The Revenue Department of Gujarat has made sweeping reforms in the Stamp Duty Act to streamline processes and lessen the financial burden on citizens. These changes are set to take effect from April 10, 2025, and they are all about improving efficiency in administration, reducing costs, and achieving smoother compliance.
If property transactions, loans, or legal documents are in any way involved with you, then you must understand these changes to avoid penalties and ensure smooth transactions.
Major Changes in Gujarat’s Stamp Duty Act
1. Reduced Stamp Duty for Ancestral Property Transfers
One of the most prominent changes is the reduced stamp duty on ancestral property transfers. Now, legal heirs of a deceased daughter can finish all documentation by paying just ₹200 in stamp duty. Notification to this effect says that this is aimed at relieving the financial burden on families on account of property transfers upon inheritance.
2. Capped Stamp Duty on Loans
Stamp duty has now been set at a maximum of ₹5,000 for loans up to ₹1 crore. This brings relief for the borrowers. In addition, a fixed duty of ₹5,000 will be imposed in case of additional securities, thus removing ambiguities from calculations.
3. Penalties for Underpayment
To ensure compliance, the government has introduced stricter measures for underpaid stamp duty:
- 2% interest per month from the date of the document will be charged on the deficit amount.
- Penalty of four times the deficient duty may be imposed in some cases.
Thus, changes focus mainly on accurate duty payments lest one incurs hefty fines as penalties.
4. Fixed Duty for Lease Agreements
Formerly, the stamp duty applicable to rental agreements was charged at 1% of the average annual rent for leases less than 1 year. The government has now prescribed fixed rates: ₹500 for residential properties, ₹100 for commercial properties. This makes things a lot simpler, says one, and makes it cheaper and more transparent-in terms of rental agreements.