In a landmark decision aimed at providing significant financial relief to the common citizen, the Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved a massive reduction in fees for registering ancestral property and stamp duty on rent agreements. The decisions were taken during a cabinet meeting held on Monday, January 6, 2025.
Major Relief in Ancestral Property Registration
The most impactful announcement pertains to the registration of ancestral property. The cabinet has approved a proposal to fix a nominal, one-time fee of just Rs 10,000 for the registration of ancestral property, regardless of its market value. This move is set to benefit countless families across the state who have been hesitant to formally register inherited properties due to the prohibitively high costs involved.
Previously, the stamp duty and registration fees for such properties were calculated as a percentage of the circle rate or market value, often running into lakhs of rupees for even modest homes. This steep cost acted as a major deterrent, leaving many properties unregistered and creating legal ambiguities. The new flat rate of Rs 10,000 simplifies the process dramatically and makes it accessible to a much wider population.
Rent Agreements Become Far More Affordable
In another major pro-people reform, the Yogi Adityanath government has slashed the stamp duty on rent agreements. The cabinet has decided to reduce this duty by a staggering 90 percent. This drastic cut is expected to encourage lakhs of tenants and landlords to formalize their rental arrangements through legally registered agreements.
The high cost of stamp duty on rent agreements was often cited as a reason for the prevalence of informal, unregistered rental deals, which left both parties vulnerable to disputes and lacking legal recourse. By making the process almost ten times cheaper, the government aims to bring a large segment of the informal rental market into the formal, legal framework, ensuring better protection for all involved.
Implications and Expected Benefits
These cabinet decisions are being hailed as transformative steps for property governance in Uttar Pradesh. The reduction in ancestral property registration fees is expected to lead to a surge in property registrations, which will help in creating a more transparent and clear record of ownership. This will, in turn, reduce property-related litigation and disputes within families over inheritance.
The massive cut in rent agreement stamp duty is poised to revolutionize the rental housing market. It will promote rental housing as a more formal and secure option, potentially increasing the supply of rental properties as landlords feel more secure with registered agreements. For migrants, students, and working professionals, this means easier access to legally sound rental accommodations without a heavy financial burden.
These reforms align with the state government's broader vision of ease of living and doing business. By simplifying legal procedures and reducing associated costs, the government is removing bureaucratic and financial hurdles that affect the daily lives of ordinary people. The decisions are also expected to boost revenue in the long term by increasing the volume of transactions in the formal sector due to higher compliance.
The implementation of these new rates is expected to begin soon after the formal notification process is completed. Citizens are advised to contact their local tehsil or registration offices for the exact date of implementation and the detailed procedure to avail of these new, highly subsidized rates for property and rent agreement registration.
