Leases of one year or more must be notified. For contracts of less than one year, only stamp duty applies, while registration is not mandatory. Most leases are signed for 11 months to avoid stamp duty and other fees. Under the Registration Act 1908, registration of a lease is mandatory if the term of the lease is longer than 12 months. If a contract is registered, stamp duty and registration fees must be paid. For example, in Delhi, the cost of stamp paper for a lease of up to five years is 2% of the total average annual rent for one year. Add a flat fee of Rs100 if a deposit is part of the agreement. For a lease of more than 5 years but less than 10 years, it is equal to 3% of the value of the average annual rent of one year. For 10 years and more, but less than 20 years, this is 6% of the value of the average annual rent of a year. The stamp paper can be in the name of the tenant or landlord. In addition, the flat-rate registration fee of Rs1,100 is also payable by pick-up on demand (DD). Some people choose to certify leases, but certification is not a record. Therefore, a notarial deed of lease is never a substitute for a registered deed.
The courts do not accept them as evidence in the event of a dispute. Even if the deed is notarized, you must still register it. Another popular method of renting is long-term rental. A lump sum is paid as a one-time allowance for a fixed period or a fixed rental period, such as 2 years or 3 years. The tenant or tenant does not pay monthly rent. At the end of the rental period, the owner must reimburse the full deposit indemnity without interest. In the case of a long-term lease, the advantage is that there is no effort to pay the monthly rent and it is possible to save a lot on this type of lease. There may be maintenance, electricity and water costs that must be paid regularly. It is often a practice among people to create rental contracts on stamp paper with minimum values like Rs.20/-or 50/-or 100/- etc. This saves money on paying the actual stamp duty imposed by the government. The difference between public and minimum royalties is generally very small.
As long as there is no dispute between landlord and tenant, it goes well. Let`s take an example: the registration of the deed of rental / rental in Delhi has a special procedure that must be followed by all. Ashok is the owner of a 2 bedroom house. He rents it with a monthly rent of Rs. 8000 / – in Mahesh for a period of 11 months. The deposit is Rs.50000/-. You make a lease for a 50 rupee stamp paper. It goes up to five months. Mahesh pays the rent for up to 5 months, after which he stops paying the rent and also refuses to move.. . .