The registration and stamp duty procedure is the same as residential real estate for the rental of commercial real estate. Deposit – In Delhi, the usual trend is to collect 2-3 months of rent on deposit. This deposit is refunded by the owner to the tenant at the time of evacuation of the premises by the tenant. No interest is paid on the amount of the deposit. For the lease between 5 and 10 years, stamps must be purchased for a value of 5 percent of the total annual rent. For a rental period of 10 to 20 years, 5% of the annual rental value must be paid. A lease must clearly state the following clauses: But if Ashok initially concluded the agreement by paying the correct stamp duty, he should have paid only r. 1860/. Therefore, it is always recommended that you pay the corresponding stamp duty and be relaxed.

It is often a practice among people to create rental contracts on stamp paper with minimum values like Rs.20/-or 50/-or 100/- etc. If a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21.000, average annual rent is 21000*12 and 2% of it is Rs5.040). . . .