If you’re renting a property in Maharashtra, paying stamp duty on your rent agreement is mandatory. The Maharashtra Stamp Act, 1958, requires all rental agreements to be legally registered with appropriate stamp duty payments. This ensures the agreement is enforceable in court and protects both tenants and landlords from future disputes.
In this blog, we’ll cover:
- What stamp duty on rent agreements is
- Stamp duty rates in Maharashtra (including Mumbai) for 2025
- How to pay stamp duty online
- Registration charges
- Exemptions and refund process
What is Stamp Duty on a Rent Agreement?
Stamp duty is a state-imposed tax on legal documents, including rental agreements, to make them legally valid and admissible in court. Without paying the required stamp duty, your rental contract is not considered official, and you may face penalties.
Factors Affecting Stamp Duty:
- Monthly rent amount
- Duration of the agreement
- Security deposit amount
- Location of the property (urban vs. rural)
Why is Stamp Duty Important?
Paying stamp duty for rental agreements benefits both tenants and landlords:
- For Tenants: Prevents unfair eviction, ensures rent control, and serves as legal proof of tenancy.
- For Landlords: Safeguards against disputes, protects rental income, and ensures legal backing in case of issues.
Stamp Duty Rates for Rent Agreements in Maharashtra (2025)
Stamp duty is calculated based on the total rent payable during the agreement period.
| Agreement Duration | Stamp Duty Rate | Example (₹10,000/month rent) |
|---|---|---|
| Up to 5 years | 0.25% of total rent | ₹300 (₹10,000 × 12 × 0.25%) |
| 5 to 10 years | 0.50% of total rent | ₹600 (₹10,000 × 12 × 0.50%) |
| Above 10 years | 1% of total rent | ₹1,200 (₹10,000 × 12 × 1%) |
For an 11-month rent agreement, stamp duty is 0.25% of total rent.
How to Pay Stamp Duty for Rent Agreements Online?
You can easily pay stamp duty online through the IGR Maharashtra website.
Steps for Online Payment:
- Visit www.igrmaharashtra.gov.in
- Click on “e-Payment for Stamp Duty and Registration Fees”
- Enter rental details (rent, tenure, security deposit)
- Make payment via net banking, credit/debit card, or UPI
- Download the stamp duty receipt as proof
Registration Charges for Rent Agreements in Mumbai
Apart from stamp duty, you also need to register the rental agreement.
| Annual Rent | Registration Fee |
|---|---|
| Up to ₹30,000 | ₹1,000 |
| Above ₹30,000 | ₹2,000 |
Rent agreements above 11 months require mandatory registration, which incurs a registration fee.
Documents Required for Rent Agreement Registration
To register a rent agreement, both the landlord and tenant must submit the following documents:
- Aadhaar card of both parties
- PAN card of the landlord
- Original copy of the rent agreement
- Stamp duty payment receipt
- Two passport-sized photographs of both parties
How to Register a Rent Agreement Online?
Registration of rental agreements can now be done online through the government website.
Steps for Online Registration:
- Visit the online rent agreement government website
- Upload required documents
- Pay the applicable stamp duty and registration charges
- Schedule an appointment for biometric verification
- Receive the registered rent agreement via email
Penalty for Non-Payment of Stamp Duty
Failing to pay the stamp duty for registration of rent agreement in Maharashtra can result in:
- A penalty of 2% per month on the unpaid amount
- Legal disputes becoming difficult to resolve in court
- The agreement being considered invalid under the law
Stamp Duty Refund Process
In certain cases, you can apply for a stamp duty refund if:
- The rent agreement was never executed
- The agreement was canceled before the commencement date
- Extra stamp duty was paid due to miscalculation
The refund application must be submitted within six months of stamp duty payment.
Conclusion
Understanding stamp duty on rent agreements in Maharashtra is essential for both landlords and tenants. By paying the correct stamp duty and registration charges in Mumbai, you ensure that your agreement is legally valid, protecting yourself from potential disputes.
At Housiey, we provide detailed insights into real estate processes to make home renting and buying easier.
For more information on related topics, read our blog on “Stamp Duty Refund“ to understand how you can claim refunds on excess stamp duty payments.
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