Gandhinagar (Gujarat) [India], April 8 (ANI): The Gujarat Revenue Department has made several amendments and additions to the provisions of the Gujarat Stamp act aimed at ensuring the effective implementation of the Stamp Duty act by lowering public rates and enhancing administrative simplicity and flexibility.
The amended provisions of the Stamp Duty Act will come into effect across the state on Thursday.
After the new amendments and additions introduced by the State Revenue Department under the Stamp Duty Act, the heirs of a deceased daughter can correct right-related deficiencies in documents by paying a stamp duty of Rs 200 in the cases of ancestral property.
As per a release from the Gujarat CMO, the new amendments suggest, “For loans up to Rs 1 crore, the stamp duty is capped at a maximum of Rs 5,000.”
Under the new amendments for the maximum stamp duty has been increased from Rs 8,00,000 to Rs 15,00,000 for mortgage or hypothecation documents about loans exceeding Rs 10 crore.
“In cases where the loan is obtained from multiple banks, a separate provision has been made to cap the stamp duty at Rs 75,00,000, excluding a surcharge,” the release reads.
“A fixed stamp duty of Rs 5,000 will now be required in cases of additional collateral. If an applicant voluntarily pays the shortfall in stamp duty, it will be recovered at 2 per cent per month from the date of the document, subject to a maximum of four times the unpaid amount,” it added.
“In cases where stamp duty evasion is identified by the system, a penalty will be levied at 3 per cent per month, capped at six times the unpaid duty. For lease agreements of less than one year, where 1 per cent of the average annual rent was earlier paid on Rs 300 stamp paper without proper duty, the State Government has now fixed the duty at Rs 500 for residential leases and Rs 1,000 for commercial leases. In mortgage cases where banks or financial institutions do not issue documents and stamp duty remains unpaid, the responsibility for paying the duty will lie with the respective bank or institution,” as per the release.
The Act also provides for the recovery of stamp duty on copies of documents in cases where the original is unavailable and insufficient duty was paid.
In addition to the amendments made by the State Government to the Gujarat Stamp Act of 1958, several other modifications have also been made. These primarily relate to the basic stamp duty, while the additional duty (surcharge) will remain applicable as per the existing legal provisions. These changes are aimed at reducing the financial burden on industrialists and housing loan holders.
The amendments also seek to resolve interpretational challenges concerning the reduction of rights in ancestral property and to minimise legal disputes and court cases arising from the existing provisions of the Act. (ANI)
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