Stamp Duty and Registration for Rental Agreement in Maharashtra 2025

By Lodha

When renting or leasing a property in Maharashtra, it's essential to understand the intricacies of stamp duty and registration. A rental agreement stamp paper plays a crucial role in formalizing the arrangement between the landlord and tenant. This process is legally required to ensure both parties' rights are protected, and the agreement holds weight in a court of law. In this blog, we’ll cover everything you need to know about stamp duty in Maharashtra for rental agreements and the steps involved in registering a rental agreement.

What is Stamp Duty in Maharashtra?

In Maharashtra, stamp duty refers to the tax paid to the state government for executing a document that has legal significance. It’s a mandatory step for validating agreements such as property transactions, rental agreements, and leave and license agreements. The amount of stamp duty in Maharashtra varies depending on the type and value of the agreement.

For rental agreements, the stamp duty is calculated based on the rent paid or the duration of the agreement, whichever is applicable. While stamp duty for rental agreements is lower compared to property transactions, it remains an important aspect of formalizing rental contracts.

What is a Leave and Licence Agreement in Maharashtra?

A leave and licence agreement is commonly used for renting a property in Maharashtra. Unlike a lease agreement, a leave and licence agreement grants the tenant the permission to occupy the property for a specific period without transferring the ownership rights. The agreement is typically for shorter durations, and the tenant has fewer rights compared to a lease agreement.

Under a leave and licence agreement, the landlord retains ownership of the property and can reclaim possession once the agreement ends, provided proper notice is given. This makes it a popular choice for landlords who prefer flexibility and shorter tenure for tenants.

Stamp Duty on Rent Agreement: Quick Facts

The stamp duty for rental agreement in Maharashtra varies based on several factors. Here's a quick breakdown of the key aspects:

• For Agreements with Rent Below Rs. 3500/month: A nominal fee is charged, often as a flat rate.
• For Agreements with Rent Above Rs. 3500/month: The stamp duty for rental agreement is typically 0.25% of the annual rent.
• For Leave and License Agreements: If the rent is above Rs. 3500 per month, the stamp duty for leave and license agreements is calculated at 0.25% of the annual rent for each year of the agreement.

This stamp duty needs to be paid at the time of signing the agreement to make it valid under the law.

What are the Factors Affecting Stamp Duty on Rental Property?

Several factors determine the stamp duty for rental agreements:

• Monthly Rent: The amount of rent charged per month directly affects the stamp duty.
• Duration of the Agreement: Longer agreements generally lead to higher stamp duty payments.
• Type of Property: Commercial properties may incur higher stamp duty compared to residential properties.
• Additional Terms and Conditions: If there are any special conditions or clauses in the agreement, it may influence the stamp duty calculation.

For properties in premium locations, such as those developed by top builders in India, the rental charges tend to be higher, and consequently, the stamp duty will also be more significant.

How to Register Online Rent Agreement Registration in Maharashtra?

In 2025, the Maharashtra government introduced an easy online process for rental agreement registration. Here's how you can register your rental agreement online:

1. Visit the Maharashtra Stamp Duty and Registration Portal: Go to the official website for Maharashtra’s stamp duty and registration services.
2. Fill in the Details: Provide the required details such as the names of the parties, rental amount, agreement duration, and property address.
3. Upload Documents: You will need to upload the signed rental agreement and other supporting documents, including identification proofs of both landlord and tenant.
4. Pay Stamp Duty: Based on the rent and duration of the agreement, the portal will calculate the stamp duty for rental agreement. You can pay this amount online.
5. Get the Registration Number: Once payment is made, you will receive the registration number and receipt.
6. Receive the Registered Document: The final registered document will be emailed to you, and you will also get an official registered hard copy at your address.

This process ensures that the rental agreement is legally binding and can be used in disputes if required.

How to Calculate the Stamp Duty for Leave and License?

Calculating the stamp duty for leave and license agreements involves the following steps:

1. Determine Monthly Rent: The rent agreed upon by the parties.
2. Calculate the Annual Rent: Multiply the monthly rent by 12.
3. Apply Stamp Duty Rate: The stamp duty is calculated at 0.25% of the annual rent.

For example, if the monthly rent is Rs. 5000, the annual rent would be Rs. 60,000. The stamp duty in this case would be Rs. 150.

Documents Required for Rental Agreement

When drafting a rental agreement, several documents are required to ensure everything is in order:

• Identity Proof: Aadhar card, passport, or voter ID.
• Address Proof: Utility bill or a government-issued ID.
• Property Documents: Proof of property ownership or a certified copy of the title deed.
• Pan Card: For both landlord and tenant, if the rent exceeds a certain threshold.
• Passport-size Photographs: Of both parties.

These documents are required for the rental agreement registration process.

Conclusion

Understanding stamp duty for rental agreements and the process of registering them is crucial for both landlords and tenants in Maharashtra. The online registration system makes it easier to comply with legal requirements and ensure that the agreement holds up in court if needed. For those investing in real estate, such as properties developed by top builders in India, ensuring proper documentation and registration is vital for protecting investments.

If you're considering renting property or entering into a leave and license agreement in Maharashtra, it’s advisable to consult with a legal expert or real estate agent to ensure that your agreement is legally sound and that you comply with stamp duty in Maharashtra.

For those interested in real estate investment in Maharashtra, Lodha Group offers some of the finest properties that offer top-notch amenities and a hassle-free rental experience. Whether you're looking for luxury apartments for rent or investing in premium locations, Lodha's developments cater to a diverse range of needs and preferences.

FAQs

1. What is the stamp duty rate for a rental agreement in Maharashtra?
   The stamp duty for rental agreements is typically 0.25% of the annual rent, if the rent is above Rs. 3500/month.
2. How do I register my rental agreement online in Maharashtra?
   You can register your rental agreement online through the Maharashtra Stamp Duty and Registration Portal by filling in the required details and paying the stamp duty.
3. What documents are required for a rental agreement?
   You need identity proof, address proof, property ownership documents, and photos of both parties involved.
4. Can I use the same stamp paper for both lease and leave and license agreements?
   No, the stamp duty for a lease agreement stamp paper and leave and license agreement may differ, and you should use the appropriate stamp paper for each.