Stamp Duty for Rent Agreement in Haryana

Stamp Duty for Rent Agreement in Haryana: Everything You Need to Know

If you are planning to rent a property in Haryana, it is essential to have a legally binding rent agreement in place. A rent agreement is a document that outlines the obligations and rights of both landlords and tenants. It is advisable to get a rent agreement registered with the state government to ensure legal validity and prevent any future disputes.

One of the most important aspects of registering a rent agreement in Haryana is paying the stamp duty. Stamp duty is a tax that is levied by the government on legal documents such as rent agreements. It is a one-time payment made by the tenant or landlord to the government at the time of registration of the rent agreement.

The stamp duty for a rent agreement in Haryana is calculated based on the monthly rental value of the property, and it varies from district to district. The stamp duty rates are revised by the government from time to time, and it`s crucial to stay updated on the latest rates. Below is the stamp duty structure for rent agreements in Haryana.

Stamp Duty Structure

– If the monthly rental value is up to INR 5,000, the stamp duty is 1% of the annual rent.

– If the monthly rental value is between INR 5,000 and INR 10,000, the stamp duty is INR 500 plus 2% of the annual rent.

– If the monthly rental value is between INR 10,000 and INR 20,000, the stamp duty is INR 1,500 plus 2% of the annual rent.

– If the monthly rental value is above INR 20,000, the stamp duty is INR 3,500 plus 3% of the annual rent.

It is crucial to note that stamp duty rates may vary in case of commercial properties, furnished properties, and properties located in specific areas such as urban or rural. It is advisable to consult a legal expert or the local registrar`s office for more information on stamp duty rates for rent agreements in these cases.

Payment of Stamp Duty

To pay the stamp duty for rent agreement in Haryana, the tenant or landlord can purchase non-judicial stamp paper of the required value from authorized vendors. The stamp paper should be filled in with the necessary details of the rent agreement and signed by both the parties, along with two witnesses. The rent agreement should then be registered at the local sub-registrar`s office within four months of execution.

If the rent agreement is not registered and stamped, it will not be legally valid in the eyes of law and cannot be used as evidence in case of a dispute. Moreover, the parties may be liable to pay a penalty for non-payment of stamp duty.

Conclusion

Stamp duty is an essential aspect of a rent agreement and cannot be ignored. It is crucial to calculate the stamp duty accurately and pay it on time to avoid any complications later on. Getting a rent agreement registered with the state government is advisable to ensure legal validity and protect both parties` interests. Therefore, if you are planning to rent a property in Haryana, make sure you are aware of the stamp duty rates and comply with the legal requirements.