The Punjab government has promulgated an ordinance introducing major changes to the province's stamp duty regime, including fixed charges for property exchanges, exemption of gift deeds between specified close family members, revised duties on residential leases, and enhanced powers for the Board of Revenue to amend land valuation tables.
The ordinance amends the Stamp Act, 1899, and has come into force immediately. It was promulgated under Article 128(1) of the Constitution on the grounds that the provincial assembly was not in session and circumstances required immediate action.
One of the key changes concerns the exchange of immovable properties. Under the amended provisions, stamp duty will be fixed at Rs1,000 where the values of properties being exchanged are equal.
Where the values differ, a duty of one per cent will be charged on the excess value, according to the ordinance. The ordinance also introduces an exemption from stamp duty for gift deeds executed between spouses, parents and children, grandparents and grandchildren, siblings, and between one wife or widow and another wife or widow of the same husband.
For other gift deeds, the stamp duty rate has been reduced from two per cent to one per cent of the property's value. For residential property, the duty will be Rs3,000 where annual rent does not exceed Rs300,000; Rs5,000 where it exceeds Rs300,000 but does not exceed Rs500,000; Rs7,000 where it exceeds Rs500,000 but does not exceed Rs1.2 million; Rs15,000 where it exceeds Rs1.2 million but does not exceed Rs2 million; and Rs25,000 where annual rent exceeds Rs2 million.
For commercial, industrial, or agricultural property leased for one year or less, stamp duty will be charged at 3.25 per cent of the total rent. For leases exceeding one year but less than 20 years, the rate will be 3.25 per cent of the average annual rent.
In another significant change, the Board of Revenue has been empowered to revise valuation tables for specified areas or individual parcels of land while a notification issued under Section 27-A of the Stamp Act remains in force. These measures are expected to streamline property transactions and provide financial relief to families while ensuring the provincial revenue department maintains flexibility in land valuation assessments.