Gaya Dehuri, 45, became infuriated when his cousin Ajaya Dehuri, 40, scolded his wife on some trivial issue.
In a fit of rage, Gaya attacked Ajaya with the axe and beheaded him. Later, he walked to the police station holding the victim's head in his hands.
The incident occurred Friday in Kaliasola village, over 300 km from here.
Inspector-in-charge R.K. Muduli said the accused has been arrested.