It may seem like a big effort, but now you can use online rental services. LegalDesk offers ready-to-use online rental agreements certified by a lawyer. You can use it to create an agreement in minutes. The state of Tamil Nadu has a simple 1 per cent stamp duty rule on the total annual rental value. The maximum stamp duty is determined with Rs 20,000. Thus, you need to buy stamps of 1 percent of the total annual rent or Rs 20,000 depending on what is lower. Stamp duty is essentially a form of tax levied on legal documents in order to make it legally enforceable. In Tamil Nadu, the stamp duty paid for rental contracts is usually equal to 1% of the amount of rent + deposit, regardless of the duration of the rental. To prepare a lease, start by creating a draft version after discussing the clauses with your landlord/tenant. There are certain clauses that should never be omitted in a rental agreement, which will be discussed later in the article. Add all the desired details and check the act as soon as the design is ready. Buy buffer paper of the recommended value, which depends on your rent and deposit amounts.
Finally, print your document on stamp paper. Capitals like Chennai, Coimbatore, Salem, etc. are used to making sophisticated deals, while smaller towns like Madurai, Tiruchirapalli, Tirunelveli, etc., are more forgiving. From a horde of MNCs to ancient temples, Chennai has it all. It is therefore not surprising that a good number of educated people move to cities like Chennai and Coimbatore, mainly for jobs, which in turn has increased the demand for rental property. Which brings us to the point of this article, how to make a lease in the cities of Tamil Nadu? In May 2020, TN`s registration department clarified that new and ready-to-move homes and buildings should not pay stamp and registration fees. This only applied to the first sale of the property and only the undivided part of the land (UDS) would be subject to stamp duty and registration fees and not to the super built area. You need a stamp receipt, your PAN card, government cards from all parties including witnesses, two passport photos, NOC, no contribution certificate, certificate of sale, POA, Pattadar passport booklet, etc.
If the required stamp duty is not paid, disputes were to arise and if the cases were to be brought before the courts, the parties involved could have to pay almost ten times the effective stamp duty. . . .