Articles 35 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Article 35 is the longest lease entry in Schedule I. It covers a lease, including an under-lease or sub-lease and any agreement to let or sub-let, and sets different measures of duty depending on whether rent is fixed, whether a premium is paid, and how long the lease runs. Article 61 charges the surrender of a lease and Article 63 charges the transfer of a lease by way of assignment.
Under Article 35 the central Schedule charges a lease for rent alone either at the bond duty or at the conveyance duty, according to its term, on the average annual rent or the whole rent payable; a lease for a fine or premium is charged at the conveyance duty on the premium, with a further charge where rent is also reserved. A surrender (Article 61) takes the lease's own duty up to five rupees, and an assignment (Article 63) takes the conveyance duty on the consideration. These are the central text's measures, not the duty payable today: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed.
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so check that State's schedule; this article explains the central Act only. For the meaning of "lease", see our article on the definitions of conveyance, bond, lease, mortgage-deed and settlement.
A note on how the copy prints Article 35
In the copy consulted the duty column of Articles 25 to 35 is printed out of line with the descriptions. The duties are printed in the right order, but several lines above or below the rows they belong to. We have rebuilt Article 35(a) in sequence below, and the official text should be checked. The cross-entries "Agreement to lease. See LEASE (No. 35)" and "Hiring agreement or agreement for service. See AGREEMENT (No. 5)" are printed in the alphabetical list.
Article 35(a): rent fixed and no premium
Article 35 is headed "Lease, including an under-lease or sub-lease and any agreement to let or sub-let". Clause (a) deals with a lease "whereby such lease the rent is fixed and no premium is paid or delivered". The copy prints five sub-clauses, rebuilt as follows.
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 35(a)(i) | Where the lease purports to be for a term of less than one year | The same duty as a Bond (No. 15) for the whole amount payable or deliverable under such lease |
| 35(a)(ii) | For a term of not less than one year but not more than three years | The same duty as a Bond (No. 15) for the amount or value of the average annual rent reserved |
| 35(a)(iii) | For a term in excess of three years | The same duty as a Conveyance (No. 23) for a consideration equal to the amount or value of the average annual rent reserved |
| 35(a)(iv) | Where the lease does not purport to be for any definite term | The same duty as a Conveyance (No. 23) for a consideration equal to the amount or value of the average annual rent which would be paid or delivered for the first ten years if the lease continued so long |
| 35(a)(v) | Where the lease purports to be in perpetuity | The same duty as a Conveyance (No. 23) for a consideration equal to one-fifth of the whole amount of rents which would be paid or delivered in respect of the first fifty years of the lease |
Article 35(b) and (c): premium and rent
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 35(b) | Where the lease is granted for a fine or premium or for money advanced and where no rent is reserved | The same duty as a Conveyance (No. 23) for a consideration equal to the amount or value of such fine or premium or advance as set forth in the lease |
| 35(c) | Where the lease is granted for a fine or premium or for money advanced in addition to rent reserved | The same duty as a Conveyance (No. 23) for a consideration equal to the amount or value of such fine, premium or advance as set forth in the lease, in addition to the duty which would have been payable on the lease if no fine or premium or advance had been paid or delivered |
The proviso. In any case where an agreement to lease is stamped with the ad valorem stamp required for a lease, and a lease in pursuance of the agreement is subsequently executed, the duty on the lease "shall not exceed eight annas".
Exemption. A lease executed in the case of a cultivator and for the purposes of cultivation (including a lease of trees for the production of food or drink) without payment or delivery of any fine or premium, when a definite term is expressed and does not exceed one year, or when the average annual rent reserved does not exceed one hundred rupees. The copy prints a row of asterisks where a second exemption stood; the footnote says "Exemption (b) omitted by the A.O. 1937", and we say nothing about what it provided.
If you are about to sign or draft a lease and want the term, rent and premium read against these measures, our agreement drafting service can help.
How to read the measures
- The measure for short leases (under three years) is the bond scale of Article 15; for longer, indefinite or perpetual leases it is the conveyance scale of Article 23. Both scales are set out in our articles on bonds and conveyance.
- "Average annual rent" is what the Schedule uses for a definite term. For an indefinite lease it uses the first ten years; for a perpetual lease, one-fifth of the rents of the first fifty years.
- Where there is both a premium and rent, the two charges are added.
- Section 26 of the Act, on the stamp where the value of the subject-matter cannot be ascertained, has a proviso on mining leases; see our article on section 26.
Article 61: surrender of lease
Article 61 charges the surrender of a lease. Where the duty with which the lease is chargeable does not exceed five rupees, the central Schedule prints "the duty with which such lease is chargeable"; in any other case it prints "Five rupees". The exemption is a surrender of lease when the lease is itself exempted from duty. For the legal ways a lease ends, see our article on section 111 of the Transfer of Property Act, 1882.
Article 63: transfer of lease
Article 63 charges a transfer of lease "by way of assignment and not by way of under-lease" at the conveyance duty on a consideration equal to the amount of the consideration for the transfer. Transfers of any lease exempt from duty are exempted. A sub-lease is a lease under Article 35, not a transfer under Article 63.
Who bears the stamp expense
Section 29(c) says that, in the absence of an agreement to the contrary, the expense of a lease or an agreement to lease is borne by the lessee or intended lessee. Under section 29(d), the expense for a counterpart of a lease is borne by the lessor. Our article on section 29 sets out the full list.
An example with invented names
Sharma Textiles takes premises on a lease for five years at a rent of Rs. 300 a year, with no premium. This is Article 35(a)(iii): a term in excess of three years. The Schedule's measure is the conveyance duty on a consideration equal to the average annual rent, Rs. 300, so the band that exceeds Rs. 200 and does not exceed Rs. 300 applies, for which the central Schedule prints three rupees. That is the central text's figure and not the duty payable today. Had the lease been for six months at the same annual rent, Article 35(a)(i) would have used the bond scale on the whole amount payable, and if Sharma Textiles had also paid a premium, clause (c) would have added a charge on the premium.
Need help with a lease or licence?
If you are taking or giving premises and want the term, rent and any premium looked at before signing, our team can review the draft under our agreement drafting service. We map the document to the Article and then to the State's schedule.
Key takeaways
- Article 35 charges a lease, under-lease, sub-lease and agreement to let; the measure depends on term and on whether a premium is paid.
- Short leases follow the bond scale; longer, indefinite and perpetual leases follow the conveyance scale.
- A premium is charged at the conveyance duty, and added to the rent charge where both exist.
- An agreement to lease already stamped ad valorem leaves the later lease at no more than eight annas.
- Surrender (Article 61) and assignment (Article 63) have their own entries.
- All amounts are the central text's; the State where the instrument is executed fixes the duty payable.
Read next
- Articles 23, 23A and 18 of Schedule I: conveyance, part-performance contract and certificate of sale
- Articles 40, 32, 41 and 54 of Schedule I: mortgage deed and related instruments
- Section 105 of the Transfer of Property Act, 1882: lease of immovable property
- Stamp duty on lease and rent agreement
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.