Whether the property is worth 10 lakhs or 10 crores, now only this much stamp duty will be charged on the division, big decision of UP government

UP Government Caps Stamp Duty on Property Partition at ₹5,000: Major Relief for Families

The Uttar Pradesh government has announced a landmark decision that will significantly reduce the financial burden on families dividing property. Whether a property is worth ₹10 lakh or ₹10 crore, the maximum stamp duty and registration fee on partition will now be capped at just ₹5,000.

This reform is expected to ease property disputes, encourage families to legally register partitions, and streamline state revenue records.

What Was the Old Rule?

Until now, property partition in Uttar Pradesh attracted a 4% stamp duty and an additional 1% registration fee, calculated on the total property value.

For example, partitioning a property worth ₹1 crore meant paying around ₹5 lakh in stamp duty and registration charges. Because of this hefty expense, many families avoided legal partition altogether. This often led to unresolved disputes, prolonged litigation in civil and revenue courts, and properties remaining stuck in legal limbo for years.

What Changes with the New Decision?

With the cabinet’s approval, the maximum fee for property partition has been fixed at ₹5,000, regardless of the property’s market value.

This step not only reduces costs for families but also makes the legal process of partition more accessible and transparent. The government believes the measure will reduce the number of pending disputes, encourage out-of-court settlements, and update official property records in a more accurate and timely manner.

Benefits for Citizens and the State

The decision offers multiple benefits:

• For citizens: Families will be more willing to legally divide properties without worrying about unaffordable fees. This will reduce conflicts among heirs and make property transactions smoother.

• For the state: Clearer and updated land records will help prevent future disputes and boost transparency in the real estate sector. Moreover, properties with clear titles will become more easily tradable in the market.

The government acknowledges that in the short term, it may lose revenue. Initial estimates suggest a potential loss of ₹5.58 crore in stamp duty and ₹80.67 lakh in registration fees. However, officials are confident that increased registrations will compensate for the revenue shortfall in the long run and may even boost state income.

Learning from Other States

Uttar Pradesh is not the first state to introduce such a reform. Similar provisions already exist in states like Tamil Nadu, Karnataka, Rajasthan, and Madhya Pradesh, where the outcomes have been largely positive. Encouraged by these results, the UP government has now implemented this policy for its citizens.

A Step Towards Reducing Court Cases

The biggest beneficiaries of this decision will be ordinary families who often get stuck in lengthy court cases over property division. With lower fees, more families are expected to opt for mutual agreements and legal registration of partitions. This, in turn, will reduce the burden on civil and revenue courts, which are often clogged with property-related disputes.

Final Word

By capping stamp duty and registration charges for property partition at just ₹5,000, the Uttar Pradesh government has delivered a major relief to families across the state. The decision is a win-win, ensuring affordability for citizens while strengthening transparency and governance in property records.

In the long term, this move could transform how property disputes are resolved and how property ownership is documented in India’s most populous state.