Gujarat Revamps Stamp Duty Act: Simplified Rates and Flexibility Unveiled

The Gujarat Government, led by Chief Minister Bhupendra Patel, has introduced amendments to the Gujarat Stamp Act to streamline the stamp duty process, lowering rates, and enhancing administrative efficiency. Changes effective from April 10 include rate caps on loans and provisions for ancestral property documentation, aiming to reduce financial burdens and legal disputes.

Under the leadership of Chief Minister Bhupendra Patel, the Gujarat Government's Revenue Department has unveiled significant amendments to the Gujarat Stamp Act. A government release states these changes aim to ensure seamless implementation of the Stamp Duty Act by reducing public rates and boosting administrative flexibility and simplicity.

Effective from Thursday, April 10, the revised provisions bring about notable updates. In matters concerning ancestral property, heirs of a deceased daughter can now address documentation deficiencies by paying a nominal stamp duty of Rs 200. Additionally, loans up to Rs 1 crore will incur a capped stamp duty of Rs 5,000, while the maximum duty for mortgage documents related to loans over Rs 10 crore rises from Rs 8 lakh to Rs 15 lakh.

The amendments further introduce a cap of Rs 75 lakh on stamp duty for loans obtained from multiple banks, excluding surcharge. A fixed Rs 5,000 stamp duty is set for additional collateral cases. To counter evasion, voluntary shortfall payments will incur a 2% monthly recovery, and system-identified evasion will face a 3% penalty per month, with both capped at multiple times the unpaid amount. These updates are intended to ease financial load on industrialists and housing borrowers, reducing disputes and legal challenges. (ANI)

(With inputs from agencies.)