You can also use our customizable and lawyer-verified ready-to-use rentals to save time and money. Stamp duty is the tax levied on legal documents in compensation for their validity. In the state of Karnataka, the maximum stamp duty to be levied on any rental agreement is INR 500/- but is usually calculated as follows: a house rental agreement is a written contract between the owner and the tenant who wishes to stay in the property for a certain period of time. It is molded on stamp paper and is considered proof of legal residency. If you want to get a gas connection, share proof of addresses with your bank, apply for an Aadhaar card or get a new SIM card for your phone, you need to share a copy of this contract. If one of the parties violates any of the terms of the agreement, the case may be brought before a civil court. Another popular method of renting is long-term rental. A lump sum is paid as a one-time allowance for a fixed period or a fixed rental period, such as 2 years or 3 years. The tenant or tenant does not pay monthly rent. At the end of the rental period, the owner must reimburse the full deposit indemnity without interest. In the case of a long-term lease, the advantage is that there is no effort to pay the monthly rent and it is possible to save a lot on this type of lease. There may be maintenance, electricity and water costs that must be paid regularly. In India, the tenant also pays a deposit or advance to the lessor, which must be reimbursed at the time of termination of the contract.
Normally, it is calculated somewhere between 2 or 3 months and up to 10 months of rent. The deposit is paid at the time of signing the contract.