He was, however, released on $5 000 bail after President Emmerson Mnangagwa intervened.
Six people died during the violence although the MDC says seven people were killed.
The State also says property worth $345 000 was destroyed during the post-election violence.
Biti was arrested yesterday when he tried to cross into Zambia to seek asylum but Zambian authorities denied him asylum and handed him to the Zimbabwean police.
He has been asked to surrender the title deeds of his Chisipite house and to report twice a day to the nearest police station.
Biti is also not allowed to address any political gathering and not to interfere with State witnesses.
Mnangagwa said in a statement on his twitter account: “Tendai Biti was released earlier today following my intervention. At such a crucial time in the history of the new Zimbabwe, nothing is more important than unity, peace and dialogue.
“Equally important, however, is an adherence to the rule of law. I repeat – no one is above the law. Thus due to the serious nature of the allegations of incitement, due process will continue.
“I call on all parties to immediately cease from all forms of incitement to violence, and to conduct all activities solely within the framework of the law. All Zimbabweans must join us now in striving for unity, peace and reconciliation. Peace is paramount.”