Be a smart consumer by knowing how the charges are calculated while getting the online registration of your rent agreement done, especially the registration costs, stamp duty and fees for government-approved service providers like Anulom.

An informed consumer makes for a valued customer. The average Indian consumer has many options to choose from, particularly when it comes to last-mile delivery of services. In fact, that’s where most service providers focus their efforts to make the customer’s experience richer and more meaningful. But it is the prerogative of the consumer to ensure he/she is not taken for a ride. This is especially true of bureaucratic procedures like rent agreement registration, where the state governments have mandated that an online registration and payment system must be used.

Let’s take the example of Maharashtra since the law here is more stringent when it comes to getting a rental agreement registered. The cost of getting your rent agreement registered includes stamp duty, registration charges as well as government-approved service provider’s charges. In Maharashtra, the location of your property will determine the charges you will have to pay towards registration charges. You will be charged Rs 1000 if the property is located in a municipal area, and Rs 500 if the property is in a rural location.

Stamp duty is calculated using details of your rent, period of tenancy and refundable/non-refundable deposit. For the purpose of simplifying it, you can calculate the stamp duty on your rent agreement using this formula:

A = 0.25% of B

Where A is STAMP DUTY

And B is AMOUNT SUBJECT TO STAMP DUTY, which can be calculated with

MONTHLY RENT x NUMBER OF MONTHS

+     ADVANCE RENT

+     10 % of REFUNDABLE DEPOSIT

Let’s work this out with an example:

If you’re registering an agreement for a rent of Rs 20,000 for 11 months, with an advance of 20,000 and a refundable deposit of 2 lacs, the formula will look like this:

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Rs 20,000 x 11 = Rs 2,20,000

+          Rs 20,000

+          Rs 20,000

=          Rs 2,60,000

At 0.25% of 2,60,000, stamp duty =  Rs 650

The doorstep service fees charged by a government-approved provider like Anulom are a nominal amount, charged to maintain services like biometric verification conducted at your doorstep and online services like drafting the entire rent agreement. It’s a small amount to pay for priceless services. Anulom constantly offers great discounts and special prices for its various services that make online registration of your rental agreement a breeze!

In the state of Maharashtra, registration of your leave and license agreement is compulsory, even if the period of lease is only 11 months. The onus of responsibility falls on the owner; if such a rental agreement is not registered in the Sub-Registrar’s Office, the owner will have to pay a penalty of Rs 5000 as well as imprisonment of three months. Isn’t it far better to pay the fees required by the government and the service provider to ensure the smooth functioning of the entire process, than to tempt fate by indulging in illegal practices?

Visit Anulom.com or call +91 9595380945 to get an easy calculator of the online registration charges to make your e-governance experience smooth and seamless.

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  1. Pingback: Online registration of your rent agreement: FAQs – Anulom Blog

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