In Punjab a rent agreement for less than 20 years pays stamp duty of 3.25% of the average annual rent under Article 35 of the Stamp Act. An 11 month agreement at Rs 60,000 a month reserves Rs 660,000 of rent, so the e-stamp paper should be Rs 21,450. Money advanced for the lease, or a premium (pagri), adds 2% of that sum in urban areas and 3.25% elsewhere.
Enter the monthly rent, the term in months, any yearly increase and any advance or premium. The calculator finds the average annual rent the way the article needs it and shows the duty on each part.
Article 35 rates in Punjab
Rates since 1 July 2020. Article 35 covers leases, under-leases, sub-leases and any agreement to let or sub-let, so an ordinary kirayanama is a lease for stamp duty.
| Lease | Charged on | Urban | Other area |
|---|---|---|---|
| Term under 20 years (all rent agreements of a few years) | Average annual rent | 3.25% | 3.25% |
| Term of exactly 20 years | Average annual rent | 2% | 3.25% |
| Over 20 years, perpetual, or no fixed term | Total rent for the first 10 years | 2% | 3.25% |
| Money advanced for the lease | The advance, on top of the duty on rent | 2% | 3.25% |
| Premium (pagri) or fine | The premium, on top of the duty on rent | 2% | 3.25% |
Leases to cultivators for up to one year, or at an average annual rent of up to Rs 100, are exempt.
How to calculate stamp duty on a rent agreement
- Add up the rent for the whole term. Twelve months at Rs 50,000 is Rs 600,000. If the rent goes up each year, add each year's rent separately.
- Divide by the number of years to get the average annual rent. An agreement shorter than a year never reaches a full year's rent, so the rent for its term is used.
- Take 3.25% of the average annual rent for any term under 20 years. This applies in towns and villages alike.
- Add duty on any advance or premium: 2% in an urban area, 3.25% elsewhere. This is on top of the duty on rent.
- Round up to the next rupee. That is the e-stamp value.
For a lease over 20 years, in perpetuity or with no fixed term, the duty is on the whole rent for the first 10 years instead of the yearly average: 2% in urban areas and 3.25% elsewhere.
Rent agreement stamp paper at common rents
Urban property, no advance unless shown:
| Monthly rent | Agreement | Yearly rent used | E-stamp value |
|---|---|---|---|
| Rs 25,000 | 11 months | Rs 275,000 | Rs 8,938 |
| Rs 60,000 | 11 months | Rs 660,000 | Rs 21,450 |
| Rs 100,000 | 3 years, +10% a year | Rs 1,324,000 | Rs 43,030 |
| Rs 50,000 | 5 years, +10% a year, premium Rs 2,000,000 | Rs 732,612 | Rs 63,810 |
Worked examples
House on a 3 year agreement with a 10% yearly increase
Rent Rs 100,000 a month in the first year.
| Year | Rent |
|---|---|
| Year 1 | 12 × Rs 100,000 = Rs 1,200,000 |
| Year 2 | 12 × Rs 110,000 = Rs 1,320,000 |
| Year 3 | 12 × Rs 121,000 = Rs 1,452,000 |
| Total | Rs 3,972,000 |
Average annual rent is Rs 3,972,000 ÷ 3 = Rs 1,324,000. Duty is 3.25% of that: Rs 43,030. Without the increase it would be 3.25% of Rs 1,200,000, which is Rs 39,000.
Shop for 5 years with a premium
Rent Rs 50,000 a month rising 10% a year, and a Rs 2,000,000 pagri paid to the owner, in an urban market. Five years of rent come to Rs 3,663,060, an average of Rs 732,612 a year. Duty on rent is 3.25% of that, Rs 23,809.89. Duty on the premium is 2% of Rs 2,000,000, Rs 40,000. The e-stamp should be Rs 63,810.
For an agreement under 12 months the calculator uses the rent for the actual term. If the office counts a full 12 months of rent, an 11 month agreement at Rs 60,000 needs Rs 23,400 instead, and the result shows that figure too. A refundable security deposit is not rent. If the agreement calls it an advance for the lease, enter it as money advanced. Check the amount on your e-stamp challan before you pay.
Rent agreement stamp paper questions
How much stamp paper is needed for a rent agreement in Punjab?
3.25% of the average annual rent for any agreement under 20 years. For 11 months at Rs 30,000 a month the rent is Rs 330,000 and the e-stamp is Rs 10,725. Add 2% of any advance or premium in an urban area. A Rs 100 or Rs 500 paper is not enough for a normal house rent.
Who pays the stamp duty on a rent agreement?
The tenant, under section 29 of the Stamp Act, unless the landlord and tenant agree otherwise. The landlord pays the duty on the counterpart (the copy the landlord signs), if one is made.
Does a yearly rent increase change the stamp duty?
Yes. The duty is on the average annual rent over the whole term, so a 10% yearly increase on a 3 year agreement raises the average by about 10%. Enter the increase in the calculator and it adds each year's rent separately.
Is the advance or security deposit charged?
Money advanced as consideration for the lease is charged at 2% in urban areas and 3.25% elsewhere, on top of the duty on rent. A premium or pagri is charged the same way. A refundable security deposit held against damage or unpaid bills is not rent; how it is treated depends on the wording of the agreement.
What if the rent agreement is not on the right stamp paper?
An under-stamped agreement cannot be used as evidence, for example in a rent case, until the missing duty and a penalty are paid. Registration offices can impound it. Paying the right amount at the start costs less than the penalty later.
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Last reviewed 1 October 2026. Results are estimates; official notices always take precedence.