Registration of Lease Deed

Mandatory to pay stamp duty on lease deeds/agreements. Registration for 1 year or more is mandatory under section 107 of Transfer of Property Act, 1882 and section 17 of Registration Act, 1908.

Consequences of Deficient Stamping/Non-registration

Lease deed/agreement can be impounded and penalty upto 10 times of the unpaid deficient stamp duty amount can be charged by the Collector of Stamps.

An unregistered and/or deficient stamped lease deed/rent agreement is not admissible as evidence in court of law.

In the event of an unregistered lease deed that requires mandatory registration, the courts have termed the tenancy (for residential as well as commercial properties) to be a month to month tenancy, terminable on a 15 days notice, by either of the parties. This means that the lessee cannot enforce the agreed lease period on the lessor.

The lessor also faces various disadvantages as the terms and conditions of the lease deed are not admissible, for lock in period, if any, on the lessee.

Comments

CBDT Instruction No 5/2014 dated 10.07.2014

Dear Members, The Hon'ble CBDT has issued Instruction No 5/2014 dated 10.07.2014 , by which the monetary limits for filing appeals to ITAT / HIGH COURT / SUPREME COURT have been revised. The New limits are: Tax effect Appeal before ITAT Rs. 4,00,000/- High Court Rs. 10,00,000/- Supreme Court Rs. 25,00,000/- Copy of Instruction is attached for your information.

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N K GOEL AND BROS.

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