Lease deed / rental agreement registration in Telangana (Hyderabad): stamp duty and fee
Short answer: In Telangana, a lease deed or rental agreement of less than 1 year carries 0.4% stamp duty on the total rent and a 0.2% registration fee. For 1 to 5 years it is 0.5% of the average annual rent for a home (1% for shops and other cases), plus the 0.2% fee. Longer leases step up sharply: 1% / 2% for 5 to 10 years, 6% for 10 to 20 years and 15% for 20 to 30 years (Telangana Registration and Stamps Ready Reckoner, row 33).
The lease rows, as published
- Less than 1 year: stamp duty 0.4% on the total rent; fee 0.2%.
- 1 to 5 years: residential 0.5%, other cases 1%, on the average annual rent; fee 0.2%.
- 5 to 10 years: residential 1%, other cases 2%, on the average annual rent; fee 0.2%.
- 10 to 20 years: 6%; 20 to 30 years: 15%, on the average annual rent; fee 0.2%.
- More than 30 years or in perpetuity: 3% on the market value of the property; fee 0.2%.
- Fine, premium or money advanced: 2% on that amount, on its own if there is no rent, or in addition to the duty on the rent. Improvements to be handed to the owner at the end: 2% on their value.
Who pays: the Telangana Stamps FAQ (Q12) says that, unless the parties agree otherwise, in a lease the stamp is borne by the lessee (the tenant).
How it adds up
Example only, not a quote: stamp duty and registration fee from row 33; user charges, e-stamp or franking charges and rounding are extra or to verify.
- 11-month home rental at Rs 25,000 a month: total rent Rs 2,75,000; duty 0.4% = Rs 1,100; fee 0.2% = Rs 550; total Rs 1,650.
- 3-year home lease at a fixed Rs 30,000 a month: average annual rent Rs 3,60,000; duty 0.5% = Rs 1,800; fee 0.2% = Rs 720; total Rs 2,520.
- Same lease with a 5% rise each year: yearly rent Rs 3,60,000, Rs 3,78,000 and Rs 3,96,900, average Rs 3,78,300; duty Rs 1,891.50; fee Rs 756.60 (how the office averages and rounds is to verify).
- 3-year shop lease at Rs 50,000 a month: average annual rent Rs 6,00,000; "other cases" duty 1% = Rs 6,000; fee Rs 1,200; total Rs 7,200.
Three things to ask the Sub-Registrar first
- Security deposit: the table charges 2% on "money advanced" in addition to rent. Whether your refundable deposit is treated that way is not stated on the page we read, so ask (to verify). If it is, a Rs 1,00,000 deposit would add Rs 2,000.
- Band edges: the bands read "1-5 years", "5-10 years" and "10-20 years". If your term sits exactly on 5 or 10 years, confirm which band applies, because the rate can jump from 2% to 6%.
- Must it be registered? The Registration FAQ lists "lease of immovable property" among the documents that must be registered, without a duration in that line. Ask the office or your lawyer for your term (to verify).
Whether your rental needs to be registered, what the lease should say, and how rent is taxed are questions for your own lawyer and tax adviser. This page only lists the published duty and fee rows and what the department's own FAQs say. Not legal advice.
Checklist before a lease in Telangana
- The term, the monthly rent, any yearly increase and the deposit written down, so the band and the average annual rent are clear
- Duty confirmed with the Sub-Registrar (or a section 31 opinion from the District Registrar, Rs 15 per the Stamps FAQ Q13) before buying stamp paper (e-stamp and franking guide)
- The owner's title: the sale deed and an EC (Telangana EC guide), and a prohibited-property check for long leases (guide)
- If the owner lives abroad, who signs for them (Telangana POA guide)
- A registration slot if you register (slot booking guide), and a copy of the registered document later if needed (CC guide)
Property in Vizag or Vijayawada? See the Andhra Pradesh lease deed guide.
A free sample from our Hyderabad property do-it-yourself pack for NRIs: which papers to ask for, which official portals to check, and in what order.
Get it free (instant download)FAQ
What is the stamp duty on an 11-month rental agreement in Telangana?
The Ready Reckoner lists 0.4% of the total rent for a lease of less than 1 year, plus a 0.2% registration fee if it is registered. On Rs 25,000 a month for 11 months that is Rs 1,100 duty and Rs 550 fee.
What is the stamp duty on a 3-year residential lease in Telangana?
0.5% of the average annual rent (row 33 a ii, residential), plus a 0.2% fee. Shops and other non-residential cases are 1%.
Who pays stamp duty on a lease in Telangana, owner or tenant?
The Telangana Stamps FAQ (Q12) says that, unless agreed otherwise, the lessee (tenant) bears the stamp for a lease.
Is stamp duty charged on the security deposit?
The table charges 2% on a fine, premium or money advanced in addition to rent. Whether a refundable deposit falls under that is not stated on the page we read; ask the Sub-Registrar.
Why is a long lease so expensive?
The published rate rises with the term: 6% of the average annual rent for 10 to 20 years and 15% for 20 to 30 years, against 0.5% to 2% for shorter leases.
Official sources
- Telangana Registration and Stamps: Ready Reckoner (row 33, Lease)
- Telangana Registration and Stamps: Registration fee table (02-09-2021)
- Telangana FAQs on stamp duty (Q12, Q13)
- Telangana FAQs on registration
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.