UP Rent Agreement Act: The Uttar Pradesh government is now going to make a new rule to improve the security of property. Under this, registration of rent agreement will now be promoted.
This simply means that a legal document will be made for those who take a house on rent, which will protect their rights. This proposal will soon be placed before the government. The government wants more and more people to get the rent agreement registered, so it has been recommended to keep the stamp duty i.e. the cost of registration low.
Stamp duty will have to be paid from Rs 500 to Rs 20000
For a one-year rent agreement, stamp duty will range from Rs 500 to Rs 20,000. This will make things easier for people and will also reduce property-related disputes. Stamp and Registration Minister Ravindra Jaiswal said that registration of the rent agreement will reduce disputes between the landlord and the tenant. Also, the property given on rent will also be safe. Currently, stamp duty is charged according to the rent and for how long it has been given.
If the lease agreement is registered, the interests of both the parties will be protected
. If the lease agreement is registered, the interests of both the parties will be protected. After registration, the terms and conditions of the agreement will be legally recognized. This means that if there is any dispute, the decision will be made according to the terms and conditions of the agreement. Currently, most people do not get a rent agreement done because the stamp duty or expense in getting it registered is very high. People usually sign the agreement on a stamp paper of Rs. 100, which has no legal meaning.
Only 86000 people have registered their rent agreement.
The data of the last one year shows that only 86000 people have registered their rent agreement, whereas lakhs of people give their houses and properties on rent every year. This means that most of the people are taking or giving houses on rent without any legal protection. According to the new rule, an online portal will be made for making rent agreement. There will be a fixed format on this portal. You can download and print that form or save it in your computer. By affixing a stamp on the concerned form, it will get legal recognition.
After this, that agreement will be considered legally valid. After that, both the landlord and the tenant can present their claims according to the things written in that agreement. That is, if there is any dispute, then that agreement can be used as evidence. Under the proposed new Agreement Act, 2% stamp duty will be charged on the rent amount for a rent agreement of up to one year. Along with this, a list of stamp duty for different rent amounts is also being prepared.
A stamp duty of Rs 500 will be levied on annual rent up to Rs 2 lakh. A stamp duty of Rs 5000 will be levied on annual rent up to Rs 5 lakh and a stamp duty of Rs 20000 will be levied on annual rent up to Rs 1 crore. This simply means that now if you are taking a house on low rent, then you will have to pay less stamp duty. This will make it easier for people to get a rent agreement and their rights will be legally protected.
What is the rule now?
Under the current rule, if you register a rent agreement in the state, you have to pay stamp duty based on the average annual rent. Stamp duty is 2 percent in rural areas and 4 percent in urban areas. That is, if the rent of your house is two lakhs, then stamp duty of up to Rs 8000 is charged. But according to the new rule, only Rs 500 stamp duty will have to be paid on it. Due to the high stamp duty imposed in the current rule, in most cases the tenant and the landlord do not register the agreement. Last year, only 21,939 rent agreements with a period of one to 10 years were registered in the state.
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