Uttar Pradesh has introduced a significant change in the stamp duty for property gifting, fixing it at a flat rate of Rs 5,000. Previously, the stamp duty was calculated at 5% of the property's value in city areas and 7% in other parts of the state. As per the announcement by principal secretary Leena Johri on August 3, a gift deed involving the transfer of immovable property to immediate family members – including children, parents, spouse, siblings, and others – will now incur a maximum stamp duty of Rs 5,000. However, this new rule applies exclusively to residential or agricultural properties being gifted between individuals, excluding transactions involving firms, companies, trusts, or institutions. Additionally, if a person receives a property as a gift, they will not be subject to this regulation if they gift the property to another individual within five years from the date of property registration. The notification, invoking the authority granted by clause [a] of subsection [1] of section 9 of the Indian Stamp Act, 1899, stipulates the stamp duty rate until further orders from the governor. B S Verma, assistant inspector general of stamp and registry, explained that a similar scheme had been introduced for six months in June 2022, which concluded in December of the same year. However, this newly announced notification will remain in effect until further notice. Verma highlighted the significant relief this brings to individuals wishing to transfer or gift properties to their family members. Previously, the stamp duty for transferring a property worth Rs 1 crore would amount to Rs 5 lakh, but now it has been reduced to a mere Rs 5,000. Verma also mentioned a recent high-level meeting in Lucknow aimed at expediting the registration of numerous flats in Noida and Greater Noida. During this meeting, authorities discussed offering subsidies to developers to clear pending dues and facilitate the registration process. However, the stamp and registry department is yet to receive an official order regarding this matter, according to Verma. See also: UP extends Property Transfer Scheme to relatives at nominal costMumbai property registrations dip in July 2023