Mumbai · Rent agreements
Leave and Licence Agreement in Mumbai: Stamp Duty, Registration Fee & Steps
In Mumbai the standard residential document is a leave and licence agreement, not a "rent agreement", and Maharashtra is the state where registration is not optional even for 11 months. The numbers here are among the more consistent in the country: 0.25% stamp duty on the licence value and a flat registration fee. Here is the calculation and the steps.
Leave and licence, not lease
A leave and licence gives the occupier permission to use the flat for a fee without creating a tenancy under the rent-control regime. That is why Mumbai owners prefer it. Stamp duty is charged under Article 36A of the Maharashtra Stamp Act (formerly the Bombay Stamp Act, 1958).
The formula
| Item | Reported rule |
|---|---|
| Stamp duty rate | 0.25% of the licence value |
| Licence value | Total rent for the period, plus a notional 10% of the refundable deposit (guides differ on whether this is per year or once), plus any non-refundable deposit |
| Registration fee | ₹1,000 in municipal (urban) areas; ₹500 in rural areas |
| Registration | Section 55 of the Maharashtra Rent Control Act, 1999 requires a leave and licence agreement to be in writing and registered, whatever the term, and makes this the owner's responsibility. Without it the occupant's version of the terms prevails unless you prove otherwise, and the owner can face up to three months' imprisonment, a fine of up to ₹5,000, or both (statute text as reproduced online; we did not read the official gazette) |
A worked example
A flat in Andheri at ₹55,000 a month for 11 months with a ₹3,00,000 refundable deposit. Rent for the term is ₹6,05,000; a notional 10% of the deposit adds ₹30,000, giving ₹6,35,000. At 0.25% the stamp duty is about ₹1,590, plus the ₹1,000 registration fee, so roughly ₹2,600 in all. If the deposit element were charged per year the arithmetic changes only slightly for an 11-month term. Check the exact figure on the IGR Maharashtra portal.
Registration is online and now feeds the police
Duty and registration are paid and filed on the IGR Maharashtra e-registration portal. A June 2025 press report said registered agreements are synced with the police network, so tenant details reach the local station automatically. See how Mumbai's tenant form and the registration link up.
Society formalities
Most Mumbai cooperative housing societies want a copy of the registered agreement, the tenant's ID and sometimes a society NOC or non-occupancy charges before they allow a tenant in. Start these before the move-in date, and check your society's bylaws on tenant charges: they vary and can be significant.
If you live abroad
Because registration is compulsory in Maharashtra, an owner abroad has two realistic options: travel for the registration appointment, or appoint an authorised representative under a Power of Attorney for this single act (read the PoA guide first, because a broad PoA carries misuse risk). Check the IGR Maharashtra portal for whether any remote-execution option exists; we could not confirm one.
Where Rent Connect fits
The paperwork around a tenancy is easier when it lives in one place. Rent Connect is a property management tool for owners who rent out property in India, currently in early access. It sends WhatsApp rent reminders, records each payment as pending, overdue or paid, and generates a rent receipt when a payment is marked paid. Tenant details, the agreement and maintenance issues (with photos) sit on one tenancy record, and a Deposit Ledger records the agreed deposit and any move-out deductions. The ledger is a shared record only: Rent Connect does not hold the money.
It does not file police intimations, compute or deposit TDS, or file tax returns for you. Those stay with you, your tenant and your CA. To follow the launch, join the waitlist.
How this page was checked
Figures here were compiled on 16 October 2026 from the sources below. Where we could not open an official page, the note at the end says so. Government portals and rates change, so confirm the live number or form with the office before you pay or file.
- Housing.com: stamp duty and registration laws for rentals in Maharashtra
- CalcGuru: rent agreement stamp duty in Maharashtra (leave and licence)
- Punekar News, 3 June 2025: Leave and Licence 2.0 and CCTNS
What we could not verify: The IGR Maharashtra portal could not be opened. The 0.25%, the 10% notional deposit treatment (sources differ on per-year vs one-off) and the Section 55 registration point come from secondary guides.
Frequently asked questions
What is the stamp duty on a leave and licence agreement in Mumbai?
Guides report 0.25% of the licence value, which is the total rent for the period plus a notional 10% of the refundable deposit and any non-refundable deposit. The registration fee is reported as ₹1,000 in urban areas.
Is registration compulsory for an 11-month agreement in Mumbai?
Yes. Section 55 of the Maharashtra Rent Control Act, 1999 requires leave and licence agreements to be registered whatever the term, and the duty falls on the owner. Confirm the procedure on the IGR portal.
Where do I register in Mumbai?
On the IGR Maharashtra e-registration portal, with duty and fee paid online.
Who pays the stamp duty?
It is negotiable. Many Mumbai owners and licensees split it; state it in the agreement.
Does the same apply in Pune?
Yes, Maharashtra's rules are statewide; see the Pune guide for rural versus urban fee differences and local points.
General information, not legal advice. Check the IGR Maharashtra portal for current duty, fee and remote-execution rules.
Manage your Indian property from anywhere
WhatsApp rent reminders, a receipt for every paid month, tenant details and the agreement on one record, and a Deposit Ledger that records the deposit without holding it. Someone local still handles keys and repairs.
Join the waitlist