In a move set to benefit both tenants and landlords across Uttar Pradesh, the state government is preparing to slash stamp duty and registration fees on rent agreements. The reform aims to promote formal rental contracts, reduce legal disputes, and make renting homes easier and more transparent.
The initiative will also be supported by a new Aadhaar-based online registration system, allowing people to create, sign, and register rent agreements digitally—without having to visit sub-registrar offices. The platform will be linked with the state’s property registration portal to simplify the process for all parties involved.
According to officials from the Department of Stamps and Registration, a detailed proposal outlining the new fee structure has already been submitted to the state cabinet for final approval.
At present, rent agreements for a one-year term with an annual rent value of up to ₹2 lakh attract a 4% stamp duty — comprising 2% base duty and 2% additional duty — costing nearly ₹8,000. Once the new policy takes effect, the amount will drop drastically to a flat ₹500.
Similarly, rent agreements with annual rent between ₹2 lakh and ₹6 lakh will see duty charges fall from around ₹24,000 to ₹1,500, while those between ₹6 lakh and ₹10 lakh will come down to ₹2,500.
The registration fee is also being rationalised. It currently stands at 1% of the rental value but will soon be fixed at:
- ₹500 for rent up to ₹2 lakh,
- ₹1,500 for rent between ₹2 lakh and ₹6 lakh,
- ₹2,500 for rent between ₹6 lakh and ₹10 lakh.
Online Rent Agreement Registration Soon
The department is finalising an Aadhaar-based software platform that will allow both landlords and tenants to draft, verify, and register agreements digitally. “This system will help eliminate corruption, save time, and make the entire process paperless,” a senior official explained.
Once operational, tenants and property owners will be able to log in, fill out details, digitally sign the document, and get it registered online—bringing an end to long queues and physical verification at sub-registrar offices.
Formalising the Rental Market
The move is being seen as a step toward formalising Uttar Pradesh’s largely unorganised rental housing sector, where most contracts remain unregistered. High stamp duties and cumbersome paperwork have long discouraged people from formalising tenancy arrangements.
To avoid these costs, landlords and tenants often opt for 11-month agreements, which are not legally enforceable under the Registration Act. As a result, disputes between parties often remain unresolved in court.
In the financial year 2024–25, the state recorded only about 36,000 registered rent agreements for terms of up to 10 years — a figure far below the actual number of rental deals happening across cities such as Lucknow, Noida, Ghaziabad, and Kanpur.
Officials believe that the new system and reduced charges will lead to a significant increase in registrations. “With the fees dropping to nominal levels, more people will prefer to register their rental contracts legally,” an official said.
Also Read
Under existing laws, rent agreements in Uttar Pradesh can be executed for periods extending up to 30 years. Currently, stamp duty for agreements up to 30 years is based on annual rent value, while those exceeding 30 years are calculated based on the land value—making long-term leases highly expensive.
As per the new proposal, the rationalised duty structure will initially apply to agreements of up to 10 years. The government may later consider extending similar benefits to longer-term leases to encourage stability in the rental market.
Also Read
While reducing duty rates might appear to lower government income, officials argue that the reform will broaden the revenue base by bringing more rental transactions under the legal framework. The increase in registrations will likely offset the drop in per-agreement charges.
Experts say the measure will bring more transparency and accountability into the state’s rental ecosystem. With every agreement digitally verified and officially registered, disputes will be easier to resolve, protecting the interests of both landlords and tenants.
The government also expects the new system to enhance trust and ease of doing business in the real estate sector, particularly in urban areas with a high volume of rental housing.
