UP Govt Likely To Extend Rs 5,000 Stamp Duty Facility To Industrial & Commercial Properties

(MENAFN- KNN India) New Delhi, Jan 6 (KNN) In a significant relief for property owners, the Uttar Pradesh government is poised to extend the concessional Rs 5,000 stamp duty facility on gift deeds to industrial and commercial properties, in addition to residential and agricultural land.

The proposal, moved by the Stamp and Registration Department, is expected to be placed before the state cabinet chaired by Chief Minister Yogi Adityanath on Tuesday and is likely to receive approval.

If cleared, family members will be able to transfer ownership of shops, factories and other commercial or industrial properties through a gift deed by paying a flat stamp duty of Rs 5,000.

This move is being positioned as a major New Year initiative aimed at simplifying property transfers within families and reducing the financial burden associated with registration.

At present, the state government offers this concessional rate only for the transfer of residential and agricultural properties among close relatives. Under the existing provision, a gift deed executed in favour of eligible family members attracts a stamp duty of just Rs 5,000, irrespective of the property value.

The category of eligible relatives includes 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 proposed expansion to industrial and commercial properties is expected to facilitate smoother succession planning and intra-family distribution of business assets, particularly for small traders, entrepreneurs and family-run enterprises.

Officials indicate that the step will help reduce disputes, discourage informal transfers and improve transparency in property ownership records.

Alongside this, the cabinet may also consider a proposal to introduce a user charge on the sale of stamp papers up to Rs 500. To implement this, amendments to the e-stamping rules have been proposed.

Currently, stamp vendors earn a nominal commission-5 paise on a Rs 10 stamp paper and 50 paise on a Rs 100 stamp paper-which the government considers inadequate.

Under the proposed change, vendors may be authorised to collect an additional user charge of Rs 5 on stamp papers valued up to Rs 100, and Rs 10 on stamp papers priced between Rs 101 and Rs 500.

The move is aimed at ensuring better remuneration for stamp vendors while streamlining the stamp distribution system.

Together, these measures reflect the state government's broader effort to simplify property registration procedures, provide financial relief to citizens, and strengthen the efficiency of the stamp and registration framework in Uttar Pradesh.

(KNN Bureau)

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