Lucknow. The Uttar Pradesh government has taken a big decision to promote tenancy contracts. The government has reduced stamp duty and registration fees by up to 90 percent, due to which tenancy contracts for houses, shops and restaurants can now be registered very cheaply.
Earlier, four percent stamp duty had to be paid on a one-year tenancy contract, which had become a burden for many people. Due to this, most of the landlords and tenants did not register their contracts, which also increased the chances of disputes.
Now after this decision, for example, on a five-year contract, earlier about Rs 30,000 had to be paid as stamp and registration fee, it will be reduced to only Rs 3,000. Similarly, in a 10 year contract, instead of Rs 40 thousand, only Rs 4 thousand will have to be paid. Now the stamp duty will be only ten percent for contracts with annual rent of Rs 2 to 6 lakh.
Officials say that this decision will increase the number of tenancy contracts. This step of the government will help in reducing tenancy disputes and increase revenue. Now landlords and tenants will be able to register their contracts without any financial burden, which will also increase transparency in contracts.
Let us tell you that this decision of the Uttar Pradesh government has been taken specifically with the aim that more and more people should register their tenancy contracts and not only their rights are protected, but the government also benefits in revenue.
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