Stamp Duty On Lease Agreement In Mp
There is considerable savings if you want to buy a property soon. Let`s see an example. Before September 2020, if you bought a property, you should pay Rs 12.50 Lakhs for stamp duty, on a property worth Rs 1 crore. As MP, you can pay the stamp and registration fee online through the dedicated portal, Stamps and Management of Property and Documents Application (SAMPADA). Before SAMPADA, the stamp and associated work were very difficult for a layperson and it took days for the certified documents to be delivered. Now it is faster and much easier to access these documents and store them for future references. Now let`s look at whether the instrument you subscribe to under the Indian Stamp Act of 1899 instructs you to print it on a stamp paper and pay the tax due, or simply to pay the necessary obligation. The stamp duty rate in MP is currently 10.50% (stamp duty of 7.5% and registration fee of 3%) of the previous 12.50% (stamp duty of 9.5% and registration fee of 3%). Lower rates are expected to boost real estate sales in the municipal territories. Despite the high level of inventories, active sales collapsed as a result of the COVID 19 pandemic. The rationalization of stamp duty could bring some necessity to the Madhya Pradesh real estate market. Note that the 10.50% stamp duty rate only applies until December 31, 2020.
Stamp Duty is a tax instrument in itself, exercised by the central government and state governments depending on the type of service or document you wish to prepare, and also gives you the benefit of restitution, a “stamp” of authenticity or what you can call “legal recognition” to any customer who has subscribed to its service. In the state of Madhya Pradesh, stamp duty on rental documents is calculated at 8% of the total deposit rent. The procedure is no different from that of other states. The conventional method would involve the landlord and tenant entering into a discussion about what should be included in the tenancy agreement and what is not. As soon as they agree on the clauses, they can visit a lawyer who will have the agreement written for them in standard format and then print it on stamp paper. The tenant and the landlord then confirm the document by placing their signatures with that of two witnesses.