When you put your property on rent, it is in your best interest that you register the rental agreement. So, to make rental agreements legally binding, the leave and licence agreement is required to be stamped and registered. A stamp duty for licence registration must also be paid. In this guide, we will discuss the law applicable on stamp duty and registration of leave and licence transactions in Maharashtra.
What is stamp duty in Maharashtra?
Stamp duty in Maharashtra is the tax that has to be paid to the government to legally register the property document in the government’s records. This is true for any deed – gift deed, mortgage deed, sale deed, rental agreement deed etc. Without paying the stamp duty for your rental agreement, the contract will not be legally valid. Along with the stamp duty, one also has to pay the registration charge.
What is leave and licence agreement in Maharashtra?
A leave and license agreement is an agreement that is signed between the licensor and a licensee in which the licensor permits the licensee the right to use his property for a fixed duration of time in exchange for a fixed rent. The payment of stamp duty on leave and licence agreements, is covered under Article 36A of the Bombay Stamp Act, 1958.
What is the stamp duty required for leave and license agreement in Maharashtra?
The stamp duty on the lease agreements is applicable across all cities in Maharashtra. The leave and licence agreements in Maharashtra are required to be stamped, with a flat stamp duty rate of 0.25% of the total rent for the period. In case any non-refundable deposit is also paid to the landlord, stamp duty at the same rate shall be charged on such non-refundable deposits, as well.
In cases where any refundable deposit is collected by the landlord, a notional annual interest of 10% is imputed on such interest-free deposit and you have to pay stamp duty at the same rate, on such interest for each year of the term of the licence agreement.
The rate of stamp duty for leave and licence agreements is the same for residential premises, as well as for commercial premises. The leave and licence agreement can be executed, for a period not exceeding 60 months.
See also: Lease vs rent: Main differences
Importance of stamp duty in Maharashtra 2025
The rental stamp duty is important for both tenants and landlords.
- For tenants: Once the rental agreement is registered by paying stamp duty the tenant can’t be evicted from the property using unfair means. Also, the landlord can’t increase the rent as per his liking and the tenant can always pull the landlord to court for following any unfair means.
- For Landlords: The Maharashtra rental agreement protects landlords from disputes such as property encroachment, rental income etc.
Stamp duty on rent agreement: Quick facts
|
Stamped leave and license agreement in Maharashtra |
Flat stamp duty of 0.25% |
|
Refundable deposit |
Notional annual interest of 10% on stamp duty will be charged |
|
Non-refundable deposit |
Stamp duty at the same rate shall be charged on such non-refundable deposits |
See also: What is Stamp Duty Rates & Charges on Property?
What are the factors affecting stamp duty on rental property?
Stamp duty on rental property depends on
- Duration of the rent agreement
- Monthly rental amount
- Security deposit amount
- Property location ( urban vs rural)
How to calculate stamp duty on registered rent agreement in 2025?
Monthly rental x No of months = A
Advance rent for the period/non-refundable deposit = B
10% x Refundable deposit x No of years of the agreement = C
Total amount subject to stamp duty = D = A+B+C
Stamp duty = E = 0.25% x D
For example, if you enter into a leave and licence agreement for 24 months, with a monthly rent of Rs 25,000 and a refundable deposit of Rs 5 lakh, you will have to pay a stamp duty of Rs 1,750 (being 0.25% on rent of Rs 6 lakh for two years and interest of Rs 1 lakh for two years).
The registration fee for a tenancy agreement in Maharashtra, depends on where the property being let out, is located. The registration fee is Rs 1,000, if the property is situated under any municipal corporation area and it is Rs 500, if the same is in a rural area. In the absence of any agreement to the contrary, the cost of stamp duty and registration charges is to be borne by the tenant.
The rent agreement registration charges, is the same for residential properties and commercial properties for a period up to 60 months.
The stamp duty on rent agreement you pay in Mumbai is governed by the Bombay Stamp Act, 1958. The stamp duty on the lease agreements is applicable across all cities in Maharashtra. The leave and license agreements should be stamped with a stamp duty charge of 0.25% of the total rent for the period. The rent agreement registration charges, that is the rate of stamp duty is the same for residential properties and commercial properties for a period up to 60 months.
Example of stamp duty on rental agreement in Maharashtra
|
Duration of agreement |
Stamp duty rate |
Stamp duty to be paid |
|
Up to 5 years |
0.25% of total rent -Rs 20,000 |
Rs 20,000 x 12x 0.25% = Rs 600 |
|
5 to 10 years |
0.50% of total rent -Rs 20,000 |
Rs 20,000 x 12 x 0.50% = Rs 1,200 |
|
Above 10 years |
1% of total rent-Rs 20,000 |
Rs 20,000 x 12 x 1% = Rs 2,400 |
How to register online rent agreement registration in Maharashtra?
Note that the Maharashtra government is introducing 2.0 of the online rent agreement registration portal in Maharashtra that will be live from April 21, 2025, after over 30 technical glitches were identified which has to be first addressed.
Here is how to register the rent agreement online. Before registering rent agreement online in Maharashtra, the individual has to create a profile on the official website.
*Go to the e-filing (https://efilingigr.maharashtra.gov.in/ereg/) website.
*Select “District of Property” as ‘Pune’.
*Click “New” to create your profile registered under the e-filing website’s database.
Property details page
*Post successful creation of the profile, the site redirects you to “Property Details Page”
*Enter details of property like Taluka, Village, Property type, Unit Area, Address and other details as available on the e-filing website’s “Property Detail Page”.
*Save the furnished details.
*Upon successful completion, a token number will be generated. Applicants needs to use this token number as your user ID for next login.
In the next step, you need to enter ‘party details’
*Fill in the information required-
*Save the details added.
*Fill second party details by clicking ‘Add : Party Details’ and save the changes
*Click Next: Rent & Other Terms
Rent & Other Terms
Enter owner and if applicable, tenant details.
Stamp duty
The applicant can pay the stamp duty charges and fees online by generating an online challan receipt. Stamp duty calculation is generally derived basis a few particulars that need to be mentioned while registering a property:
*Complete address of the property
*Name of the landlord, occupant, and if applicable, the previous occupant/owner.
*If the property has already been included in a city survey, include the CTS number.
*If said property is in the outside town or a land parcel then name of the geographical area where same is located, like Revenue village or name of Taluka.
See also: All about Mahabhulekh 7/12 Satbara utara
Schedule an appointment
Post successful payment of necessary fees, the applicant needs to book an appointment with the sub-registrar. Arriving at the sub registrar’s with the necessary documents in print ensures that successful registration of the applicant’s property is conducted swiftly.
Maharashtra: Leave and license agreement form
What are the different ways to pay stamp duty in Maharashtra?
Stamp duty in Maharashtra can be paid by three methods- e-stamping, non-judicial stamp paper and franking.
The non-judicial stamp paper procedure has all details regarding leave and license that has to be signed by the executants and registered with the SRO within 4 months.
In case of franking, one has to print an agreement on plain paper and submit to the bank. Next, the bank will process documents with the help of franking machine.
However, note that not paying stamp duty is not an option. If you are found to not having paid the stamp duty, heavy penalty will be charged.
E- stamp certificates to be provided by Maharashtra
To streamline stamp duty and registration processes, the Maharashtra government will provide e-stamp certificates online for citizens. The processing fee for this service is Rs 500 and there will be no added costs. With the digital system, one has to make submissions on Rs 1,000 stamp paper. People can also opt to purchase traditional physical stamp papers if they are not comfortable with the online way.
Registration provisions for rental agreements
As per Section 17 of the Indian Registration Act, which applies to the whole of India, every agreement for leases of immovable property from year to year, or for any term exceeding one year, are required to be registered mandatorily. So, unless the state laws provide otherwise, each and every leave and licence agreement for a period of 12 months or more, has to be registered.
In Maharashtra, the law has been made more stringent and as per the provisions of Section 55 of the Maharashtra Rent Control Act, 1999, every agreement of a tenancy or leave and license has to be in writing and the same also needs to be mandatorily registered, irrespective of the period of tenancy.
Penalty for non-registration of rental agreement
It is the responsibility of the landlord to ensure registration of the rental agreement, failing which, the landlord may have to pay a penalty of Rs 5,000, as well subject himself to imprisonment upto three months. In case the agreement for leave and licence is not registered and any dispute arises between the landlord and the tenant, the terms and conditions of the agreement as contended by the tenant shall be taken as the true and correct conditions on which the immovable property has been given on rent, unless it is proven otherwise.
Documents required for rental registration
For registration of the agreement, you will need some basic documents of the tenant, landlord and the witnesses, such as a passport-size photograph, a photocopy of identity proof (e.g., PAN card) and electricity bill or property document like Index II or tax receipt of the property being let out.
Is rent agreement mandatory in Maharashtra?
Rent agreements are critical for solving disputes that arise between landlords and tenants. Usually, in Maharashtra, the rent agreement is made for a period of up to 11 months, as it is necessary by law to register a rent agreement if the agreement period is more than 12 months. If you are looking for a home on rent in Maharashtra, it is essential to know the applicable stamp duty and registration charges for rent agreement in Mumbai, Pune and different cities. You can also make use of facilities with respect to rent agreement creation provided by Housing.com, which is quick and not cumbersome.
Housing.com POV
Entering into tenancies without giving the agreement a legal validity through the execution of a lease agreement is a bad idea, especially keeping in view the instances of wrongdoings in Mumbai’s rental real estate market. Most people also opt for the easy and cheaper way of going for notary which again doesn’t have a legal standing. If you are renting your property in Maharashtra, visit the IGR Maharashtra website and get the leave and license agreement in place.
FAQs
How to calculate stamp duty on rental agreement?
The formula to calculate stamp duty on rental agreement is 0.25% x D, where D is (Monthly rental x No of months) + (Advance rent for the period/non-refundable deposit)+ (10% x Refundable deposit x No of years of the agreement).
What is the cost of registered rent agreement?
The registration fee for a tenancy agreement in Maharashtra, depends on where the property being let out, is located. The registration fees are Rs 1,000, if the property is situated under any municipal corporation area and it is Rs 500, if the same is in a rural area.
What are the documents required for registering rent agreement?
For registration of the agreement, you will need some basic documents of the tenant, landlord and the witnesses, such as a passport-size photograph, a photocopy of identity proof (e.g., PAN card) and electricity bill or property document like Index II or tax receipt of the property being let out.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
