Uttar Pradesh Cuts Stamp Duty on Gift Deeds for Commercial Assets

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

Extension of Concession to Commercial Properties

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

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 comparable to conveyance deeds, based on property value. Registration under the Registration Act, 1908, is also mandatory. Until 2022, even gift deeds executed among close family members attracted full stamp duty, often discouraging formal transfers.

Boost to Transparency and Ease of Doing Business

The Cabinet’s decision is being viewed as significant relief for business families and industrial groups. By extending the capped duty to commercial and industrial assets, the state government aims to make succession planning smoother, reduce disputes, and promote transparent ownership transitions. Officials said the reform would also help curb informal arrangements and undervaluation of assets.

Imporatnt Facts for Exams

• Stamp duty on gift deeds in Uttar Pradesh is now capped at ₹5,000 for family transfers.
• The concession now includes agricultural, residential, commercial, and industrial properties.
• Stamp duty is governed by the Indian Stamp Act, 1899.
• Registration of gift deeds is mandatory under the Registration Act, 1908.

Implementation Timeline and Wider Impact

The revised rules will come into force from the date of their publication in the official gazette. The government expects the move to encourage formal registration of assets, reduce litigation, and support ease of doing business in Uttar Pradesh. By lowering financial barriers for intra-family transfers, the policy aligns with broader governance objectives of simplifying procedures and strengthening legal certainty in property transactions.