And this eventually led to a massive demand for rental properties for rental contracts in Chennai. Stamp duty is a tax similar to that of income tax levied by the Tamil Nadu government. Delays in the payment of stamp duty result in penalties. The act/document is considered a duly and legal instrument/document and has probative value and is admitted as evidence before the courts. A draft rental agreement should be printed on a stamp document with an appropriate stamp value, in accordance with the stamps law of each State, in order to make it legally valid. The room agreement is similar to the standard rental agreement, but has minor differences, as some facts are different, since the owner only rents one room in the property. The apartment rental agreement is used when someone wants to rent a single unit in an apartment complex, not the entire property. Such rental contracts must be drawn up carefully, with clauses relating to the right of access to common amenities and the rules of the residents` association. Leases of one year or more must be notified.
For contracts of less than one year, only stamp duty applies, while registration is not mandatory. 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. It may seem like a big effort, but now you can use online rental services.