New Stamp Act Amendments in Gujarat: A Win for Property Owners ?

One of the most notable reforms is the drastic reduction in stamp duty for a deed of relinquishment executed by the heirs of a deceased daughter. Previously charged at 4.90%, the new rate is a flat ₹200, easing the financial burden on families handling inheritance matters.

Another major win comes in the form of an 80% reduction in stamp duty on mortgage deeds. Loans of up to ₹1 crore will now attract a maximum duty of ₹5,000, down from ₹25,000, which was earlier calculated at 0.25% of the loan amount. This revision is expected to particularly benefit middle-class families seeking housing loans and small entrepreneurs looking to establish their businesses.

Presenting the Stamp Duty Amendment Bill in the Gujarat Legislative Assembly, Cabinet Minister Balvantsinh Rajput emphasized that these reforms are designed to support genuine taxpayers while cracking down on tax evasion. The bill received unanimous approval and is set to become law once it secures the Governor’s assent.

The amendments also target private financial institutions and banks, some of which have been disbursing loans without clearly specifying who is responsible for paying the stamp duty. Many such documents were not being presented for verification, leading to revenue losses. To counter this, the new law mandates that banks ensure stamp duty is paid on mortgage deeds before processing loans.

To further streamline compliance, the deadline for stamp duty payment post-registration has been extended from 30 days to 60 days. Additionally, penalties for non-payment have been tightened:

• If an applicant willingly pays the duty shortfall, they will face a penalty of up to four times the missing amount (capped at 2% of the unpaid duty)
• If the duty is paid only after receiving a notice from the authorities, the penalty increases to six times the shortfall (capped at 3% of the unpaid amount)

In a bid to modernize and simplify the property registration process, the amendment introduces e-registration for key documents like relinquishment and lease agreements. This eliminates the need for citizens to visit sub-registrar offices, making the entire process more efficient and hassle-free.

Moreover, the amendment clarifies that a copy of the original document can be considered valid for stamp duty collection, reducing the scope for unnecessary court cases and legal disputes.

With these reforms, Gujarat is taking bold steps toward a more transparent, efficient, and taxpayer-friendly system, ensuring that legal loopholes are closed while genuine buyers and small business owners reap the benefits.