Stamp Duty PDF Print E-mail

What is Stamp Duty?

It is type of Tax collected by the State Government.

 

What are the important Instruments under Indian Stamp Act, 1899?

Important Instruments are agreements, conveyances, exchange, gift, Certificate of sale, deed of partition, Power of Attorney to sell immovable property when given for consideration, deed of settlement and transfer of lease by way of assignment, bill of exchange, bill of lading, debenture, letter of credit, policy of insurance, proxy, receipt and transfer of shares.

 

Whether Stamp duty is payable on transactions or on instruments?


It is payable on instruments and not on transactions. The definition of the term instrument is very wide.

 

What is instrument?

Instrument means any document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.

 

What is document?

As defined in Evidence Act, document means only matter expressed or described upon substance by means of letters, figures or marks or by more than any of those means intended to be used or which may used for the purpose of recording that matter.

 

Why Stamp Duty has to paid on document/instrument?


The payment of proper Stamp duty on instruments bestows legality on them. Such instruments get evidentiary value and are admitted in evidence in Court of law. The instruments which are not properly stamped are not admitted in evidence.

 

What is meant by execution of instruments?

Execution means putting signatures on the instruments by the person/persons executing the instruments.

 

Does Stamp Duty vary from Instrument to Instrument?

Yes

 

Whether Stamp Duty is computed on market value or consideration amount?

Stamp Duty is computed on market value or consideration amount of the property, whichever is higher.

 

What is consideration amount?

Consideration amount is the total value of funds involved in any purchase/ sale transaction entered between two or more parties.

 

How many types of stamp duty are collected?

Stamp Duty collected by the States can be broadly divided into two categories, viz., Stamp Duty paid under the Indian Stamp Act, 1899 and Stamps used in payment of fees under the Court-fees Act 1870.

 

What are the different types of stamps used as on date?

Stamps used under the Indian Stamp Act, 1899 & The Bombay Stamp Supply And Sale Rules, 1934, can be broadly divided into 1. Impressed stamps, including a) Labels affixed and impressed by the proper officer; b) Stamps embossed or engraved on stamped paper c) Impression by franking machine d) Impression by any such machine as the State Government may, by notification in the Official Gazette, specify 2. Adhesive stamps

 

Is Stamp Duty required to be paid on all documents regarding transfer of properties? 

All transfer Instrument/document including agreement to sale, conveyance, gift mortgage, exchange, partition, power of attorney either general or special leave and licence, agreement, tenancy agreement, lease deeds are required to be Stamped before registration. A will or original nomination in a Co-operative Housing Society is not required to be Stamped. However, when a nominee transfers a flat subsequently in the name of legal heirs then it is required to be Stamped as per market value or the consideration amount, whichever is higher.

 

What are the precautions to be taken at the time of purchase of stamp paper?

Stamp papers are to be purchased in the name of one of the parties to the instrument/document. It must be purchased in the name of either of the party to the transaction.

 

Why stamp duty is required to be paid?

Stamp duty is a kind of Tax like Sales Tax or Income Tax. It must be paid in full and on time to the Government. In case of delay  in payment of stamp duty, penalties are imposed

 

When Stamp Duty is to be paid?

It is to be paid either before execution of the document or on the day of execution of the document.

 

Who is required to pay Stamp Duty?

Stamp Duty is either paid by a purchaser or transferee or as mutually agreed in the agreement between the parties.

  

What is payment system for Stamp Duty?

Stamp Duty amount can be paid either by Cash/ Bank Draft/ Pay Order/ Cheque/ Electronic Fund Transfer.

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Link for more details http://www.shcilestamp.com/FAQ.html

Which documents are compulsorily registrable in NCT of Delhi?

Article No.             Description of Instrument

5(c)                        Rectification Deed- Immovable

6(2)(a)                   Agreement relating to deposit of title deed

6(2)(b)                   Agreement relating to deposit of title deed

12                          Award

12                          Award – Immovable

17                          Cancellation of Instrument

18                          Certificate of Sale

23                          Conveyance

23                          Sale

23                          Decree (Sale Deed/Conveyance)

23- A                      Sale Agreement

25                          Additional Copy of document

31                          Exchange of property

32(a)                      Further Charge

32(b)(i)                   Further Charge

32(b)(ii)                  Further Charge

33                           Gift

35                           Perpetual

35(i)                        Lease- Rent deed upto 1 year

35(ii)                       Lease upto 5 years

35(iii)                      Lease upto 10 years

35(iv)                      Lease upto 20 years

35(v)                       Lease upto 30 years

35(vi)                      Lease upto 100 years 

35(vii)                     Lease upto 200 years

35(ii)                       Lease with security upto 5 years

35(iii)                      Lease with security upto 10 years

35(iv)                      Lease with security upto 20 years

35(v)                       Lease with security upto 30 years

35(vi)                      Lease with security upto 100 years

35(vii)                     Lease with security upto 200 years

40                           Mortgage

40(c)                       Mortgage Collateral

41                           Mortgage of a Crop

45                           Partition

54                           Re-conveyance

55                           Relinquishment Deed

55                           Release

57                           Security Bond

58                           Settlement

58                           Decree (Settlement)

58                           Memorandum of Settlement

61                           Surrender of Lease

63                           Transfer of Lease

64                           Trust

 

Which documents are optionally registrable in NCT of Delhi ?

Article No.           Description of Instrument

                         Adoption

                         Declaration

                         General Agreement

                         Consent Letter

5(c)                      Rectification Deed- Movable

11                        Authority to Adopt

12                        Award – Movable

15                        Indemnity Bond

17                        Cancellation of Agreement

29                        Divorce

46                        Partnership

48                        Power of attorney –SPA

48(c)                    Power of attorney – GPA

48(d)                    Power of attorney – GPA more than five persons jointly and severally

48(e)                    Power of attorney – GPA more than five persons but less than ten persons

48(f)                     Power of attorney– GPA with consideration

48(g)                    Power of attorney – Authenticated GPA

53                         Receipt

55                         Disclaimer

56                         Respondentia Bond

64(b)                     Revocation of Trust

64(b)                     Dissolution Deed

64(b)                     Deed of Retirement