Every rent agreement in Delhi needs to be executed on stamp paper of the correct value.
This is not optional - it is a legal requirement under the Indian Stamp Act, 1899.
An agreement on insufficient stamp paper can be challenged in court and may attract penalties.
Yet, most people in Delhi either overpay (buying a Rs.500 stamp paper for an 11-month agreement that only needs Rs.100)
or underpay (using Rs.100 for a 3-year lease that requires much more).
This guide gives you the exact numbers so you know precisely what to pay.
Current Stamp Duty Rates in Delhi (2026)
Stamp duty for rent agreements in Delhi is determined by the lease duration.
The rates are set by the Delhi government and have remained stable for the past several years:
| Agreement Duration |
Stamp Duty |
Must Register? |
| Up to 11 months |
Rs.100 (flat amount) |
No |
| Above 11 months up to 5 years |
2% of average annual rent |
Yes |
| Above 5 years up to 10 years |
3% of average annual rent |
Yes |
| Above 10 years up to 20 years |
6% of average annual rent |
Yes |
| Above 20 years up to 50 years |
12% of average annual rent |
Yes |
What is "Average Annual Rent"?
It is the total rent payable over the entire lease period divided by the number of years.
If your rent increases annually (say 10% escalation), you need to factor in all the different rent amounts
across the lease term, add them up, and divide by the number of years.
Real-World Calculation Examples
Let us work through three common scenarios that Delhi residents encounter:
Scenario 1: Standard 11-Month Flat Rental
Property: 2BHK in Vasant Kunj | Monthly Rent: Rs.20,000
Stamp Duty: Rs.100 (flat - no percentage calculation needed)
Registration: Not required
Total Cost: Rs.100
Scenario 2: 3-Year Residential Lease
Property: 3BHK in Saket | Monthly Rent: Rs.35,000 | Annual Escalation: 10%
Year 1 Rent: Rs.35,000 × 12 = Rs.4,20,000
Year 2 Rent: Rs.38,500 × 12 = Rs.4,62,000
Year 3 Rent: Rs.42,350 × 12 = Rs.5,08,200
Total Rent: Rs.13,90,200
Average Annual Rent: Rs.13,90,200 ÷ 3 = Rs.4,63,400
Stamp Duty (2%): Rs.4,63,400 × 2% = Rs.9,268
Registration Fee: Rs.1,100
Total Cost: Rs.10,368
Scenario 3: 7-Year Commercial Lease
Property: Shop in Nehru Place | Monthly Rent: Rs.80,000 | Annual Escalation: 8%
Total Rent over 7 years (with 8% annual increase): approximately Rs.86,28,000
Average Annual Rent: Rs.86,28,000 ÷ 7 = Rs.12,32,571
Stamp Duty (3% - falls in 5-10 year bracket): Rs.12,32,571 × 3% = Rs.36,977
Registration Fee: Rs.1,100
Total Cost: Rs.38,077
Where to Buy E-Stamp Paper in Delhi
Delhi discontinued physical stamp papers several years ago. All stamp duty is now paid through
e-stamp certificates issued by the Stock Holding Corporation of India Limited (SHCIL).
Here is where you can get them:
- SHCIL Authorized Collection Centres - Multiple locations across Delhi. You can find the nearest one on the SHCIL website.
- Designated Bank Branches - Several nationalized banks in Delhi are authorized to issue e-stamp certificates.
- Online through professional services - Platforms like ours procure the e-stamp on your behalf and include it in the drafting process.
What Happens If You Underpay Stamp Duty?
Under Section 35 of the Indian Stamp Act, 1899, a document with insufficient stamp duty is
inadmissible as evidence in court. If discovered, you will be required to pay the deficit amount
plus a penalty that can go up to 10 times the shortfall. It is always better to pay the correct amount upfront.
Who Bears the Stamp Duty Cost?
There is no law in Delhi that assigns stamp duty payment to a specific party. In practice,
it varies widely:
- In most residential rentals, the cost is split equally between landlord and tenant
- In some cases, the tenant pays the full amount since they are the one needing the agreement for address proof, bank accounts, etc.
- For commercial leases, the terms are negotiated as part of the overall deal
The key is to discuss and agree on this before the agreement is drafted, and ideally mention it in the agreement itself.
Stamp Duty vs Registration Fee - They Are Different
People often confuse these two charges. They are separate payments serving different purposes:
| Charge |
Purpose |
Paid To |
| Stamp Duty |
Government tax that makes the document legally valid |
State Government (via e-stamp) |
| Registration Fee |
Fee for officially recording the document at the SRO |
Sub Registrar Office (Rs.1,100) |
For 11-month agreements, you only pay stamp duty (Rs.100). Registration fee applies only when you
choose to register the agreement at the SRO, which is mandatory for leases above 11 months.
Let Us Handle the Stamp Duty Calculation for You
Our system automatically calculates the correct stamp duty based on your lease terms. No guesswork needed.
Start Your Agreement - Rs.499/-*
*Fees may vary based on locality, property type, and lease conditions.