UP Government Caps Stamp Duty on Rent Agreements and Lease Deeds for Up to 10 Years
Uttar Pradesh has introduced capped stamp duty rates for eligible rent and lease agreements with average annual rent up to ₹10 lakh, aiming to reduce registration costs for landlords and tenants.
- Stamp duty is capped at ₹1,000 to ₹13,000 for eligible leases, depending on rent and tenure.
- The revised slabs cover lease periods of up to 10 years and average annual rent up to ₹10 lakh.
- Toll leases and mining leases are excluded from the stamp duty remission.
The Uttar Pradesh government has announced revised stamp duty limits for eligible lease deeds and rent agreements, offering potential cost savings for landlords and tenants across the state. According to a government notification dated October 12, 2026, the revised rates introduce maximum stamp duty amounts based on average annual rent and the duration of a lease. The changes are intended to make eligible rental arrangements more affordable to formalise and register.
The notification, issued by the Stamp and Registration Department under reference number 13/2026/1382/94-2-2026-700(62)/2023, provides capped rates for leases with average annual rent of up to ₹10 lakh and terms extending to 10 years. The government has exercised its powers under Section 9(1)(a) of the Indian Stamp Act, 1899, to remit stamp duty payable under Article 35 of Schedule I-B beyond the specified limits. The revised provisions take effect from the date of publication in the Official Gazette.
Under the revised framework, the maximum stamp duty payable depends on two factors: the average annual rent and the lease duration.
| Average annual rent | Up to 1 year | Over 1 to 5 years | Over 5 to 10 years |
|---|---|---|---|
| Up to ₹2 lakh | ₹1,000 | ₹2,000 | ₹4,000 |
| ₹2,00,001–₹6 lakh | ₹3,000 | ₹6,000 | ₹8,000 |
| ₹6,00,001–₹10 lakh | ₹4,500 | ₹10,000 | ₹13,000 |
These amounts represent the prescribed maximum stamp duty under the notified remission scheme for eligible leases. The applicable amount depends on the rent category and the length of the agreement.
For example, an eligible lease with average annual rent of ₹5 lakh and a tenure of three years would fall under the second slab, with stamp duty capped at ₹6,000 under the notification.
What Happens to Leases With Annual Rent Above ₹10 Lakh?
The government has also specified a separate calculation method for leases where average annual rent exceeds ₹10 lakh.
Under this arrangement, the prescribed capped duty for the first ₹10 lakh of average annual rent will be applied according to the relevant tenure slab. Stamp duty on the amount exceeding ₹10 lakh will then be calculated using the standard rates prescribed under the relevant provisions of Article 35 of Schedule I-B.
The final stamp duty payable will be the combined amount of the capped duty and the additional duty calculated on the excess rent. Therefore, leases exceeding the ₹10 lakh threshold will not necessarily qualify for the same overall savings as agreements falling entirely within the capped slabs.
Toll and Mining Leases Excluded From the Benefit
The notification explicitly excludes toll leases and mining leases from the stamp duty remission. These agreements will continue to be governed by the applicable provisions and rates.
To implement the revised rules, copies of the directive have been circulated to the Inspector General of Registration and Commissioner of Stamps, divisional commissioners, district magistrates and sub-registrar offices across Uttar Pradesh. The communication is intended to ensure that registration authorities apply the revised provisions.
How the New Rules Could Affect Landlords and Tenants
The revised limits could reduce the upfront cost of formalising eligible rental arrangements, particularly for residential properties and smaller commercial premises. Lower stamp duty may encourage more landlords and tenants to execute properly documented lease agreements instead of relying on informal arrangements.
Formal agreements can help establish the terms of tenancy, including rent, duration, security deposits and the responsibilities of each party. Proper documentation may also help reduce disputes by providing a clearer record of the agreed conditions.
However, the actual savings will depend on the applicable rent slab, lease duration and the stamp duty that would otherwise have been payable. Stamp duty is also separate from any applicable registration fees or other charges.
What Should Landlords and Tenants Do Next?
Landlords, tenants and businesses entering into lease agreements in Uttar Pradesh should check whether their agreement qualifies for the revised stamp duty limits. They should also confirm the effective date against the Official Gazette notification and seek clarification from the relevant sub-registrar where necessary.
For leases with annual rent above ₹10 lakh, parties should obtain a calculation based on the standard rates applicable to the excess amount. Confirming the correct duty before executing the agreement can help prevent registration delays and unexpected costs.
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