All About Gift Deed – Stamp Duty in Uttar Pradesh (2025–26)

Transferring property to your loved ones is a common practice in India, especially among families. Instead of buying or selling, property owners often choose to gift their property to family members through a registered gift deed. In Uttar Pradesh, the state government has made this process simpler and more affordable with reduced stamp duty rates for family transfers.

This blog explains what a gift deed is, the latest stamp duty rates in UP for 2025–26, who qualifies as a family member, and the recent Allahabad High Court ruling that brings more clarity to the law.

What is a Gift Deed?

A gift deed is a legal document used when a person voluntarily transfers ownership of property—such as a house, land, or apartment—to another person without taking any money in return.

Once registered, the gift deed gives full legal rights over the property to the receiver, known as the “donee.” The person gifting the property is known as the “donor.”

For the gift deed to be legally valid, it must be:

• Written and signed by the donor.
• Attested by at least two witnesses.
• Registered at the sub-registrar’s office with proper stamp duty paid.

Why Stamp Duty is Important for a Gift Deed

Stamp duty is a tax paid to the government when a property is transferred. It acts as legal proof of ownership and makes the transaction valid in the eyes of law. Without sufficient stamp duty or registration, the transfer is not legally recognized, and ownership disputes may arise later.

Earlier, in Uttar Pradesh, people had to pay high stamp duty—about 7% of the property’s market value—plus 1% registration charges, even for gifting property to family members. This heavy cost discouraged many people from completing formal transfers and led to unofficial transfers through power of attorney, often causing legal complications and revenue loss to the government.

New Stamp Duty Rates in Uttar Pradesh (2025–26)

To make family property transfers easier and affordable, the Uttar Pradesh government revised the stamp duty rates under the Indian Stamp (Uttar Pradesh Amendment) Bill, 2024.

As of 2025–26, the rules are as follows:

1. Gift Deed for Family Members (Blood Relatives)

• Stamp Duty: ₹5,000 flat
• Processing Fee: ₹1,000
• Total Payable: ₹6,000

This concessional rate is applicable only when the property is gifted to a blood relative or close family member as defined by the UP government.

2. Gift Deed to Non-Relatives

If the property is gifted to someone outside the defined family circle (for example, a friend, cousin, or distant relative):

• Stamp Duty: 5% of the property’s market value
• Registration Fee: 1% of the property’s market value

This higher rate ensures that reduced duties are used only for genuine family transfers and not for avoiding regular property sale duties.

Who Qualifies as a Family Member?

The concessional stamp duty of ₹5,000 applies only when the property is transferred between specific family members. According to the government’s notification, the eligible relations include:

• Father
• Mother
• Brother
• Sister
• Spouse (husband or wife)
• Son
• Daughter
• Son-in-law
• Daughter-in-law
• Grandchildren (both through son and daughter)

If the donee (receiver) does not fall under this list, the standard stamp duty of 5% applies.

Allahabad High Court Ruling on Gift – Deed Stamp Duty

The Allahabad High Court recently brought significant clarity regarding how stamp duty should be calculated for gift deeds. The court ruled that:

• Stamp duty should be based on the declared value of the gifted property, not on the market or circle rate.
• Section 47-A (3) of the Indian Stamp Act, which allows the Collector to reassess the property value if it appears undervalued, does not apply to gift deeds.

This means the government cannot question the declared value in genuine family gift transactions, as there is no commercial consideration involved. This ruling provides huge relief to families transferring property without any monetary exchange.

Legal Requirements for Registering a Gift Deed

Even when stamp duty is reduced, registering the deed remains mandatory. Without registration, the transfer is not recognized by law.

Steps to Register a Gift Deed in Uttar Pradesh:

1. Draft the gift deed clearly mentioning the details of the property, the donor, and the donee.
2. Print the deed on stamp paper of the applicable value (₹5,000 for family members).
3. Visit the sub-registrar’s office where the property is located.
4. Submit identification and address proofs of both parties, along with property documents.
5. Pay the processing fee of ₹1,000 and applicable service charges.
6. Sign and register the document in presence of witnesses.
7. The sub-registrar will issue a certified copy of the registered gift deed.

No GST on Gift Deeds

Many people often wonder if Goods and Services Tax (GST) applies to property gifts. The answer is no. Since a gift deed involves no money or commercial exchange, GST does not apply. However, stamp duty and registration fees are still mandatory to make the transfer legally valid.

Impact of Stamp Duty Reduction in UP

The reduced stamp duty has had several positive effects:

• Encourages legal transfers: More families now register their property transfers legally instead of relying on general power of attorney.
• Boosts transparency: Property records become more accurate and up to date.
• Increases state revenue: Though rates are reduced, the higher number of registered transactions has improved revenue collection.
• Simplifies inheritance planning: Property owners can now distribute assets among relatives during their lifetime without bearing heavy costs.

Comparison: Earlier vs. Now

Difference Between Gift Deed and Other Property Deeds

Many people confuse a gift deed with sale deeds or rectification deeds. Here’s how they differ:

• Gift Deed: Transfer without any money involved. Often used for family transfers.
• Sale Deed: Transfer of property for a fixed price between two parties.
• Rectification Deed: Used to correct minor errors in already registered deeds (like wrong area or name spelling).

Gift deeds create ownership rights without any exchange of money, unlike sale deeds which involve payment.

Key Takeaway for 2025–26

For the financial year 2025–26, Uttar Pradesh continues to promote easy family property transfers through simple procedures and reduced stamp duty.

• If you are transferring your house, plot, or flat to a family member, you only need to pay ₹6,000 in total (₹5,000 stamp duty and ₹1,000 processing fee).
• The declared value, not the market value, will be considered for duty calculation—thanks to the Allahabad High Court ruling.
• Always complete proper registration at the sub-registrar office to ensure legal ownership.

This reform is a welcome change, making family property transfers both affordable and legally secure.