Uttar Pradesh has unveiled a new stamp‑duty rule that will set a flat Rs 1,000 fee on rental contracts where the yearly rent reaches ₹2 lakh, announced by Minister Ravindra Jaiswal today.
Under the existing regime, stamp duty and registration charges for tenancy agreements were calculated as roughly 4 % of the rent, based on four times the property’s circle rate. The calculation often pushed costs beyond a few thousand rupees, prompting many landlords and tenants to rely on verbal or unregistered tenancies.
“Low registration rates have been a long‑standing issue,” said Malav Virani, Partner at MDP Legal. “The flat Rs 1,000 fee is a pragmatic move that cuts through the cumbersome percentage model and makes formal agreements financially viable.”
The reform is intended to give tenants a stronger legal footing. With a registered agreement, a tenant can prove the agreed rent, tenancy dates, and other terms—critical evidence if a landlord attempts an unlawful eviction or disputes the rent.
Landlords stand to benefit as well. Proper documentation can help enforce lease terms, recover unpaid rent, or compel a tenant to vacate after a lease expires, thereby reducing litigation. Virani added that “a written, registered contract is the most reliable defence against arbitrary landlord actions.”
In a recent court case, an unregistered agreement left a tenant without proof of tenancy, leading to a contested eviction. The new rule aims to prevent such situations by making registration affordable for all parties.
The proposal will now be debated in the Uttar Pradesh Legislative Assembly, where lawmakers will decide whether to adopt the revised stamp‑duty framework.