Curation Team
GANDHINAGAR: In a major relief for thousands of property owners in Gujarat, the state govt on Monday announced a waiver of up to 80% on stamp duty for property transfers done through allotment letters and share certificates (without sale deed): a long-standing issue affecting older housing societies.
The decision, issued by the revenue department under Section 9A of the Gujarat Stamp Act, comes in response to representations made by citizens and elected representatives.
The move specifically benefits residents of societies, associations, and non-trading corporations where properties were allotted without sale deeds — a practice common between 1982 and 2001. Many such homes, especially in older parts of Ahmedabad and other urban centres, were originally transferred to residents solely through share certificates or allotment letters, without any formal registration.
Dipak Patel, an advocate who specializes in property-related matters, explained that the controversy began in April this year, when a govt notification stated that residents in such cases would have to pay four times the standard stamp duty. “That sparked outrage as the decision affected residents of societies constructed between Sep 1, 1982, and 2001 as residents of societies built after 2001 have sale deeds. The govt still collected several crores since April 10,” he said.
However, in a partial rollback aimed at easing the burden, the new decision caps the payable stamp duty at just 20% of the original amount, plus applicable penalties.
Patel clarified that the relaxation only applies to housing transfers conducted via share certificates or allotment letters, not those formalized with registered sale deeds. “This brings long-awaited relief to thousands of residents who were suddenly asked to pay a hefty duty on homes they have owned for decades,” Patel said. “It is not a full rollback, but it makes compliance financially feasible.”
An official statement said that by reducing the originally payable stamp duty, the state govt has ensured that the total amount paid, including any penalties, will not exceed what was earlier payable as duty alone in property-related matters.
