LUCKNOW: The stamp and registration department is introducing substantial concessions on stamp fees for rent agreements up to 10 years, simplifying the registration process.
The cabinet approved this proposal on Friday. Currently, registration exists, but many landlords and tenants skip it due to high costs. Agreements that remain unregistered lack legal validity under the UP Regulation of Urban Premises Tenancy Act, making them prone to disputes.
Finance Minister Suresh Khanna noted that while current regulations require registration for tenancy deeds over one year, most are either verbal agreements or, when written, remain unregistered. “These situations often arise during audits by departments like GST and electricity, resulting in recovery measures for unpaid stamp duties. It is also essential to remit the correct stamp duty on lease deeds, registered or not,” he stated.
Minister for Stamp and Registration, Ravindra Jaiswal, mentioned that the high stamp duty often deters individuals from preparing and registering lease deeds, leading to the provision of broad exemptions. “Under this new framework, the maximum fees for tenancy deeds will not surpass the designated limits. A cap of Rs 10 lakh has been established for calculating average annual rent. To avoid revenue loss, toll-related and mining leases are excluded from this exemption,” he added.
With these new regulations, the cap for stamp duties and registration fees will be clearly defined across various categories based on tenancy length and average annual rent. This decision aims to relieve the public from the financial strain of stamp duty and facilitate the registration process.
