What is Stamp Duty On Rent Agreement in Madhya Pradesh?

The rent agreement stamp duty in MP varies depending on the lease duration and monthly rent amount, ensuring the contract is enforceable in court. For the first eleven months of the agreement, registration of the rent agreement is not required. Here are the stamp and registration fees for rent agreements in Madhya Pradesh, nevertheless, if you still wish to file the agreement.

What is the Stamp Duty on Rent Agreement in Madhya Pradesh?

Stamp duty for a rental agreement for less than 11 months of tenancy is Rs. 500.

For rent agreements lasting up to five years and longer than eleven months of tenancy: 0.1% of the security amount plus the average annual rent is the stamp duty.

Stamp duty can be paid online through the state’s e-stamping portal or in person at Sub-Registrar offices. Once the duty is paid, both parties must sign the agreement and register it if required.

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The rent agreement stamp duty in MP depends on the lease period. Let us understand this in detail.

How Much is the Stamp Duty on Rent Agreement in Madhya Pradesh?

1. Lease period up to 60 months (5 Years): Stamp duty is typically 2% of the average annual rent.

2. Lease period exceeding 60 months (but not exceeding 120 Months): Stamp duty is typically 3% of the average annual rent.

The stamp duty for rent agreement in MP, under section 80 C of the IT Act, you can receive benefits of up to Rs. 1.50 lakh on paying stamp duty. You can avail this deduction while filing your income tax returns. However, note that this benefit can be claimed only in the year of the property purchase.

I hope this helps!

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The rent agreement stamp duty in MP is governed by the Madhya Pradesh Stamp Act, 1949. The stamp duty rates for rent agreements can vary depending on the duration of the lease and the amount of rent.

How to Calculate the Stamp Duty on Rent Agreement in Madhya Pradesh?

In Madhya Pradesh, the stamp duty for a rent agreement is generally calculated as follows:

• For lease periods of up to 60 months (5 years), the stamp duty is typically 2% of the average annual rent.

• For lease periods exceeding 60 months, but not exceeding 120 months (10 years), the stamp duty is typically 3% of the average annual rent.

• It's important to note that the stamp duty rates may vary depending on the specific terms of the rent agreement and any revisions to the state's stamp duty laws.

• Additionally, there may be additional charges such as registration fees and service charges. 

These are the details about the stamp duty for rent agreement in MP.

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