Stamp Duty On Rent Agreement

In addition to the mandatory obligation to register a rental agreement, it is also an important aspect in a lease-tenant relationship. Not only does it facilitate relations between the parties, but it also preserves their interests. The landlord and tenant must never compromise for an oral contract, which is not protected by law, and should therefore always rely on the application of a written agreement. Stamp duty must be paid in accordance with section 3 of the Indian Stamp Act, 1899. It is a tax that is paid to the government, much like income tax. Stamp duty must be paid in full and paid on time. If the payment of stamp duty is delayed, a fine is applied. A stamp duty payment instrument or document is considered a legitimate and legal document and can be admitted as evidence in court. Any document that is not properly stamped cannot be admitted as evidence in court. In UP, 2% of the rent + deposit is the registration fee. If a document is not registered, it is never considered primary evidence. Instead, it is accepted as collateral evidence. Section 52 of the Indian Easements Act of 1882 defines leave and licence agreements.

This section states: « If a person grants another or a number of other persons the right to do or continue to do something in or on the licensor`s immovable property, which would be unlawful without such a right, and that right does not constitute an easement or interest in the property, the right is called a license. As far as the tax is concerned, you are either responsible or not responsible. They can only be required to pay stamp duty on rental and lease contracts at the rate prescribed by the applicable law, in this case the Stamp Duty Act. It is also telling to point out that Nigerian courts have repeatedly ruled that a person cannot be taxed unless the language of the law clearly imposes the obligation[2]. In Maharashtra, holiday and licensing contracts must be stamped with a flat stamp duty rate of 0.25% of the total rent for the period. If a non-refundable deposit is also paid to the lessor, stamp duty is also levied on these non-refundable deposits. The registration fee for a lease in Maharashtra depends on the location of the rented property. The registration fee is Rs 1,000 if the property is located under a communal territory and it is Rs 500, if it is the same in a rural area. In the absence of an agreement to the contrary, the costs of stamp duty and registration are the responsibility of the tenant. In recent days, there has been a lot of controversy and misunderstanding from many sides about the stamp duty to be paid on leases/leases…

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