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Q 1
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What is meant by Stamp Duty ?
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Ans
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Stamp duty is a kind of tax levied on documents.
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Q 2
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What are the documents on which Central Government levies stamp duty?
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Ans
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Central Government can only levy stamp duty in respect of the instruments: Bill
of exchange Cheques Promissory Note Bill of landing Letter of Credit Policy of
Insurance Transfer of Shares Debenture Receipt
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Q 3
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What are the documents in which State Government can only levy stamp
duty?
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Ans
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There are 55 articles described in the Schedule to the Karnataka Stamp Act,
1957 for which State Government prescribes stamp duty. Example: Affidavit,
adoption deed, sale deed, gift deed, lease deed, mortgage, license, partition
deed and settlement deed etc. Click here for the Schedule to the Karnataka
Stamp Act, 1957
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Q 4
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How and where to pay stamp duty?
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Ans
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Stamp duty can be paid through a) Purchase of impressed stamps from treasury or
licensed stamp vendors OR b) Purchase of adhesive stamps OR c) Payment to the
Government through DD / pay order issued by any nationalised bank / scheduled
bank or challan. OR d) Instrument (document) can be written on plain paper and
stamp duty can be paid through DD / pay order issued by any nationalised bank /
scheduled bank or challan within two months from the date of execution of the
instrument (document) and get it Certified by the jurisdictional District
Registrar or Sub Registrar.
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Q 5
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Can a Stamp paper used for one purpose be used for another
transaction?
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Ans
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No. A stamp paper once used for a purpose cannot be used for another purpose.
Example: An affidavit executed for a purpose cannot be executed for another
purpose.
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Q 6
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When Stamp duty is to be paid?
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Ans
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(a) Generally stamp duty shall be paid or before or at the date of executing a
document. (b) Instrument (document) can be written on plain paper and stamp
duty can be paid through DD / pay order issued by any nationalised bank /
scheduled bank or challan within two months from the date of execution of the
instrument (document) and get it Certified by the jurisdictional District
Registrar or Sub Registrar.
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Q 7
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How to pay stamp duty in respect of a document executed out of India
to be used in Karnataka? What is the procedure to be followed?
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Ans
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Stamp duty can be paid within three months from the date of receipt in India.
Document may be produced before the District Registrar. Who will certify on
payment.
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Q 8
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Is it mandatory to pay stamp duty as per schedule of Karnataka Stamp
Act to a document relating to property situated in Karnataka is executed in
other State of India? What is the procedure to be followed?
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Ans
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When a document is executed on stamp paper purchased in other state in respect
of property situated in Karnataka, if such duty is less than the duty
prescribed under the Karnataka Stamp Act, the deficit duty shall be paid.
Example: Suppose a power of attorney is executed in favour of a person other
than family member, 2 percent stamp duty on value of the property shall be made
good after deducting stamp duty, if any, already paid.
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Q 9
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Is it mandatory to pay stamp duty on interest to be accrued on the
loan irrespective of documents executed as security for such loan?
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Ans
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No. Stamp duty is to be paid on loan amount. No duty need be paid on interest
to be accrued.
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Q 10
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Is there deduction of stamp duty in respect of sale deed relating to
property executed in favour of mortgage of the same property?
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Ans
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Yes. Deduction to the extent of duty paid on mortgage deed is available.
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Q 11
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What is the stamp duty to be paid in respect of instruments in which
amount is to be paid in annuity or periodically?
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Ans
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Instruments executed to pay amount annually or periodically stamp duty is to be
paid as follows depending on the circumstances. Where the sum payable during
the period is previously ascertained stamp duty is to be paid on whole of the
amount. Where the sum payable is in perpetuity or for an indefinite time not
terminable with any life, stamp duty shall be on the sum payable during the
period of 20 years calculated from the date on which the first payment becomes
due. Where the sum payable for an indefinite time terminable with any life, the
stamp duty shall be paid on the sum payable during the period of 12 years
calculated from the date on which the first payment becomes due.
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Q 12
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Generally there are 2 parties in a document i.e. executing party and
claiming party. Who is liable to pay stamp duty among them?
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Ans
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In the absence of agreement to the contrary, the expense of providing the
proper stamp shall be borne- In the case of mortgage by way of deposit of deed,
hypothecation, further charge, indemnity bond, bond, mortgage, settle by the
person drawing making or executing such instrument; In case of conveyance (sale
etc.) deed including reconveyance by the grantee, Example: in case of sale deed
purchaser is liable to pay stamp duty. In case of lease lessee, In case of
power of attorney executing party, In case of Certificate of sale on auction of
property the purchaser, In case of exchange deed both parties equally, In case
of partition deed, all the parties in proportion to their share are liable to
pay stamp duty. Click here for Sec.30 of the Karnataka
Stamp Act, 1957
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Q 13
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Is there any provision to get authentic opinion on the duty payable
on any document is doubtful? If there is provision, what is the procedure to be
followed?
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Ans
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In case of doubt about duty payable on any instrument (document) application
may be made to the District Registrar (Deputy Commissioner of Stamps) with
following records: Draft of the proposed deed or deed itself. Affidavit (on
stamp paper of Rs.20) Fee Rs.100.
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Q 14
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What is the consequence of non-payment of stamp duty?
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Ans
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When Stamp duty leviable on a document is not paid i.e. cannot be accepted or
received in evidence. No transaction is valid if done on the basis instrument
no duty stamped. Instruments presented to any public officer (excluding police)
will be impounded. Stamp duty an penalty will be levied.
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Q 15
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What is the procedure followed after a document is impounded?
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Ans
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(a) A public officer impounding an instrument will send it to Deputy
Commissioner (District Registrar) concerned to determine the stamp duty to be
paid. Deputy Commissioner (District Registrar) will determine the stamp duty to
be paid after giving opportunity to the party concerned to put forth these
arguments on the duty to be paid. He may levy penalty of minimum of Rs.5 or up
to ten times of the deficit total duty to be paid depending on the case if he
finds the document was not duly stamped. Appeal can be preferred to the chief
controlling Revenue Authority (Inspector General & Commissioner of Stamps)
in first instance and then to the High Court if the parties are aggrieved.
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Q 16
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Is there provision to write document in available stamp paper and
pay deficit stamp duty afterwards in urgent cases?
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Ans
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Yes there is provision. If the party concerned voluntarily come forward to pay
deficit stamp duty within one year from the from the date of execution
(signature) Sub Registrar will accept deficit stamp duty and certify
accordingly on the document without leaving penalty.
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Q 17
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Is there provision to get refund of penalty paid in case of
impounded Document?
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Ans
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Yes there is provision. Chief Controlling Revenue Authority (IGR & CS) nay
order refund on appeal within one year.
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Q 18
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Stamp duty is levied on market value of property involved in sale
gift, exchange settlement. How to know market value of property?
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Ans
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(a) As defined under Sec.2 (mm) of the Karnataka Stamp Act 1957, market value
of property is the value it would fetch if sold in the open market.
(b) Government has formed Committees to estimate market value of properties.
They would fetch in different localities under Karnataka Stamp (Estimate of
Market Value) Rules 1992. The committee will estimate the value from time to
time as per laid down norms and principles and publish the same for information
of public.
(c) When a document is presented to the Sub Registrar for registration, he will
give endorsement in prescribed form about the market value of property as the
market value estimated by the committee. If the party concerned agrees to pay
the stamp duty on such value, he will register the document.
(d) If parties to the document do not agree to pay stamp duty on the market
value informed above, Sub Registrar will keep the document pending and refer
the document for determination of market value.
(e) District Registrar (Deputy Commissioner of Stamps) will hear the parties
and determine market value after spot inspection if necessary.
(f) Appeal may be preferred to the Deputy Inspector General of
Registrationwithin 60 days from the date of receipt of order of the District
Registrar.
You can see the market value of entire
state i.e. each village, each state. |
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Q 19
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Is there provision to get refund of value of Stamp papers not used
or spoiled etc.?
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Ans
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Yes, there is provision. Application may be submitted within the time limit
mentioned below to the District Registrar (Deputy Commissioner of Stamps),
Assistant Commissioner (Revenue Division) or Assistant Commissioner of Stamps:
If Stamp paper is purchased and executed as security to get loan and such loan
could not be obtained on execution of such document within 6 months from the
date of execution (signature); When the stamp paper is not used for the purpose
for which it was purchased, within one year from the date of such purchase;
When time limit prescribed above is over, application may be submitted to
Government within 10 years from the date of purchase of stamps; There is
provision to get refund beyond 10 years from the date of purchase of stamps;
Depending on the period within which application is submitted, commission as
mentioned below may be deducted for refund of value of stamp;
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1
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One year
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Twenty
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2
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Two year
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Fifteen
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3
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Three year
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Twenty
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4
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Four year
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Twenty Five
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5
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Five year
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Thirty
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6
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Six year
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Thirty Five
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7
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Seven year
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Forty
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8
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Eight year
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Forty Five
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9
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Nine year
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Fifty
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10
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Ten year
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Fifty Five
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See Government order RD 48 EST 75 Bangalore dated 27-4-1977.
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Q 20
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Is there time limit to use the stamps purchased?
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Ans
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No, there is no time limit. They may be used anytime.
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Q 21
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How to prevent use of fake stamp papers?
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Ans
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In Karnataka state sale of Judicial and Non-judicial stamp papers discontinued
w.e.f. 1-4-2003.
Write document on Rs.2/- Document Sheet or on plain paper.
Stamp duty can be paid in jurisdictional Sub-Registrar Office or in authorised
Banks.
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Q 22
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s there any concession of stamp duty in respect of gift deeds in
favour of family members?
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Ans
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Yes, there is concession. If a person in relation to donor is husband, wife,
son, daughter, daughter-in-law or grand children stamp duty payable under the
schedule to Karnataka Stamp Act is Rs.1000. Additional stamp duty towards local
bodies is Rs.1000 and additional stamp duty towards infrastructure development
is Rs.50. Total duty payable is Rs.2050.
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Q 23
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What is the stamp duty and registration fee payable for partition
among joint family?
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Ans
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The following stamp duty and registration fee shall be paid if partition of
property is affected among joint family members
A. If the property is non agricultural property
(1) If the property is situated in Corporation of municipal Areas.
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Stamp duty Rs.1000 for every share. Registration fee Rs.500 for each share.
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(2) If property is situated in other places.
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Stamp duty Rs.500 & registration fee Rs.250 for each share.
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B. If property is agricultural Property.
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Stamp duty Rs.250 & registration fee Rs.50 for each share.
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C. If property is movable.
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Stamp duty Rs.250 & registration fee Rs.100 for each share.
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D. If properties are situated in A, B, C areas
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Maximum of stamp duty and registration fee prescribed in A, B, C.
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Q 24
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Is there concession of stamp duty if property is leased to family
members?
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Ans
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Yes. There is concession. If lessee in relation to lesser is husband, wife,
father, mother, son, daughter, brother, sister, maximum stamp duty payable is
Rs.1000. If it is lease is in perpetuity, additional stamp duty for local
bodies shall be paid.
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Q 25
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Is there concession of stamp duty for mortgage deeds executed by
agriculturists to obtain loan from banks for agricultural improvements?
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Ans
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There is full exemption of stamp duty for the instrument executed by farmers,
in favour of commercial/co-operative bank, societies or other recognized
financial institutions to obtain any amount of loan. But there is no concession
of registration fee if they are to be registered instead of sending under
Sec.89 of the Registration Act or under Karnataka Agricultural Credit
Operations and Miscellaneous Provisions Act 1974.
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Q 26
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Is there is concession for sale deeds in favour of Educational
Institutions for their building etc.?
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Ans
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There is concession of stamp duty to the extent of 25 percent. There is no
concession of registration fee.
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Q 27
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Is there concession of stamp duty for mortgage deeds executed by
Central Government Employees to obtain loans for house building/repair advance?
If so what is the extent of concession?
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Ans
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There is 50 percent concession of the stamp duty to be paid to the Government
and 50 percent registration fee.
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Q28
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Is there concession for the mortgage deeds executed by State
Government Employees to obtain loans for house building/repair advance? If so
what is the extent of concession?
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Ans
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There is cent percent assumption on stamp duty. Registration fee Rs.100/- only.
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Q 29
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Is there concession of stamp duty in relation to schedule caste and
schedule tribes? If so, what is the extent?
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Ans
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Full stamp duty and registration fee are exempted for sale deeds of immovable
property executed in favour of beneficiaries belonging to scheduled caste and
scheduled tribes, with the help of Scheduled Caste and Scheduled Tribes
Development Corporation, on production of Certificate issued by the competent
authority. Stamp duty is levied only on consideration instead of market value
in respect of sale deeds executed by Municipal Corporations and Municipalities.
There is 50 percent exemption of stamp duty in respect of instruments executed
by person belonging to scheduled caste and scheduled tribes in connection with
direct loan scheme of Karnataka Schedule Caste and Schedule Tribes Development
Corporation. There is no exemption of registration fee.
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Q 30
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Is there concession of stamp duty in respect of sale deeds executed
in favour of families who lost their property in Upper Krishna Project and
purchase another property with the help of money paid as compensation by the
Government?
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Ans
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Full exemption of stamp duty and registration fee is extended in respect of
sale deeds executed in favour of the families who lost their property under
Upper Krishna Project who purchase property in compensation amount, on
production of certificate from rehabilitation officer. But this concession is
available up to the period of 4 years from the date of receipt of compensation.
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Q 31
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What is the stamp duty payable on lease-cum-sale and sale deeds
executed by CITB, Karnataka Housing Board etc.?
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Ans
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a. Stamp duty is levied on the amount of security deposit shown in
lease-cum-sale deed agreements and on the amount of consideration shown in the
sale deeds, executed by City Development Authority, Housing Board, KIADB,
KSSIDC, KSIIDC, KSEDC, APMC, Municipal Corporation, Municipal Council, and Town
Panchyat. b. In respect of sale deeds executed by the above mentioned
institutions in pursuance of lease-cum-sale deeds, deduction of stamp duty will
be given to the extent of stamp duty already paid on lease-cum-sale agreement
explained in Para a., above. Additional stamp duty towards infrastructure
development corporation at 5 percent on the stamp duty and additional stamp
duty towards local bodies shall be paid in addition to the duty payable to
Government.
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Q 32
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What is stamp duty payable in respect of lease-cum-sale deeds of
site, flat, apartments executed by House Building Co-operative Societies?
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Ans
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Stamp duty on security deposit is levied in respect of lease cum sale deeds. In
respect of sale deeds executed by the House Building Co-operative Societies, in
pursuance of lease-cum-sale deeds, deduction of stamp duty will be given to the
extent of stamp duty already paid on lease-cum-sale agreement explained in Para
a., above. Additional stamp duty towards infrastructure development corporation
at 5 percent on the stamp duty and additional stamp duty towards local bodies
shall be paid in addition to the duty payable to Government. |
