GANDHINAGAR: In a significant relief for numerous property owners in Gujarat, the state government announced on Monday a stamp duty waiver of up to 80% for property transfers executed through allotment letters and share certificates, bypassing the need for a sale deed. This issue has long impacted older housing societies.
The decision, released by the revenue department under Section 9A of the Gujarat Stamp Act, addresses requests from citizens and elected officials.
The new ruling specifically benefits residents of societies, associations, and non-trading corporations that transferred properties without sale deeds — a common practice from 1982 to 2001. Many residences, particularly in older areas of Ahmedabad and other urban centers, were initially handed over to residents solely via share certificates or allotment letters, without formal registration.
Dipak Patel, a property law specialist, noted that the controversy began in April after a government notification indicated that residents in these circumstances would face fourfold increases in standard stamp duty. “This led to significant dissatisfaction, particularly with residents of societies constructed between September 1, 1982, and 2001, since those built after 2001 already have sale deeds. The government has collected substantial sums since April 10,” he commented.
In a move to alleviate the financial burden, the updated decision limits the payable stamp duty to a maximum of 20% of the original amount, alongside any penalties.
Patel explained that this relaxation applies only to housing transfers executed through share certificates or allotment letters, not to those formalized with registered sale deeds. “This offers long-overdue relief to many residents who faced unexpectedly high duties on homes they’ve occupied for decades,” Patel stated. “While it isn’t a complete rollback, it makes compliance much more manageable financially.”
An official statement indicated that by reducing the previous stamp duty, the state government has ensured that the total amount, including penalties, will not exceed the prior stamp duty alone for property matters.
