Jammu and Kashmir govt exempts stamp duty on property transfers executed through Gift Deed between blood relatives

In a move aimed at easing property transfers within families, the Jammu and Kashmir government has issued a notification remitting stamp duty on property transfers executed through gift deeds within blood relations, a report published in LiveLaw said.

The exemption will come into effect from April 1, 2025, the report said.

The decision was made after the finance department issued the notification by exercising its powers conferred by Section 9 (a) of the Stamp Act, 1977. The notification stated that the decision of providing the exemption was made in the public interest, the report said.

Blood relations have been defined to include father, mother, brother, sister, son, daughter, grandfather, grandmother, grandson and granddaughter, the report said.

The notification stated that the exemption will apply only to gift deeds executed between family members and requires both the giver and the recipient to submit at least two proofs of identification, it said.

The LiveLaw report said that the decision is expected to make property transfers within families easy and more affordable and ensure that people can transfer their properties without facing an additional financial burden.

Chief Minister Omar Abdullah had on March 7 presented a ₹1.12 lakh crore budget for Jammu & Kashmir for the fiscal year 2025-26, marking the first budget of an elected government in the region since 2018. He had also announced the exemption of stamp duty on property transfers within blood relations, aiming to streamline transactions and reduce legal disputes.

Other states that have notified special stamp exemptions or rebates

Several states have notified special stamp exemptions or rebates on the instrument of gift where such gift is from immediate blood relative or spouse.

According to a report published in HT.com, states like Maharashtra and Uttar Pradesh have prescribed nominal stamp duty charges and in Haryana stamp duty is completely exempted for transfer of property by way of gift to spouse or specific set of immediate blood relatives. This cost saving has led family members to consider gifting their flats, house, plots, commercial units or other immovable assets to their spouse or children, they say.

“These exemptions not only incentivize inter-se gifts between siblings but also offer significant savings, making the process more financially advantageous,” said Jayshree Navin Chandra, Senior Partner, ZEUS Law Associates.

As per a Uttar Pradesh government notification dated August 3, 2023, there has been a remission in stamp duty charges for property transfers via gift deeds. This remission applies to gift of immovable property to immediate family members including siblings. It provides an opportunity for individuals to facilitate property gifting at a reduced / negligible stamp duty burden. Other states implementing such remission include Maharashtra, Haryana and Uttarakhand, she explains.

Having said that, while making such a transfer by way of gift, the most important thing to be kept in mind is that it has to be effected by way of an written instrument (gift deed) that has to be attested by at least two witnesses, said Mona Dewan, Managing Associate, ZEUS Law Associates.