UP extends concessional stamp duty to commercial, industrial properties gifted within families

The Uttar Pradesh government has expanded a key stamp duty concession, allowing commercial and industrial properties to be transferred among family members through gift deeds at a capped charge of Rs 5,000. The decision, approved by the state cabinet on Tuesday, extends a benefit that was earlier limited to agricultural and residential properties.

Stamp and Registration Minister Ravindra Jaiswal said that until recently, gift deeds in Uttar Pradesh were governed by the Indian Stamp Act, 1899, under which the gifting of immovable property was typically treated on par with conveyance deeds for stamp duty purposes. Registration of such deeds was also mandatory under the Registration Act, 1908.

“Prior to 2022, gift deeds among family members attracted stamp duty equivalent to the full circle rate. Through a notification issued by the Stamp and Registration Department on August 3, 2023, the state government had decided that when immovable property is gifted to family members, stamp duty would be charged at a concessional rate with a maximum cap of Rs 5,000. This was limited to agricultural and residential properties only,” Jaiswal said.


With the latest cabinet approval, the same concessional framework will now apply to commercial and industrial assets. The move is aimed at easing intra-family transfers and reducing the financial burden associated with formal property registration.

Earlier, stamp duty on commercial properties was charged at 7% in urban areas and 5% in rural areas, making family transfers costly even when no sale was involved.

The cabinet also cleared amendments to further clarify the definition of ‘family members’ and other provisions contained in the August 2023 notification. The revised rules will take effect from the date the new notification is published in the official gazette.

In addition to the stamp duty changes, the cabinet approved two other proposals related to the Stamp and Registration Department. These include the free transfer of 920 square metres of land from tehsil premises in village Basahia for the construction of a new sub-registrar office building in Kushinagar, and the allotment of 638 square metres of land from the old tehsil premises at Mauja Jhansi Khas for a sub-registrar office and record room.