Recently, the Government of Karnataka has imposed stamp duty
on agreements to sell at 0.25 [point two five] per cent. The revised rates are
effective from 1st April, 2009. Thus, with this revision, the stamp duty
payable for an agreement to sell of the value of the property ofRs.50,00,000/-
would be s.12,500/- whereas before this revision the optimum stamp duty payable
was only Rs.200/-.
The present rate of stamp duty would heavily burden the
purchasers of properties which is considered to be abnormal and unfair when
compared to the stamp duty levied for such instruments in the neighboring
States. In the State of Tamil Nadu, the stamp duty payable on agreement to sell
is only
Rs. 10/- irrespective of the amount of sale consideration.
Therefore, the Government of Karnataka may reconsider this matter keeping in
mind the sufferings encountered by the purchasers on account of global economic
recession and revert back to the pre-revised pattern of levy of stamp duty on
slab system with optimum levy of Rs.200/-.
The important amendments introduced under the Karnataka Act
No.9 of2009 are as under:
(i) Agreement
Art. 5(e) - If the Agreement or Memorandum of an Agreement
relating to sale of immovable property wherein part performance of the contract
and possession of the property is not delivered stamp duty payable will be at
0.25 [ point two five] rupees for every one hundred rupees or part thereof on
the market value equal to the amount of consideration.
(ii) Development agreement
Art. 5(t) - If the Agreement or Memorandum of an Agreement
is relating to construction or development or sale of immovable property
including a multi unit house or building or unit of apartment or flat etc., by
a person having a stipulation that after construction or develop- ment, such
property shall be held jointly or severally by that person and the owner or
lessee, as the case may be, of such property, or that it shall be sold jointly
or severally by them or that a part of it shall be held jointly or severally by
them and the remaining portion part thereof shall be sold jointly or severally
by them, the stamp duty payable in such cases will be at One rupee for every
one hundred rupees or part thereof on the market value of the property or the
estimated cost of construction or proposed construction or development or
proposed development of property as the case may be, or on the consideration
for such transfer whichever is higher, provided that if proper stamp duty is
paid on a power of attorney executed between the same parties in respect of the
same property under Article 41(e), (ea) and (eb), then stamp duty under this
article shall be rupees two hundred.
Award
Art.11 - In respect of any decision in writing by an
arbitrator or umpire, not being an award directing a partition, on a reference
made otherwise than by an order of the Court in the course of a suit, the stamp
duty payable shall be as are levied for a deed of conveyance under article
20(1) on the amount or market value of the property which is the subject matter
of award, whichever is higher.
Sale Deed
Art.20 In respect of deed of conveyance, the stamp duty
payable will be 6 per cent instead of7 112 per cent. In addition to this, the
purchaser shall have to pay surcharge and cess on the amount of stamp duty.
Duplicate copy
Art.22 In respect of counterpart or duplicate of any
instruments, chargeable with duty and in respect of which the proper stamp duty
has been paid (i) if the stamp duty with which the original instrument is
chargeable does not exceed five hundred rupees, the stamp duty payable shall be
same as payable on the original and in other cases the stamp duty payable shall
be rupees five hundred.
Thus, the maximum stamp duty payable in respect of
counterpart or duplicate of any instrument will be five hundred only.
Gift
Art.28 In respect of Instrument of gift not being settlement
or will or transfer where the donee is not a family member of the donor the
Stamp duty payable shall be same as are payable to a conveyance deed. Where the
donee is a member of the family of the donor the Stamp Duty payable shall be
Rupees one thousand.
The term 'family' includes husband, wife, son, daughter,
daughter in law, brother in law, grand children, father and mother.
Rental agreement
Art.30 In respect of Lease of immovable property including
under lease, sub lease or agreement to let or sub let whereby such lease, the
rent is fixed or fine or premium or money advanced or security deposit is paid
or delivered.
(i) Where the lease is for a term not exceeding five years -
the stamp duty payable shall be one rupee for every one hundred rupees or part
thereof on the total amount of average annual rent and fine or premium or money
advanced or security deposit payable under such lease
(ii) Where the lease is for a term exceeding five years but
not more than 10 years the stamp duty payable shall be two rupees for every
hundred rupees or part thereof on the total amount of average annual rent and
fine or premium or money advanced or security deposited.
(iii) Where the lease is for a term exceeding 10 years but
not more than 30 years the stamp duty payable shall be four rupees for every
hundred rupees or part thereof on the total amount of average annual rent and
fine or premium or money advanced or security deposited.
(iv) Where the lease is for a term exceeding 30 years or
does not purport to be for any definite term, the stamp duty payable shall be
same as are payable for a conveyance deed under art.20( I).
(v) Where the lease is in favour of family members the stamp
duty payable is Rs.1,000/-.
Power of attorney
Art.41 (e) - when power of attorney is given for
consideration and or when coupled with interest and authorizing the attorney to
sell any immovable property the stamp duty payable shall be same as are payable
to a conveyance deed under article 20(1) on consideration or on market value of
the property whichever is higher.
Art. 41(ea) - when given to a promoter or developer for
construc- tion or development or sale of immovable property including a multi
unit house or building or unit of apartment or flat etc., by a person having a
stipulation that after construction or development, such property shall be held
jointly or severally by that person and the owner or lessee, as the case may
be, of such property, or that it shall be sold jointly or severally by them or
that a part of it shall be held jointly or severally by them and the remaining
portion part thereof shall be sold jointly or severally by them, in such cases
stamp duty payable will be at One rupee for every one hundred rupees or part
thereof on the market value of the property or the estimated cost of construc-
tion or proposed construction or development or proposed development of
property as the case may be or on the consideration for such transfer whichever
is higher.
Release deeds
ArtA5 (a) Where the release is not between the family
members-
The stamp duty payable shall be as are payable for a
conveyance deed under Article 20(1) on the market value of the property or on
the amount or the value of the claim renounced or consideration for such
release whichever is higher.
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