Rental Agreement in Jaipur: How much stamp duty do you pay?

Jaipur: If you are planning to prepare a rent agreement in Jaipur, you may have to pay stamp duty charges at the rate of up to 5 percent of the DLC rate or market value of the property. How much stamp duty you will pay for preparing a rental agreement will depend on the length of the agreement period. It will be from 0.1 percent to 5 percent of the property’s DCL rate or market value. You will also have to pay 20 percent of the stamp duty as registration fee and 20 percent of the stamp duty as surcharge.

How to calculate rental agreement charges in Jaipur:

Stamp duty: From 0.1 percent to 5 percent of the property’s value

Registration fee: 20 percent of the stamp duty

Surcharge: 20 percent of the stamp duty

The latest amendments in the Rajasthan Rent Control Act introduced in the state assembly makes the provision for using DLC rate or market value for calculating the stamp duty rates for rental agreements.

Following are the latest stamp duty charges:

Rental agreement for 1-5 years: 0.1% of the property’s DCL rate or market value

For 5-10 years: 0.5%

For 10-15 years: 1%

15-20 years: 2%

20—30 years:  4%

More than 30 years: 5%

Until now, people preparing rental agreements had to pay a maximum of Rs 500 for buildings of all size and irrespective of the agreement period. Landlords and tenants had to pay a little extra for notary.

You will now have to pay a stamp duty of nearly Rs 3,000 for preparing a rent agreement for a property wroth Rs 30 lakh. On top of that, you will have to pay 20 percent of the stamp duty as registration free and 20 percent of the stamp duty as surcharge.

In case of the property worth Rs 30 lakh, you will end up paying a stamp duty of Rs 3000, registration fee of Rs 600 (20 percent of Rs 3000) and surcharge of Rs 600 (20 percent of Rs 3000). The total cost will be around Rs 4200.

Registration and Stamps Department, Rajasthan has made amendments in Article 33 of Stamp Duty Act, 1998 to make provision for charging stamp duty. Lease deed and stamp duty will be charged on the basis of the value of immovable properties.

Who will pay stamp duty charges?

With increase in stamp duty charges in Jaipur, it will become extremely difficult to negotiate who – whether the landlord or the tenant – will bear them. It may cause disputes at the time of signing the rental agreement.