Stamp duty calculator

Stamp duty on rent agreements is one of those numbers nobody can quote from memory because every state computes it its own way. Maharashtra works off rent plus a slice of the deposit; Karnataka has its own slabs; Delhi differs again.

Enter the monthly rent, deposit, and tenure, pick the state, and this calculator gives you the duty and registration fee with the formula shown. No surprises at the sub-registrar office.

What it does

• Covers ten states: Maharashtra, Karnataka, Delhi, Tamil Nadu, Telangana, West Bengal, Haryana, UP, Gujarat, Rajasthan
• Uses each state’s actual formula, not a flat guess
• Shows duty and registration fee separately
• Updated for current slabs

Why every state computes stamp duty its own way

Stamp duty is a state subject. The Indian Stamp Act, 1899 provides the skeleton, but most large states have their own acts and their own schedules, which is why nobody can quote the duty on a rent agreement from memory.

A few examples of how differently the formulas run. Maharashtra (Article 36A of the Maharashtra Stamp Act, 1958) charges 0.25 percent of the total rent over the licence period plus 10 percent of the refundable deposit multiplied by the years of the term, with a flat registration fee of ₹1,000 in municipal areas and ₹500 in rural ones. Karnataka charges 0.5 percent of annual rent plus the deposit. Delhi charges 2 percent of the average annual rent for terms under five years. Tamil Nadu charges 1 percent of rent plus advance. Uttar Pradesh sits at the top at 4 percent of annual rent plus a tenth of the deposit. Same document, ten different bills.

This calculator carries each state's actual formula for the ten states it covers (Maharashtra, Karnataka, Delhi, Tamil Nadu, Telangana, West Bengal, Haryana, UP, Gujarat, Rajasthan) and shows the breakdown behind every number, so you can see what drove the figure rather than trusting a flat guess.

Stamping and registration are two different obligations

People run these together, and the confusion costs them. Stamping is the tax on the instrument itself: the agreement must be executed on stamp paper of the right value, or e-stamped, or franked, before or at signing. Registration is the separate act of recording the document with the sub-registrar under the Registration Act, 1908, with its own fee.

The rules diverge by term and by state. Section 17 of the Registration Act makes registration mandatory for leases exceeding one year, which is the origin of the 11-month convention. But Maharashtra requires registration of every Leave and Licence agreement regardless of length, under Section 55 of its Rent Control Act, with the obligation on the landlord. The 11-month trick does not work there.

The consequence of skipping stamping is sharp. Under Section 35 of the Indian Stamp Act, an unstamped or under-stamped document is not admissible as evidence. If a deposit dispute reaches a court, the document gets impounded, and regularising it means the deficit duty plus a penalty that can run to ten times the shortfall. The duty itself is usually a few hundred to a few thousand rupees. It is the cheapest insurance in the whole tenancy.

How to use the calculator well

1. Pick the state where the property sits. Not where you live, not where you sign. Stamp duty follows the property.
2. Enter the monthly rent. If the agreement has an escalation clause, states generally compute duty on the average annual rent; entering the first-year rent gives you the floor of the range.
3. Enter the refundable deposit. Only the refundable component. Several states (Maharashtra, Rajasthan, UP) count just a slice of the deposit in the base; Karnataka and Tamil Nadu count it in full, which is why a ₹5 lakh Bengaluru deposit moves the duty visibly.
4. Set the term in months. 11 is the default because it is the market standard. Stretch it past 12 and registration becomes mandatory in most states, which the fee reflects.
5. Read the breakdown, not just the total. The result shows duty and registration separately, plus the rate and the components that built the base. Carry that breakdown to the e-stamping counter or the online registration portal and you will not be negotiating from ignorance.

Treat the output as a close estimate. State slabs change, and the tool says so on the result: verify the final figure with the sub-registrar or a local lawyer before you buy the stamp paper.

The mistakes that cost money

• Signing on plain paper and planning to stamp later. Stamp duty is due on or before execution. Stamping after signing means penalty territory in most states, and the agreement is unusable as evidence until it is fixed.
• Assuming 11 months means no formalities anywhere. In Maharashtra, every Leave and Licence agreement must be registered, 11 months or not. Owners who skip it carry the legal exposure personally.
• Forgetting the deposit in the calculation. In Karnataka the deposit sits fully in the base. Computing duty on rent alone and buying stamp paper to match leaves you under-stamped without knowing it.
• Not recording who paid. Convention says the tenant pays, but it is negotiable. If the agreement is silent, the move-out settlement inherits one more argument. Put it in the registration clause.
• Buying stamp paper of a round value to "be safe" in the wrong direction. ₹100 stamp paper feels official, but if the computed duty is ₹1,750 you are under-stamped, and feeling official does not survive Section 35.
• Using last year's rates. States revise slabs in budgets. If a broker quotes a number that disagrees with the formula, ask which year their number is from.

Paying duty and registering from abroad

NRI owners rarely need to fly home for this. Maharashtra runs the most owner-friendly system in the country: online Leave and Licence registration with Aadhaar-based verification, where stamp duty and the registration fee are paid electronically and the agreement registers without either party visiting the sub-registrar. If you hold an Aadhaar and the tenant cooperates, the whole chain can close from Singapore or Dubai in a week.

Where online registration is not available, the standard route is a Power of Attorney: a relative or property manager in India executes and registers the agreement for you. The POA must be signed before the Indian consulate abroad or apostilled, then stamped in India. Our POA for property management guide has the template and the sequence, and the renting out your India flat from Singapore or Dubai guide places stamping inside the full letting timeline.

One practical note: e-stamping through authorised banks and SHCIL counters has replaced physical stamp paper in most large cities, which is good news for anyone coordinating remotely. Your person in India needs the computed duty figure and the party details, nothing more.

Where this fits when 66 MG Road manages the property

For managed properties, stamping and registration are part of the tenancy onboarding we run: we compute the duty, pay it through the e-stamping or online registration channel, complete the registration where the state requires it, and file the registered agreement in your document vault. The owner sees the cost in the statement and the document in the vault, and never queues anywhere. This calculator is the same arithmetic we use at the start of that chain. What the full service covers is on the services page.

Related tools and guides

Stamp duty is step two of three. Draft the document first with the rent agreement generator, which produces the thirteen-clause Leave and Licence format this duty applies to. Once the tenancy starts, the rent receipt generator handles the monthly paper trail, and the move-in inspection checklist creates the condition record that protects the deposit the agreement mentions. Owners managing from abroad should also read managing tenants from abroad for everything that follows registration.

Common questions

Who pays stamp duty on a rent agreement?

By convention the tenant pays, but it is negotiable and the agreement should record who paid. What matters legally is that the agreement is stamped at all; an unstamped agreement is weak evidence in a dispute.

Is registration mandatory for a rent agreement?

For tenancies of 12 months or longer, registration is mandatory in most states under Section 17 of the Registration Act, 1908. Maharashtra requires registration of Leave and Licence agreements regardless of length, with the obligation on the landlord.

What happens if a rent agreement is not stamped?

Under Section 35 of the Indian Stamp Act, an unstamped or under-stamped document is not admissible as evidence. If a dispute reaches court, the document gets impounded and regularising it costs the deficit duty plus a penalty that can reach ten times the shortfall.

How is stamp duty on a rent agreement calculated in Maharashtra?

Maharashtra charges 0.25 percent of the total rent over the licence period plus 10 percent of the refundable deposit multiplied by the years of the term, under Article 36A of the Maharashtra Stamp Act. Registration is a flat ₹1,000 in municipal areas.

Does the security deposit affect stamp duty?

In several states, yes. Karnataka and Tamil Nadu include the full deposit in the base; Maharashtra, UP, and Rajasthan count 10 percent of it. A large deposit can move the duty meaningfully, which is why the calculator asks for it.

Can an NRI complete stamping and registration without coming to India?

Usually, yes. Maharashtra offers online Leave and Licence registration with Aadhaar verification that works from abroad. Elsewhere, a Power of Attorney holder in India can execute and register the agreement; the POA must be consularised or apostilled abroad and stamped in India.

How accurate is this calculator?

It uses each state's published formula and shows the full breakdown, so it lands very close for standard residential agreements. State slabs change, though, so verify the final figure with the sub-registrar's office or a local lawyer before buying stamp paper.

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