e-Stamping for PG & Rental Agreements in India

A simple guide to stamp duty, e-stamping and digital rental agreements.

When a tenant moves into a PG, hostel, co-living space, flat or rental property, documentation is an important part of the onboarding process.

A rental or accommodation agreement may need to be appropriately stamped according to the applicable state laws. Traditionally, this could involve purchasing physical stamp paper and preparing the agreement manually.

With e-stamping, the stamp-duty payment process can be completed digitally, making it easier to create and manage agreements electronically.

Through PGfy's digital agreement workflow, property managers and tenants can bring together agreement creation, e-stamping and digital signing into a more convenient onboarding experience.

What is Stamp Duty?

Stamp duty is a government levy imposed on certain legal instruments and transactions.

The applicable stamp duty can depend on factors such as:

• Type of document
• Nature of the transaction
• State or jurisdiction
• Agreement duration
• Transaction value
• Rent or consideration
• Security deposit
• Other conditions prescribed under applicable law

Because stamp-duty rules differ between states and document types, the amount applicable to one rental or PG agreement may not be the same as another. For this reason, the applicable stamp-duty requirements should always be determined based on the relevant state and document.

What is e-Stamping?

e-Stamping is the electronic method of paying applicable stamp duty and generating an electronic stamp certificate or equivalent digital evidence of stamp-duty payment through an authorised process.

Instead of purchasing traditional physical stamp paper, the applicable stamp duty can be paid electronically where e-stamping is available. The resulting certificate or record can then be associated with the relevant agreement/document as required.

In simple terms:

Traditional process:
Physical stamp paper → Agreement preparation → Signing → Document storage

Digital process:
e-Stamping → Agreement generation → Digital signing → Digital document storage

The exact process and terminology may vary depending on the state and authorised stamping mechanism.

Why is e-Stamping Important for PG and Rental Agreements?

PG and rental businesses manage a large number of agreements. A property manager may need to prepare agreements for:

• New tenants
• Renewals
• Room transfers
• Property transfers
• Co-living occupants
• Rental occupants
• Corporate accommodation

Managing physical stamp papers for every agreement can create operational challenges. e-Stamping can help make the process:

Faster → More organised → Easier to track → Easier to store digitally

How e-Stamping Works for a Flat, Room, PG & Rental Agreement

e-Stamping is the electronic process used to pay applicable stamp duty on an agreement through the authorised stamping mechanism applicable to the relevant State or Union Territory.

For a tenant renting a PG bed, room, flat, hostel accommodation or other residential premises, e-stamping can form an important part of the digital agreement process.

The exact stamp-duty amount and procedure depend on the State/UT, document type, agreement duration, rent, deposit/advance and other applicable factors.

A typical PGfy e-Agreement journey

1. Select your accommodation

Choose a:

• PG
• Hostel
• Private room
• Flat
• Shared accommodation
• Rental property
• Co-living accommodation

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2. Enter agreement details

The required information is collected from the tenant and property manager/owner, such as:

• Tenant details
• Property address
• Room/bed details
• Monthly rent
• Security deposit
• Agreement start date
• Agreement end date
• Other applicable terms

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3. Generate the agreement

The relevant agreement is generated using the information provided by the parties.

The tenant and property manager should review the document carefully before proceeding.

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4. Determine applicable stamp duty

The applicable stamp duty is determined according to the relevant State/UT rules and the nature of the agreement.

The amount may depend on:

• Agreement type
• Agreement duration
• Rent
• Security deposit/advance
• Consideration
• Property details
• Applicable state/UT stamp-duty schedule

The stamp duty is not necessarily a fixed amount across India.

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5. Pay the applicable government stamp duty

Where digital e-stamping is available, the applicable stamp duty is paid through the authorised electronic stamping process.

PGfy should clearly distinguish the government stamp-duty amount from any PGfy service charge.

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6. Generate the e-Stamp certificate/record

After successful payment, the applicable electronic stamp certificate or record is generated.

Depending on the issuing system, it may contain information such as:

• Unique certificate/reference number
• Date
• Stamp-duty amount
• Document/instrument information
• Party information
• Other verification details

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7. Complete the agreement signing

Once the stamping requirements are completed, the parties can proceed with the applicable electronic-signing process.

Where Aadhaar/e-KYC-based eSign is available, the signer can complete the required authentication and electronic signing process.

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8. Receive the completed agreement

After all required steps are completed, the tenant and property manager can retain the final agreement and associated records digitally.

Example

Suppose a tenant takes a room in Bengaluru:

Monthly Rent: ₹12,000
Security Deposit: ₹30,000
Agreement Period: 11 months

The PGfy workflow can be:

Room Selected → KYC Completed → Agreement Generated → Applicable Stamp Duty Calculated → Government Stamp Duty Paid → e-Stamp Generated → Tenant Reviews Agreement → Tenant eSigns → Property Manager/Owner Signs → Completed Agreement

The actual stamp duty payable would be determined according to the applicable Karnataka rules in force at the time of execution, rather than simply applying a nationwide fixed amount.

What the Tenant Sees

Before making the payment, PGfy can provide a transparent breakdown such as:

Component	Amount
Government Stamp Duty	₹XXX
Government Registration Fee, if applicable	₹XXX
eSign / Digital Signing	₹XX
PGfy e-Agreement Service Fee	₹XX
Total Payable	₹XXX

This helps tenants understand exactly which amount is a government charge and which amount is a PGfy service charge.

What Happens to the e-Stamp?

The e-stamp certificate or electronic stamping record is associated with the relevant instrument/agreement according to the applicable stamping process.

It provides evidence of payment of the applicable stamp duty.

The e-stamp should not be confused with the electronic signature.

e-Stamp = Stamp Duty
eSign = Electronic Signature

They are separate components of the digital agreement process.

Does e-Stamping Complete the Agreement?

Not by itself.

A typical agreement may require multiple steps:

Agreement Creation → Stamp Duty / e-Stamping → Signing → Registration, if legally required → Final Document

Whether registration, notarisation or any other formality is required depends on the nature of the agreement and applicable law.

Therefore, completing e-stamping does not automatically mean that an agreement is registered or notarised.

Flat, Room and PG Agreements

The same digital workflow can support different types of accommodation arrangements.

PG Agreement

For a tenant occupying a bed or room within a managed PG/property.

Room Rental Agreement

For a tenant renting an individual room.

Flat Rental Agreement

For a tenant renting an entire residential flat.

Shared Flat Agreement

For occupants sharing a residential property.

Hostel/Co-living Agreement

For accommodation operated under hostel or co-living arrangements.

The applicable stamp-duty treatment can differ depending on the legal nature of the instrument and the jurisdiction.

Why Use e-Stamping?

A Complete Digital Agreement Journey

PGfy brings the different stages of accommodation documentation into one workflow:

Search PG / Flat / Room ↓ Book ↓ KYC ↓ Agreement ↓ e-Stamp ↓ eSign ↓ Completed Agreement ↓ Move In

This allows the tenant and property manager to complete the documentation journey digitally, while keeping government charges, digital-signing charges and PGfy service charges clearly separated.

Traditional Stamp Paper vs e-Stamping

Traditional Stamp Paper	e-Stamping
Physical stamp paper	Electronic process
Requires physical handling	Digital workflow
Physical document storage	Digital document storage
Can involve manual processes	More streamlined
Risk of physical loss	Digital records can be retained
Verification may require physical document	Electronic certificate/reference can support verification
Less convenient for remote onboarding	Better suited to remote digital onboarding

The availability and process of e-stamping can differ across Indian states and document types.

PGfy e-Agreement: One Digital Workflow

A modern PG agreement workflow can combine several processes into one experience.

Tenant

Book → Verify → Review → Stamp → Sign → Receive Agreement

Property Manager

Accept Booking → Verify Tenant → Generate Agreement → Stamp → Sign → Store → Manage Tenant

This reduces the need to move between multiple disconnected processes.

State & Union Territory-wise Stamp Duty for PG and Rental Agreements

One of the most common questions from tenants and property managers is: “How much does an e-stamp or stamp duty cost for a PG or rental agreement?”

There is no single stamp-duty amount applicable throughout India. Stamp duty is determined according to the applicable state or Union Territory law, the type of agreement, agreement duration, rent, security deposit/advance, consideration and other factors.

State / Union Territory	Indicative basis for common PG / rental agreements	Typical short-term reference*
Andhra Pradesh	Percentage based on applicable rent/consideration and term	~0.5% of applicable rent + deposit/consideration
Arunachal Pradesh	State stamp-duty schedule; varies by instrument/term	~6% in commonly cited rental references
Assam	State stamp-duty schedule	~8.25% in commonly cited rental references
Bihar	State stamp-duty schedule	~6% in commonly cited rental references
Chhattisgarh	State stamp-duty schedule	~5% of applicable rent/consideration
Goa	Depends on transaction/lease value and term	~3%–6% depending on applicable value
Gujarat	Percentage-based; depends on instrument and term	Rates can be substantially higher for longer/registered leases
Haryana	Depends on agreement duration, location and applicable consideration	Variable
Himachal Pradesh	State schedule	~6% in commonly cited rental references
Jharkhand	State schedule	~4% in commonly cited rental references
Karnataka	Percentage-based with applicable minimum/cap for short-term agreements	Often around 0.5%–1% of applicable consideration, subject to applicable cap
Kerala	Depends on term and consideration	~0.25% for certain short-term agreements; higher for longer terms
Madhya Pradesh	State schedule	~8% in commonly cited rental references
Maharashtra	Leave & Licence calculation based on applicable consideration	0.25% of applicable consideration; registration is generally mandatory
Manipur	State schedule	~4% in commonly cited rental references
Meghalaya	State schedule	~9.9% in commonly cited rental references
Mizoram	State schedule	~5% in commonly cited rental references
Nagaland	State schedule	~8.25% in commonly cited rental references
Odisha	State schedule	~2% is shown for certain lease instruments
Punjab	State schedule; may vary based on party/category and instrument	Variable
Rajasthan	State schedule	~6% in commonly cited rental references
Sikkim	State schedule	~5% in commonly cited rental references
Tamil Nadu	Percentage-based	~1% of applicable annual rent/consideration
Telangana	Percentage-based according to applicable instrument/term	~0.4% for certain short-term rental instruments
Tripura	State schedule	~5% in commonly cited rental references
Uttar Pradesh	State-specific rent-agreement/e-stamping schedule	Government-calculated amount
Uttarakhand	State schedule	Variable
West Bengal	Depends on rent, property value and term	~5%–6% in commonly cited references
Andaman & Nicobar (UT)	UT stamp schedule	Around ₹100 for certain leases below 11 months
Chandigarh (UT)	UT schedule; depends on term, annual rent and advance/security	Variable
Dadra & Nagar Haveli and Daman & Diu (UT)	UT schedule	Variable; percentage-based for certain lease instruments
Delhi (NCT)	UT/Delhi stamp schedule	Around ₹100 for common 11-month references
Jammu & Kashmir (UT)	UT schedule	Around ₹100 for certain short-term unregistered agreements
Ladakh (UT)	UT schedule	Around ₹100 for certain short-term unregistered agreements
Lakshadweep (UT)	Applicable UT stamp schedule	Variable — verify before execution
Puducherry (UT)	UT stamp schedule	Variable; applicable Tamil Nadu/Puducherry provisions depend on the instrument

*The figures above are indicative references, not guaranteed final government charges. The actual stamp duty must be determined from the applicable law, instrument type, tenure, rent, deposit/advance and other relevant factors.

Example of a PGfy Government-Charge Breakdown

Before payment, the tenant could see:

Charge	Amount
Government Stamp Duty	₹XXX
Government Registration Fee	₹XXX
eSign / Digital Signing	₹XX
PGfy Agreement Processing	₹XX
Total	₹XXX

The government components should be clearly distinguished from PGfy's own service charges.