Stamp Duty on Rent Agreement in Rajasthan: All You Need to Know
Renting a property in Rajasthan comes with certain legal obligations, one of which is stamp duty on rent agreement. Stamp duty is a state tax that is levied on legal documents to make them legally valid. In this article, we will discuss everything you need to know about stamp duty on rent agreement in Rajasthan.
What is Stamp Duty on Rent Agreement?
Stamp duty on rent agreement is a tax that is levied by the state government on the rent agreement between the landlord and the tenant. The stamp duty amount varies from state to state and is usually a percentage of the total rental amount.
In Rajasthan, the stamp duty on rent agreement is 1% of the annual rent or Rs. 5000, whichever is lower. For example, if the annual rent is Rs. 5 lakhs, the stamp duty payable would be Rs. 5000. If the annual rent is Rs. 7 lakhs, the stamp duty payable would still be Rs. 5000.
Who Pays for Stamp Duty on Rent Agreement in Rajasthan?
As per the law, the stamp duty on rent agreement in Rajasthan can be paid by either the landlord or the tenant. However, it is usually the responsibility of the tenant to pay the stamp duty.
When is Stamp Duty on Rent Agreement Paid?
Stamp duty on rent agreement in Rajasthan is paid at the time of registering the rent agreement. The agreement must be registered within 4 months of its execution, failing which a penalty may be levied.
How to Register the Rent Agreement in Rajasthan?
To register the rent agreement in Rajasthan, the following steps need to be followed:
1. Prepare the rent agreement: The rent agreement should be drafted on stamp paper with the stamp duty paid as per the applicable rate.
2. Obtain the tenant`s photo identity proof and address proof: The tenant`s photo identity proof such as Aadhaar card, PAN card, or passport and address proof such as utility bill or bank statement should be obtained.
3. Visit the sub-registrar`s office: Both the landlord and the tenant need to visit the sub-registrar`s office along with the rent agreement and the tenant`s photo identity proof and address proof.
4. Pay the registration fee: The registration fee is usually 1% of the total rental amount or Rs. 10,000, whichever is lower.
5. Obtain the registration certificate: Once the registration fee is paid, the sub-registrar will provide a registration certificate which acts as proof of registration.
Conclusion
Stamp duty on rent agreement in Rajasthan is a legal obligation that must be fulfilled by the landlord or the tenant. Failure to pay the stamp duty can lead to legal issues in the future. Therefore, it is important to understand the applicable rate of stamp duty and the process of registering the rent agreement in Rajasthan.