Lucknow: The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved a proposal to further expand stamp duty concessions on gift deeds executed among family members for immovable property. With this decision, the benefit of reduced stamp duty will now also be applicable to commercial and industrial properties gifted within the family.
Under the provisions of the Indian Stamp Act, 1899, gift deeds in Uttar Pradesh are generally charged stamp duty based on the value of the property, similar to a conveyance deed. In addition, the Registration Act, 1908, mandates compulsory registration of gift deeds for immovable property.
Through a notification issued by the Stamp and Registration Department on August 3, 2023, the state government had earlier decided that when immovable property is gifted to family members, stamp duty would be charged at a concessional rate with a maximum cap of ₹5,000. This benefit was earlier limited to agricultural and residential properties.
The Cabinet has now approved the extension of this concession to commercial and industrial properties as well. This step is expected to make intra-family property transfers more affordable, transparent, and legally streamlined.
Stamp and Registration Minister Ravindra Jaiswal stated that prior to 2022, gift deeds among family members attracted stamp duty equivalent to the full circle rate. In 2022, under the leadership of Chief Minister Yogi Adityanath, the government introduced a fixed stamp duty of ₹5,000 for gift deeds among family members, applicable to agricultural and residential properties.
With the latest Cabinet decision, this benefit has now been extended to commercial properties. Earlier, stamp duty on commercial properties was levied at 7 percent in urban areas and 5 percent in rural areas. Under the new provision, irrespective of whether the property is located in a city or a village, stamp duty on gift deeds among family members will be limited to ₹5,000.
The Cabinet has also approved further clarification of the definition of family members and other provisions mentioned in the earlier notification, ensuring smooth and unambiguous implementation. The revised provisions will come into force with immediate effect from the date of publication of the notification in the official gazette.
The decision is being widely seen as a citizen-centric reform that will encourage legal transfer of family property and help reduce property-related disputes.
The Cabinet also approved two important proposals related to the Stamp and Registration Department. In Kushinagar district, approval has been granted for the free transfer of 0.0920 hectares (920 square meters) of land from the tehsil premises at village Basahia alias Kaptanganj for the construction of a new sub-registrar office building. The existing office is currently operating from a dilapidated structure, which will be demolished and replaced with a new building.
Similarly, in Jhansi, the Cabinet approved the allotment of 0.0638 hectares (638 square meters) of land from the old tehsil premises at Mauja Jhansi Khas (Arazi No. 3035) for the construction of the sub-registrar office (Sadar) and a record room.
As the land in both cases belongs to the state government, complete exemption from stamp duty under the Indian Stamp Act, 1899, and from registration fees under the Registration Act, 1908, has been granted.
