Stamp Duty Payable on Loan Agreement in Delhi

Stamp Duty Payable on Loan Agreement in Delhi

In Delhi, a loan agreement is considered a legal document that requires stamping as per the Indian Stamp Act, 1899. It is essential for the borrower and lender to pay stamp duty on the loan agreement to make it legally enforceable in case of disputes or default.

Stamp duty is a kind of tax that is levied on the documents for their legal validity. The rate of stamp duty depends on the amount of loan and the type of document. In Delhi, the stamp duty on loan agreement is calculated at the rate of 0.1% of the loan amount. However, the maximum amount of stamp duty payable in such a case is Rs. 10,000.

The stamp duty on loan agreement in Delhi can be paid online or offline. In case of online payment, the borrower or lender needs to visit the Delhi government`s e-stamping portal and provide the necessary details, like the amount of loan, name of the parties, etc. The payment can be made through net banking or debit/credit card.

In case of offline payment, the borrower or lender needs to purchase the physical stamp paper of the value equal to the stamp duty payable. The stamp paper can be purchased from the authorized stamp vendors or the Delhi government`s treasury offices. The borrower or lender needs to fill the loan agreement on the stamp paper and get it signed by both the parties and two witnesses.

It is important to note that the loan agreement must be stamped within 30 days from the date of execution. Failing to do so can attract a penalty of 2% per month on the unpaid stamp duty amount, subject to a maximum of 200% of the stamp duty amount.

In conclusion, stamp duty payable on loan agreement in Delhi is an essential legal requirement for its validity. The borrower and lender need to pay the stamp duty within the prescribed time limit to avoid any legal complications in the future. It is advisable to consult a professional for assistance in stamp duty payment and related legal matters.