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The Uttar Pradesh government has approved a sharp reduction of up to 90% in stamp duty and registration charges for rent agreements. The decision, cleared by the state Cabinet, aims to encourage formal registration of rental contracts and reduce disputes arising from informal agreements. The revised structure replaces percentage-based charges with lower fixed fees linked to rent value and agreement tenure. By making registration more affordable, the state expects higher compliance, improved legal clarity for landlords and tenants, and better regulation of the rental housing market.
The Uttar Pradesh Cabinet has approved a major cut in stamp duty and registration charges on rent agreements, reducing the overall cost by up to 90%. The decision was taken to address the long-standing issue of low registration of tenancy agreements due to high costs and procedural complexity. The policy change applies to residential rent agreements across different rent slabs and tenure periods. Advertisement
Earlier, rent agreements attracted stamp duty calculated as a percentage of annual rent, along with registration and development charges. This often resulted in a significant financial burden, especially for agreements extending beyond 11 months. As a result, many landlords and tenants opted for unregistered or short-term agreements, limiting legal protection for both parties.
Under the revised framework, the government has introduced a simplified fee structure with substantially lower, fixed charges based on the rental value and duration of the agreement. This shift reduces dependence on percentage-based calculations and makes the cost predictable and affordable. Officials stated that the new rates are intended to make formal registration a practical choice rather than an added expense.
The move is expected to strengthen legal enforceability of rent agreements. Registered agreements provide clearer rights and obligations, helping reduce disputes related to eviction, rent recovery, and tenure. The reform also supports better record-keeping and transparency within the state's property and housing administration systems.
In the past, Uttar Pradesh has taken similar steps to streamline property-related registrations, including measures to simplify land and inheritance-related documentation. The latest decision aligns with those efforts and focuses specifically on improving compliance in the rental housing segment, which has remained largely informal despite growing urbanisation and demand for rental homes.
Source PTI
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