J&K’s Gifts Deeds issue: Govt should provide grace period for registration with minimal penalties

By Mohammad Amin Mir

In a significant move aimed at promoting fair taxation and curbing revenue leakage, the Government of Jammu and Kashmir has announced stamp duty exemption on property gifted among specified blood relatives. The official notification (S.O. 75), issued by the Finance Department on March 27, 2025, comes into effect from April 1, 2025.

As per the notification, stamp duty will not be charged on gift deeds executed between close blood relations, including father, mother, brother, sister, son, daughter, grandfather, grandmother, grandson, and granddaughter. The policy seeks to ease the process of intra-family transfers while preventing misuse of the system.

However, authorities have raised red flags over increasing instances of misuse, where unrelated individuals transfer property through so-called “gift deeds” to dodge stamp duty.

Government to crack down on fake gift deeds

In response to these irregularities, as reported by Ziraat Times, the government is preparing for a strict crackdown, which will include:

• Digitization of gift deed transactions for real-time monitoring.

• Verification of relationships mentioned in the gift deeds.

• Investigation of past transactions, especially where blood relation is not legally established.

• Penalties and legal action against individuals found guilty of manipulating gift laws.

A senior Finance Department official was wuoted by Ziraat Times as saying, “We are reviewing past records. Fraudulent declarations will not be spared. Recovery of evaded duties will be pursued under applicable laws.”

Consequences and suggestions: What if oral gifts are canceled?

In Jammu & Kashmir, oral gifts (those made without formal written documentation) have historically been accepted in some cases, especially under personal laws. However, with this new policy and digitization push, oral gifts might be rendered legally invalid or unenforceable, unless officially registered.

Possible consequences

Disruption in Revenue records:

Many oral gifts never made their way into official land records. Canceling them could cause confusion in ownership claims, especially in rural areas.

Increased property disputes:

Beneficiaries of oral gifts could lose claim to land or property, leading to a surge in litigation and familial disputes.

Loss of possession-based rights:

In some cases, beneficiaries may have been in possession for years. Cancelling oral gifts may deprive them of such rights, complicating land possession norms.

Revenue record correction challenges:

Mutation records may need extensive revision. If properties are restored to the original donor’s name, it could take months, even years, to reconcile records.

Suggestions for implementation:

Grace period for legalization:

Provide a limited-time window for people to register oral gifts legally, with minimal penalties.

Village-level awareness drives:

Inform people about the need for registration, especially in rural and tribal areas where oral transfers are common.

Clear guidelines on acceptable proofs:

Define what documents (e.g., possession proof, witness testimony) could be used to validate past oral gifts for regularization.

Special committees for dispute resolution:

Establish local revenue or judicial panels to fast-track decisions on oral gift legitimacy to avoid court backlogs.

While the stamp duty exemption for blood relatives is a welcome reform for easing property transfers within families, its effective implementation will depend on robust checks, digitization, and sensitivity to ground realities like oral gifts. Ensuring a fair transition without undue hardship will be key to maintaining both legal clarity and social harmony in Jammu & Kashmir.