- By Kamakshi Bishnoi
- Tue, 13 May 2025 11:26 AM (IST)
- Source:JND
The Uttar Pradesh government is set to make renting flats and houses more affordable and legally secure by drastically reducing the stamp duty on registered rent agreements. In a move aimed at encouraging more landlords and tenants to formalise tenancy agreements, the state is proposing new, nominal charges for registration based on the annual rent and duration of the contract.
As per the proposed rates, a one-year rent agreement with an annual rent of up to Rs 1 lakh will cost just Rs 500 to register. For properties with annual rent between Rs 1 lakh and Rs 3 lakh, the fee will be Rs 1,000, and for rents between Rs 3 lakh and Rs 6 lakh, the cost will be Rs 2,000.
Longer-term agreements will also see a reduction in charges. A five-year rent agreement will cost between Rs 1,500 and Rs 6,000 depending on the rent slab. For ten-year contracts, the registration fee will range from Rs 2,000 to Rs 8,000.
At present, landlords must pay a two per cent stamp duty on the average annual rent to register the agreement—an expense many avoid. As a result, most rent agreements are made informally for 11 months on a Rs 100 stamp paper. However, this lack of registration often leads to legal challenges, particularly for landlords who struggle with tenant disputes and end up dealing with the police or courts.
By reducing the cost of registration, the Yogi Adityanath-led government hopes to encourage more property owners to register tenancy contracts and take advantage of the protections offered under the new Rent Control Act. The Act ensures faster resolution of disputes and restricts tenants from seeking relief through civil courts or police if the agreement is registered.
Stamp and Registration Minister Ravindra Jaiswal confirmed that the proposal, prepared under the chief minister's direction, will be implemented soon after cabinet approval. He added that the government is also working to simplify the overall registration process to make it more accessible.
The move is expected to reduce court cases related to tenancy and offer a legal shield to both landlords and tenants through formal agreements at minimal cost.