The Uttar Pradesh government has taken a decision that has brought great relief to the common people. Now the maximum limit of stamp duty and registration fee on property partition in the state has been fixed at Rs 5,000.
Earlier the system was that tax had to be paid according to the total value of the property on partition. Till now the rule was – 4% stamp duty and 1% registration fee. Due to this, families often avoided getting the registry done and as a result many cases reached the court.
Now under the new rule, no matter how big is the value of your property, the maximum fee charged for partition will be Rs 5,000 only. The biggest benefit of this will be for the common man because now registration will become easier and cheaper.
Let’s understand this with an example – If the value of a family’s property is Rs 20 lakh, then earlier they had to pay 4% (Rs 80,000) stamp duty and 1% (Rs 20,000) registration fee, i.e. a total of Rs 1 lakh. But now they will have to pay only Rs 5,000. On the other hand, if the value of the property is Rs 1 crore, then earlier it used to cost around Rs 5,00,000, whereas now it will cost only Rs 5,000.
This change will help families avoid huge expenses and disputes during property division. The records of land and houses will also remain updated, which will ensure transparency and convenience in buying and selling in future.
The government may face a slight loss in revenue initially, but in the future more people will register and thus the income will increase. This rule is already implemented in other states like Tamil Nadu, Karnataka, Rajasthan and Madhya Pradesh and positive results have been seen there.
what is stamp duty
Stamp duty is a tax that the government levies to recognize the validity of a property or agreement. When you register the purchase, sale, transfer or partition of land, house or any property, stamp duty has to be paid on that document. It is collected as a certain percentage of the property price and it increases the revenue of the state government as well as makes the transaction legally secure.
