Gujarat Stamp Amendment Act effective from April 10, check changes here

The Gujarat government has amended several provisions of the Gujarat Stamp Act, 1958. These amendments aim to reduce citizen-centric rates and enhance administrative ease and convenience, thereby ensuring the effective implementation of Gujarat Stamp Amendment Bill 2025. The revised provisions of the Stamp Duty Act will come into effect across the state from April 10.

The amendments introduced by the state’s Revenue Department mainly include:

In cases of ancestral property, documents related to relinquishment of rights by the legal heirs of a deceased daughter can now be executed by paying a stamp duty of ₹200.

For loans up to ₹1 crore, the maximum stamp duty payable will be limited to ₹5,000.

For loan amounts above ₹10 crore, the current stamp duty cap of ₹8,00,000 for mortgage/hypothecation documents has been raised to ₹15,00,000. However, if loans are availed from more than one bank, then excluding surcharge, the maximum payable stamp duty will be ₹75,00,000.

In cases of additional guarantees, a fixed stamp duty of ₹5,000 will now be required.

In cases where less stamp duty has been paid and the applicant comes forward voluntarily to pay the due amount, the outstanding duty will be recovered at the rate of 2% per month, with a maximum penalty of up to four times the shortfall.

If stamp duty evasion is detected by the authorities, it will be recovered at the rate of 3% per month, with a maximum penalty of up to six times the due amount.

For rental/lease agreements of less than one year, instead of 1% of the average annual rent, the state government has now fixed stamp duty at ₹500 for residential and ₹1,000 for commercial properties.

In cases of mortgage, if banks or financial institutions fail to pay stamp duty on executed documents, the responsibility for duty payment will lie with the respective banks/financial institutions.

Additionally, if the original document is unavailable and less stamp duty was paid, duty can now also be recovered on the copy of the document.

Apart from these revisions to the Gujarat Stamp Act, 1958, other amendments have also been made. These modifications are applicable to the base duty; additional duty (surcharge) will be levied as per legal provisions.

Through these changes, the government claims to reduce the financial burden on industries and housing loan borrowers.

The amendments related to relinquishment of rights in ancestral property is likely to resolve interpretational issues and reduce court matters and litigations arising due to ambiguities in existing legal provisions.

Also read:

From ₹200 to ₹1 lakh: Gujarat’s new bill introduces major changes in stamp duty fines