When it comes to availing personal loans in Rajasthan, one must be aware of the stamp duty charges associated with it. Stamp duty is a tax levied by the state government on various financial transactions, including loan agreements. In this article, we will discuss everything you need to know about stamp duty on personal loan agreements in Rajasthan.
What is Stamp Duty?
Stamp duty is a type of tax levied by the government on various legal documents, including loan agreements. The stamp duty charged varies from state to state and is governed by the Indian Stamp Act, 1899. The stamp duty is usually calculated as a percentage of the loan amount or the market value of the property (if the loan is secured).
Stamp Duty on Personal Loan Agreement in Rajasthan
In Rajasthan, the stamp duty on personal loan agreements is 0.1% of the loan amount. For example, if you avail a personal loan of Rs. 5 lakhs, the stamp duty charged would be Rs. 500. The stamp duty on loan agreements must be paid to the state government at the time of execution of the agreement.
Who Pays the Stamp Duty?
As per the Indian Stamp Act, 1899, the borrower is responsible for paying the stamp duty on the loan agreement. However, in practice, the stamp duty charges are usually borne by the borrower.
What Happens if the Stamp Duty is not Paid?
If the stamp duty on the loan agreement is not paid, the agreement is considered invalid. In case of any dispute, the agreement will not be admissible as evidence in the court of law. Moreover, if the borrower defaults on the loan, the lender cannot take any legal action against the borrower as the loan agreement is not legally valid.
In conclusion, stamp duty is an important aspect of personal loan agreements in Rajasthan. It is a tax levied by the state government on the loan agreement, and the borrower is responsible for paying the stamp duty charges. Failure to pay the stamp duty charges can lead to legal complications in case of any dispute. Therefore, it is advisable to pay the stamp duty charges at the time of execution of the loan agreement to avoid any legal hassles.