UP Govt Extends ₹5,000 Stamp Duty Cap to Family Transfers of Business Property

The Uttar Pradesh cabinet has approved a major reform in property registration rules by extending stamp duty concessions on family gift deeds to commercial and industrial properties. Under the revised rule, stamp duty on such transfers will now be capped at ₹5,000, regardless of the property’s market value or location. Earlier, this benefit was available only for residential and agricultural properties. With this move, Up Stamp duty relief extended to business assets aims to make family property transfers simpler, cheaper, and legally safer across the state.

What exactly has changed in the stamp duty rules in Uttar Pradesh?

Earlier, when families transferred commercial or industrial property through gift deeds, they had to pay stamp duty based on the property’s value. This often meant paying 5–7% of the total value, especially in urban areas.

With the new cabinet decision:

• Stamp duty on family gift deeds is capped at ₹5,000
• Applies to commercial, industrial, residential, and agricultural properties
• Valid across both rural and urban Uttar Pradesh
• Registration charges of 1% will still apply

This confirms that Up Stamp duty relief extended is now uniform across property categories.

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Who will benefit from the extended stamp duty relief?

The biggest beneficiaries are families that own:

• Shops and office spaces
• Industrial plots and factories
• Warehouses and commercial buildings

Small business owners, traders, and industrial families often transfer assets internally for succession planning. The Up Stamp duty relief has significantly lowered the cost of such legal transfers, encouraging formal documentation instead of informal arrangements.

Why did the UP government extend stamp duty relief to commercial properties?

According to state officials, the decision was taken to:

• Reduce family disputes related to property ownership
• Promote transparent and legal transfers
• Encourage ease of doing business
• Cut down litigation arising from informal transfers

By ensuring low stamp duty, the government wants families to register gift deeds instead of relying on unregistered agreements.

How much stamp duty is payable now on family gift deeds?

Here is a simple comparison to understand the impact:

This clearly shows how the Up Stamp duty relief extended brings commercial and industrial properties on par with residential assets.

Does the relief apply in both cities and villages?

Yes. One of the most important aspects of the reform is that:

• The ₹5,000 cap applies uniformly
• No difference between urban and rural areas

Earlier, the stamp duty on commercial property was:

• 7% in urban areas
• 5% in rural areas

Now, this difference no longer exists under the Up Stamp duty relief extended policy.

What charges still apply despite stamp duty relief?

While stamp duty is capped, buyers must still pay:

• Registration fee: 1% of property value
• Applicable documentation charges

This ensures that government records remain updated while keeping transfer costs low.

How does this impact real estate and business families?

The reform is expected to:

• Improve succession planning for family-run businesses
• Increase registered property transactions
• Reduce legal uncertainty around ownership
• Encourage smoother inter-generational asset transfer

Legal experts say the Up Stamp duty relief extended will especially help MSME owners who earlier avoided formal transfers due to high costs.

Other major UP cabinet decisions were announced alongside this reform

Along with stamp duty relief, the UP cabinet cleared several important proposals:

Semiconductor investment incentives

• Special incentives for investments above ₹3,000 crore
• SGST exemption, power tariff subsidy, EPF reimbursement
• Aimed at positioning UP as a semiconductor manufacturing hub

GCC Policy 2024 implementation

• SOP 2025 approved for Global Capability Centres
• Land subsidy, payroll support, and OPEX subsidy included
• Invest UP named nodal agency

Infrastructure and public development

• New sub-registrar offices in Kushinagar and Jhansi
• Modern bus station approved in Pilibhit
• 500-bed super-speciality hospital in Varanasi

These decisions complement the Up Stamp duty relief extended initiative by improving the governance and investment climate.

How does this reform reduce property disputes?

Many family disputes arise because:

• Properties are transferred informally
• Ownership records are unclear
• Legal documentation is avoided to save costs

By capping stamp duty at ₹5,000, the Up Stamp duty relief extended policy removes the financial barrier, encouraging families to register transfers properly.

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What should property owners do next?

If you are planning to:

• Transfer a shop, office, or factory to a family member
• Regularise existing family arrangements
• Avoid future inheritance disputes

You should:

• Check eligibility under family definitions
• Use registered gift deeds
• Ensure RERA and land records are clear

This is the right time to benefit from the Stamp Duty relief extension.

Conclusion

The Uttar Pradesh government’s decision to extend stamp duty relief to commercial and industrial properties is a practical, people-focused reform. By capping stamp duty at ₹5,000 for family gift deeds, the state has reduced transfer costs, improved legal clarity, and encouraged transparent ownership practices. Combined with investment-friendly policies and infrastructure development, the extension of the Up Stamp duty relief strengthens UP’s push towards ease of doing business and long-term economic stability.