Stamp duty is a tax levied by the government on legal documents. This duty is also levied on the rent agreement, which is payable by the tenant. As these fees are set by the state government, stamp duty in Maharashtra is higher than in other states.
In Maharashtra, registering the rental agreement is mandatory, regardless of the duration of the agreement. And for registering a document, it must be written on stamp paper.
Stamping a document makes it legally binding, and a legally binding agreement is proof of ownership or transfer. In a legal dispute, this registered agreement can be given in court as evidence.
The stamp duty charges in Maharashtra are 0.25% of the total rent and security deposit.
Stamp duty calculator Maharashtra:
For example, A – Rs. 110,000 if the monthly rent is Rs. 10,000 whereas duration is 11 months. The advance rent – Rs. 10,000; B = 10,000. where C = 10% x 100000 x 1 = 10000.
A+ B+C = 110000 + 10000 + 10000 = 130000
Stamp Duty = 0.25% x 130000 = Rs. 325
Use this stamp duty calculator Maharashtra and find out your stamp duty charges.
Stamp duty is a one-time payment, and it has to be paid on time. Some people notarize their agreement to save on charges, but this is illegal.
If you fail to pay, you may face a fine and, in some cases, imprisonment. Hence, make sure to pay your stamp duty.
If you are looking to get a rent agreement in Maharashtra, contact Housewise.
