Document type / Articles 30 and 57
What it costs to register a lease of land
A lease is the one land document that is not taxed on the value of the land. Stamp duty is 4.9 per cent of the advance premium the tenant pays at the start, so what you hand over on day one decides the bill.
The registration fee works differently again, at 1 per cent of the average lease amount across all lease lengths. Selling a lease on to somebody else is a separate document, charged at 4.9 per cent of the market value of the property under Article 57.
Lease duty 4.9 per cent of premiumTransfer of lease 4.9 per cent of valueFee 1 per cent of average leaseLast verified: 4 August 2026
01Charged on the money, not on the land
This is where a lease differs from every other document on this site. A sale, a gift and an exchange are all charged on the value of the property. A lease with a premium is charged on the premium: the advance, the money or the fine paid to the landlord at the start.
So the size and value of the plot does not decide the duty. What the tenant hands over at the beginning does. A long lease of valuable land taken for a small advance and a large monthly rent attracts far less duty than a short lease of the same land taken for a large lump sum.
A lease is charged on what is paid up front, not on the value of the land. That is the single most useful thing to know about leasing rather than buying.
| Charge | Article | Applies to | Rate | Charged on |
|---|---|---|---|---|
| Stamp duty | 30(b) | Lease of immovable property with premium or money advance | 4.9% | the advance premium, money or fine |
| Stamp duty | 57 | Transfer of lease | 4.9% | market value |
| Registration fee | 30 | Lease, all time slabs | 1% | average lease amount |
| Registration fee | 57 | Transfer of lease | 1% | consideration amount |
02A worked lease
If a lease is taken with a twenty lakh premium paid up front, the stamp duty is 4.9 per cent of that premium and not of the value of the land.
| Line item | Input | Rate | Amount Rs. | |
|---|---|---|---|---|
| 01 | Advance premium paid to the landlord | declared | = | 20,00,000 |
| 02 | Stamp duty, Article 30(b) | on 20,00,000 | 4.9% | 98,000 |
| 03 | Registration fee, Article 30 | on the average lease amount | 1% | computed on the lease, not on this premium |
| Stamp duty on the lease | = | 98,000 | ||
The registration fee runs on a different basis again. Article 30 of the registration fee table charges 1 per cent of the average lease amount and applies that to all time slabs, so a lease of any length is treated the same way for the fee.
Selling a lease on to somebody else is a separate document with its own charge. Transfer of a lease under Article 57 is charged at 4.9 per cent of market value, which is the property valuation basis rather than the premium basis, and the registration fee is 1 per cent.
03Why this matters inside the region
Land allotted by the government development company inside the industrial city area is allotted on lease rather than sold outright, and it carries its own transfer fee schedule on top of anything in the stamp table. That schedule is set out on the transfer fee page and it is a policy charge rather than a tax.
Nothing in the stamp table sets a different rate for land inside a special investment region. The same articles apply as anywhere else in Gujarat.
The words on this page, in plain English
- Premium
- A one time payment to the government to lift a restriction on the land, most often to convert new tenure land to old tenure.
- Market value
- Not the price on the street. In this context it is the value the government calculates from the jantri, and it is what the tax is charged on.
- Allotment
- A plot sold or leased directly by the government development company rather than bought from a private owner.
- Special Investment Region, SIR
- An area notified under the Gujarat Special Investment Region Act 2009 and governed by a development authority rather than by the ordinary local body.
- DICDL
- Dholera Industrial City Development Limited, the government owned company that allots land inside the industrial city area.