Gujarat Unveils Major Reforms to Stamp Duty Act

The Gujarat Revenue Department has revised the Stamp Act to simplify processes and lower public rates. Key changes include reduced duties for ancestral property documents and capped rates for loans. These updates aim to alleviate financial strains on industrialists and homeowners while minimizing legal disputes.

The Gujarat Revenue Department has initiated significant amendments to the Stamp Act, designed to enhance efficiency and lower public rates, effective state-wide from Thursday. These amendments are poised to streamline administrative procedures, introducing greater flexibility.

The new measures allow heirs of a deceased daughter to rectify document rights issues in ancestral property transactions by paying a nominal Rs 200 stamp duty. Moreover, the stamp duty for loans up to Rs 1 crore is capped at Rs 5,000, according to a release from the Gujarat Chief Minister's Office.

For larger financial transactions, the maximum stamp duty has been raised from Rs 8 lakh to Rs 15 lakh for mortgages concerning loans exceeding Rs 10 crore. A special provision caps the stamp duty at Rs 75 lakh when loans involve multiple banks, excluding any surcharge. The amendments also include modifications in duty for additional collateral and penalties for evasion, aiming to ease financial burdens and reduce legal disputes for industrialists and homeowners.

(With inputs from agencies.)