Rent Agreement in Gurgaon: Stamp Duty, Registration and Deposit
Contents
A rent agreement in Gurgaon looks simple. Most are a few pages on e-stamp paper, signed in a day. The costs and risks sit in the details: how long the term is, how much duty is paid, what happens to the deposit, and whether TDS applies.
Gurugram is in Haryana, so Haryana’s stamp and tenancy rules apply, not Delhi’s. This guide explains what is settled, what published sources disagree on, and what to confirm before you sign. It is general information, not legal or tax advice.
Which law governs a Gurugram tenancy?
Rented homes in Gurugram fall under Haryana’s tenancy law. Guides describe the Haryana Urban (Control of Rent and Eviction) Act, 1973 as the main state law, alongside the Registration Act, 1908 and the Indian Stamp Act as adapted by Haryana. Several guides also note that the central Model Tenancy Act, 2021 has not been adopted in Haryana.
The Model Tenancy Act is a template that states may adopt. It does not apply automatically. Viral “new rent rules 2026” posts mostly repeat its provisions, so check the local position before relying on them.
11-month agreement vs registered lease
The registration line comes from Section 17 of the Registration Act. It requires registration of leases from year to year or for a term exceeding one year. Many Gurugram guides treat 12 months or more as the point where registration becomes compulsory. Hence the familiar 11-month agreement.
An 11-month agreement is not “unstamped” or “informal”. Guides say it must still be stamped, and e-stamping through Haryana’s e-GRAS or an authorised vendor is the normal route. Notarisation is commonly recommended on top.
| Point | 11-month agreement | Registered lease (12 months or more) |
|---|---|---|
| Registration | Not compulsory | Compulsory at the Sub-Registrar’s office |
| Who attends | Parties sign; notarisation commonly done | Both parties visit the Sub-Registrar with ID, photos and the deed |
| Stamp duty | Still payable (see the note below on what amount) | 1.5% of average annual rent for terms up to 5 years |
| Registration fee | None | Payable; sources disagree on the amount |
| Best for | Most family rentals, flexibility | Corporate, NRI or multi-year leases needing certainty |
Registration matters when a dispute reaches court. Guides note that an unregistered lease of 12 months or more is generally not admissible to prove its terms. Registration also has a deadline: a document is meant to be presented within four months of execution, according to one Haryana-focused guide.
Stamp duty on a rent agreement in Gurgaon
One official-style source is an audit report of the Comptroller and Auditor General. It records that stamp duty on leases in Haryana is based on average annual rent. The rate is 1.5% for leases up to 5 years and 3% for more than 5 and up to 10 years. It then steps up to 6%, 9% and 12% for longer terms.
Beyond that headline, published guides disagree on two practical points. Verify both before you buy the e-stamp.
- Is the deposit in the base? Some guides say duty is charged on rent plus deposit. Others say the deposit is not counted.
- What is paid on an 11-month deal? Many guides say a nominal stamp paper of about ₹100 is used in practice. Others say the statutory 1.5% applies to short leases as well. One guide notes the ₹100 practice and says 1.5% is still the statutory rate.
Paying too little has a cost. An insufficiently stamped document is not accepted in evidence until the shortfall and a penalty are paid. Ask the e-stamp vendor or Sub-Registrar which basis they apply, and keep the receipt.
Worked examples
These apply the 1.5% formula to a flat in Gurugram at ₹40,000 a month. They are illustrations, not quotes.
| Scenario | Base amount | Duty at 1.5% |
|---|---|---|
| 3-year lease, flat rent, deposit excluded: ₹40,000 × 12 = ₹4,80,000 | ₹4,80,000 | ₹7,200 |
| Same lease, 3-month deposit of ₹1,20,000 included | ₹6,00,000 | ₹9,000 |
| 3-year lease with 5% yearly rise: years are ₹4,80,000, ₹5,04,000, ₹5,29,200; average is ₹5,04,400 | ₹5,04,400 | ₹7,566 |
| 11-month term, if 1.5% is applied to the 11 months’ rent (₹4,40,000) | ₹4,40,000 | ₹6,600 |
The third row matters for escalation clauses. Duty is worked on the average annual rent over the term, so every step-up must be counted.
Registration fee: confirm before you book
Sources do not agree on the registration fee for a lease. Figures reported include a flat ₹1,000, a minimum of ₹1,000 and a value-based slab that reaches ₹50,000 for high-value transactions. One guide contrasts this with a flat ₹1,100 in Delhi. Another notes that the slab table it cites dates to a 2018 revision.
We could not confirm which figure applies to a residential lease today. For a registered lease, get the fee from the Sub-Registrar or the Haryana registration portal before fixing a budget. Do not assume the Delhi figure.
Security deposit norms in Gurugram
Haryana has no deposit cap that we could confirm from the sources. The market is therefore set by negotiation. Guides describe typical deposits differently:
- 2 to 3 months’ rent for builder floors and societies, with premium addresses asking for more.
- 3 to 6 months in a different guide’s description of the city.
The Model Tenancy Act, which Haryana has not adopted, sets a benchmark. It caps residential deposits at two months’ rent and non-residential deposits at six months. It also expects the deposit to be refunded when the tenant hands back vacant possession, after proper deductions. Some Gurugram guides suggest a high deposit is easier to challenge today. Treat that as a negotiating point, not a legal right.
Whatever you agree, write it down:
- The exact amount, and that it carries no interest if that is the deal.
- The allowed deductions: unpaid rent, utility dues, damage beyond normal wear and tear.
- A refund timeline. One guide says 15 to 30 days after vacating is common practice in Gurugram.
TDS on rent for high rents
TDS applies mainly to higher rents. The Income Tax Department says an individual or HUF tenant must deduct 2% when rent exceeds ₹50,000 for a month or part of a month. The tax is deposited using Form 26QC within 30 days from the end of the month of deduction.
The Income-tax Act, 2025 now governs this from 1 April 2026. Guides say the rent TDS provisions moved to Section 393 and that rates and thresholds were retained. Some references call the individual-tenant payment form Form 141 instead of 26QC, so use the form named on the tax portal.
| Who pays the rent | Rate | Threshold | How it works |
|---|---|---|---|
| Individual or HUF, not under tax audit | 2% | Over ₹50,000 a month | Usually deducted once, in the last month of the tenancy or financial year; PAN-based, no TAN |
| Company, firm or audited individual/HUF (land and building) | 10% | Over ₹50,000 a month (from FY 2025-26) | Deducted at each payment or credit; TAN and quarterly return |
Rent of exactly ₹50,000 does not cross the line. At ₹60,000, tax is worked on the whole rent, not just the ₹10,000 excess.
Worked examples
- Individual tenant, 11 months at ₹60,000: total rent ₹6,60,000. TDS at 2% is ₹13,200, deposited with Form 26QC.
- Rent at ₹50,000: no TDS under this rule.
- Landlord’s PAN missing: guides say the rate rises to 20%. For individual and HUF tenants, the deduction is capped at the last month’s rent. On ₹6,60,000, 20% would be ₹1,32,000, so it is capped at ₹60,000.
Corporate tenants are common in Gurugram. For them the 10% rate and the monthly cycle apply. NRI landlords are treated differently, and guides say a different section applies to non-resident payees. Take a CA’s advice in that case.
Security deposits are not rent. Still, if an agreement adjusts the deposit against rent, get advice on how that is treated.
Clauses landlords should not skip
- Parties and property. Full names, PAN or Aadhaar references, the exact address, floor and parking. Include an inventory of fittings.
- Term, lock-in and notice. The start and end dates, a lock-in period, and a notice period. One to two months is described as standard.
- Rent and escalation. The amount, due date and payment mode, plus a fixed annual increase. Guides flag uncapped escalation as a risk.
- Deposit. Amount, deductions and refund timeline, as above.
- Maintenance and society charges. State who pays CAM or maintenance, utilities and minor repairs, and who handles structural issues.
- Use and subletting. Residential use only, no subletting, and a cap on occupants.
- Police verification. In Gurugram this sits with the landlord, and the process is separate from the agreement. Guides say to submit tenant details at the local police station or through the Haryana Police portal. We could not independently confirm the current online process, so check with the police station.
- TDS. Say who files, who bears any shortfall, and that the tenant will provide the TDS certificate.
- Renewal and exit. Renewal terms, handover condition and what happens if the tenant overstays.
- Dispute resolution. The place of jurisdiction, and mediation or arbitration if you want it.
Step-by-step checklist
- Fix the term. Stay at 11 months unless you need a registered lease.
- Confirm the stamp duty base and registration fee before purchase.
- Buy the e-stamp via an authorised route and keep the certificate.
- Both parties sign every page with two witnesses. Notarise if you are using an 11-month agreement.
- Complete tenant verification and share the paperwork the society asks for.
- If rent is over ₹50,000 a month, set a TDS calendar.
Planning to buy a home to rent out?
If you are weighing a purchase in the city, browse the Gurugram locality guide and the new projects in Gurugram. You can also search all properties on ADiHomes. Rental demand and rents vary by micro-market and over time, so check local listings and past rents before you assume any income.
Rules and fees can change. Check the figures above with the Sub-Registrar, an authorised e-stamp vendor and a qualified advisor before signing.
Frequently asked questions
Is it mandatory to register a rent agreement in Gurgaon?
Registration is generally required for leases longer than one year. Guides commonly treat 12 months or more as mandatory and 11 months or less as optional. Even an unregistered 11-month agreement should be properly stamped.
What is the stamp duty on a rent agreement in Gurgaon?
For leases up to 5 years, Haryana's duty is 1.5% of average annual rent, and 3% for 5 to 10 years. Sources disagree on whether the deposit is included and on what is paid for 11-month deals, so confirm with your e-stamp vendor.
How much security deposit can a landlord take in Gurugram?
Haryana has no confirmed statutory cap, so the amount is negotiated. Guides report 2 to 3 months' rent as common, and some say up to 6 months. The Model Tenancy Act suggests 2 months for homes, but Haryana has not adopted it.
When must a tenant deduct TDS on rent?
An individual or HUF tenant not under tax audit must deduct 2% when rent exceeds ₹50,000 for a month or part of a month. It is deposited using Form 26QC within 30 days of the month end of deduction.
Does TDS on rent apply to the security deposit?
TDS is worked on rent, and a refundable deposit is not rent. If the deposit is adjusted against rent, take advice on the treatment.
Who does police verification of a tenant in Gurugram?
Guides say the landlord is responsible, and it is separate from the rent agreement. Details are submitted to the local police station or through the Haryana Police portal. Confirm the current process with the police station.
Can I make a rent agreement online for a Gurugram flat?
Yes, guides describe e-stamp certificates bought through Haryana's e-GRAS or authorised vendors. A registered lease, however, needs both parties at the Sub-Registrar's office.
Sources
- CAG report on stamp duty (Haryana lease rates)
- TDS on Rent by Certain Individual or HUF – Income Tax India
- TDS on rent: 194-I and 194-IB until March, section 393 from April (CompliedAI)
- TDS on Rent FY 2026-27: New Section 393 Rates, Limits and Rules
- TDS on Rent: Section 194-IB and 194-I Rules, Rates and Due Dates
- TDS on Rent New Changes in Income Tax Act 2025 (Taxheal)
- The Model Tenancy Act, 2021 – PRS India
- Online and registered rent agreement in Gurugram – Housewise
- Rent Agreement in Haryana: Stamp Duty, Rules & eSign [2026] – SignSetu
- Haryana Rent Agreement on e-Stamp Paper – eDrafter
- Rent Agreement in Gurgaon – RentDraft
- Rent Agreement Stamp Duty in Haryana – CalcGuru
- Haryana Stamp Duty 2026: Rates for Lease & Property – Beacon Filing
- Stamp Duty in Gurgaon 2025: Slabs and Registration Charges
- Viral India Rent Rules 2026 Explained – Lawyers in Gurgaon
Updated 20 October 2026. This article is general information, not legal or financial advice; check current rules and project details before you decide.
