Online Rental Agreement Format, Stamp Duty and Rules
Complete guide to rental agreements in Bangalore 2026: stamp duty, e-stamp, notarisation, 11-month vs 12-month rules, format, and registration process.
Quick Summary (TL; DR)
Rental agreements in Bengaluru are governed by the Karnataka Rent Act, 1999 (brought into force in 2001), along with the Transfer of Property Act, 1882, the Registration Act, 1908, and the Karnataka Stamp Act, 1957, where applicable.
For agreements of up to 11 months, registration is generally not mandatory, and only nominal stamp duty is payable. For leases of 12 months or more, registration at the Sub-Registrar's Office is compulsory, and stamp duty and registration fees are payable as prescribed under the Karnataka Stamp Act.
Karnataka has increasingly shifted to SHCIL e-stamping for property and rental transactions. Check the latest registration office requirements before execution.
Notarisation is not mandatory in law but is strongly recommended for agreements under 12 months, as it adds evidentiary weight and is widely accepted by banks, employers, and police for verification
Security deposits in Bengaluru are typically 10 months' rent, one of the highest in India. Landlord's PAN card is mandatory if the tenant's annual rent exceeds ₹1 lakh (₹8,333/month threshold for HRA income tax purposes)
What Is a Rental Agreement?
A rental agreement (also called a lease agreement, rent deed, or tenancy agreement) is a written contract between a property owner (landlord/lessor) and a person taking the property for use (tenant/lessee), setting out the terms of occupancy, rent amount, security deposit, duration, notice period, maintenance obligations, and conditions of use.
In Bangalore, rent and lease are controlled by the Karnataka Rent Act, 1999 (came into force in 2001).. The person taking the house for rent is the Tenant/Lessee; the person letting out the premises is the Owner/Landlord/Lessor. The agreement creates binding obligations on both parties from the date of execution.
Rental agreements in Bengaluru are primarily governed by the terms of the agreement, the Transfer of Property Act, 1882, and other applicable laws. In certain cases, the Karnataka Rent Act, 1999 may also apply.
Why Is 11 Months the Standard in Bangalore?
Most residential rental agreements are executed for 11 months. This pattern is entirely deliberate.
Under the Registration Act, 1908, any lease of 12 months or more must be registered at the Sub-Registrar's Office. Registration costs money: stamp duty plus registration fees, plus an SRO visit. An 11-month agreement requires no mandatory registration. It can be printed on e-stamp paper and notarised, saving ₹5,000 to ₹10,000 in government fees.
After the 11-month term ends, both parties sign a fresh 11-month agreement, and the cycle repeats. This practice is widely followed because registration is generally not compulsory for leases below one year.
11-Month vs 12-Month Rental Agreement: The Key Difference
This is the single most important legal distinction in Bangalore's rental market.
Factor | 11-Month Agreement | 12-Month Agreement |
Registration | Not mandatory | Compulsory at SRO |
Stamp duty | Typically around ₹500 | 1% of total rent for the entire period, no cap |
Notarisation | Recommended but not mandatory | Registration makes separate notarisation unnecessary. |
Court admissibility | Admissible as corroborative evidence | Admissible as primary evidence |
Time and cost | Low no SRO visit | Higher SRO visit mandatory |
Kaveri 2.0 appointment | Not required | Required |
Common in practice | 95% of residential tenancies | Corporate leases, long stays |
If the lease is for 12 months or more, registration at the Sub-Registrar's Office is generally compulsory. An unregistered lease that requires registration cannot ordinarily be relied upon to prove the lease in court. In addition, an inadequately stamped agreement may be impounded until the required stamp duty and applicable penalty are paid..
Stamp Duty on Rental Agreements in Bangalore June 2026
All rental agreements in Karnataka must be executed on e-stamp paper issued through SHCIL (Stock Holding Corporation of India Limited) or authorised centres. From July 1, 2025, all new rental agreements must carry a digitally generated e-stamp certificate or face penalties.
For an 11-month residential rental agreement:
In practice, many 11-month residential rental agreements in Karnataka are executed on low-value e-stamp certificates, but parties should ensure the stamp duty paid complies with the Karnataka Stamp Act rather than relying on commonly used denominations.
For a 12-month rental agreement:
Stamp duty is calculated as 1% of the average annual rent plus the average annual advance (security deposit), subject to the provisions of the Karnataka Stamp Act. Registration is compulsory for leases exceeding 11 months, and registration charges are payable separately.
Additionally, a registration fee of 1% of the total rent and the security deposit (or other lease value, as applicable under the Karnataka Registration Rules), subject to the prescribed maximum, is payable at the Sub-Registrar's Office.
As registration charges may be revised from time to time, verify the latest applicable fee with the jurisdictional SRO or the Inspector General of Registration and Commissioner of Stamps (IGR Karnataka) before proceeding
Stamp duty in Karnataka is calculated on monthly rent multiplied by the duration the security deposit is typically excluded from the stamp duty calculation.
How to Get E-Stamp Paper in Bangalore
E-stamp papers are available from:
SHCIL (Stock Holding Corporation of India Ltd) authorised centres visit shcilestamp.com to locate the nearest centre
Select nationalised and private banks authorised by SHCIL
Licensed online platforms that generate and deliver e-stamp certificates
The Kaveri portal at kaverionline.karnataka.gov.in for online generation
e-stamps may be obtained through authorised SHCIL centres and approved online channels where available. Provide the party names, agreement purpose, and the stamp value required. The e-stamp certificate with a Unique Identification Number (UIN) is issued immediately. Verify the UIN at shcilestamp.com before signing.
Every e-stamp certificate is a single document covering the entire agreement regardless of the number of pages. One e-stamp attaches to the first page, and additional pages are attached and signed.
Is Notarisation Mandatory for Rental Agreements in Bangalore?
Notarisation is not mandatory for rental agreements in Karnataka. A properly e-stamped agreement is legally valid without notarisation. However:
Notarisation is strongly recommended for 11-month agreements; it adds evidentiary weight and is widely accepted by banks, employers, and police for verification
For leases of 12 months or more, registration replaces and supersedes notarisation; a registered agreement is a far more powerful legal instrument than a notarised one
Notarisation does not substitute for registration where registration is compulsory. For a 12-month lease, notarising it instead of registering it gives the agreement no additional legal standing under the Registration Act
Rental Agreement Format: Essential Clauses
A strong Bangalore rental agreement is 3–4 pages long and contains at minimum 12 clauses. Skimping on any of these is the most common reason for deposit disputes in HSR Layout, Whitefield, and Koramangala.
RENTAL AGREEMENT
This Rental Agreement is made and executed at Bangalore on [Date]
LESSOR (Landlord): Mr./Ms. [Full Name], S/o or D/o [Father's Name], aged [___] years, residing at [Permanent Address], bearing Aadhaar No. [XXXX XXXX XXXX] and PAN [_________] (hereinafter referred to as the "Lessor")
LESSEE (Tenant): Mr./Ms. [Full Name], S/o or D/o [Father's Name], aged [___] years, presently residing at [Present Address], bearing Aadhaar No. [XXXX XXXX XXXX] and PAN [_________] (hereinafter referred to as the "Lessee")
1. Property: Flat/House No. [___], Floor [___], [Building Name], [Full Address], Bengaluru [PIN Code]
2. Purpose: The premises shall be used solely for residential purposes only.
3. Term: This agreement is for a period of 11 months commencing from [Start Date] and ending on [End Date].
4. Rent: Monthly rent of ₹[Amount] payable on or before the [5th] of every month. Payment mode: bank transfer to Account No. [___], IFSC [___].
5. Security Deposit: The Lessee has paid a refundable security deposit of ₹[Amount] (equivalent to [10] months' rent). Refundable within [30] days of vacating, subject to deduction of dues and damages.
6. Lock-in Period: Neither party shall terminate this agreement during the first [2] months (lock-in period).
7. Notice Period: Either party shall give [1] month's written notice before termination after the lock-in period.
8. Maintenance and Utilities: All utility charges (electricity, water, maintenance) shall be borne by the Lessee. The Lessee shall pay society maintenance charges of ₹[Amount] per month separately.
9. Rent Escalation: Rent shall be subject to an escalation of [10%] on renewal of this agreement.
10. Subletting: The Lessee shall not sublet or assign the premises without prior written consent of the Lessor.
11. Condition of Property: The Lessee acknowledges receipt in good condition and shall return it in the same condition, subject to normal wear and tear.
12. Jurisdiction: Disputes shall be subject to the exclusive jurisdiction of courts in Bengaluru.
Signed by:
Lessor: _________________________ | Date: _______ Lessee: _________________________ | Date: _______ Witness 1: Name ___________ | Aadhaar _________ | Signature _______ Witness 2: Name ___________ | Aadhaar _________ | Signature _______
Note: Print on e-stamp paper of the applicable denomination. For 11-month agreements, registration is not mandatory. For 12-month agreements and above, registration at the jurisdictional Sub-Registrar's Office is compulsory.
How to Register a 12-Month Rental Agreement at Kaveri 2.0
Registration is mandatory for any rental agreement of 12 months or more. Both parties must physically appear at the SRO.
Step 1. Draft the rental agreement covering all essential clauses. Both parties review and confirm all terms in writing before proceeding.
Step 2. Calculate the applicable stamp duty: 1% of total rent for the lease period. Purchase an e-stamp certificate of that value through SHCIL or the Kaveri portal.
Step 3. Log in to Kaveri 2.0 at kaverionline.karnataka.gov.in. Navigate to Registration Services → Select Lease/Rent Agreement → Enter landlord and tenant details and property details. The portal calculates the registration fee.
Step 4. Pay the registration fee online, generate the challan and pay via net banking.
Step 5. Book an SRO appointment for the property's jurisdictional Sub-Registrar's Office.
Step 6. Both landlord and tenant appear at the SRO on the appointment date with: the executed rental agreement on e-stamp paper, originals of Aadhaar and PAN of both parties, and two witnesses with their Aadhaar cards.
Step 7. The SRO captures biometrics of both parties and witnesses, verifies documents, and registers the agreement. The registered deed is returned to the parties the same day.
Bangalore-Specific Clauses Most Agreements Miss
Bengaluru has rental market conventions not seen in other cities. These clauses prevent the most common disputes:
Security deposit clause: Bengaluru landlords often demand 10 months' rent. State the exact refund timeline (30 days is standard), the permitted deduction categories, and that the deposit is interest-free.
Painting clause: Many landlords deduct painting charges from the deposit at exit. Clearly specify whether painting on vacating is a tenant obligation or not.
Maintenance charges: Society maintenance is typically charged separately; state the exact monthly amount and who bears any future revision.
Landlord's PAN: If your monthly rent exceeds ₹8,333 (annual rent above ₹1 lakh), the landlord's PAN is mandatory for your HRA income tax claim. This must be obtained before signing.
Rent receipt obligation: Landlord must provide a rent receipt for every payment, in writing or via message, for your HRA documentation.
Police Verification: What Tenants in Bangalore Must Know
Many landlords, apartment associations and local police stations in Bengaluru require tenant verification as a safety measure. The landlord can upload tenant details where available and use online police verification facilities. No police station visit is required. The tenant provides Aadhaar and a passport photo. This takes approximately 10 minutes and should be completed promptly after moving in.
Rental Agreement Drafting Vault Proptech Assists
Vault Proptech drafts and processes rental agreements for residential and commercial properties in Bengaluru, including e-stamp procurement, notarisation coordination, and SRO registration for agreements of 12 months and above.
Rental agreement drafting with all Bengaluru-specific clauses
E-stamp procurement at shcilestamp.com for correct denomination
Notarisation coordination for 11-month agreements
SRO registration through Kaveri 2.0 for 12-month and longer agreements
Police verification coordination via the KSP App
NRI landlord rental agreement management via registered POA
