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Relief for UP tenants and landlords: Cabinet cuts stamp duty on rent agreements up to 10 years; check new slabs
The UP Cabinet has approved revised stamp duty and registration fees for lease and rent agreements of up to 10 years to encourage formal tenancy agreements
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In a move aimed at encouraging formal tenancy agreements and reducing disputes between landlords and tenants, the Uttar Pradesh Cabinet has approved a rationalised structure of stamp duty and registration fees for lease and rent deeds of up to 10 years.
The revised rates will also cover rental agreements with an average annual rent exceeding ₹10 lakh, with the benefit available on the first ₹10 lakh of annual rent, according to a report by the Hindustan Times newspaper.
The revised structure is intended to facilitate implementation of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, and promote registration of tenancy agreements. It could reduce the cost of long-term lease deeds by up to 90%.
For leases with annual rent of up to ₹2 lakh, stamp duty will be ₹1,000 for terms of up to one year, ₹2,000 for more than one and up to five years, and ₹4,000 for more than five and up to 10 years, the report said.
For annual rent above ₹2 lakh and up to ₹6 lakh, the rates will be ₹3,000, ₹6,000 and ₹8,000, respectively. For rent above ₹6 lakh and up to ₹10 lakh, the rates will be ₹4,500, ₹10,000 and ₹13,000. The same rates will apply as registration fees.
For leases with annual rent above ₹10 lakh, the concessional rates will apply to the first ₹10 lakh, while the amount exceeding ₹10 lakh will be charged at existing rates.
Also Read: Landlord’s Guide: Should you notarise or register your 11-month rent agreement? 7 things to consider
The move is aimed at encouraging registration of tenancy agreements and strengthening implementation of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021.
“Despite registration being mandatory for leases exceeding one year, many such agreements remain unregistered, exposing parties to legal and financial complications,” principal secretary, stamp and registration, Amit Gupta was quoted as saying by the newspaper.
The minister clarified that full standard tariffs apply to rental values exceeding ₹10 lakh, while commercial toll-tax concessions and mining leases remain entirely outside the purview of this exemption.
“The concession will not apply to toll and mining leases,” Gupta told the newspaper.
The revised structure: How much will it now cost to register a rental agreement?
Under the revised structure, registering a one-year rental agreement for a property with annual rent of up to ₹2 lakh will cost ₹2,000 — comprising ₹1,000 in stamp duty and ₹1,000 in registration fees. This is significantly lower than the earlier cumulative cost of ₹10,000.
For a 10-year lease with an average annual rent of up to ₹10 lakh, the registration cost will fall from ₹20 lakh to ₹26,000, offering a reduction of nearly 90%, media reports said.
Why was the move necessary?
Before the revision, high registration costs often discouraged landlords and tenants from formally registering rental agreements. Many instead relied on unregistered ₹100 notarial stamp papers, which could leave them without the same legal protection in eviction and tenancy disputes, potentially leading to prolonged police or court proceedings.
Also Read: Women homebuyers in Uttar Pradesh to get 1% stamp duty relief on properties up to ₹1 crore
This is what legal experts have to say
The proposed amendment to the Uttar Pradesh Urban Premises Tenancy Regulation Act, 2021 seeks to protect the rights of both landlords and tenants by ensuring that tenancy disputes are dealt with by competent Rent Courts, following due process of law, rather than by police authorities who are not equipped to adjudicate civil disputes, Aradhana Bhansali, Senior Partner, Rajani Associates, told Hindustan Times Real Estate.
It is akin to Section 55 of the Maharashtra Rent Control Act, which makes registration of leave and licence agreements compulsory and makes the landlord responsible for registration of the agreement, she said.
“Reducing and capping stamp duty and registration fees will facilitate formal lease transactions, strengthen the rights of parties, and encourage the parties to go for registration. This will bring greater transparency and enable disputes to be effectively resolved through the appropriate judicial mechanism.” she added.
