The basic framework for stamp duty is defined in the Indian Stamp Act of 1899, which allows states to change the same rules according to their needs. As a result, the Maharashtra government passed the Bombay Stamp Act in 1958. The payment of stamp duty on leave and licensing agreements are covered by Section 36A of the Bombay Stamp Act of 1958. 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 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). If you. B enter into a leave and licence contract for 24 months, with a monthly rent of Rs 25,000 and a refundable deposit of five Lakhs, you must pay a stamp duty of Rs 1,750 (with 0.25% on the rental of Rs six Lakhs for two years and Rs a Lakh for two years).
Applicants can pay stamp duty and stamp duty online by generating a Challan voucher online. The calculation of stamp duty is usually calculated on the basis of certain indications to be mentioned when registering a property: a rental contract must clearly state the following clauses: in accordance with section 49 of the Registration Act, all leases must be registered at the headquarters of the sub-register for a period of 11 months. On the other hand, it is not mandatory to register a rental contract of less than 11 months. To avoid these fees, many landlords and tenants mutually agree not to register the agreements. If you want to register a rental agreement, tenants and landlords can agree to share their costs. In order to reduce the impact of stamp duty, people paid a substantial amount as an interest-free surety, as well as nominal rent. This gap has been filled and, in cases where a refundable deposit is recovered by the owner, a fictitious annual rate of 10% is set on an interest-free deposit and you must pay stamp duty at the same rate for each year of the term of the licence agreement. However, for Maharashtra, the law has been strengthened and, in accordance with section 55 of the Maharashtra Rent Control Act 1999, any lease or leave and licence agreement must be written and the same must be registered in a mandatory manner, regardless of the length of the lease. The formula for calculating stamp duty on the lease is 0.25% x D, of which D (monthly rental x number of months) — (pre-rent for the period/non-refundable down payment) — (10% x refundable deposit x number of years of contract).