State Government has reduced the rent agreement stamp duty from two slabs of 4 and 8 per cent to just single slab of 2 per cent. Thousands of landlords and tenants of residential, industrial and commercial properties would be benefited.
Sub Registrar, Tej Singh Yadav, told Hindustan Times on Thursday, that earlier on rent agreements of 11 months period stamp duty rate was 4 per cent of the value of rent. For periods greater than 11 months the stamp duty rates were 8 per cent.
“Now after amendment by State Government the stamp duty rate on all rent agreements irrespective of period of agreement has been fixed at just 2 per cent. It is effective from July 14,” said Yadav.
If the monthly rent of a property is Rs 25,000, then as per the old rates, the stamp duty for an 11-month agreement calculates to Rs 12,000”. For a period of two and three years it adds up to Rs 48,000 and Rs 72,000, respectively. As per the new rates, stamp duty for one, two and three year period rent agreements calculates to Rs 6,000, Rs 12,000 and Rs 18,000 respectively. Net saving comes to Rs 6,000, Rs 36,000 and Rs 54,000,” said Yadav.
“Earlier due to high rate we were sending notices only to commercial and industrial properties, but now we will send notices to residential properties too for registration of rent agreement,” said Yadav.
Fedeartion of Noida Residents Welfare Association, president, NP Singh, said, “Now majority of landlords and tenants would register the rent agreement. Though rent agreement registration is beneficial for landlords, but due to 8 per cent high rate of registeration fees was prohibiting them to execute the rent agreements.”