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In an important and insightful development, the Uttar Pradesh government, headed by Chief Minister Yogi Adityanath, has made sweeping rule changes regarding ownership succession within families. The government has re-imposed exemption on stamp duty for property transfers concerning the family which involves gift deeds, partition letters, and family arrangements.

The volume of the stamp duty has been lowered to a minimum of ₹5,000. This comes as a huge relief for families across the state and aids in minimizing hassles involved with legal procedures of transferring property.

1. Key Highlights of the Initiative

  • Reduction in Stamp Duty: Individuals and families who used to transfer property to themselves were liable to pay stamp duties of not less than 7% of the cost of the property that is being transferred. This has been decreased to a nominal fee of 5,000 rupees.
  • Expanded Categories of Beneficiaries: Originally only a few family members qualified for the exemption:
  • Parents, children, and grandchildren.
  • Spouses, siblings, and their spouses in cases of a deceased brother.
  • Sons-in-law and daughters-in-law.
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This broadens the scope of families benefiting from the exemption.

2. Long Term Benefits for Families

This initiative can be beneficial in a number of ways:

  • Cost Efficient Slicing of Said Property: It has made it feasible for families to now divide their ancestral property without incurring too much cost in the process.
  • Reduction in Legal Conflicts/Disputes: It is also anticipated that following this initiative there would be a near increase in legal conflicts and litigations regarding division of family properties.
  • Greater Economic Prospects: The family unit’s economic strength is now reinforced as property shares can also be utilized as collateral against loans.
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3. Effects on Real Estate and Employment

This decision is aimed at enhancing the following through legalization of property dealings and increasing the levels of transparency in the dealings:

  • Increase Growth of Real Estate Sector: The enhancement of the easier transfer of properties leads to more transactions being made, which in turn aids the real estate sector’s growth in Uttar Pradesh.
  • Create Job Opportunities: More property dealing activities will create more job opportunities in the legal, financial, or real estate activities.

4. Positive Outcomes in Earlier Implementation

Roughly 2.58 lakh families made use of the scheme last year when the exemption was made for a period of six months, resulting in state revenues of ₹1,100 crore. This impact verifies the compelling need of and potential impact that such schemes have been able to illustrate.

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5. Future Scope

The state’s Stamp and Registration Minister Ravindra Jaiswal says a notification granting this exemption will be rolled out soon. This continuous extension gives families enough time to strategize and take advantage of the program.

Conclusion

The Uttar Pradesh government’s efforts to eliminate the red tape to transfer family properties should contribute to an improvement in family cohesion, better management of the family estate, and consequently will contribute to financial security.

This effort promotes families while also reinforcing the state’s economy through relaxing the legal and financial barriers.

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