Huge relief for tenants and landlords: THIS state cuts stamp duty, registration fees for 10-year tenancy agreements

The Uttar Pradesh government has approved a major reduction in stamp duty and registration fees for rental agreements lasting up to ten years. Chief Minister Yogi Adityanath’s cabinet cleared the new rates, which are expected to make tenancy agreements more affordable and encourage proper documentation.

Under the revised structure, rental agreements with an average annual rent of up to Rs 2 lakh will now attract stamp duty and registration charges between Rs 500 and Rs 2,000. For rents between Rs 2,00,001 and Rs 6,00,000, the fees will range from Rs 1,500 to Rs 7,500. Agreements with annual rents between Rs 6,00,001 and Rs 10,00,000 will be charged Rs 2,500 to Rs 10,000.

The government believes the move will help reduce disputes and ensure smoother implementation of the Tenancy Regulation Act by motivating both landlords and tenants to register written agreements.

UP Finance Minister Suresh Khanna said most tenancy agreements today are verbal, even though any agreement longer than one year must legally be registered. He added that written agreements are also often not registered, and such cases usually come to light during inspections by departments like GST or power authorities, leading to recovery of pending stamp duty. “Even if a deed is registered, the correct stamp duty must still be paid,” he noted.

According to the state government, high costs discourage people from formalizing rent agreements. To address this, the government has introduced standard tenancy documents and lowered fees, especially for long-term leases of up to ten years. The new system also sets a cap on stamp duty and registration charges. The average annual rent used for calculating the fee will be limited to Rs 10 lakh. Mining and toll-related leases have been excluded to prevent revenue losses.

Ravindra Jaiswal, Minister of State for Stamp and Registration (Independent Charge), said the new structure sets clear maximum limits based on rent and lease duration. “People will benefit immediately, as they can now register rental agreements easily without paying very high stamp duty,” he said.