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The Uttar Pradesh Cabinet has approved a flat fee of INR 5,000 for both stamp duty and registration charges on property partition deeds, replacing the earlier 4% stamp duty and 1% registration fee. The move is intended to make property division among families more affordable, encourage formal registration, and reduce disputes that often end up in courts. Although the initial revenue loss is projected at around INR 6.38 crore, officials expect that increased registrations over time will balance the loss. Similar reforms in other states have led to more transparent property settlements.
The Uttar Pradesh government has approved a flat charge of INR 5,000 for stamp duty and registration on property partition deeds. Previously, families dividing property had to pay 4% stamp duty and 1% registration fee, which often made the process expensive and discouraged formal registration. This high cost sometimes led to property disputes being taken to civil or revenue courts, resulting in prolonged legal proceedings. Advertisement
With the new fee structure, authorities aim to make property division more affordable, encouraging families to register partition deeds formally. Officials believe that this will reduce legal disputes, ensure easy-going settlements, and help maintain clear land and revenue records. Clear records will also make it easier for properties to be transferred or sold in the future.
The immediate financial impact is expected to be a drop in revenue, estimated at INR 5.58 crore in stamp duty and INR 80.67 lakh in registration fees. Despite this, the government anticipates that the higher number of registrations will eventually compensate for the initial revenue loss and may even increase overall income from property transactions.
This initiative is inspired by similar reforms in states such as Tamil Nadu, Karnataka, Rajasthan, and Madhya Pradesh, where capping stamp duty on property partition deeds led to positive results. Officials are confident that the measure will strengthen legal certainty, improve property record management, and promote smoother family settlements in Uttar Pradesh.
The reform is also expected to ease the burden on the state's legal system by reducing the number of disputes related to property divisions. By making registration more affordable and straightforward, families are encouraged to formalize settlements, which contributes to more orderly property records and reduces chances of conflicts.
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