Taking advantage of Mukhyamantri Daanpatra (Donation) Scheme, over 28,000 families in Uttar Pradesh have got properties transferred in the past one month, as the scheme has reduced stamp duty for registration of properties to as low as Rs 5,000.
“The government has earned a revenue of Rs 100 crore since the launch of the scheme in June this year,” a government spokesman said here on Saturday.
According to the Revenue Department, there has been an increase of 329 per cent in ancestral properties’ transfer cases since the launch of the scheme on June 15.
The official further said that till now, due to the high cost of registration, few people across the state used to get their ancestral properties transferred. In fact, for many generations, people did not get their ancestral properties transferred due to financial constraints.”
“But, now since registration is available at such a low cost, people prefer to settle property issues properly rather than rely on power of attorney. On the other hand, the move is also bringing in revenue for the government,” he said.
The Uttar Pradesh government approved a proposal of the Stamps and Registration Department for slashing stamp duty to Rs 5,000 with an additional processing fee of Rs 1,000 for registration of properties, on June 15.
Earlier, people were charged an exorbitant 10 per cent of the circle rate of the property being transferred as stamp duty. So, for a property worth Rs 50 lakh, a person was required to shell out Rs 5 lakh as stamp duty. The exorbitant rate of stamp duty prohibited people from getting ancestral properties divided and transferred.
However, now, a person can get the same property transferred by paying Rs 6,000 only. Therefore, people who shelved their property transfer plans for generations are applying for it. Besides, any married daughter can willingly transfer property in favour of siblings by paying less stamp duty.
The move is also expected to bring down cases of property disputes within families significantly.
Stamp duty is levied on all types of registries under the circle rate. Therefore, people in the past got properties registered only when necessary, so that they could avoid paying the hefty stamp duty.
