UP offers big relief on stamp duty for lease deeds. What is the new rate?

State Finance Minister Suresh Khanna on Friday said the current rules require the registration of tenancy deeds for a period longer than one year. But most lease agreements are oral, or even if written, they are not registered and are usually discovered by agencies like the GST and the electricity departments during inspections, he said.

“The government is of the view that people avoid drafting and registering deeds if the fees are high. Therefore, it was felt necessary to provide comprehensive fee exemptions to promote standard tenancy deeds and formalise rental agreements for a period up to 10 years. Under this system, the maximum stamp duty and maximum registration fees on tenancy deeds are now fixed,” the minister informed.

Under the new norms, the maximum limit for determining the average annual rent has been set at Rs 10 lakh but leases related to toll and mining have been excluded from exemption to avoid revenue losses.

“Under the new system, maximum stamp duty and registration fees have been capped. These limits will be based on the tenancy period and average annual rent. This will directly benefit the general public, as the burden of paying high stamp duty on tenancy deeds will no longer be felt, and people will be able to register their properties more easily,” said Minister of State (Independent Charge) for Stamps and Registration Ravindra Jaiswal.

The maximum stamp duty and registration fees have been set as Rs 500 for period up to one year, Rs 1500 for 1-5 years, and Rs 2000 for 5-10 years for average annual rent up to Rs 2 lakh; Rs 1,500 for period up to one year, Rs 4,500 for 1 to 5 years and Rs 7500 for 5 to 10 years for average annual rent from Rs 2,00,001 to Rs 6 lakh; and Rs 2,500 for up to one year, Rs 6,000 for 1-5 years and Rs 10,000 for 5-10 years for average annual rent between Rs 6,00,001 to Rs 10 lakh.