New stamp duty rates of Leave and License agreements w.e.f 1st May 2013

The new stamp duty rates for leave and license agreements will be applicable from 1st May 2013. Have the rates gone up? If your total rental income is below 5-7 Lac levels (approximately, see comparison below) the stamp duty has actually dropped!  The authorities have tried to rationalise the stamp duty rates which is only fair. Earlier you paid a maximum of Rs.5,000/year  as stamp duty for residential properties. Now, that changes, the more you earn the higher the stamp duty. Here’s the new clause:

New Stamp duty rates Leave and License 1 May 2013

Here’s how you compute the new stamp duty rates:

  1. Monthly rental x no. of months = A
  2. Advance rent for the period = B
  3. 10% of Refundable Deposit x no of years of the agreement = C
  4. Total taxable amount D = A+B+C
  5. Stamp Duty E = 0.25% x D

So what’s the difference between the old and new stamp duty rates? The earlier schedule was:

Stamp Duty rates for leave and license 2011

Here’s a comparison chart between the old and new rates for an agreement period of 12 months across 5 scenarios. 


So, do you think that the rationalisation of the stamp duty is fair? Look forward to your comments. 

Disclaimer: The author of the post has no authority on any property or tax matters whatsoever and has made calculations based on his understanding of the duty. Please take guidance from the appropriate authority for your personal calculations. 

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