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The Uttar Pradesh government has announced significant stamp duty and registration fee concessions for lease agreements up to ten years to encourage formal registration and reduce disputes. The cabinet cleared the proposal earlier this week. Many tenancy agreements remain unregistered due to high costs, leaving them legally vulnerable and open to recovery actions by authorities. The new provisions set a ceiling of INR 10 lakh for average annual rent in calculating stamp duty and exclude toll-related and mining leases. This move simplifies registration and ensures better legal compliance for landlords and tenants.
Uttar Pradesh's Stamp And Registration Department will now provide major relief on stamp duty for lease agreements lasting up to ten years. The cabinet approved the move earlier this week, aiming to encourage landlords and tenants to register agreements that are currently often left unregistered because of high costs. Under the UP Regulation of Urban Premises Tenancy Act, agreements over one year are legally required to be registered, yet many remain oral or unregistered written contracts. Unregistered agreements hold no legal value and often lead to disputes. Advertisement
Finance Minister Suresh Khanna highlighted that despite mandatory registration rules for tenancy deeds exceeding one year, most agreements remain unregistered. Such cases are usually discovered during audits by departments like GST and electricity, resulting in recovery of unpaid stamp duty. He stressed that correct stamp duty must be paid on lease deeds irrespective of registration status.
Stamp and Registration Minister Ravindra Jaiswal added that high stamp duty discouraged many from registering lease deeds. The new system sets clear maximum limits for stamp duty and registration fees, with a ceiling of INR?10?lakh for calculating average annual rent. Toll-related and mining leases are excluded to prevent revenue loss. The revised provisions clearly define duty across categories based on tenancy duration and rent, reducing the financial burden and simplifying registration for the public.
This move is expected to formalize rental agreements across the state, making them legally valid and reducing potential disputes. By lowering costs and providing a transparent framework, landlords and tenants now have a clear pathway to register agreements without excessive financial or procedural obstacles.
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