Why is the rent agreement only for 11 months, why not for 12 months? Is this document of any use?
Advocate Anandpati Tiwari says that under the Indian Registration Act, stamp duty and registration fee has to be paid on a rent agreement for a period of 12 months or more. Therefore, to save this small amount, most of the tenants and landlords make ends meet by entering into a rent agreement for only 11 months. According to him, this document has no value in the court for the tenant. This is a profitable deal for the owner of the property. At the same time, lawyers and notaries have also been running it as a practice.