Stamp Duty for Lease Agreement in Haryana: Everything You Need to Know
Lease agreements are a common occurrence in the real estate sector, and anyone who wishes to enter into one in the state of Haryana must be aware of the stamp duty requirements. Stamp duty is essentially a tax levied by the state government on legal documents to make them legally valid.
In this post, we will discuss the stamp duty requirements for lease agreements in Haryana and everything else you need to know about it.
What is a Lease Agreement?
A lease agreement is a legal document that outlines the terms and conditions of a rental agreement between a landlord and a tenant. It serves as a contract between the two parties and includes details such as the rental amount, duration of the lease, maintenance responsibilities, and security deposit.
What is Stamp Duty?
Stamp duty is a tax levied on legal documents by the state government to make them legally valid. It is a mandatory requirement for all legal documents, including lease agreements.
Stamp Duty for Lease Agreements in Haryana
The stamp duty for lease agreements in Haryana is calculated as a percentage of the annual rent, which varies according to the lease duration. The rates are as follows:
– For lease agreements of up to one year with an annual rent of less than INR 1 lakh, the stamp duty is INR 50.
– For lease agreements of up to one year with an annual rent of more than INR 1 lakh, the stamp duty is 1% of the total rent.
– For lease agreements of one to three years, the stamp duty is 2% of the average annual rent.
– For lease agreements of three to five years, the stamp duty is 3% of the average annual rent.
– For lease agreements of more than five years, the stamp duty is 4% of the average annual rent.
The stamp duty must be paid by the tenant and is usually non-refundable.
How to Pay Stamp Duty for Lease Agreements in Haryana
Stamp duty can be paid through various methods, such as physical stamp paper, e-stamping, or franking. In Haryana, e-stamping is the most preferred method of payment.
E-stamping is a secure online method of paying stamp duty, where a unique identification number is generated for the transaction. This number serves as proof of payment and can be used to verify the authenticity of the stamp paper.
Stamp duty is a mandatory requirement for lease agreements in Haryana. The rates vary according to the lease duration and annual rent, and it must be paid by the tenant. E-stamping is the most preferred method of payment and is a secure and convenient way to pay stamp duty.
If you are planning to enter into a lease agreement in Haryana, make sure you are aware of the stamp duty requirements and pay it on time to avoid legal consequences.