Stamp Duty on Rent Agreement in Bihar: Everything You Need to Know
If you are planning to rent a property in Bihar, it is essential to understand the stamp duty and registration process for rental agreements. In Bihar, as in other states of India, stamp duty is levied on rental agreements to make them legally valid.
Let`s take a closer look at what stamp duty on rental agreements in Bihar entails:
What is Stamp Duty?
Stamp duty is a tax paid by the tenant or the landlord to the government to make a rental agreement legally binding. It is a state levy and varies from state to state. In Bihar, the stamp duty for rental agreements is calculated based on the rental value of the property.
What is the Stamp Duty on Rent Agreements in Bihar?
In Bihar, the stamp duty for rental agreements is 1% of the annual rent value of the property. For example, if the annual rent is INR 1,20,000, the stamp duty payable would be INR 1,200.
It is important to note that the stamp duty on rental agreements in Bihar is capped at INR 20,000. Thus, if the annual rent is above INR 20 lakhs, the stamp duty payable will be INR 20,000.
Who Pays the Stamp Duty on Rental Agreements in Bihar?
The stamp duty on rental agreements in Bihar can be paid by either the landlord or the tenant. However, in practice, it is usually the tenant who pays the stamp duty. The tenant also bears the cost of the rental agreement registration charges, which are separate from the stamp duty.
How to Pay Stamp Duty on Rental Agreements in Bihar?
The stamp duty on rental agreements in Bihar can be paid either online or offline. The online procedure for payment of stamp duty and registration of rental agreements in Bihar can be completed through the Bihar e-Registration portal. Alternatively, the process can be completed offline by visiting the registrar`s office nearest to the rental property.
Renting a property in Bihar requires careful attention to the stamp duty and rental agreement registration process. It is essential to ensure that the rental agreement is registered and stamped correctly to avoid any legal issues in the future. The stamp duty on rental agreements in Bihar is 1% of the annual rental value, capped at INR 20,000. Tenants usually bear the cost of stamp duty, and the process can be completed online or offline. To avoid any confusion and costs related to stamp duty and registration of rental agreements in Bihar, it is always advisable to seek legal assistance.