Stamp Duty Relief Boosts Property Settlement in Uttar Pradesh

In a significant move aimed at alleviating financial burdens on families, the Uttar Pradesh Cabinet has sanctioned a new cap on stamp duty and registration fees for property division deeds. The cap is now set at Rs 5,000, a stark contrast to the earlier system that imposed a 4 per cent stamp duty and 1 per cent registration fee on the property's value.

This policy shift is anticipated to alleviate the congestion of unresolved property disputes in civil and revenue courts by removing the high costs that previously deterred families from registering their partition deeds. The change is projected to ease litigation, facilitate smoother settlements, and keep land and revenue records updated, ultimately making properties more accessible in the market.

Although the state government foresees an initial revenue dip amounting to Rs 5.58 crore in stamp duty and Rs 80.67 lakh in registration fees, it is optimistic about recovering the loss through increased registration volumes. Similar initiatives in states like Tamil Nadu, Karnataka, Rajasthan, and Madhya Pradesh have yielded positive results, reinforcing the belief that the new regulation will bolster legal certainty and family harmony in Uttar Pradesh.

(With inputs from agencies.)