This is mainly done to avoid the tax or stamp duty charges applied to the lease agreement. According to the clause (d) subsection (1) of the Registration Act, 1908, registration of the property that is on lease for a year or more is compulsory. The tax percentage differs from state to state. Apart from this, the tenure of the lease is another factor to decide the tax percentage.
For example, in Delhi, if you lease a house for a year then the stamp duty charge is 2% of the total average annual rent of a year. If it is between 5 years and 10 years, it is 3% and if it is between 10 years and 20 years, it is 6%.
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Why is a residential rent agreement made for a duration of 11 months?
Siddhartha N
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1
5 Year
2020-08-21T07:30:21+00:00 2020-11-11T17:02:48+00:00Comment
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