UP Cabinet Extends Concessional Stamp Duty to Commercial Gift Deeds

Uttar Pradesh Eases Intra-Family Property Transfers with ₹5,000 Stamp Duty Cap

The Uttar Pradesh Cabinet has approved a major reform to simplify intra-family transfer of commercial and industrial properties by extending concessional stamp duty benefits to gift deeds . The move is aimed at lowering transaction costs, improving transparency, and encouraging lawful documentation of property transfers within families across the state.

Extension of Concession to Commercial Properties

Under the revised decision, stamp duty on gift deeds for commercial and industrial properties transferred among family members will be capped at ₹5,000 . Earlier, this concession was available only for agricultural and residential properties . The benefit was first introduced in August 2023 , but income-generating and industrial assets were excluded and continued to attract stamp duty based on prevailing circle rates. The new decision brings parity across property categories.

Legal Framework and Policy Background

Explaining the rationale, Stamp and Registration Minister Ravindra Jaiswal said that under the Indian Stamp Act, 1899 , gift deeds for immovable property were traditionally taxed at rates similar to conveyance deeds, linked to market value. In addition, registration under the Registration Act, 1908 is mandatory. Until recent reforms, even transfers among close family members attracted full stamp duty, often discouraging formal registration.

Boost to Transparency and Ease of Doing Business

The Cabinet decision is being welcomed as major relief for business families and industrial groups. By extending the concessional cap to commercial and industrial assets, the state government aims to facilitate smoother succession planning , reduce property disputes, and promote transparent ownership transitions. Officials believe the reform will also curb informal arrangements and undervaluation practices.

Implementation Timeline and Wider Impact

The revised rules will come into force from the date of notification in the official gazette. The government expects the measure to encourage formal registration, reduce litigation, and strengthen ease of doing business in Uttar Pradesh , aligning property governance with broader administrative reforms.

Important Facts for Exams

• Stamp duty on family gift deeds in UP capped at ₹5,000

• Concession now covers agricultural, residential, commercial, and industrial properties

• Stamp duty governed by the Indian Stamp Act, 1899

• Registration mandatory under the Registration Act, 1908