Rental Agreement in Bangalore: Cost, Stamp Duty, Steps

Rental agreement Bangalore cost depends mainly on stamp duty: for a residential tenancy of up to one year, 50 paise per Rs 100 of average annual rent and money advanced, capped at Rs 500 (Article 30, Karnataka Stamp Act, 1957). Leases over one year typically need registration. Blogs often quote Rs 200; that is not the legal rule.

This guide shows the rule as it appears in the Schedule to the Karnataka Stamp Act, works it through for several rent levels, explains registration and the Kaveri e-stamp route, and clears up why Rs 100, Rs 200 and Rs 500 all appear online. It is general information, not legal advice.

Rental agreement Bangalore cost: how much is it?

The government charge on a rental agreement is stamp duty, together with registration fees where registration applies. For the common 11-month residential agreement, the stamp duty cannot exceed Rs 500 under the Schedule we read. Anything beyond that, such as typing, a notary, or a broker's fee, is not a government fee, varies from provider to provider, and we have no verified figures for it.

That distinction explains most of the confusion. A quote of "Rs 1,000 for a rental agreement" may include drafting and service charges on top of the duty. A quote of "Rs 200" may be the value of the e-stamp the provider buys, not what the law requires. Always ask what each rupee in a quote is for.

Bengaluru is in Karnataka, so Karnataka's stamp law and its Department of Stamps and Registration apply. If you want the agreement text itself, our rent agreement in Karnataka page lets you draft it free; it does not provide stamping, registration or notary services.

The stamp duty rule: Article 30 and the Rs 500 cap

Article 30 of the Karnataka Stamp Act, 1957 covers leases. For a residential lease whose term does not exceed one year, the Schedule gives the duty as fifty paise for every hundred rupees or part thereof, on the total amount or value of the average annual rent, premium, fine and money advanced, subject to a maximum of Rs 500. An 11-month rent agreement falls in this "not exceeding one year" category.

Two points matter in practice. First, "money advanced" means the security deposit is part of the base, so a larger deposit pushes the duty up. Second, sources apply the formula to slightly different bases, some using the 11 months of rent and others annualising it. The table shows both so you can see the range, using rent alone.

The table is an illustration of the rule using rent only; it excludes any security deposit. At roughly Rs 10,000 a month and above, the calculation exceeds Rs 500 on either base, so the cap applies. A deposit lowers the rent at which you reach the cap. Take a monthly rent of Rs 5,000 with a Rs 20,000 deposit: the base rises from Rs 55,000 to Rs 75,000 and the duty from Rs 275 to Rs 375. With Rs 25,000 monthly rent and a Rs 50,000 deposit, the base is Rs 3,25,000, the calculated duty is Rs 1,625 and the payable duty is the Rs 500 cap.

The cap is specific to residential leases of up to one year. The Schedule text we read applies the same rate to commercial or industrial leases of up to one year but gives no Rs 500 maximum, so do not assume the cap carries over to a shop or office.

11 months or longer: stamp duty vs registration

Stamp duty and registration are separate requirements. Duty is the tax on the document. Registration is the recording of the document with the Sub-Registrar under the Registration Act, 1908. According to a Karnataka proptech guide, leases exceeding one year typically require compulsory registration under that Act. For an agreement of up to one year, some guides describe registration as optional but recommended, which is secondary-source language, so confirm the position for your own agreement with the Sub-Registrar.

The practical lesson is that going past a year changes two things at once: the duty rate doubles from 50 paise to Re 1 per Rs 100 and the Rs 500 cap no longer applies in the text we read. We do not have verified figures for registration fees, so the table does not list any. Our guide to how to register a rent agreement explains the process in general terms.

The Kaveri and e-stamp route

Kaveri, in its 2.0 version, is described as Karnataka's online system run by the Department of Stamps and Registration. Proptech guides describe buying an e-stamp through Kaveri, and the Stock Holding Corporation of India, known as SHCIL, appears in those guides as the e-stamping agency. We could not confirm every detail from official pages, so treat the sequence below as a general outline and verify each step on Kaveri.

1. Agree the terms. Settle rent, deposit, tenure and the names and addresses of both parties.
2. Work out the duty base. Add the rent for the term and any money advanced, then apply 50 paise per Rs 100, subject to the Rs 500 cap for a residential lease of up to one year.
3. Buy the e-stamp. Purchase an e-stamp of the right amount through Kaveri and keep the certificate.
4. Put the agreement on it. Print the agreement on the e-stamp, check every figure and sign.
5. Register if required. For a longer lease, register the document with the Sub-Registrar.

The e-stamp is a digital stamp duty payment rather than a physical stamp paper. Reports that physical stamp papers are no longer accepted, or that Kaveri registration is mandatory even for 11-month leases from a particular date, are not confirmed by the sources we could verify, so we do not rely on them. Check the current rule on Kaveri or with a Sub-Registrar before you buy.

Why you will see Rs 100, Rs 200 and Rs 500 quoted

Three figures circulate because they answer slightly different questions.

The Rs 200 figure is the one to be careful with. A flat Rs 200 for all agreements under 12 months conflicts with the Schedule, which ties the duty to rent and advances up to the Rs 500 cap. For a low-rent flat the calculated duty may be near Rs 200; for a Rs 25,000 rent it is the Rs 500 cap. If a provider insists on a flat Rs 200 or Rs 100, ask them to show how that amount was calculated, and confirm on Kaveri.

Four common mistakes

• Using a flat figure. Taking Rs 200 or Rs 100 as the duty without calculating it from the rent and deposit.
• Ignoring the deposit. The Schedule counts money advanced, so a large deposit raises the base even when the rent is modest.
• Carrying the cap over. The Rs 500 maximum is stated for residential leases of up to one year, not for commercial or industrial leases or for longer terms.
• Treating a longer lease like an 11-month one. Beyond one year the rate is higher and registration typically applies, so decide the tenure before you buy the e-stamp, not after.

Each of these comes down to the same habit: calculate from the figures in your own agreement and compare the result with what Kaveri or the Sub-Registrar tells you.

Checklist before signing

These points are general practice, not legal advice or a statement of what any authority requires.

• Check both parties' names and addresses against identity documents.
• Write down the rent, deposit, tenure and start date exactly as agreed, and make sure they match the figures used to calculate the duty.
• Keep the e-stamp certificate and a copy of the signed agreement.
• Count the security deposit when you work out the duty base, as the Schedule includes money advanced.
• If the lease is longer than one year, plan for registration with the Sub-Registrar.
• If you use a notary, ask what each step is for; we make no claim about the legal effect of notarisation.

Draft the agreement text free with the rent agreement generator, then get it e-stamped before signing.

This article is general information, not financial, tax or legal advice. Figures are approximate and change over time — always verify with a qualified professional or the official source before making a decision.

Written and reviewed by the Rent Agreement Generator editorial team. Facts checked against primary sources; see the reference above.

← All articles