Why Rent Agreement Is Of 11 Months

In accordance with the 1908 Registration Act, registration of a rental agreement is mandatory if the duration of the tenancy is 12 months or more. Therefore, to avoid the lengthy and laborious registration process, leases are usually only developed for 11 months. To register your contract, you must pay stamp duty and registration fees. In the capital, Delhi, two per cent of the average annual rent must be paid in the form of stamp duty, the standard fee being Rs 1,100 as registration fee. Read also: Do you plan to rent your place? You need to know how the rental and the license are different If your rental document of more than one year of validity is not registered, it will not be as proof to take legal action in the event of a dispute. With this one, a heavy penalty is also imposed if the registration of the rental document does not take place. In the second case, the rent for the first year is 10,000 aff. per month. The rent for the second year is paid to the tune of 11,000 aff. per month. Finally, the rent for the third and final year is paid to the tune of 12,100 aff. The average of the three years` rent will be the average year`s rent. The average annual rent is therefore 12,100 X 12 Rs.

Stamp duty is therefore calculated with a rate of 2% to 1.45,200 Rs, which corresponds to 2,904 Rs plus 100 others for security, bringing the total to 3,004 Rs. Why we usually go for 11 months of lease. And what is b stamp duty for 11 months of lease. Many people doubt whether an 11-month lease is valid or not. There is no doubt that your document is legal and valid. It is also accepted in the eyes of the law and can therefore be used as evidence. Most leases are signed for 11 months so they can avoid stamp duty and other fees. Under the Registration Act of 1908, registration of a lease is mandatory if the tenancy period is more than 12 months. If an agreement is registered, stamp duty and registration tax must be paid.

For example, in Delhi, for a lease of up to five years, stamp paper costs 2% of the total annual rent of one year. Add a flat fee of Rs100 if a security deposit is part of the agreement. For a lease of more than 5 years but less than 10 years, it represents 3% of the value of the average annual rent for a year. For 10 years and more, but less than 20 years, it is 6% of the value of the average annual rent of a year.

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