U.P. govt to push rent agreement registration with lower stamp duty
According to government sources, rent agreements exceeding a year will attract a minimum stamp duty of ₹500 and a maximum of ₹20,000.
The Uttar Pradesh government is set to lower stamp duty on rent agreements to encourage property owners to get them legally registered, similar to property registrations. The move is expected to safeguard property rights, reduce owner-tenant disputes, and increase government revenue.
Currently, most rent agreements are executed on ₹100 stamp paper, which holds no legal validity. To address this, the government will soon present a proposal in the state cabinet to revise stamp duty rates for rent agreement registration.
According to government sources, rent agreements exceeding a year will attract a minimum stamp duty of ₹500 and a maximum of ₹20,000. The conditions outlined in these agreements will be legally enforceable in court.
Ravindra Jaiswal, minister for Stamp and Court Fee, stated that registered rent agreements would help resolve owner-tenant conflicts and protect the interests of both parties. “Only conditions laid down in a registered rent agreement will be valid in court,” he added.
Senior high court advocate Gyan Singh Chauhan noted that many people avoid registering rent agreements due to high stamp duty.
Under the new plan, the government proposes a 2% stamp duty on one-year rental agreements. For annual rents of ₹2 lakh, the stamp duty will be ₹500, while for ₹5 lakh, it will be ₹5,000. On annual rents of ₹1 crore or more, the stamp duty will be ₹20,000.
“Making rent agreement registration mandatory will drastically reduce tenancy disputes and ensure legal protection for both landlords and tenants,” Chauhan said.
At present, only around 85,000 rent agreements are registered in the state, while several lakh properties are rented out, said Chauhan. Once approved by the state cabinet, the new stamp duty structure will be implemented.
