Stamp Duty on Leave and Licence in India

Introduction

A Leave and Licence Agreement is a legal contract where the owner (licensor) permits another party (licensee) to occupy their property for a temporary period without transferring tenancy rights. This type of agreement is commonly used for renting residential and commercial premises in India. Although it appears similar to a rent agreement, it provides the property owner greater control and easier eviction rights. Before draft a leave and licence you must aware about stamp duty on Leave and Licence in India.

Paying proper stamp duty on such agreements is a legal requirement. Each Indian state has its own Stamp Act and corresponding articles that determine the rate and procedure. This article provides a clear, structured, and state-wise breakdown to help property owners, tenants, and legal professionals stay compliant.

Stamp Duty on Leave and Licence in India

Stamp duty on Leave and Licence Agreements in India is determined by the respective state laws. These agreements are used to grant temporary rights to use a property without transferring tenancy or ownership rights. It is essential to pay the appropriate stamp duty to make the agreement legally valid and enforceable in court. Each state follows its own rates, article numbers, and registration requirements. While Maharashtra offers a well-defined structure under Article 36A, states like Uttar Pradesh validate such agreements under general provisions. Proper stamping protects both parties and ensures compliance with local legal requirements.

Stamp Duty on Leave and Licence in Uttar Pradesh

Uttar Pradesh does not have a specific provision for Leave and Licence Agreement under its tenancy laws. However, such agreements are valid under the Indian Easements Act, 1882. The state levies stamp duty under Article 35(b) of the Uttar Pradesh Stamp Act, 2008.

Stamp Duty Details:

Article No.: 35(b)
Rate: 4% of the total annual rent, including any non-refundable deposit
Registration: Optional for agreements up to 11 months
Applicable Cities: Lucknow, Noida, Ghaziabad, Kanpur, Prayagraj, and others

Proper stamping ensures legal enforceability and reduces the risk of disputes.

Stamp Duty on Leave and Licence in Maharashtra (Including Pune)

Maharashtra is one of the most structured states when it comes to Leave and Licence Agreements. These agreements are widely used in cities like Pune and Mumbai, with clear stamp duty rules under Article 36A of the Maharashtra Stamp Act, 1958.

Stamp Duty Details:

Article No.: 36A
Stamp Rate:
- 0.25% of the total rent for residential premises
- 0.5% for commercial premises
- Calculated on the entire term including deposit
Registration: Mandatory if the agreement exceeds 11 months

Online e-registration is available, making it convenient for both parties.

Stamp Duty on Leave and Licence in Delhi (NCT)

In Delhi, Leave and Licence Agreements are permitted and typically executed for 11 months to avoid compulsory registration. However, paying stamp duty is essential for legal validity.

Stamp Duty Details:

Article No.: 35
Stamp Rate: 2% of average annual rent
Registration: Optional if the term is less than 12 months

Stamp Duty on Leave and Licence in Karnataka (Bengaluru)

Karnataka follows simple rules under the Karnataka Stamp Act, 1957. Agreements not exceeding 11 months can be executed on nominal stamp paper.

Stamp Duty Details:

Articles: 30 & 31
Stamp Rate:
- Rs. 20 for agreements under 11 months
- 1% of annual rent for longer durations
Registration: Required if term exceeds 11 months

Stamp Duty on Leave and Licence in Tamil Nadu (Chennai)

Tamil Nadu follows the Indian Stamp Act with local modifications.

Stamp Duty Details:

Article No.: 35
Stamp Rate: 1% of total rent and deposit
Registration: Compulsory for agreements beyond 11 months

Stamp Duty on Leave and Licence in Telangana (Hyderabad)

Telangana enforces clear guidelines for stamping and registration of leave and licence agreements.

Stamp Duty Details:

Article No.: 31
Stamp Rate: 0.5% of total rent and deposit
Registration: Required if the term is more than 11 months

Stamp Duty on Leave and Licence in Gujarat (Ahmedabad)

Gujarat adheres to the Bombay Stamp Act for determining stamp duty.

Stamp Duty Details:

Article No.: 36
Stamp Rate: 1% of the rent and deposit
Registration: Mandatory if agreement exceeds 11 months

Stamp Duty on Leave and Licence in West Bengal (Kolkata)

West Bengal provides a cost-effective structure for rental agreements.

Stamp Duty Details:

Stamp Rate: 0.1% of total annual rent or Rs. 100, whichever is higher
Registration: Not mandatory for agreements under 11 months

Stamp Duty on Leave and Licence in Rajasthan (Jaipur)

Rajasthan mandates stamp duty for all leave and licence agreements.

Stamp Duty Details:

Stamp Rate: 1% of total rent and deposit
Registration: Required beyond 11 months

Stamp Duty on Leave and Licence in Haryana (Gurgaon, Faridabad)

Haryana levies a moderate stamp duty on rental agreements.

Stamp Duty Details:

Stamp Rate: 2% of annual rent
Registration: Compulsory beyond 11 months

Use LegalMate’s Stamp Duty Calculator

LegalMate offers a reliable and easy-to-use Stamp Duty Calculator to help you determine the correct stamp duty across all Indian states. This tool is especially useful for: