Quick answer: Stamp duty on a rent agreement is set by each state, not by the Centre. For an 11-month residential agreement, many states treat ₹100 (sometimes ₹50 or ₹500) as the usual value. For longer terms, duty is normally a percentage of the average annual rent, sometimes with the deposit added. Buy it as an e-stamp certificate through your state's authorised channel, never as a backdated paper.
"Just get ₹100 stamp paper" is the most repeated advice in Indian renting. Sometimes it's right. Sometimes it leaves you with an under-stamped document that a court won't look at until you pay the shortfall plus a penalty of up to ten times the deficit. The value isn't a habit; it's a calculation under your state's Stamp Act.
Why stamp duty matters more than people think
A rent agreement is a lease under the Indian Stamp Act, 1899 (Article 35 of Schedule I, and the matching entries in state Stamp Acts). Stamp duty is a tax on the document. Paying it is what makes the document admissible.
Section 35 of the Stamp Act says an instrument that isn't duly stamped can't be admitted in evidence. A court can impound it under Section 33 and admit it only after the missing duty and a penalty are paid, and Section 40 allows a penalty of up to ten times the deficit. So if a deposit dispute ever reaches a Rent Controller or civil court, the first thing the other side's advocate checks is the stamp.
Here's the scenario that plays out every month somewhere in NCR. A tenant in Noida signs a 22-month agreement on ₹100 stamp paper because "that's what everyone uses". The landlord keeps ₹60,000 of the deposit at move-out. The tenant files a claim. The agreement is now both under-stamped and unregistered (anything over a year needs registration). The tenant's best document is the one causing the most trouble.
How stamp duty on a rent agreement is calculated
Three numbers drive the duty in almost every state:
- Term of the agreement. Short terms (up to 11 months or 1 year) usually attract a fixed or low duty. Longer terms move to a percentage.
- Average annual rent. Total rent across the term divided by the number of years.
- Deposit or premium. Some states add the refundable deposit, a notional interest on it, or any non-refundable premium.
The phrase "average annual rent" matters when rent escalates. Rent of ₹20,000 a month rising 5% each year for three years averages slightly over ₹2.52 lakh a year, not ₹2.4 lakh.
State-wise stamp duty on rent agreements
The figures below are the commonly applied rates for residential agreements at the time of writing. They change by notification, and published guides often disagree with each other, so the last column tells you where to check the official number before you pay.
Is ₹100 stamp paper enough?
For an 11-month residential agreement in Delhi and several other states, ₹100 is the accepted practice. That's why every stamp vendor outside a court complex sells it in stacks. But three situations make ₹100 wrong:
- The term is longer than 11 months. Now duty is percentage-based, and registration is compulsory if it exceeds one year.
- You're in Maharashtra. Duty is formula-based for every term, and the agreement must be registered.
- The rent or deposit is high in a state that charges on value. In Karnataka, for instance, the duty on a short lease is a percentage of rent plus deposit, up to the cap.
There's also the opposite mistake: buying ₹500 or ₹1,000 paper "to be safe". Over-stamping isn't illegal, but you won't get the excess back, and it doesn't make the agreement any stronger.
Worked examples
Delhi, 11 months. Rent ₹24,000 a month, deposit ₹48,000, residential. The usual practice is a ₹100 e-stamp certificate. No registration needed.
Maharashtra, 24 months. Rent ₹25,000 a month, refundable deposit ₹5,00,000. Total rent ₹6,00,000, plus notional interest of 10% a year on the deposit for two years (₹1,00,000), gives ₹7,00,000. Duty at 0.25% is ₹1,750. Registration fee in Mumbai is ₹1,000.
Uttar Pradesh, 3 years. Annual rent ₹1,80,000. After the 2025 revision, the agreement falls in the lowest annual-rent slab (up to ₹2 lakh), where combined duty and fee run from about ₹500 to ₹2,000 depending on tenure. Confirm the exact slab on IGRS before paying.
How to buy e-stamp paper online
Physical stamp paper is being phased out in most states in favour of e-stamp certificates. Stock Holding Corporation of India (SHCIL) is the central record-keeping agency in many states; others run their own GRAS-type portals.
- Open the official portal for your state (SHCIL's e-stamping site, or the state's e-GRAS / IGR site).
- Choose the article for lease or rent agreement and enter the first party (usually the landlord), second party (tenant), property description and consideration (rent for the term).
- Enter the stamp duty amount from your calculation and the purpose.
- Pay online by net banking or UPI.
- Download or collect the certificate. Some states let you print it; others require collection from an authorised centre. Check the unique certificate number on SHCIL's verification page.
- Print your agreement on plain paper attached to the certificate, or have the agreement printed on the certificate's reverse where the state allows.
What goes wrong: the names on the certificate don't match the agreement, or the certificate is dated months before signing. Duty is attached to the transaction, and a stale certificate invites questions.
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Who pays the stamp duty?
The Stamp Act lets the parties decide. Many agreements split it equally; in tight rental markets, landlords often pass it to the tenant. Whatever you agree, write it into the agreement so there's no argument at renewal.
For the other rules that sit around this one (the 11-month convention, lock-ins, notice periods and maintenance), read our guide to rent agreement rules in India. And if your agreement crosses one year, our registered rent agreement guide walks through the Sub-Registrar process.
Frequently asked questions
1. How much stamp duty is payable on a rent agreement?
It depends on your state, the agreement's term, the average annual rent and, in some states, the deposit. Short 11-month agreements often carry a fixed duty such as ₹100, while longer terms are charged as a percentage of rent.
2. Is ₹100 stamp paper valid for a rent agreement?
For 11-month residential agreements in Delhi and several other states, ₹100 is the usual practice. It is not enough for longer terms, high-value agreements in states that charge on value, or any agreement in Maharashtra.
3. What happens if my rent agreement is under-stamped?
It can't be admitted in evidence until the deficit is paid. The court can impound it and levy a penalty, up to ten times the deficit under Section 40 of the Indian Stamp Act.
4. Can I buy e-stamp paper online?
Yes, in most states, through SHCIL's e-stamping service or the state's own portal. You pay online and download or collect the certificate, which can be verified using its unique number.
5. Who pays stamp duty, landlord or tenant?
The law leaves it to the parties. Many split it; in some cities the tenant pays. Record the decision in the agreement.
6. Can stamp paper be bought in someone else's name?
The certificate should name the parties to the agreement. Minor differences may be accepted, but a certificate in a stranger's name is a common reason for objections at registration.
7. Is stamp duty refundable if the agreement is cancelled?
Most states allow a refund of unused stamp paper or e-stamp certificates within a set period, on application to the Collector of Stamps, after deducting a percentage. The window is usually measured in months, so act quickly.
8. Does a notarised agreement need stamp duty?
Yes. Notarisation doesn't replace stamp duty. The agreement must be on correctly valued stamp paper or e-stamp before it's notarised.
9. Is stamp duty the same as registration fee?
No. Stamp duty is a tax on the document; the registration fee is paid to the Sub-Registrar for recording it. A registered agreement attracts both.
10. Can I backdate stamp paper for an old tenancy?
No. Stamp duty can't be backdated. You can write an agreement that records an earlier start date, but the stamp must be bought at the time of execution.
Legal references
- Indian Stamp Act, 1899: Sections 33, 35, 40; Schedule I, Article 35 (Lease)
- State Stamp Acts and notifications (Delhi, Uttar Pradesh, Haryana, Karnataka, Tamil Nadu, Gujarat, Rajasthan, Andhra Pradesh, Maharashtra Stamp Act)
- Registration Act, 1908: Section 17
- Uttar Pradesh stamp and registration fee revision for tenancy agreements up to 10 years, 2025 (reported by DNA India)
- IGR Maharashtra leave and licence stamp duty method
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This article is general information, not legal advice on your specific matter. For advice on your own facts, talk to an advocate on Law At Ease.
