Stamp duty is calculated on percentage of 1 year of consideration amount or is it calculated on the total of consideration (for example 5 year agreement) lets say 1 year rent is 1 lakh so I want to ask that I have to pay 2% stamp duty on only 1 lakh or do I have to pay on the total 5 years of rent that is 2% of 5 lakh?

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1 Answers

0 July 14, 2024

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The calculation of stamp duty on rent agreements varies based on the location and local regulations. Here are some general guidelines:

One-Year Agreement:
- For a one-year agreement, the stamp duty is typically calculated on the annual rent.
- In your example, if the annual rent is ₹1 lakh, you would pay 2% of that amount as stamp duty.
Longer-Term Agreements:
- For agreements spanning multiple years (e.g., a 5-year agreement), the stamp duty is usually based on the total rent payable over the entire lease term.
- In your case, if the total rent over 5 years is ₹5 lakh, you would calculate 2% of that total amount.

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