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Stamp duty on rent agreements in India
Stamp duty is a state-level tax paid on the physical instrument of a rent agreement. The duty is calculated as a percentage of the annual rent plus deposit (or as a flat fee in some states) and must be paid before the agreement is signed. An under-stamped agreement is not admissible in court.
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Stamp duty rates by state (11-month agreement)
| State | Stamp duty formula | Indicative duty on ₹20,000/mo rent |
|---|---|---|
| Maharashtra | 0.25% × (annual rent × years) + 10% × deposit | ~₹600–₹800 |
| Karnataka | ₹500 flat minimum | ₹500 |
| Delhi | ₹100 flat | ₹100 |
| Tamil Nadu | 1% × (rent + deposit), cap ₹20,000 | ~₹2,200 |
| Telangana | 0.5% × (rent + deposit), cap ₹20,000 | ~₹1,100 |
| Uttar Pradesh | 4% × average annual rent | ~₹9,600 |
| Gujarat | ₹300 flat | ₹300 |
| West Bengal | 0.5% × (rent + advance) | ~₹1,300 |
| Rajasthan | 0.02% × annual rent | ~₹50 |
How to pay stamp duty online
- Visit shcilestamp.com (available in 20+ states).
- Select your state and "Non-Judicial" as the stamp category.
- Enter the stamp duty amount calculated from your state's formula.
- Fill in landlord (First Party) and tenant (Second Party) details.
- Pay online via Net Banking, UPI, debit or credit card.
- Download the e-stamp certificate and print the agreement on it.
Penalty for under-stamping
Under Section 33–35 of the Indian Stamp Act 1899, an under-stamped agreement is inadmissible in evidence. To use it in court, you must pay the deficient duty plus a penalty of up to 10 times the original duty. This is the main reason not to under-pay — the savings are trivial and the penalty can be significant.
FAQs
What is stamp duty on a rent agreement?
Stamp duty is a state-level tax on the legal instrument of a rent agreement, payable under the Indian Stamp Act 1899 or the state-specific stamp act. The duty must be paid by purchasing stamp paper (or e-stamp certificate) of the correct denomination before the agreement is signed. Failure to pay the correct duty makes the agreement inadmissible as evidence in court.
Who pays stamp duty — landlord or tenant?
By convention, stamp duty is paid by the tenant in most states, but the Indian Stamp Act does not specify. Landlord and tenant can agree either way in the agreement itself. In practice, the tenant usually pays as part of the move-in costs.
What is the stamp duty rate in India?
Rates vary by state. Maharashtra charges 0.25% of total rent for the term plus 10% of the deposit. Karnataka charges a ₹500 minimum. Delhi charges ₹100 flat for 11-month agreements. Tamil Nadu charges 1% of rent plus deposit. See our full state-by-state breakdown.
Can I pay stamp duty online?
Yes, in most states via SHCIL e-stamping at shcilestamp.com. E-stamp certificates are legally equivalent to physical stamp paper and are tamper-proof via a unique certificate number (UIN) and QR code.
Related: E-stamp paper guide · 11-month rent agreement · Registration