The Uttar Pradesh government has revised stamp duty and registration charges for lease and rent agreements of up to 10 years, providing relief to landlords and tenants. According to reports from Zee News, the revised rates are based on annual rent and the duration of the agreement, with the Cabinet approving the new framework to encourage formal contract registration. The move is aimed at making formal rental agreements more affordable and encouraging landlords and tenants to register their contracts instead of relying on informal arrangements.
The new structure applies across three tenure categories: up to one year, exceeding one year and up to five years, and more than five years and up to 10 years. As reported by Zee News, for tenures up to one year, agreements with average annual rents up to ₹2 lakh will have stamp duty of ₹1,000, while those between ₹2 lakh and ₹6 lakh will have ₹3,000 stamp duty. For tenures from one to five years, agreements with rents up to ₹2 lakh will have ₹2,000 stamp duty, between ₹2 lakh and ₹6 lakh will have ₹6,000, and above ₹6 lakh will have ₹10,000. For tenures from five to ten years, stamp duties range from ₹4,000 to ₹13,000 depending on the rent amount. The registration fee will be equal to the stamp duty for each slab.
The difference becomes particularly significant in long-term leases. For a 10-year lease with average annual rent of up to ₹10 lakh, the registration cost is set to fall from ₹20 lakh under the earlier structure to ₹26,000 under the revised structure. A one-year agreement for a property with annual rent up to ₹2 lakh will now require ₹2,000 total (₹1,000 stamp duty + ₹1,000 registration fee), compared with the earlier cumulative cost of ₹10,000. According to NDTV, Principal Secretary, Stamp and Registration, Amit Gupta noted that many such agreements have remained unregistered despite mandatory requirements, which could expose landlords and tenants to legal and financial complications when disputes arise.
According to the revised framework reported by Zee News, if annual rent exceeds ₹10 lakh, the concession applies to the first ₹10 lakh. For amounts above the threshold, existing rates will be applicable. The concession does not cover toll-related and mining leases. Earlier, some landlords and tenants opted for relatively inexpensive notarial arrangements instead of registering their agreements, but such informal documentation may not offer the same legal protection in tenancy or eviction disputes.
The revamped structure seeks to make formal registration more affordable, encouraging more people to register leases. The move aims to boost implementation of the Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021, providing formal documentation of tenancy terms including rent, tenure, and conditions to resolve disputes. Shorab Upadhyay, Managing Director, TRG Group, told NDTV that lower costs could encourage more landlords and tenants to formalise their rental arrangements, stating that "lower transaction costs can encourage more landlords and tenants to document their agreements through proper registration, bringing greater clarity to rental relationships." Ashok Nehlia, Founder & CEO, Nehlia Developers, noted that the revised structure could make formal rental agreements more practical for both sides, with "greater incentive to move away from informal arrangements and establish clearly documented terms."
