Stamp Duty and Registration Charges for Leave and License Agreement in Pune

Stamp Duty and Registration Charges for Leave and License Agreement in Pune

Are you planning to rent out a property in Pune? You must be aware of the legal formalities that come along with any rental agreement. In this article, we will talk about stamp duty and registration charges for leave and license agreement in Pune.

A leave and license agreement is a legal document that defines the terms and conditions of the rental agreement between the landlord and the tenant. The document must be duly stamped and registered to be valid in the eyes of the law. Let us understand the charges involved in stamp duty and registration of leave and license agreement in Pune.

Stamp Duty Charges

Stamp duty is a tax levied on legal documents like agreements, deeds, and bonds. The amount of stamp duty varies from state to state and depends on the type of document. In Maharashtra, stamp duty on leave and license agreement is calculated as follows:

1. For a period up to 60 months, the stamp duty is 0.25% of the total rent payable during the term of the agreement.

2. For a period exceeding 60 months but less than 120 months, the stamp duty is 0.3% of the total rent payable during the term of the agreement.

3. For a period exceeding 120 months, the stamp duty is 0.5% of the total rent payable during the term of the agreement.

It is important to note that the stamp duty must be paid before the execution of the agreement. The landlord and the tenant can share the stamp duty as per their mutual agreement.

Registration Charges

Registration of a leave and license agreement is mandatory in Maharashtra. The registration fee is fixed at 1% of the total rent payable during the term of the agreement, subject to a maximum of Rs. 30,000. The registration must be done within four months of execution of the agreement. Failure to register the agreement within the specified time can attract a penalty of up to 10 times the registration fee.

Conclusion

In conclusion, it is important to note that stamp duty and registration charges are a necessary part of the legal process of renting out a property. As a landlord or tenant, you must be aware of the charges involved and ensure that they are paid on time. This will help you avoid legal disputes and ensure a smooth rental experience. We hope this article has helped you understand the stamp duty and registration charges for leave and license agreement in Pune.