Living on rent in Noida? Did you get this thing done? You could face legal action
The district administration had asked the 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 till September 30.
Tenants and people who have leased land or property in Gautam Buddh Nagar have three more days to get their rent agreements registered with the revenue department, failing which they could face legal action, officials said Thursday.
The district administration had asked the 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 till September 30, they said.
Registration is optional for those with a rent agreement of less than one year but mandatory for those beyond one year and it is for the tenants to get the work done, an administration official, who did not wish to be named, said.
"But even for those with rent agreement of less than one year need to pay a stamp duty equivalent to 2 per cent of the whole rent amount," the official explained.
According to 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. The revenue earned through this goes to the Revenue Department adds to the government's income.
"The stamp duty for those with a rent agreement between 1 and 5 years will be 2 per cent of three times the average annual rent. For those between 6 and 10 years, it will be 2 per cent of four times the annual average rent. Those between 11 and 20 years will have to pay a stamp duty at 2 per cent of five times the average annual rent, and those beyond it will pay 2 per cent of six times the average annual rent," the official said, citing rules.
He said that after the September 30 deadline, those caught by the administration without having registered their rent agreement will be liable for legal action and a penalty.
"Besides the registration and stamp duty, the offenders may 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," the official said.
Watch This Zee Business Video
According to the official, one of the main reasons for people to not get their rent agreements registered is lack of awareness, while some do it to avoid paying stamp duty.
"For example, 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," he said.
He said that in Gautam Buddh Nagar there are six sub-registrar offices - three in Noida and one each in Greater Noida, Jewar and Dadri -- where the people can get their rent agreements registered in the next three days.