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Stamp Duty on Loan Agreement in Madhya Pradesh

As per the latest amendments made to the Indian Stamp Act by the Madhya Pradesh government, stamp duty is now applicable on loan agreements. This means that anyone who borrows or lends money in Madhya Pradesh will need to pay a certain amount of stamp duty on the loan agreement.

The stamp duty on loan agreements is applicable on all types of loans, including personal loans, business loans, and home loans. The amount of stamp duty payable on the loan agreement in Madhya Pradesh depends on the amount of loan taken. The stamp duty rates for loan agreements in Madhya Pradesh are as follows:

– For loan amounts up to Rs. 5,000 – no stamp duty is applicable.

– For loan amounts between Rs. 5,000 and Rs. 25,000 – the stamp duty payable is Rs. 5.

– For loan amounts between Rs. 25,000 and Rs. 50,000 – the stamp duty payable is Rs. 10.

– For loan amounts between Rs. 50,000 and Rs. 1,00,000 – the stamp duty payable is Rs. 20.

– For loan amounts between Rs. 1,00,000 and Rs. 5,00,000 – the stamp duty payable is Rs. 100.

– For loan amounts above Rs. 5,00,000 – the stamp duty payable is 0.2% of the loan amount.

It is important to note that the stamp duty on loan agreements in Madhya Pradesh is payable by the borrower. However, if the borrower fails to pay the stamp duty, the lender can also be held liable for the same.

The stamp duty on loan agreements is a legal requirement that helps in maintaining the legality of the loan transaction. It also helps the government in generating revenue. Therefore, it is important for borrowers and lenders in Madhya Pradesh to ensure that the stamp duty on loan agreements is paid in a timely and accurate manner.

In conclusion, the stamp duty on loan agreements in Madhya Pradesh is a mandatory legal requirement that needs to be adhered to. Borrowers and lenders need to take note of the stamp duty rates and ensure that they pay the stamp duty on time to avoid any legal hassles in the future.