Agreement Stamp Duty in Haryana: Everything You Need to Know
Buying a property is one of the biggest investments one can make in their lifetime. As exciting as it may seem, it can also be a daunting process. There are various legal formalities that need to be fulfilled before a property can be purchased or sold. One of these important formalities is the Agreement Stamp Duty. In this article, we will discuss what Agreement Stamp Duty is, what it entails, and how it is calculated in the state of Haryana.
What is Agreement Stamp Duty?
An agreement stamp duty is a legal fee that is levied on an agreement or contract between two parties. It is a tax that is imposed by the state government and is paid by the purchaser or the seller, depending on the type of agreement. The agreement stamp duty is mandated by the Indian Stamp Act, 1899.
What Does Agreement Stamp Duty Entail?
An agreement stamp duty is levied on legal agreements such as sale deeds, lease agreements, gift deeds, mortgage deeds, etc. The stamp duty is an indication that the agreement has been properly executed, and it is a legal document. Once the agreement stamp duty is paid and the agreement is duly signed, it is considered legally binding. This means that the agreement can be presented as evidence in a court of law.
How is Agreement Stamp Duty Calculated in Haryana?
The calculation of agreement stamp duty in Haryana is based on the market value of the property. The market value of the property is determined based on the Ready Reckoner Rate (RR Rate), which is revised annually by the Haryana government.
The agreement stamp duty in Haryana is generally 6% of the market value of the property. The stamp duty charges may vary depending on the location of the property, type of property, and other factors. In some cases, stamp duty charges can be reduced if the property is being transferred to certain categories of people such as women, senior citizens, and physically challenged individuals.
Conclusion
In conclusion, agreement stamp duty is an essential legal requirement that needs to be fulfilled when purchasing or selling a property in Haryana. It is a legal fee that is levied by the state government, and once paid, it signifies that the agreement is a legally binding document. The stamp duty is calculated based on the market value of the property and is an important component of property registration. Therefore, it is crucial to understand the agreement stamp duty and its calculation to ensure a smooth property transaction process.
