What Is Stamp Duty?
Stamp duty is the amount a citizen pays to the Government (Central and State of Rajasthan) as a form of a tax for executing types of deeds which have a financial obligation associated with it and also on the registration of sale of immovable property. Stamp duty is paid during the registration of a document or deed. Stamp duty is printed on stamp paper or e-stamp paper after the duty is paid for.
Stamp papers have different stamp values and each type of document/deed has to be executed on a stamp paper of a requisite value. Stamp value varies from region to region, and also on the value of the deed or transaction being executed. To help calculate the value of stamp paper required, LegalDesk.com developed a stamp duty calculator which serves as a stamp duty guide to help you calculate the stamp duty payable on the lease and rent of properties in Rajasthan or any other State in India. Do have a look if you want to know more about rental agreements in Rajasthan and Jaipur and how to create the same.
The Rajasthan Stamp Act, 1998
The Rajasthan Stamp Act was enacted to consolidate and amend all laws relating to stamps and stamp duty in the State of Rajasthan. Section 10 of the State Stamp Act stipulates in which ways duty can be paid using impressed stamps, franking machines, adhesive stamps, etc.
According to Section 21, the difference in stamp duty should be paid for any instrument registered outside the State of Rajasthan if the said instrument relates to a property wholly or partially situated in Rajasthan. Duty is required to be paid by an individual drawing or making an instrument or a deed. This Act was previously amended in 2001 (through the Rajasthan Finance Bill, 2001), 2004 and 2016. Further, the stamp duty in Rajasthan is also governed by the Rajasthan Stamp Rules 2004. The latest amendment to the stamps Act in Rajasthan was in 2016 through the Rajasthan Finance Bill, 2015 issued by the Department of Finance (Tax Division).
Some of the important changes issued through this notification were:
- Stamp duty rates on Affidavits increased to Rs 20 from Rs 10.
- Stamp duty rates on rental agreements increased to Rs 500 from Rs 100 (making amendments to the Rent Control Act, 2001).
- Partnership deeds have to be stamped with a stamp of Rs 2000.
- Stamp duty chargeable on the release of ancestral property is Rs 2000 to Rs 5000.
- Stamp duty already paid shall not be refunded
Stamp duty is an important source of revenue for the Government of Rajasthan and is collected to authenticate the registration, transfer and/or sale of any instrument, deed or property with a value of more than INR 100 as per Section 17 of the Registration Act, 1908. The penalty for stamp duty evasion is 200% of the value of the document executed or up to ten times of the actual stamp duty not paid.
e-Stamp paper has become the recent trend for payment of stamp duty in India because it is more convenient, tamper-proof, easier and faster to purchase and use e-stamp paper online as compared to the traditional method. Non-judicial e-Stamp paper in Rajasthan is generated within minutes, information can be filled accurately, verification can be done at any time and place. e-stamping services are available at 203 Sub-Registrar offices, 404 certified Stamp Vendors and 52 bank branches in the State.
Rates Of Stamp Duty In Rajasthan
|Sr. No.||Type of Deed||Stamp Duty Payable||Registration Fees|
|3||Mortgage with possession||5%||1%|
|6||Leave and Licence Agreement||5%||1%|
|8||General Power of Attorney||Rs. 100||Rs. 500|
|9||Special Power of Attorney||Rs. 100||Rs. 100|
|11||Exchange of Property||5%||1%|
|13||Agreement||Rs. 500||Rs. 300|
|14||Adoption||Rs. 1000||Rs. 200|
|16||Release||Rs. 15||Rs. 50|
|17||Affidavit||Rs. 50||Rs. 300|
|18||Acknowledgement||Rs. 10||Rs. 300|
|19||Administration Bond||2%||Rs. 300|
|21||Revolvers or Pistols||Rs. 3000||–|
|22||Notarial Act||Rs. 10||Rs. 300|
Source: The Rajasthan Stamps Act, 1998
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LegalDesk.com is an established service provider of legal, drafting, administration and registration services to individuals and companies alike on a pan-India level. Right from drafting rental agreements, wills, partnership agreements, affidavits, etc. to stamp paper services and company incorporation services. LegalDesk.com has also introduced an API for stamp duty payment that can be used by organizations, companies and individuals in Rajasthan or any other State for the payment of stamp duty.