Tenants In Noida Have Only 2 More Days To Register Rent Agreements

Tenants in Noida, who have not registered their rent agreements, hurry up already! You have only two days left to complete the task ─ September 30 is the last day to complete the obligation ─ to avoid penalty and legal action. From October 1, the district administration, which has been in touch with housing societies to nab such offenders launch action, even if “lack of awareness” is your reason for not meeting the obligation.  

While stamp duty evasion is one of the main reasons for not registering rent agreements, officials also agree that tenants fail to do so because of lack of awareness, something the Noida Administration has been trying to increase through resident welfare associations.

"Most of the tenants these days get their rent agreements done on a Rs-100 stamp paper. They know about it, so they get it done. But, they are not aware that they need to get it registered with the administration too," a Press Trust of India report quoted an official of the administration as saying.

The Noida district administration had earlier asked people living in rented accommodations, flats, houses and those running commercial activities and businesses on leased land to get their rent agreements registered from September 1 to September 30. Under the Indian Registration Act, 1908, registration of rent agreement of less than one year is optional while mandatory for those with over one year lease. There are six sub-registrar offices in Noida, three in Noida and one each in Greater Noida, Jewar and Dadri, where one can get the rent agreements registered.

What are the charges?

In Noida, for rent agreement of 1-5 year period, two per cent of three times the average annual rent has to be paid as stamp duty.

For rent agreement of 6-10 year period, two per cent of four times the average annual rent has to be paid as stamp duty.

For rent agreement of 11-20 year period, two per cent of five times the average annual rent has to be paid as stamp duty.

For rent agreement beyond this period, two per cent of six times the average annual rent has to be paid as stamp duty.

Do note here that even for rent agreement of less than one year, two per cent of the annual rent has to be paid as stamp duty.

What is the penalty?

Apart from the outstanding registration and stamp duty dues, an offender will have to pay a penalty up to 10 times the amount. They will also have to pay fine at an interest rate of 18 per cent since the execution of the rent agreement.

With inputs from Housing News