Jaipur: No stamp duty on property transfer between elderly parents and children
If a son or daughter gifts a property to their elderly parents next year, they will be exempt from paying stamp duty on the transfer.
JAIPUR: Those gifting property to parents will not have to pay any stamp duty levied on the transfer.
As per the budget announcement made by Chief Minister Ashok Gehlot on Friday, there is a concession in stamp duty, meaning that the transfer of such property will not be subject to stamp duty. This rule will take effect starting next year.
As per the budget announcement, if a son or daughter gifts a property to their elderly parents next year, they will be exempt from paying stamp duty on the transfer. Additionally, if the elderly parents transfer the property to their son or daughter, they will not be subject to stamp duty, however, they will need to pay the registration fee.
It means that there will be a saving of Rs 81,250 on the transfer of property worth up to Rs 25 lakh.
If a son or daughter transfers property to his/her elderly parents (60 years or older) with a market value (as per DLC) of Rs 25 lakh rupees, the total cost of the property transfer will be about 1.6 lakh.
Prior to the budget announcement, a stamp duty of Rs 81,250 was levied at a rate of 2.5 percent and a registration fee of Rs 25,000 was charged at a rate of one percent.
However, following the announcement, the stamp duty of Rs 81,250 will no longer be charged at a rate of 2.5 percent, and only Rs 25,000 for registration will need to be paid.
This same benefit will also be available to parents who are 70 years or older and transfer property into the name of their son or daughter.
Currently, stamp duty is imposed at a rate of 5 percent, however, this rate will be reduced to 4 percent starting next year.
This reduction in the stamp duty rate means that those who purchase or transfer property worth Rs 25 lakh in the name of eligible individuals (such as elderly parents) can expect savings of up to 32,500 rupees.
Two years ago, the Gehlot government reduced the stamp duty on the purchase of flats costing up to Rs 50 lakh in the state from 6 percent to 4 percent.
Originally, this reduction was set to expire on March 31 this year, but it has now been extended for an additional year.
As a result, this exemption will continue until March 31, 2024. This means that those who buy a flat worth 50 lakh rupees can receive a benefit of 1.30 lakh rupees in terms of stamp duty.