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Stamp duty on lease deed

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Stamp duty on lease deed

Postby Pooja Soni » Mon Jun 23, 2008 7:49 pm


Lease deed is to be executed in Delhi. Rent is Rs. 50,000 p.m. The agreement will be on stamp paper of Rs. 100 or it will depend upon consideration?

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Re: Stamp duty on lease deed

Postby prakunna » Tue Jun 24, 2008 10:05 am

It is 2 % of the consideration. Find attached the stamp duty rates in Delhi
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Re: Stamp duty on lease deed

Postby sanjiv286 » Tue Jun 24, 2008 12:40 pm

Dear Friends,

In the matter some more clarification is required.

As general practice any lease agreement of less than one year (usually 11 months) is being made on a stamp paper of Rs. 100/- as the same is not compulsorily required to be registered as per Registration Act 1908, any agreement for a period of more that one year require compulsory registration (Sec 17).

As per item no. 35 and 15 of Schedule 1A for Delhi the stamp duty required for any Lease Agreement is 2% of the lease rental,

my query is that as per Item No. 35 (i) of Sh. 1A where the lease purports to be for a term of less that 1 year "the stamp duty charged shall be 2% of whole amount payable under such lease, dose not this means that the stamp duty for period less than 1 year also should be based on value of lease and not on Rs. 100/- stamp paper.

Also, please clarify that it is whose responsibility to get the lease registered, who will face penal provisions in case a lease of 2 years in not registered.

Dear friends please clarify.

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Re: Stamp duty on lease deed

Postby nick » Mon Jun 30, 2008 10:45 pm

In case of lease less than 11 months no stamp duty is payable since it need not be registered. In case it is more than 12 months then both party need to visit vikas bhawan for getting the lease registered. It is lessee who usually bears the stamp duty cost..... you also need 2 witness apart from lessor and lesse at time of execution of lease deed. moreover u need to calculate duty on the avg rate of lease for one year and not the whole amount of lease if u take for 5 years........... go ahead and register your lease whether u r lessor or lessee in order to have better legal rights.

Question............why do professional dont advise license in place of lease. I have seen very few license agreements entered as compared to lease whereas it is beneficial for ppl renting out to have license agreement rather than lease...............give a thought. or members discuss pros or cons of same. share ur views on same
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