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EXCHANGE-DEED
(A
Brief Introduction)
Definition of Exchange When two persons
mutually transfer the ownership of one thing for the ownership
of another, neither thing nor both things being money only,
the transaction is called an Exchange.
A transfer of property in completion of an
exchange can be made only in the manner provided for the transfer
of such property by sale.
Difference between Exchange and sale.
The difference between a sale and an exchange is that in a sale
the price is paid in money while in an exchange it is paid in
another property by way of barter. Sale is always for a price,
which means money or the current coin of the realm while no
price is paid in an exchange, there being only a transfer of
one specific property for another. And although payment of price
may be made in addition to the transfer of property, by way
of equality of exchange, such payment does not make the exchange
lose its character as such.
Registration. An exchange of land worth
one hundred rupees or upwards will require registration.
an Abstract
of the Transfer of Property Act, 1882 Section 118
Ascertain
Payment of Stamp duty and Registration fee.
A. (i) Stamp duty is payable on the instrument
but not on the transaction. To ascertain the correct Stamp duty
payable one has to see the intention of the document and words
used in it.
(ii) The stamp duty chargeable in exchange
of property is on the market value of the property of greatest
value which the subject matter of exchange i.e., value of all
the property which is the subject matter of exchange have to
be made and duty is chargeable only on the highest value of
the property as indicated below:-
(iii) A general format has been designed for
the help of the public concerned. Based on this format Stamp
duty and Registration fee payable on this Exchange-deed is as
below:-
Example:- (1) If the property
exchanged is situated within the limits of City Corporation
area or in the Municipal Area in the State of Karnataka, the
Stamp duty payable on Rs.1,00,000=00 value of the property is
as follows
(2). If the property exchanged is situated
within the Taluk Panchayath Area, the Stamp duty payable
on Rs.1,00,000=00 value of the property is as follows:-
| 1 |
8% Stamp duty on Rs.1,00,000=00 |
Rs.8,000=00
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| 2 |
5% Additional Stamp duty on Rs.8,000=00.
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Rs. 400=00
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| 3 |
3% Surcharge duty on Rs.8,000=00 |
Rs. 200=00 |
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Total Stamp duty payable |
Rs. 8640=00 |
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.
| 4 |
1% Registration fee payable on Rs.1,00,000=00.
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Rs. 1,000=00* |
* (a) Plus copying, endorsement, comparing,
filing, or scanning fee, mutation fee and postage fee also chargeable.
(b) Registration fee can be paid in cash or through D.D. in
the concerned Sub-Registrar Office at the time of presentation
of the document for registration.
Grand total of payment of Stamp duty and Registration fee
Rs.9,640=00
The list of documents (enclosures) required
to be produced at the time of presentation of the document before
the jurisdictional Sub-Registrar.
| 1. |
An Identical copy of the
Exchange-deed. |
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| 2. |
Form No.1. (in duplicate)
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The
Karnataka Stamp (Prevention of Undervaluation of Instruments)
Rules, 1977 to download Form No.1 |
| 3. |
Affidavit
(in duplicate) |
(a) Affidavit
shall state that “Registration of this document
does not violate the notification issued under Section
22A of the Registration Act, 1908.”
Notification
Oppose to Public Policy.
(b) Affidavit shall be made on Document
Sheet or on plain paper. Stamp duty of Rs.20=00 can
be paid in cash at Sub-Registrar Office itself.
(c) Sub-Registrar is empowered to attest
affidavits as per Chapter IV –of the Karnataka
Civil Rules of Practice, 1967. |
| 4. |
Extract of assessment
register of the property. |
This extract is necessary
to assess the market value of the property. |
| 6. |
If the property is
an agricultural land the following certificate is necessary
in addition to the items specified from sl.no. 1 to
5 above. |
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(a) Copy of the Form No.16.
(b) No objection certificate from Tahasildar. |
Form 16 means Pahani pathrike,
Record of Rights and Tenency particulars. Commonly called
as RTC.
If the property is a granted land or occupancy rights
have been granted under Land Reform Act, 1961 then no
object certificate from the concerned Tahasildar.
For details Click on Circular No.III.on
Opposed to Public Policy. |
Format of Exchange-deed
Note:This is only a draft format and not a
format prescribed under any law. This format can be used with
modifications suiting to your requirements wherever it is necessary.
In case of doubt regarding payment of Stamp duty and Registration
fee etc. contact the concerned Sub-Registrar / District Registrar.
[You can download
this Exchange-deed format]
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