Ashok is the owner of a house with 2 bedrooms. He rents it on the monthly rent of Rs. 8000/- in Mahesh for a period of 11 months. Bail is Rs.50000/-. You`re making a lease on a 50 rupee paper. Things are going well up to 5 months. Mahesh pays the rent up to 5 months after which he stops paying the rent and also refuses to move. Ashok approaches the court. The Court imposes the agreement on the stamp duty of the deficit paid and imposes the fine up to ten times the stamp duty. So what will Ashok`s fine pay? Let`s do the math.
The mandatory stamp duty for the Delhi lease is Rs. 50/-, although there is no fixed unit value after the introduction of electronic stamp paper. You can make an e-Stamp paper rental contract at any level, however, it is always recommended to do Rent Agreement on a stamp paper of Rs. 50/- or more, in order to avoid any erroneous form with regard to legal crises later. Have it testified by Notary Public or have it registered – Now in this case, it is the choice of the two parties who chose the other if they want to confirm the agreement by notary or want to register it at the office of the sub-registrar. If you have the rental contract for more than one year it is recommended to register it in the office of the sub-registrar with stamp duty, because the validity for notary certificate in case of agreement is 1 year. Under the provisions of the 2019 Standard Rent Bill, landlords cannot apply a pre-fixed rent increase for the entire period for which a tenancy agreement was signed. For example, when the lease expires after 11 months, the lessor cannot increase the monthly rent during that period. It is only at the expiry of this period and the date of registration of the new lease that the lessor is legally entitled to proceed with an increase in the rate that does not generally exceed 10% of the existing amount. In addition, the landlord must give the tenant three months` notice before increasing the rent in accordance with the bill. It is always recommended to pay the mandatory stamp duty to avoid legal crises. For each article, there is another stamp duty set by the government, which varies from state to state.
For example- in Delhi, the stamp duty on the lease is Rs. 50/- while in Bangalore the stamp duty on the lease rs. 20/-. Note here that notarized certified rentals are not identical to registered documents. In the event of a dispute between the landlord and the tenant, the court will not accept a notarized agreement as proof. It is therefore important to register the rental agreement correctly. Lease agreements are documents signed between a tenant and a lessor and agree on terms acceptable to both parties. Participating in a rental transaction without an agreement is dangerous and leaves room for litigation. We cannot overemphasize the importance of a lease, which is why we offer the possibility to create it as quickly as possible. In order to reduce costs, tenants and landlords sometimes agree orally on the lease and avoid the execution of a tenancy agreement.
At one point, they also document the agreement and set the terms of the lease, but decide not to register the document.