Lucknow: In a move aimed at simplifying property transfers within families, the Uttar Pradesh Cabinet, under the leadership of Chief Minister Yogi Adityanath, has approved a significant reduction in stamp duty for gift deeds involving commercial and industrial properties. The decision, made on Tuesday, caps the maximum stamp duty payable on such gifts at ₹5,000, regardless of the property's value or location, whether urban or rural. This initiative extends a similar concession that was introduced in 2023, which initially applied only to agricultural and residential properties. The new measure now encompasses commercial and industrial assets, including shops and factories, bringing them under the same reduced rate.
Prior to this change and before the 2022 notification, transferring property as a gift within the family attracted stamp duty based on the circle rate, which could be as high as 7% in urban areas and 5% in rural areas. The fixed cap introduced in 2022 for residential and agricultural land has now been broadened to include all types of immovable property.
Ravindra Jaiswal, the State Stamp and Registration Minister, emphasized that this decision will simplify family property transfers, making them more affordable and promoting transparency. The state Cabinet has also clarified the definition of relatives and other related provisions to ensure smooth implementation. Eligible relatives include son, daughter, father, mother, husband, wife, daughter-in-law, brother, sister, son-in-law, and the children of one's son or daughter. In cases where a real brother has passed away, his wife is also covered under the definition of family for this purpose. The relief takes effect immediately upon publication in the official gazette. Officials anticipate that this measure will encourage legal transfers and help reduce family disputes over property.
In addition to the stamp duty relief, the state Cabinet has also approved land allocations for constructing new sub-registrar office buildings. In Kushinagar, 0.0920 hectares from the Tehsil complex in Kaptanganj will be transferred free of cost to replace a dilapidated structure. In Jhansi, 0.0638 hectares from the old Tehsil complex has been allocated for a new office and archives. Because both plots are government-owned, they are fully exempt from stamp duty and registration fees.
The Uttar Pradesh government's decision to extend stamp duty relief to commercial and industrial properties is expected to have several positive impacts. By lowering the financial burden associated with property transfers, the government aims to encourage more families to opt for legal documentation, which will reduce informal transfers and improve transparency in property ownership records. This move is also anticipated to facilitate smoother succession planning and intra-family distribution of business assets, particularly for small traders, entrepreneurs, and family-run enterprises. The reduction in stamp duty is expected to boost the real estate market in Uttar Pradesh, encouraging transactions and increasing revenue generation for the state. It can also ensure smoother property distribution among family members, reducing family conflicts and court cases.
Furthermore, the state cabinet approved mega incentives to boost semiconductor investment of ₹3,000 crore or more on a case-to-case basis under the provisions of Uttar Pradesh Semiconductor Policy 2024. The state government is also considering introducing a user charge on the sale of stamp papers up to Rs 500. These measures reflect the state government's continued efforts to streamline registration processes and ease financial burdens on citizens.
