In order to reduce the frequency of stamp duty, people used to pay a considerable amount as an interest-free deposit with the nominal rent. This gap has been filled and now, in cases where a refundable bond is recovered by the owner, a notional annual interest rate of 10 percent is charged to that interest-free deposit and you have to pay stamp duty at the same rate, on that interest for each year of the term of the license agreement. If you want to register the agreement in person, you can go through your broker if you have one. He/she will make an appointment at your sub-registrar office and prepare a standard lease agreement. You and your landlord can also do this here upon request. The great thing about signing up through a broker is that you have support every step of the way, especially when it comes to the necessary documents and fees you have to pay. In other words, you have to pay the broker a fee in exchange for these services. The following link can help with leave and licensing agreements. Ashok is the owner of a 2 bedroom house.

He rents it with a monthly rent of Rs. 8000/- to Mahesh for a period of 11 months. The deposit is Rs.50000/-. You make a lease for a 50 rupee stamp paper. It goes up to five months. Mahesh pays the rent for up to 5 months, then he stops paying the rent and refuses to move. Ashok immediately went to court. The Tribunal requisitioned the stamp duty agreement for the deficit paid and imposed the fine of up to 10 times the stamp duty to be paid. So what will be the fine Ashok will have to pay? Let`s do the math. 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.

But if Ashok initially made the deal by paying the correct stamp duty, he should only have paid Rs. 1860/- Therefore, it is still recommended that you pay the corresponding stamp duty and be relaxed. In accordance with article 49 of the Registration Act, all lease contracts for a period of eleven months must be registered with the office of the sub-registrar. On the other hand, it is not mandatory to register a lease with a duration of less than 11 months.