But if Ashok first made the deal by paying the right stamp duty, he should have paid only rule 1860/- Case II: There may be another situation where the signed contract will last three years and the rent will be increased by 10% per year. In this case, the “average” annual rent of three years is the annual rent for the second year, since stamp duty is calculated on the average annual rent and not on the annual rent of the first year. If a property is rented for 24 months with a monthly rent of Rs20,000 for the first 12 months and 22,000 Rs. per month for the next 12 months. The registration fee of this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21,000, average annual rent is 21000 – 12 and 2% is Rs5,040). What the tenant does not know is that the short duration of the contract works to his advantage. Try this, if the agreement was only a month older, it would have to pay more money than stamp duty for the registration of the document. To register a rental agreement, the lessor is required to provide the following documents: For example, if you have made the lease on paper 10/e-Stamp and you go to the Court of Justice for challenge, the court can ask for the fine up to 10 times the amount of tax on stamps to be paid. Delhi has many popular residential areas like Mayur Vihar, Dwarka, Chanakya Puri, Noida, Civil Lines, etc houses are in high demand. When setting up the lease, it is very important to include certain important clauses in the contract. Some important clauses that should be included in leases or leases are listed below: most leases are signed for 11 months in order to avoid stamp duty and other fees.
Under the Registration Act of 1908, registration of a lease is mandatory if the tenancy period is more than 12 months. If an agreement is registered, stamp duty and registration tax must be paid. For example, in Delhi, for a lease of up to five years, stamp paper costs 2% of the total annual rent of one year. Add a flat fee of Rs100 if a security deposit is part of the agreement. For a lease of more than 5 years but less than 10 years, it represents 3% of the value of the average annual rent for a year. For 10 years and more, but less than 20 years, it is 6% of the value of the average annual rent of a year. The stamp paper may be in the name of the tenant or landlord. In addition, a flat-rate registration fee of EUR 1,100 million must be paid by the draft application (DD).
Most residential leases expire after an 11-month period. This is only to circumvent the payment of a higher stamp duty. If the term of a lease is one year or more, the contract must be registered with the court and a higher stamp duty must be paid. When the tenant, who works at a Delhi University (DU), was surprised at the odd validity of the lease, Aggarwal shrugged and said, “That`s the norm.” Under Section 49 of the Registration Act, all leases must be registered with the sub-registry office for a period of 11 months. On the other hand, it is not mandatory to register a rental contract of less than 11 months. In the case of a 5 to 10 year lease, stamps must be purchased for 5% of the total annual rent. For the 10 to 20 year rental period, 5 per cent of the double annual rental value must be paid. If the agreement contains a security deposit, add Rs100 and Rs1.100 as a registration fee, bringing the total cost to Rs 6,240.