Question 1

Is it compulsory to register a rent agreement?

Accepted Answer

Under Section 17 of the Registration Act 1908, registration is compulsory for all lease deeds of 12 months or more. An 11-month rent agreement does not require compulsory registration but stamp duty is still payable. An unregistered lease of 12 months or more cannot be used as evidence in court.

Question 2

How is stamp duty calculated on a rent agreement?

Accepted Answer

Stamp duty on a rent agreement is calculated as a percentage of the Average Annual Rent (AAR = monthly rent × 12). For Punjab and Haryana: 1% for leases up to 11 months, 2% for 1–5 years, 3% for 5–10 years. Delhi is slightly higher. Security deposit is generally not included in the stamp duty base for standard residential leases.

Question 3

What is the difference between stamp duty and registration fee on a lease?

Accepted Answer

Stamp duty is a state tax based on the annual rent and is paid on stamp paper before the deed is executed. The registration fee is a flat charge paid at the Sub-Registrar Office (SRO) at the time of registration. Both are required for leases above 11 months.

State / UT	Stamp %
PunjabSelected 8% (≤5yr)	—
Haryana	—
Chandigarh (UT)	—
Delhi	—

Lease Deed Registration

State Comparison