AHMEDABAD: The state finance minister’s announcement that registrations of lease deeds, mortgage deeds and their reconveyance will soon move online, is expected to bring convenience to lakhs of people, as it will do away with the need to visit sub-registrar offices.
Dipak Patel, president, Credai-Gujarat, said, “Home loan takers need to register mortgage deeds with banks, and so do people taking mortgage loans. Having these documents registered at sub-registrar offices is time-consuming, and all parties, including witnesses, need to visit at a scheduled time. However, the e-registration facility will bring a lot of ease, and people will save significant time.”
Also, to bring in gender equality in property inheritance laws, the govt has introduced a major relief for legal heirs. Currently, if heirs of a deceased daughter relinquish their rights to an inherited property, they must pay a 4.90% stamp duty. Under the new proposal, this will be reduced to a nominal Rs 200, bringing them on par with heirs of sons. This move will provide tax relief of Rs 20 crore to citizens.
Further easing financial transactions, the maximum stamp duty on mortgage agreements for loans up to Rs 1 crore has been slashed from the current Rs 25,000, levied at the rate of 0.25%, to Rs 5,000. This move is expected to benefit home buyers and small-scale industrialists while making borrowing more affordable. Citizens will get a tax relief of around Rs 5 crore with this decision.
Stamp duty calculations for lease agreements will also be simplified. At present, lease agreements of less than one year attract 1% stamp duty on the average annual rent amount. Under the revised structure, a fixed charge of Rs 500 will apply to residential leases, while commercial leases will be charged Rs 1,000. Additionally, the govt plans to streamline stamp duty rates for leases of other durations, reducing complexities for both tenants and landlords.
