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The Uttar Pradesh government has introduced major relief for the retail and commercial sectors by capping stamp duty and registration fees on lease deeds. Industry bodies such as the Retailers Association of India (RAI) have long argued that high and unpredictable charges discouraged formal tenancy registrations. Under the revised system, fees will now be calculated based on tenancy duration and average annual rent, making costs more predictable and easier for businesses to plan. RAI welcomed the move, noting it aligns with long-standing industry recommendations. The initiative is expected to boost formal lease registrations, improve compliance, and support a more organised and transparent commercial rental market in the state.
The Government of Uttar Pradesh has introduced a significant relief for the retail and commercial sectors by capping stamp duty and registration fees on lease deeds. Retailers Association of India (RAI) and other industry groups have long highlighted that high and unpredictable stamp duty and registration fees act as a deterrent to formal tenancy registration. The new measures aim to address this concern and reduce costs for businesses. Advertisement
Under the revised system, the maximum stamp duty and registration fees will be calculated based on the tenancy period and average annual rent. This approach ensures that charges are predictable and proportionate, helping retailers plan their budgets more efficiently. The move is expected to encourage more businesses to register leases formally, strengthening legal compliance in the commercial rental market.
RAI welcomed the government's decision, noting that it aligns with the association's consistent recommendations to create a more supportive environment for India's retail and commercial sectors. By formalizing lease agreements and easing financial burdens, the policy could also promote greater investment in the state's retail infrastructure.
The initiative reflects a broader trend in India where states are seeking to simplify property-related processes and make commercial transactions more transparent. By standardizing charges for lease agreements, Uttar Pradesh aims to encourage a formal and organized rental market, which benefits both landlords and tenants.
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