Yogi Adityanath, the request made by the Stamp and Registration Department to offer a significant exemption from stamp duty in things pertaining to blood was accepted. The provision of exemption is already in place in a number of states, such as Maharashtra, Karnataka, and Madhya Pradesh, but in UP, exemption has not been granted since December of the previous year.
In accordance with the terms of the Indian Stamp Act, the State Government is given the authority to issue exemptions of this kind. Utilising the same legal prerogative, the government had opted to provide exemption for a period of just six months for the very first time the previous year. As a result of the state government’s decision to exclude family members from paying the substantial stamp duty that is associated with the property registration, it is anticipated that the amount of litigation involving family property would decrease.
