Table of Contents

What Is a Lease Rent Deed Under Article 35(I)?Understanding Article 35(I) in Lease Agreements When Is Article 35(I) Used?Key Features of a Lease Rent Deed Under Article 35(I)Information Included in a Lease Rent Deed Example Scenario When Does Article 35 I Apply? Difference Between Lease Deed and Rent Agreement Under Article 35 Key Factors Considered Under Article 35 I Documents Required for Article 35 I Lease Rent Deed How to Execute a Lease Rent Deed Under Article 35 I? Stamp Duty Payable Under Article 35(I) How Stamp Duty Is Calculated Under Article 35(I)? How NoBroker Can Help With Lease Rent Deeds?Frequently Asked Questions

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Home Blog Real Estate Legal Guide & Laws Article 35 I Lease Rent Deed

Article 35 I Lease Rent Deed: Process, Calculation and Legal Guidelines in 2026

Updated : March 9, 2026, 3:38 PM

Author : Kiranks

Real Estate Legal Guide & Laws

Lease Agreement

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Summary

Article 35 I Lease Rent Deed refers to provisions under the Indian Stamp Act that define the stamp duty applicable on lease or rent agreements. The duty amount depends on factors such as lease duration, rent amount, and advance payments mentioned in the agreement. Proper stamping under Article 35 I ensures the lease document is legally valid and enforceable. Failure to pay the correct stamp duty may lead to penalties or issues during registration.

Table of Contents

What Is a Lease Rent Deed Under Article 35(I)?

A Lease Rent Deed under Article 35(I) refers to a legal document used to formalize a lease or rental agreement for a property, where the applicable stamp duty is charged according to Article 35(I) of the Indian Stamp Act (or relevant state stamp act rules).

This provision generally applies to short-term lease or rent agreements, typically when the lease period does not exceed one year or when the agreement is created as a simple rental arrangement rather than a long-term registered lease.

Understanding Article 35(I) in Lease Agreements

Under Article 35 of the Indian Stamp Act, different sub-clauses define stamp duty rules for various types of lease or rental agreements.

Article 35(I) usually covers:

Lease or rent agreements for short durations
Agreements where rent is paid periodically
Simple tenancy arrangements without long-term property rights

The stamp duty payable under Article 35(I) is usually calculated based on:

Monthly rent amount
Lease duration
Security deposit or advance (in some states)

The exact duty can vary because stamp duty rules are state-specific in India.

When Is Article 35(I) Used?

A Lease Rent Deed under Article 35(I) is typically used in situations such as:

Residential rental agreements
Short-term commercial property leases
Temporary tenancy arrangements
Leave and license or rental agreements (in some states)

For example, if a tenant signs an 11-month house rent agreement, the document may fall under Article 35(I) for stamp duty purposes.

Key Features of a Lease Rent Deed Under Article 35(I)

Feature	Details
Legal Purpose	Defines terms of renting a property
Governing Law	Article 35(I) of the Indian Stamp Act or state stamp law
Lease Duration	Usually short-term (often up to 11 months)
Stamp Duty	Based on rent, duration, and sometimes deposit
Registration	May or may not require registration depending on duration

Information Included in a Lease Rent Deed

A typical Lease Rent Deed under Article 35(I) includes:

Details of the landlord and tenant
Property description and address
Lease duration
Monthly rent amount
Security deposit
Maintenance charges (if any)
Rights and obligations of both parties
Termination conditions

Example Scenario

Suppose a landlord rents out an apartment for ₹20,000 per month for 11 months.
To make the agreement legally valid:

A Lease Rent Deed is drafted.
Appropriate stamp duty under Article 35(I) is paid.
The agreement is signed by both parties and witnesses.

This document becomes proof of the tenancy arrangement.

A Lease Rent Deed under Article 35(I) is a stamped rental agreement used to legally record a short-term lease of property, with stamp duty calculated under Article 35(I) provisions of stamp law.

When Does Article 35 I Apply?

Article 35(I) is triggered whenever a written agreement is created to transfer the right to enjoy an immovable property in exchange for periodic rent. [2]

Lease or rent agreements exceeding the prescribed duration: Typically applied to terms of one to five years or longer.
Agreements involving advance rent or premium: When money is paid upfront to secure the premises.
Commercial lease arrangements: Businesses often use this article for multi-year leases for shops or offices.
Lease deeds requiring compulsory registration: Any lease 12 months or longer must be stamped under this article for registration.
Rent agreements falling under higher stamp duty slabs: When the rent amount or tenure moves the document beyond nominal flat-fee categories.

Difference Between Lease Deed and Rent Agreement Under Article 35

While people often use these terms interchangeably, the Indian Stamp Act and Registration Act treat them differently based on their timeframes. [3]

Feature	Rent Agreement	Lease Deed
Occupation Type	Usually, short-term residential stays.	Typically long-term or commercial use.
Duration	Often 11 months to avoid registration.	12 months or longer (multi-year).
Stamp Duty Treatment	Usually a low, fixed nominal amount.	Calculated as a percentage of annual rent.
Legal Classification	Falls under Article 35(a)(i).	Falls under Article 35(a)(ii) or (iii).
Registration	Not mandatory for terms under 1 year.	Compulsorily registrable by law.

Key Factors Considered Under Article 35 I

When a document is evaluated under Article 35(I), several financial and structural elements are analyzed to find the final tax amount. [4]

Lease period mentioned in the deed: The total number of months or years the tenant will occupy the space.
Monthly or annual rent amount: The base figure used to calculate the "Average Annual Rent" (AAR).
Advance rent or non-refundable premium: Any upfront "salami" or fine paid to the landlord is added to the taxable base.
Nature of property use: Whether the premises are being used for living (residential) or business (commercial).
Whether registration is mandatory: If the term is over 11 months, the document must meet higher stamping standards to be registered.

Documents Required for Article 35 I Lease Rent Deed

To finalize a lease rent deed under this article, both parties must present a comprehensive set of identity and property proofs. [5]

Draft lease rent deed/rent agreement: The prepared document on appropriate e-stamp paper.
Identity and address proof of parties: Original Aadhaar cards, PAN cards, or Passports for the landlord and tenant.
Property ownership documents: Original Sale Deed, Title Deed, or a formal Allotment Letter.
Stamp duty payment proof: A receipt from an authorized portal like SHCIL or the state treasury.
Passport-size photographs: Required for the biometric records at the sub-registrar's office.
Registration receipt: Proof that the mandatory government registration fees have been paid.

How to Execute a Lease Rent Deed Under Article 35 I?

Executing an Article 35 I Lease Rent Deed involves a structured process to ensure the document is legally binding and admissible in court. [6]

Finalise lease tenure and rent

The landlord and tenant must agree on the lease term and the exact monthly rent, including any annual escalation clauses.

Prepare the lease rent deed draft

A comprehensive draft must be prepared, clearly stating the parties' names, property description, and all lease agreement terms.

Calculate applicable stamp duty

Determine the duty amount based on the state-specific rates under Article 35(I), taking into account the tenure and total rent payable for the term.

Pay stamp duty

Purchase the required non-judicial e-stamp paper or pay the duty through an online government portal like Kaveri or GRAS.

Sign the deed with witnesses

Both parties and at least two independent witnesses must sign every page of the deed in the presence of an authorized official.

Register the deed if required by law

If the lease term is 12 months or longer, you must visit the sub-registrar to register the lease deed biometrically to ensure its full enforceability.

Stamp Duty Payable Under Article 35(I)

The amount of tax you pay under Article 35 i lease rent deed depends largely on how your specific state interprets the Indian Stamp Act.

Basis of calculation: Duty is typically calculated based on the combined total of rent, security deposit, and tenure.
Impact of lease duration: A 5-year lease will attract a higher percentage of duty than a 2-year lease.
State-specific variation: For example, Maharashtra uses a complex formula involving notional interest on deposits, while Delhi uses a percentage of average annual rent. Knowing the house rent lease agreement format for your state is essential.

How Stamp Duty Is Calculated Under Article 35(I)?

Calculations for a rent agreement article 35 I follow a logical mathematical formula that considers all financial "consideration." [7]

Monthly rent amount: The primary figure, which is multiplied by 12 to find the yearly rent.
Security deposit: Refundable deposits often attract a notional interest (e.g., 10%) that is added to the rent base.
Lease term: The total number of years acts as a multiplier for the total taxable value.
Additional premiums: Any non-refundable "fine" is added directly to the consideration for duty calculation. For a deeper understanding, you can research the lease deed standards in your city.

How NoBroker Can Help With Lease Rent Deeds?

Navigating the complexities of Article 35 i lease rent deed documentation can be overwhelming for both owners and tenants. NoBroker simplifies this process by providing expert assistance in drafting legally compliant lease agreements tailored to your state's laws. We help you calculate the exact stamp duty under Article 35(I), provide verified templates, and coordinate the entire registration process. Whether you are dealing with a simple residential stay or a complex commercial lease, NoBroker ensures your documentation is accurate, lawful, and completely brokerage-free.

Frequently Asked Questions

Q1. What is Article 35 I lease rent deed?

Ans: It is a legal instrument for leasing property, under which stamp duty is calculated based on the fixed rent and tenure under the Indian Stamp Act.

Q2. Is Article 35 I applicable to all rent agreements?

Ans: It generally applies to written agreements where rent is fixed. Short-term agreements under 11 months may fall within a lower nominal slab under the same article.

Q3. Does a lease rent deed under Article 35 I require registration?

Ans: Yes, if the tenure is for 12 months or more, registration with the local sub-registrar is mandatory for the deed to be valid in court.

Q4. How is stamp duty calculated under Article 35 I?

Ans: It is calculated as a percentage of the total consideration, which includes the average annual rent and any premiums or security deposits.

Q5. What happens if stamp duty is not paid correctly?

Ans: The document is considered "impounded" and inadmissible as evidence in court. Rectification requires paying the deficit duty plus a penalty of up to 10 times the amount.