HT Estates - - NEWS - Su­nil Tyagi

I live in a rented ac­com­mo­da­tion. The lease will ex­pire soon and I plan to re­new it for three more years. Since I have al­ready paid stamp duty and reg­is­tra­tion fees un­der the ear­lier lease deed, can the lease be re­newed by ex­e­cut­ing only a let­ter with the owner?

—XYZ First, the re­newal of a lease amounts to grant of a fresh lease of the prop­erty. It is called a re­newal sim­ply be­cause it pos­tu­lates the ex­is­tence of a prior lease. In all other re­spects, it is ac­tu­ally a fresh lease. Sec­ond, lease deed for a term ex­ceed­ing one year is re­quired to be com­pul­so­rily stamped and reg­is­tered. As you pro­pose to re­new the lease for a term of three years, the re­newed term will only take ef­fect if a lease deed is ex­e­cuted, duly stamped and reg­is­tered. Sign­ing a let­ter will not cre­ate a valid lease of the prop­erty. I plan to buy a flat in Mum­bai. Are there any stamp duty ben­e­fits avail­able to fe­male buy­ers?

—ABC Un­der the Bom­bay Stamp Act, 1958, cur­rently both male and fe­male buy­ers are li­able to pay ap­pli­ca­ble stamp duty at equiv­a­lent rates in trans­ac­tions of sale/pur­chase of im­mov­able prop­erty. I am ne­go­ti­at­ing a lease for a shop in Noida. The owner is de­mand­ing a hefty se­cu­rity de­posit equiv­a­lent to six months’ rent. He in­sists that as a prospec­tive lessee, I will have to pay stamp duty on the se­cu­rity de­posit, too. Is this cor­rect?

—EF Un­der the Ut­tar Pradesh Stamp Act, 2008, stamp duty in a trans­ac­tion of lease of im­mov­able prop­erty is re­quired to be paid on se­cu­rity de­posit too. Un­der the Trans­fer of Prop­erty Act, as ten­ant, it will be your re­spon­si­bil­ity to bear ex­penses to­wards stamp duty on a lease deed, un­less other­wise agreed by the par­ties. How­ever, you may en­ter into a mu­tu­ally agree­able ar­range­ment with the owner for pay­ment of stamp duty.

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