Stamp duty is a tax imposed by the government on various types of legal documents including rental agreements. In India, stamp duty rates are different for every state since it is a state subject and hence, it is essential to know the right rate applicable in your state. In this article, we will explore the stamp duty rates in some of the popular states of India on a rental agreement.
In Maharashtra, the stamp duty rate on a rental agreement is 0.25% of the total rent for the period. For instance, if you have entered into a rental agreement for 12 months with a monthly rent of Rs. 15,000/- per month, the total rent for 12 months would be Rs. 1,80,000. In Maharashtra, the stamp duty payable on such an agreement would be Rs. 450/- (0.25% of Rs. 1,80,000).
In Karnataka, the stamp duty rate on rental agreements is 0.1% of the total rent for the period, subject to a maximum of Rs. 5,000/- per month. For example, if you have entered into a rental agreement for 12 months with a monthly rent of Rs. 60,000/- per month, the total rent for 12 months would be Rs. 7,20,000/-. In Karnataka, the stamp duty payable on such an agreement would be Rs. 7,200/- (0.1% of Rs. 7,20,000 or the maximum stamp duty payable of Rs. 5,000/- per month).
In Delhi, the stamp duty rate on a rental agreement is 2% of the average annual rent of the property, along with a registration fee of Rs. 1,100/-. Thus, if the annual rent of the property is Rs. 3,00,000/-, the stamp duty payable on the rental agreement would be Rs. 6,000/- (2% of Rs. 3,00,000) plus the registration fee of Rs. 1,100/-.
In Tamil Nadu, the stamp duty rate on a rental agreement is 1% of the total rent for the period, subject to a maximum of Rs. 20,000/-. For instance, if you have entered into a rental agreement for 24 months with a monthly rent of Rs. 25,000/- per month, the total rent for the period would be Rs. 6,00,000/-. In Tamil Nadu, the stamp duty payable on such an agreement would be Rs. 6,000/- (1% of Rs. 6,00,000 or the maximum stamp duty payable of Rs. 20,000/-).
In conclusion, it is evident that the stamp duty rates on rental agreements vary from state to state. It is essential to check the stamp duty rate applicable in your state before entering into a rental agreement to avoid any discrepancies. It is also important to ensure that the stamp duty is paid and the rental agreement is duly stamped and registered to make it legally enforceable.