Under-stamping can cost up to 10x
Summary
Leases must carry state stamp duty. An under-stamped agreement can be impounded, with a penalty of up to ten times the shortfall. In Maharashtra (Mumbai, Pune) it's 0.25% of total rent for the term, and deposits count too.
What to check
- Rates and methods differ by state: Delhi uses term-based slabs; Tamil Nadu usually works from annual rent.
- Maharashtra charges 0.25% of total rent; refundable deposits are taxed on a deemed 10% annual interest, non-refundable ones at 0.25%.
- In Maharashtra, leave-and-licence agreements must be registered even for 11 months.
- An under-stamped agreement can be impounded, with a penalty of up to 10x the shortfall.
- Check the state's current stamp schedule and write who pays into the lease.