What corporate social responsibility and how much money is spent for it in IndiaThe most leases are signed for 11 months, which avoids stamp duty and other fees. Under the 1908 Registration Act, registration of leases is mandatory if the rental period is 12 months or more. If a rental agreement is registered, it is also mandatory to pay registration fees and stamp duty. Example: For five years of renting in Delhi, the cost of a stamp paper is 2% of the total annual rent of a year and for more than 5 years, but less than 10 years, it is equal to 3% of the average annual rent. For 10 years or more, but less than 20 years, the rate is 6%. If the deposit is indicated in the contract, then Rs. 100 and Rs. 1100 are added for the registration fee. If a property is rented for 2 years, where the first year of Rs. rent 20,000 per month and for the second year of rental is Rs. 22,000 per month. Then the cost of registering the lease would be: 2% of the average rent for 12 months, which is Rs 5040. This can be explained: the average rent for a month is Rs.

21,000, the average rent for one year is 21,000 -12 and 2% of that amount is 5040. In this amount, if there is a security deposit, then rs 100 and Rs 1100 for registration fees will be added. The total cost will be 6240 billion euros. In addition, the costs of the lawyer and other paper works are added up and it is 8 to 10 thousand rupees. To avoid all these expenses, landlords and tenants therefore enter into an 11-month agreement solely on the basis of mutual consent. For this reason, they do not have to pay registration fees and other fees. However, if the tenant wishes to declare a tenancy agreement, the tenant and landlord must share the costs. Now you may have figured out why the lease is only valid for 11 months. Some important facts about the lease- During the signing of the lease both the landlord and the tenant should be some of the essential elements such as that the landlord should provide complete information about the tenant and the tenant must ensure that the landlord does not cheat. In addition, the tenant must know how long the property is rented, who pays the electricity bill, the water tax and the tax on the house, whether or not it is included in the rent.- The rental agreement must clearly indicate when and how much to rent. “If the rental period is exceeded by an additional month, to say 12 months, several laws will come into force, which complicates the procedure for both the tenant and the landlord.

To avoid such a situation, the duration of the tenancy is maintained at 11 months, regardless of the period for which the lessor intends to rent his property. This contract will be extended at a later date for a further term. In this way, several complications are avoided by both sides,” says Brajesh Mishra, a lawyer at Punjab-Haryana High Court. Therefore, a tenancy agreement is the documentation of contractual terms agreed by the landlord and tenant. This is why it acts as evidence when a dispute arises between the landlord and the tenant over the property. Today, the majority of companies in Delhi and Noida require a lease. The tenancy agreement (also known as a tenancy agreement) is a legal document signed between the landlord and the tenant. This contract binds both parties and protects their interests. It mentions the general terms and conditions of rental of property and contains information provided by landlords, tenants and property. It also includes monthly rent, duration, purpose of use of real estate, whether residential or commercial buildings, etc.

In Haryana, stamp duty on leases varies between 1.5 and 3% of the average annual rent, depending on the rental period indicated in the document. Registration fees vary between Rs 1,500 and Rs 16,000 depending on the amount of rent.