A leave and license agreement in Maharashtra pays stamp duty of 0.25% on the rent for the period plus a notional amount for the deposit, a registration fee of ₹1,000 in urban areas, and must be registered. For a typical 11-month agreement the whole government cost is usually between ₹1,500 and ₹3,000, but the way the deposit is counted trips up many landlords.
A landlord in Pune writes a rent agreement on notarised stamp paper for ₹500 and considers it done. Maharashtra law says otherwise. Leave and license agreements must be registered, and the stamp duty is calculated by a formula on the rent and the deposit. An agreement that is only notarised can be refused as evidence, and can leave a landlord without the quick possession remedy that registration gives.
This guide explains how the duty is worked out, why guides disagree about the deposit, what registration costs, and how to register online.
Quick answer (2026): Under Article 36A of the Maharashtra Stamp Act, duty on a leave and license agreement is 0.25% of the total rent for the period, plus any non-refundable deposit, plus a notional amount for the refundable deposit (commonly 10% per year). The minimum is ₹100. The registration fee is ₹1,000 in urban areas and ₹500 in rural areas, and registration is mandatory. The rate is the same in Mumbai, Pune, Thane, Navi Mumbai and every other district.
- The legal framework
- Leave and license vs lease
- How the stamp duty is calculated
- The deposit question
- Registration fee and mandatory registration
- Step-by-step: registering online
- Worked examples
- Other documents and tax points
- Documents checklist and common errors
- Frequently asked questions
1. The Legal Framework
Three pieces of law shape a rent agreement in Maharashtra.
- The Maharashtra Stamp Act, 1958. Article 36A of Schedule I sets the duty on a leave and license agreement.
- The Maharashtra Rent Control Act, 1999. Section 55 is reported to require every leave and license agreement to be registered, whatever its duration. The Act is also the reason landlords in Maharashtra use leave and license rather than a tenancy.
- The Registration Act, 1908. It governs the registration process, and the fee is set in the department's fee table.
The Department of Registration and Stamps runs the online services at igrmaharashtra.gov.in, and payments go through GRAS at gras.mahakosh.gov.in.
2. Leave and License vs Lease
In Maharashtra most residential rent agreements are leave and license agreements. The licensee gets the right to occupy, without acquiring an interest in the property. A lease creates a tenancy and is taxed differently, at a much higher rate. One practitioner's summary puts lease duty at 3% to 6%, and a lease is taxed under a different article.
The substance of the document, not its title, decides which treatment applies. Calling a lease a "leave and license" does not change the duty if the terms create a tenancy. If your agreement is for a long fixed term, grants exclusive possession, or has features of a tenancy, take advice on how it will be taxed.
3. How the Stamp Duty Is Calculated
For a leave and license agreement of up to 60 months, the duty is 0.25% of the consideration. The consideration is made up of:
| Component | How it is counted |
|---|---|
| Rent for the period | Monthly rent × number of months |
| Non-refundable deposit or premium | Added in full |
| Refundable deposit | A notional amount, commonly 10% of the deposit for each year |
In symbols:
Stamp duty = 0.25% × \[ rent for the term + non-refundable deposit + 10% of refundable deposit per year \]
Two more rules.
- Minimum duty is ₹100. A very small agreement still pays the minimum.
- The same rate applies statewide. It is set by the state, not by the city, so the figure is the same in Mumbai, Pune, Thane, Navi Mumbai and rural districts.
Agreements for terms longer than 60 months are taxed on a different basis. If your term is long, confirm the treatment on the department's portal or with the Sub-Registrar.
4. The Deposit Question
The most common mistake, and the point on which guides disagree, is how to treat the refundable security deposit.
- The notional-interest method. Many sources, including several that cite Article 36A directly, add only 10% of the refundable deposit for each year. They say the deposit itself is never added in full.
- The full-deposit method. Some summaries say the duty is 0.25% of the total rent plus the deposit, adding the deposit in full.
The two methods give different answers. On a ₹1,00,000 deposit for 11 months, the first adds about ₹10,000 to the base and the second adds ₹1,00,000. The duty difference is only ₹225, but on a large deposit it matters.
Practical rule: Treat the notional-interest method as the working formula, because it is the one most sources attribute to the article. Confirm the figure for your agreement on the department's portal, and note that a non-refundable deposit or premium is added in full under either method.
5. Registration Fee and Mandatory Registration
| Item | Amount |
|---|---|
| Registration fee, urban (municipal corporation) areas | ₹1,000 |
| Registration fee, rural areas | ₹500 |
| Stamp duty minimum | ₹100 |
Two points worth knowing.
- ₹500 is a rural registration fee, not the stamp duty. The figure is often confused with the duty.
- Registration is mandatory. Sources tie this to Section 55 of the Rent Control Act, and say it applies whether the term is 11 months or longer. Notarisation alone is not a substitute.
One source describes a short agreement of 11 months or less as valid on notarised paper, while others say registration is mandatory in all cases. The safer reading, and the one consistent with the Rent Control Act as cited, is to register.
6. Step-by-Step: Registering Online
Step 1: Fix the terms. Agree the monthly rent, the term, the deposit and whether any part is non-refundable.
Step 2: Compute the duty. Use the formula in Section 3, or the department's calculation tool.
Step 3: Pay stamp duty and the registration fee through GRAS at gras.mahakosh.gov.in. Select the Stamps and Registration department, pay online and download the challan.
Step 4: Enter the agreement details through the department's online registration module on igrmaharashtra.gov.in, and upload the documents.
Step 5: Book a slot and appear. The landlord (licensor), the tenant (licensee) and two witnesses appear at the Sub-Registrar's office, or use a doorstep service where it is offered. Biometrics and photographs are taken.
Step 6: Collect the registered agreement. Keep the receipt and the registered copy.
Landlords should also check whether the local police station needs to be informed of the licensee's details, since this is a separate local requirement in several cities.
Before you pay: Use the StampDutyCalc.in calculator to estimate the duty for your rent, term and deposit, and compare the notional-interest and full-deposit methods. Then confirm the figure on the department's portal before paying.
7. Worked Examples
Both examples use the notional-interest method, a ₹1,000 registration fee, and the full-deposit method as a comparison.
Example A: Flat worth ₹45 Lakhs, rented for 11 months
Rent ₹20,000 a month, 11 months, refundable deposit ₹1,00,000.
| Item | Notional method | Full-deposit method |
|---|---|---|
| Rent for the term (₹20,000 × 11) | ₹2,20,000 | ₹2,20,000 |
| Deposit counted | ₹10,000 (10% of ₹1,00,000) | ₹1,00,000 |
| Base | ₹2,30,000 | ₹3,20,000 |
| Stamp duty (0.25%) | ₹575 | ₹800 |
| Registration fee | ₹1,000 | ₹1,000 |
| Total | ₹1,575 | ₹1,800 |
Example B: Flat worth ₹1.2 Crore, rented for 36 months
Rent ₹55,000 a month, 36 months, refundable deposit ₹5,00,000.
| Item | Notional method | Full-deposit method |
|---|---|---|
| Rent for the term (₹55,000 × 36) | ₹19,80,000 | ₹19,80,000 |
| Deposit counted | ₹1,50,000 (10% × ₹5,00,000 × 3 years) | ₹5,00,000 |
| Base | ₹21,30,000 | ₹24,80,000 |
| Stamp duty (0.25%) | ₹5,325 | ₹6,200 |
| Registration fee | ₹1,000 | ₹1,000 |
| Total | ₹6,325 | ₹7,200 |
Example C: Why a non-refundable premium matters
A ₹2,00,000 non-refundable premium is added in full under either method. On the 11-month agreement in Example A, the base rises from ₹2,30,000 to ₹4,30,000, and duty rises from ₹575 to ₹1,075.
In every case, the government cost is a few thousand rupees. The risk of getting it wrong is not the amount. It is an unregistered or under-stamped agreement.
8. Other Documents and Tax Points
This is a brief outline. Separate guides cover each deed.
- Gift deed. A gift of residential or agricultural property to a spouse, child, grandchild or a deceased son's widow is reported at a flat ₹200 under Article 34. Other gifts attract a percentage of market value.
- Power of attorney. A PoA authorising sale of immovable property is taxed under Article 48 at the conveyance rate on market value. A PoA without consideration to close relatives is reported at ₹500. A PoA to collect rent or manage a flat falls under a different, lower clause, so confirm the clause.
Tax points. Stamp duty on a rent agreement is not deductible under Section 80C of the Income-tax Act, 1961 (Section 123 of the Income-tax Act, 2025 from 1 April 2026). That deduction covers stamp duty and registration charges on the purchase or construction of a residential house. Tenants who receive house rent allowance may have a separate exemption under the old regime, and landlords report rent as income from house property. Take tax advice for your case.
9. Documents Checklist and Common Errors
For registration
- PAN and Aadhaar of the licensor and licensee
- Draft leave and license agreement with rent, term, deposit and lock-in
- Proof of ownership of the premises, such as the title deed or the latest property tax receipt
- Society NOC where the society's rules require it
- GRAS challan for the stamp duty and registration fee
- Two witnesses with ID
- For a corporate licensee: board resolution or authorisation letter
- Passport and visa details for a foreign licensee
Common errors
- Treating a notarised ₹500 stamp paper as a registered agreement.
- Confusing the ₹500 rural registration fee with the stamp duty.
- Adding the refundable deposit in full without checking the method.
- Forgetting that a non-refundable premium is added in full.
- Using a document titled "lease" for what is really a licence, or the reverse.
- Paying under the wrong GRAS challan head.
- Not renewing or re-registering when the agreement is extended beyond the registered term.
10. Frequently Asked Questions
What is the stamp duty on a rent agreement in Maharashtra?
0.25% of the total rent for the period plus a notional amount for the refundable deposit and any non-refundable deposit in full, under Article 36A. The minimum is ₹100.
Is registration of a rent agreement mandatory in Maharashtra?
Yes. Sources tie this to Section 55 of the Maharashtra Rent Control Act, 1999, and say it applies to every leave and license agreement.
What is the registration fee for a rent agreement in Maharashtra?
₹1,000 in urban areas and ₹500 in rural areas.
Is the stamp duty different in Mumbai and Pune?
No. The 0.25% rate is set by the state and is the same in Mumbai, Pune, Thane, Navi Mumbai and other districts.
Is the deposit added in full when calculating stamp duty?
Sources differ. Many say only 10% of the refundable deposit for each year is counted, and others add the deposit in full. A non-refundable deposit is added in full. Confirm the figure on the department's portal.
Can I register a rent agreement online in Maharashtra?
Yes. Pay through GRAS, enter the agreement details on the IGR Maharashtra portal and book a slot. Some areas offer doorstep registration.
Disclaimer: This article is for general information and is not legal or tax advice. Rates, fees and registration rules are set by the Government of Maharashtra and can change by notification. Confirm your figures on the IGR Maharashtra portal, or with an advocate or the Sub-Registrar's office, before paying.