Stamp duty is the tax levied on legal documents in reparation for their validity. In the state of Karnataka, the maximum stamp duty that can be levied on a rental contract is 500/- but it is generally calculated as follows – if a property is rented for 24 months with a monthly rent of Rs 20,000 for the first 12 months and 22,000 Rs. per month for the next 12 months. The registration fee of this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21,000, average annual rent is 21000 – 12 and 2% is Rs5,040). For leases of 11 months or less, no certification is required. For leases established for one year or more, registration (no certification) is recommended. This is a precautionary measure reluctant to fraud, which proves that the companies mentioned in the contract are the ones that actually signed it and that the agreement is not a falsified or falsified agreement. The Registration Act requires the registration of a lease of more than 11 months. The State of Karnataka has determined the following stamp duty for the lease. Now let`s see what the financial and legal consequences of signing a lease for an 11-month period are. The lease is simply made online in Bangalore; You can easily do this without the help of a broker or any service provider. You must enter the following information on our portal: Most leases are signed for 11 months so that they can avoid stamp duty and other fees Housing.com has launched a fully digital and contactless service to create rental contracts.

If you want to complete the formalities quickly and without any problems, you just have to fill out the details, create the online rental contract, sign the contract digitally and get an electronic stamp in seconds. In the city of Bangalore, the duration of the rental is usually 11 months, and later it can be renewed at the end of the 11th month. The tenant must pay the rent and additional costs such as the electricity bill, the water bill after use. «From a monetary point of view, it would be costly for a tenant to enter into leases for a period of more than 11 months. From a legal point of view, it would be quite complicated for the owner,» adds Mishra. In Karnataka, the duration of the rental is usually 11 months, renewable at the end of the 11th month. The tenant must pay a monthly rent. In addition, electricity and water charges must be paid based on their use. Tell the owner about the rate per unit calculated in the meter. Caution – Generally in Karnataka, 10 months of rent value is collected in advance as a deposit. In Bangalore, this is almost always the case.

But in other popular cities such as Mysore, Belgaum, Mangalore, Hubli-Dharwad and Davanagere, it ranges from 6 months to 8 months. Some of them may even charge only 2-3 months` rent as a surety. You can negotiate the amount of the deposit if it is too high. If the landlord does not reduce the rent, ask the landlord to reduce the amount of the deposit. However, the maximum threshold of Rs 500 is considered a stamp duty on a lease. Thus, stamp duty is paid at the above rates, according to the lower rates.