According to Indian law, blood relations are divided into three parts for property rights.Image Credit source: AI Picture

In Uttar Pradesh, if any person now wants to transfer any kind of personal property to his blood relatives like wife, children, siblings or grandchildren, then he will have to pay stamp duty of only Rs 5000. This decision has been taken by the UP government led by Chief Minister Yogi Adityanath. This will directly provide relief worth lakhs of rupees to the common man.

Let us know who comes under blood relation and why? In UP, to whom can property be transferred for Rs 5000 and what is the stamp duty, on what basis is it imposed?

Who comes under blood relation?

Generally, blood relation means people who are related by birth. That is, descendants of the same ancestor are called blood relatives. These include grandparents, parents, children, brothers and sisters, uncles and aunts, cousins ​​and sisters etc. They are genetically related to each other and form the basis of legal and social kinship.

Apart from these relationships, the definition of blood relatives in the Indian Child Welfare Act also includes adopted children. At the same time, relatives like brother-in-law, sister-in-law and father-in-law, mother-in-law, brother-in-law and sister-in-law are related by marriage.

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Supreme Court Advocate Ashwani Kumar Dubey says that according to Indian law, blood relation is considered in three directions for property rights.

• Descendants: This includes your children, grandchildren, great grandchildren etc.
• Ancestors: This includes your parents, grandparents, great-grandparents etc.
• Collaterals: This includes those relatives who are descendants of the same ancestor but are not in your direct line, such as brothers-sisters, uncles, aunts, uncles, aunts and their children.

In short, the main relationships include mother and father, real brothers and sisters, grandparents, sons and daughters, grandchildren and great-grandchildren and real uncles, aunts, maternal uncles and aunts. In Indian law, step relationships are also categorized as blood relations with certain conditions. If they are children of the same father or mother. Adopted children also have the same legal rights as blood relatives.

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Profit on personal as well as commercial properties

According to the recent decision taken by the UP Cabinet, now only Rs 5,000 stamp duty will have to be paid on donating private commercial property in the name of family members. Earlier also this exemption was there, but then its benefit was available only on residential and agricultural properties. In fact, before the year 2022, if a person gave his property to his wife, son-daughter, brother-sister, son-in-law, grandson or granddaughter-in-law, then he had to pay the full stamp duty.

It was five percent in rural areas and seven percent in urban areas. In the year 2022, the UP government implemented the system of stamp duty of only five thousand rupees on transferring property in the name of family members, but this relief was limited only to house and agricultural land. In such a situation, if a person was running any commercial activity in his house, then it was considered as commercial property. In such a situation, he had to pay stamp duty worth lakhs of rupees even after transferring his property in the name of his family members.

You can transfer property to these people for Rs 5,000

According to the decision of the UP government, now only Rs 5,000 stamp duty will have to be paid on transferring every type of property in the name of loved ones. In case of death of husband-wife, brother-sister, son-daughter, grandson, son-in-law and real brother, this exemption will be available on transfer of property to his wife, whether the property is in urban or rural area.

The government has taken this decision so that it becomes easier for people to transfer family property and legal disputes are minimized. People can transfer property to their families without any fear and without much expense. Therefore, now this facility has been given to transfer any kind of property, be it city or village, residential or commercial, in the name of one's family members.

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What is stamp duty?

Stamp duty is actually a type of tax, which is charged by any state government when any property is sold or its ownership is transferred to someone else's name. This tax comes under Section 3 of the Indian Stamp Act-1899. This tax system applies to all types of immovable property. It is paid while registering property in anyone's name. For this, stamp paper has to be purchased, the amount of which goes to the treasury. Now most of the stamps have been done online.

Stamp duty is charged based on the value of the property

Stamp duty is calculated directly on the price of a property. Circle rates are fixed so that there is no dispute of any kind in this. On the basis of this circle rate, the value of property is calculated at the time of purchase or transfer. District Magistrate (DM) circle rates are fixed in every district of UP. It may be different for different areas in the same district or the same city. That is why stamp duty on purchase and sale of property at different places in the same district or area may also be different.

Big relief to the people of UP

However, in UP, when transferring property to loved ones, one had to pay seven percent stamp duty in urban areas and five percent in rural areas for all types of properties before 2022 and for transferring commercial properties in the name of loved ones after 2022. That is, if you were transferring property worth Rs 1 crore in an urban area, you would have to pay Rs 7 lakh as stamp duty to the government.

In rural areas this amount was Rs 5 lakh. Now, when transferring property to loved ones, there will be no calculation of its value, because stamp duty for this has been fixed at Rs 5,000. This will provide great relief to the people. At the same time, on selling or buying property from another person, stamp duty will be calculated as per the circle rate.