REGISTRATION AND STAMP

DUTY
COMPULSORY REGISTRATION

Section 17. Documents of which registration is compulsory

(1) The following documents shall be registered…namely:--
(a) instruments of gift of immovable property;
(b) other non-testamentary instruments which purport or operate to
create, declare, assign, limit or extinguish, whether in present or in future, any
right, title or interest, whether vested or contingent, of the value of one
hundred rupees and upwards, to or in immovable property; […]
(d) leases of immovable property from year to year, or for any term
exceeding one year, or reserving a yearly rent; […]
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OPTIONAL REGISTRATION

Section 18: Documents of which registration is optional.

Any of the following documents may be registered under this Act, namely:-
(a) Instruments (other than instruments of gift and wills) which purport or
operate to create, declare, assign, limit or extinguish, whether in present or in
future, any right, title or interest, whether vested or contingent, of a value
less then one hundred rupees, to or in immovable property; […]
(c) leases of immovable property for any term not exceeding one year, […];

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OPTIONAL REGISTRATION

(d) instruments (other than wills) which purport or operate to create,

declare, assign, limit or extinguish any right, title or interest to or in
movable property;
(e) wills; and
(f) all other documents not required by section 17 to be registered.

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EFFECT OF NON-REGISTRATION
Section 49: Effect of non-registration of documents required to be
registered.
No document required by Section 17 (or any provision of the Transfer of
Property Act) to be registered shall
(a) affect any immovable property comprised therein, or […]
(c) be received as evidence of any transaction affecting such property or
conferring such power,
unless it has been registered…

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SURAJ LAMPS PVT. LTD. V STATE OF HARYANA

• Ill-Effects of SA/GPA/WILL transactions

- Vendors with imperfect title who cannot or do not want to execute
registered deeds of conveyance.
- Large scale evasion of income tax, wealth tax, stamp duty etc.
- Purchasers who want to avoid the payment of stamp duty and
registration charges either deliberately or on wrong advice.
Collateral Effects?
Measures?
Benefits of Registration?
INSPECTION

Section 51(1): The following books shall be kept in the several offices
hereinafter named, namely:-- A--In all registration offices-- Book 1, "Register
of non-testamentary documents relating to immovable property".

Section 57(1): Subject to the previous payment of the fees payable in that
behalf, the Books Nos. 1 and 2 and the Indexes relating to Book No. 1 shall
be at all time open to inspection by any person applying to inspect the same;
and, subject to the provisions of section 62, copies or entries in such books
shall be given to all persons applying for such copies.

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INDIAN STAMP ACT, 1899

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WHAT IS STAMP DUTY?

• Tax levied on instruments

• State subject
• Lends legality to a document + Boosts revenue
• The stamp duty percentage depends on several factors, such as:
• Status of the property – whether it is old or new.
• Location of the property – city area, rural area, metropolitan area,
suburban, etc.
• Age of the owner – discounts may be available for senior citizens, in some
states.
• Usage of property – whether it is for commercial use or residential use.
Who is liable to pay?
In the absence of any agreement to the contrary, the purchaser/transferee
has to pay stamp duty or in case of exchange of properties, both parties
have to bear stamp duty equally
CONSEQUENCE OF NON-STAMPING

Section 35: No instrument chargeable with duty shall be admitted in evidence for
any purpose by any person having by law or consent of parties authority to receive
evidence, or shall be acted upon, registered or authenticated by any such person or
by any public officer, unless such instrument is duly stamped.