Guide · Renting

Rent agreement registration and stamp duty in India

When a rent agreement must be registered, what the 11-month practice rests on, and how stamp duty on rent works in Maharashtra and other states.

In short

Registration of a rent agreement in India depends on the term under the central Registration Act, 1908, and on your state’s own rent and stamp laws. Under section 17(1)(d) of that Act, a lease for a term exceeding one year, or one reserving a yearly rent, must be registered. Some states go further: in Maharashtra, section 55 of the Rent Control Act, 1999 requires every leave and licence or letting agreement to be in writing and registered, whatever its length. Stamp duty is a state subject and is never the same from one state to the next.

What the central law says

The Registration Act, 1908 applies across India, but states can amend it. In the copy I read (hosted by the Kerala Registration Department, so it may carry Kerala’s amendments), section 17(1)(d) lists “leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent” among documents that must be registered. Section 18(c) lets leases “for any term not exceeding one year” be registered voluntarily. Section 23 says a document must be presented to the proper officer within four months of its execution. A proviso lets a State Government exempt, by notification, some very small leases (term up to five years and annual rent up to fifty rupees).

Where the “11 months” practice comes from

An 11-month agreement stays under the one-year line of section 17(1)(d). That is a convention built on the central Act, not a rule in itself, and it does not bind the states. Two published texts show the difference:

  • Maharashtra: section 55 of the Maharashtra Rent Control Act, 1999 applies “notwithstanding anything contained in this Act or any other law”, so an 11-month leave and licence agreement still has to be registered.
  • Dadra and Nagar Haveli and Daman and Diu: section 4(2) of the 2023 Tenancy Regulation sets the registration line at eleven months: a term that “exceeds eleven months” must be registered under the Registration Act.

If you rely on “11 months, no registration”, check that your state’s tenancy and stamp laws do not say otherwise.

The states compared

State or territoryRegistration of a rent agreementStamp duty basis, from the text I read
Central rule (Registration Act, 1908)Compulsory above one year, or if a yearly rent is reserved (s. 17(1)(d))Not set by this Act: duty is a state matter
MaharashtraCompulsory for every leave and licence or letting (Rent Control Act, s. 55)Article 36A: 0.25% of rent plus deposit element, for terms up to 60 months
Dadra and Nagar Haveli and Daman and DiuCompulsory above eleven months (Regulation, s. 4(2)); the agreement is also reported to the Rent AuthorityNot read
Uttar PradeshNot readSchedule scales duty on a multiple of average annual rent: three times for terms over one year to five years, four times over five to ten, and so on
Delhi, Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat, HaryanaOfficial pages could not be read on 14 October 2026Check the state’s stamp and registration portal
Chandigarh, Odisha, PuducherryNot readLease rows are in the Chandigarh, Odisha and Puducherry guides
KeralaNot readThe sheet read for the Kerala guide gives sale, gift, partition and power of attorney rates; check the state’s portal for leases

The Uttar Pradesh schedule I read is posted without a date. Treat it as the structure of the duty, and confirm the rate on the department’s current notice before you pay.

Maharashtra: leave and licence in detail

Most Mumbai and Pune rentals are leave and licence agreements. Article 36A of the Maharashtra Stamp Act (text as on 1 January 2022) sets duty at 0.25 per cent of the total of:

  1. the licence fees or rent payable under the agreement, plus
  2. any non-refundable deposit or premium, plus
  3. interest at 10 per cent per annum on any refundable security deposit.

This applies where the agreement runs for 60 months or less, with or without a renewal clause. Above 60 months, the duty is the same as for a lease under Article 36.

Calculation, using the Article 36A formula: a 12-month agreement at ₹50,000 a month with a refundable deposit of ₹3,00,000. Rent is ₹6,00,000; notional interest on the deposit is 10% of ₹3,00,000, that is ₹30,000; the total is ₹6,30,000; 0.25% of that is ₹1,575. The figures are mine, to show the method. The Act text is dated 1 January 2022, so check the department’s current schedule for later amendments, and ask the sub-registrar for the registration fee, which I could not read.

Section 55(2) puts the duty to register on the landlord. Without a written registered agreement, “the contention of the tenant” about the terms prevails “unless proved otherwise”, and a landlord who contravenes the section can be punished with up to three months’ imprisonment, a fine of up to ₹5,000, or both (s. 55(3)).

Steps in practice

  1. Draft the agreement in writing: parties, address, term, rent, deposit, notice period.
  2. Pay the stamp duty your state requires, by the method your state’s registration department publishes.
  3. Both parties sign, and the document is presented to the sub-registrar within four months of execution (s. 23).
  4. Keep the registered copy: it is the document you will produce in a dispute.

What it costs

Two charges: stamp duty and a registration fee, both set by the state. In Maharashtra, the stamp duty formula is above. For other states, use the state’s own calculator or ask the sub-registrar. The sources I read do not say who bears the cost: that is for landlord and tenant to agree, unless your state says otherwise (Maharashtra puts the duty of getting the agreement registered on the landlord).

Which professional to consult

A property lawyer (advocate) enrolled with the State Bar Council can draft the agreement and tell you what your state requires. The sub-registrar’s office can tell you the fee schedule and the documents it asks for. For the duty on a purchase, see stamp duty in Maharashtra.

Frequently asked questions

Is an unregistered 11-month rent agreement valid?

Under the central Act, a lease of up to one year is not compulsorily registrable. In Maharashtra, however, section 55 requires registration of every such agreement, and the tenant’s version of the terms prevails if there is none.

Who pays for registration, landlord or tenant?

The sources I read do not fix a split. In Maharashtra the legal responsibility to get the agreement registered lies on the landlord; the cost is for the parties to agree.

Can I register a rent agreement from abroad?

Registration needs the parties or an authorised representative before the sub-registrar. A power of attorney executed abroad has its own steps: see NRI power of attorney from abroad.

Does a registered agreement change the tax on rent?

No. Tax on rent is a separate matter: see TDS on rent and the rules on deposits and rent.

Is there a national rent law?

No. Tenancy is governed by state laws. A central model exists, which states may adopt: see the Model Tenancy Act.

More guides on renting

Sources

All guides · Payotte India