The Gujarat government has announced a significant change in stamp duty for property transfers. This new regulation aims to help small and middle-class families. Under the new rules, only 20% of the original stamp duty will be charged for property transfers carried out through allotment letters or share certificates. This means that there is an 80% waiver on the usual stamp duty. Chief Minister Bhupendra Patel approved this decision to reduce the financial burden on citizens. This change is under Section 9(a) of the Gujarat Stamp Act, 1958.
The state’s revenue department explained that this decision is designed to ease the financial strain during property transactions. Previously, property owners had to pay a higher amount. Now, only 20% of the standard duty will be due, along with any applicable penalties. However, the total amount paid—including penalties—will not exceed the original stamp duty amount that would have been applicable under the previous rules.
The official notification detailing this change will be issued soon. It will clarify that the exemption is only for transfers made through allotment letters and share certificates from eligible entities, such as cooperative housing societies and non-trading corporations.
This move is expected to significantly benefit homeowners in cooperative housing societies. It aims to make property transitions smoother and more affordable. The state government hopes that this will encourage more people to own homes and invest in property.
In Gujarat, stamp duty rates vary depending on the type of document and location of the property. Typically, the stamp duty is around 4.9% for male buyers. Female buyers enjoy a concession, paying only 3.9%. This is part of the government’s effort to promote women’s property ownership.
For example, if a property’s market value is ₹60,00,000, the stamp duty would be ₹2,94,000 (4.9% of the property value). Registration charges are 1% of the property value, which would be ₹60,000. Hence, the total charges would be ₹3,54,000.
The new provision simplifies the calculations for property transactions. It is essential for buyers to understand the implications of these changes. Knowing how stamp duty works can save them money and ensure a smoother transaction process.
Gujarat’s government has shown commitment to easing the financial challenges faced by lower and middle-class families. By lowering the stamp duty, they aim to make property ownership more accessible. This initiative is timely, given the rising costs of living and property prices in the state.
In conclusion, the reduction in stamp duty is a welcome change for many families in Gujarat. It reflects the government’s awareness of the financial pressures faced by citizens. As the official notification is awaited, many hope this will lead to more straightforward and less costly property transactions in the future.
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