Gujarat Simplifies Stamp Duty Act, Offers Relief on Rates

The Gujarat government has amended the Stamp Duty Act to lower public rates and simplify administration. Key changes include capping stamp duty for loans and setting fixed duties for certain property agreements. The amendments aim to prevent evasion and ensure effective implementation.

The Gujarat government announced significant amendments to the Stamp Duty Act, aimed at reducing public rates and enhancing administrative simplicity. These changes will become effective from Thursday.

Major amendments cover various financial transactions, including setting a maximum stamp duty of Rs 5,000 for loans up to Rs 1 crore. For loans exceeding Rs 10 crore, the stamp duty cap has risen to Rs 15 lakh. In instances involving multiple banks, a cap of Rs 75,00,000 is introduced.

Additionally, fixed stamp duties are now required for specific agreements, such as Rs 500 for residential leases under one year. The Act also addresses stamp duty evasion with penalties, and stipulates that banks are responsible for unpaid duties on documents they issue.

(With inputs from agencies.)