Stamp duty value in Bihar

The stamp duty and registration fees for a Trust Deed in Bihar are governed by the state’s specific schedules under the Indian Stamp Act, 1899.

Stamp Duty and Registration Fees for Trust Deeds

• Stamp Duty: The stamp duty for a Trust Deed is not a flat rate; it depends on the nature of the trust and the value of the property or assets endowed to the trust.

  • For the creation of a trust where a specific "corpus" (initial fund or property value) is mentioned, stamp duty is generally calculated based on that value.

  • Many documents not otherwise specifically provided for in the schedule may attract a flat stamp duty (often around ₹1,000 for certain types of deeds, though this varies based on the specific categorization of the instrument).

• Registration Fee: The registration fee is typically a set amount, often around ₹1,000 for miscellaneous deeds or deeds not specifically tied to high-value property conveyances, though you should verify the exact classification with your local Sub-Registrar's office.

Key Considerations

1. Nature of the Trust: Whether the trust is a Public Charitable Trust or a Private Trust significantly impacts the documentation and legal requirements. Public Charitable Trusts, for instance, are the only ones eligible for tax exemptions under sections 12A and 80G of the Income Tax Act.

2. Valuation: If the Trust Deed involves the transfer of immovable property into the trust's name, the stamp duty may be calculated based on the Market Value Ratio (MVR) of that property, similar to a transfer or gift deed, rather than just the initial corpus fund.

3. Procedure:

   • Drafting: Prepare the Trust Deed, clearly outlining the objectives, trustees, beneficiaries, and the initial corpus.

   • Stamp Paper: Purchase the required non-judicial stamp paper or use the e-stamping facility available on the Bhumijankari Portal.

   • Registration: The deed must be presented before the local Sub-Registrar within the jurisdiction where the trust or its primary assets are located.

   • Documentation: You will generally need ID proofs (Aadhaar, PAN) of the settlor and trustees, photographs, and the trust deed in duplicate.

Recommendation

Because stamp duty schedules can be updated and are highly dependent on the specific "Schedule" under which the document is classified (e.g., as an "Instrument of Trust" or a "Settlement"), it is highly recommended to:

• Visit the Bhumijankari Portal: This is the official Bihar government portal for land and property registration. It provides calculators and exact fee schedules.

• Consult a Local Advocate/Chartered Accountant: They can classify your specific Trust Deed correctly to ensure you purchase the correct denomination of stamp paper, preventing future legal or registration issues.

Summary: For a trust registration in Bihar, the cost involves both stamp duty and a registration fee. While some miscellaneous deeds carry a fixed stamp duty (e.g., ₹1,000), if you are transferring significant property or assets into the trust, the duty will be a percentage of that asset's value. You should verify the exact amount through the Bhumijankari Portal based on your specific trust deed classification.