How Much Stamp Duty for Rental Agreement in Bangalore

When entering into a rental agreement in Bangalore, it is important to understand the various taxes and fees that may apply, including stamp duty. Stamp duty is a tax levied by the government on the transfer of property, including rental agreements, and is payable by the tenant.

The stamp duty for a rental agreement in Bangalore is calculated as a percentage of the total rent for the duration of the agreement. The current rate of stamp duty for rental agreements in Bangalore is 0.1% of the total rent for a period of up to 11 months. For rental agreements exceeding 11 months, the stamp duty is calculated at 1% of the total rent.

To illustrate this, let`s take an example of a rental agreement for a property in Bangalore with a monthly rent of Rs 20,000 for a period of 12 months. The total rent for the agreement would be Rs 2,40,000 (20,000 x 12). The stamp duty for this agreement would be calculated as follows:

For the first 11 months: 0.1% of Rs 2,20,000 (20,000 x 11) = Rs 220

For the remaining 1 month: 1% of Rs 20,000 = Rs 200

Total stamp duty payable for the rental agreement = Rs 420

It is important to note that stamp duty rates may vary depending on the state or city in which the rental agreement is executed. In addition to stamp duty, there may also be other taxes and fees to be paid, such as registration charges.

To ensure that you are fully aware of the costs involved in renting a property in Bangalore, it is recommended that you consult with a professional tax advisor or lawyer. They can provide you with detailed information on stamp duty rates, as well as any other taxes and fees that may apply, helping you to make an informed decision before entering into a rental agreement.

Scroll to Top