UP Cabinet Extends Rs 5,000 Stamp Duty Cap to Commercial Property Gift Deeds

The Uttar Pradesh cabinet has decided to allow commercial and industrial properties to be transferred within families through gift deeds at a concessional stamp duty, capped at Rs 5,000. This brings these categories in line with earlier benefits for homes and farmland.

The relief applies only to intra-family transfers and will be implemented once the notification appears in the official gazette. Officials said the move aims to reduce transaction costs, ease inheritance planning and encourage transparent recording of property ownership.

Uttar Pradesh cabinet stamp duty relief for gift deeds on commercial and industrial properties

Stamp and registration minister Ravindra Jaiswal explained that, under the Indian Stamp Act, 1899, gift deeds for immovable property were earlier assessed on property value, similar to conveyance deeds. Registration under the Registration Act, 1908, continued to be compulsory in such transfers between parties.

Jaiswal recalled the earlier regime and said, "Before 2022, gift deeds among family members attracted stamp duty equivalent to the full circle rate. A notification issued on August 3, 2023, capped stamp duty at Rs 5,000 for gift deeds within families, but this relief was restricted to agricultural and residential properties," Jaiswal said.

Describing the latest decision as a major relief, Jaiswal said the cabinet has widened that concession to include commercial and industrial properties also. Officials noted that this change is expected to make family transfers of business assets more affordable while keeping them legally compliant and clearly documented.