The UP government will lower the stamp duty on rent agreement registration; the fee will start at Rs 500

The UP government will lower the stamp duty on rent agreement registration; the fee will start at Rs 500 Theindiaprint | 13/05/2025 18:27:12

The Uttar Pradesh government plans to significantly lower the stamp duty on registered rent agreements in order to make renting apartments and homes more economical and safe from the law. The state is proposing new, small registration fees that are dependent on the yearly rent and length of the lease in an effort to encourage more landlords and renters to formalize tenancy arrangements.

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A one-year rental agreement with an annual fee of up to Rs 1 lakh would only cost Rs 500 to register under the proposed rates. The price will be Rs 1,000 for homes with yearly rentals between Rs 1 lakh and Rs 3 lakh and Rs 2,000 for buildings with rates between Rs 3 lakh and Rs 6 lakh.

Charges for longer-term agreements will also be lowered. Depending on the rate slab, a five-year lease can cost anywhere from Rs 1,500 to Rs 6,000. The registration price for ten-year contracts would be between Rs 2,000 and Rs 8,000.

In order to register the agreement, landlords now have to pay 2% stamp duty on the average annual rent, which many choose to avoid. Because of this, the majority of 11-month rent agreements are established informally on stamp paper for Rs 100. However, this lack of registration often results in legal issues, especially for landlords who have trouble resolving tenant conflicts and wind up interacting with the courts or police.

The administration headed by Yogi Adityanath intends to encourage more property owners to register tenancy contracts and benefit from the safeguards provided by the new Rent Control Act by lowering the registration fee. If the agreement is registered, the Act prevents tenants from pursuing remedy via the police or civil courts and guarantees a speedier settlement of issues.

The plan, which was drafted under the chief minister’s order, would be put into effect shortly following cabinet approval, according to Stamp and Registration Minister Ravindra Jaiswal. In order to make the registration procedure more accessible, he noted, the government is also trying to make it simpler overall.

It is anticipated that the action would decrease tenancy-related court disputes and provide low-cost legal protection to both landlords and renters via written agreements.