Stamp Duty & E-Stamping

What is Stamp Duty?

Stamp duty is a tax levied by the State Government on legal documents. Paying stamp duty makes your rental agreement legally valid and admissible as evidence in a court of law. In Karnataka, the stamp duty for rent agreements is governed by the Karnataka Stamp Act, 1957.

How much does it cost in Bengaluru?

The stamp duty amount depends on the duration of your lease and the annual rent plus deposit. For the standard 11-month residential agreement, the calculation is generally simple:

• Lease up to 1 year: 0.1% to 0.5% of the total rent payable plus deposit, though most 11-month agreements are executed on e-stamp paper worth ₹100 or ₹200 as a standard accepted practice.
• Lease between 1 to 10 years: 1% of the average annual rent plus deposit.
• Lease between 10 to 20 years: 2% of the average annual rent plus deposit.

What is E-Stamping?

Karnataka completely phased out traditional non-judicial stamp papers years ago. Today, you must use e-stamping, which is a computer-based application and a secure way of paying non-judicial stamp duty to the government.

An e-stamp paper contains a unique identification number (UIN), QR code, and holographic security features. You can purchase these at designated co-operative banks, post offices, or authorized franking centers across Bengaluru.

How to print on an E-Stamp

Once you have your drafted agreement (which you can generate for free using Rent Agreement Generator), and you have purchased your blank e-stamp paper:

1. Feed the e-stamp paper into your printer.
2. Print the first page of your agreement directly onto the e-stamp paper. Ensure the margins are set correctly so the text does not overlap with the government seal.
3. Print the remaining pages of the agreement on standard A4 paper.
4. Both landlord and tenant must sign at the bottom of every page, along with two witnesses on the final signature page.