Uttar Pradesh Government Launches 'Gift Deed Scheme' to Reduce Property Related Family Disputes in Courts

Learn about the 'Gift Deed Scheme' introduced by the Uttar Pradesh government to resolve property-related family disputes, reduce stamp duty, and promote harmony among residents.

Introduction

In a significant move to promote harmony and reduce property-related family disputes, the Chief Minister of Uttar Pradesh, Yogi Adityanath, led the government to launch the 'Gift Deed Scheme,' also known as the 'Special Gift Deed Scheme.' This groundbreaking initiative has garnered attention for its impact on property transactions and stamp duty regulations. From August 5, 2023, to September 12, 2023, more than 43,574 individuals have already benefited from this scheme, collectively saving a staggering Rs 1807.31 crore in stamp duty. In this article, we delve into the details of this scheme, the changes it has brought, and its positive implications for residents of Uttar Pradesh.

Stamp Duty Reduction

Table 1: Stamp Duty Reduction under the 'Gift Deed Scheme'

Relationship - Previous Stamp Duty - New Stamp Duty (Under Scheme) 

Son, Daughter - Prevailing Circle Rate -  Rs 5,000                       

Father, Mother - Prevailing Circle Rate -  Rs 5,000                  

Husband, Wife  - Prevailing Circle Rate - Rs 5,000              

Daughter-in-law  - Prevailing Circle Rate -  Rs 5,000                

Real Brother (or wife in case of death of real brother) - Prevailing Circle Rate - Rs 5,000    

Sister-in-law  - Prevailing Circle Rate - Rs 5,000                  

Uttar Pradesh government launches 'Gift Deed Scheme' to reduce property related family disputes in courts

Before the introduction of the 'Gift Deed Scheme,' individuals in Uttar Pradesh were required to pay stamp duty equivalent to the prevailing circle rate while executing a gift deed. This often resulted in significant financial burdens on those wanting to transfer immovable property to family members. However, with the implementation of the new policy, the maximum stamp duty for various relationships, including son, daughter, father, mother, husband, wife, daughter-in-law, real brother, and sister-in-law, has been capped at a flat rate of Rs 5,000. This monumental reduction in stamp duty has made property transactions within families far more accessible and cost-effective.

Minister's Insight

Minister of State (Independent Charge) for Stamp and Court Fees and Registration, Ravindra Jaiswal, emphasized the importance of these changes in the stamp duty regulations. He highlighted that these amendments were specifically designed to ease the process of donating property to blood relatives in Uttar Pradesh. The reduced stamp duty of Rs 5,000 has removed a significant financial hurdle and encouraged more families to opt for the gift deed route.

Benefits and Impact

The 'Gift Deed Scheme' has not only made property transactions more affordable but has also had a broader impact on society. Here are some key benefits and impacts of the scheme:

1. Financial Relief: Families in Uttar Pradesh can now transfer property to their loved ones without the burden of exorbitant stamp duties, resulting in substantial financial savings.

2. Harmonious Relations: By facilitating smoother property transfers, the scheme contributes to improved family relationships and harmony.

3. Reduced Legal Disputes: With fewer financial barriers, families are less likely to resort to legal battles over property disputes, thereby reducing the burden on the courts.

4. Boosting the Economy: The significant reduction in stamp duty has encouraged more property transactions, thereby boosting the state's economy.

5. Higher Participation: The scheme's success is evident from the high number of beneficiaries in a short period, signifying its popularity and effectiveness.

FAQs

Q1: Who can benefit from the 'Gift Deed Scheme'?

 The scheme is open to individuals who wish to transfer immovable property to certain family members, including sons, daughters, fathers, mothers, husbands, wives, daughters-in-law, real brothers, and sisters-in-law.

Q2: How much stamp duty do I need to pay under the scheme?

 The stamp duty for eligible relationships has been fixed at a flat rate of Rs 5,000, regardless of the property's actual value.

Q3: When was the 'Gift Deed Scheme' launched?

 The scheme was launched on August 5, 2023, by the Uttar Pradesh government.

Q4: Can I avail of this scheme for property outside Uttar Pradesh?

 No, this scheme is applicable only to immovable property transactions within the state of Uttar Pradesh.

Q5: What is the process for availing the benefits of the 'Gift Deed Scheme'?

 To benefit from the scheme, you must follow the standard procedure for executing a gift deed and pay the reduced stamp duty of Rs 5,000.

Q6: Are there any income or property value limits for availing the scheme?

 No, the scheme does not impose any income or property value limits on eligible beneficiaries.

Conclusion

The 'Gift Deed Scheme' introduced by the Uttar Pradesh government marks a significant step toward promoting harmony among families and reducing property-related disputes. With a flat stamp duty of Rs 5,000 for eligible relationships, this scheme has not only made property transactions more affordable but has also contributed to improved familial relations and reduced legal disputes. The positive impact of the scheme is already evident in the high number of beneficiaries, and it is poised to benefit many more residents of Uttar Pradesh in the future.

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