TDS provisions relating to rents paid under income tax legislation. In the State of Maharashtra, it is mandatory to register the Leave and License Agreement, and it is the responsibility and responsibility of the lender/licensee to pay the correct stamp duty u/a 36A of the Bombay Stamp Act, 1958 and should be registered u/s 17 of the Registration Act, 1908. Pre-rent for the non-refundable period/down payment – B 10% x refundable deposit x Number of contract years – C Stamp Duty: Bombay HC stamp duty cannot be levied for past transactions. It is the owner`s responsibility to register the lease, otherwise the lessor may have to pay a fine of 5,000 Ds and expect a prison sentence of up to three months. If the leave and licence contract is not registered and there is a dispute between the lessor and the tenant, the contractual terms invoked by the tenant are considered to be the actual and correct conditions under which the property was granted to the tenancy, unless there is evidence to the contrary. There are several legal formalities that you must complete if you rent a property or take a place on the rent. Leave and licensing agreements must be stamped and registered. As stamp duty is a matter of state, all states have different rates and laws that deal with stamp duty. Here we will discuss the law on stamp duty and registration of holiday and licensing transactions in the state of Maharashtra. The basic framework for stamp duty is defined in the Indian Stamp Act of 1899, which allows states to change the same rules according to their needs. As a result, the Maharashtra government passed the Bombay Stamp Act in 1958.

The payment of stamp duty on leave and licensing agreements are covered by Section 36A of the Bombay Stamp Act of 1958. License term: Means month/years (no more than 60 months / 5 years) for renting a property such as housing, Maharashtra Stamp Act`s office, shop and industry on vacations and license bases u/a 36A. Refundable caution: The amount of the refundable deposit is equal to the amount the depositor (tenant) gave to the licensee (owner) as collateral (guarantee of good performance and compliance) for the principal. Non-refundable down payment (NRD) means the amount the licensee (tenant) gives to the licensor (owner) in advance, which must be adjusted according to the final monthly rent. Note: Tax Source (TDS): Applicable u/s 194 (i) of the Income Tax Act, 10% in 1961 for the total rent that was received in a fiscal year greater than $180,000/- or more. If you. B enter into a leave and licence contract for 24 months, with a monthly rent of Rs 25,000 and a refundable deposit of five Lakhs, you must pay a stamp duty of Rs 1,750 (with 0.25% on the rental of Rs six Lakhs for two years and Rs a Lakh for two years).