Stamp duty on transfer of shares by way of gift in india

Act II of Short title, extent and commencement. A-Of the liability of instruments to duty. Instruments chargeable with duty. Several instruments used in single transaction of sale, mortgage or settlement. Instruments relating to several distinct matters. Instruments coming within several descriptions in Schedule I. Bonds, debentures or other securities, issued on loans under Act XI, Power to reduce, remit or compound duties.

Power of Provincial Government to exempt certain instruments. B-Of stamps and the mode of using them. Duties how to be paid. Use of adhesive stamps. Cancellation of adhesive stamps. Instruments stamped with impressed stamps how to be written. Only one instrument to be on same stamp. Instrument written contrary to section 13 or 14 deemed unstamped. C-Of the time of stamping Instruments. Instruments executed in Pakistan.

Instruments other than bills and notes executed out of Pakistan. Bills and notes drawn out of Pakistan. D-Of valuations for duty.

Conversion of amount expressed in foreign currencies. Stock and marketable securities how to be valued. Effect of statement of rate of exchange or average price. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements. How transfer in consideration of debt, or subject to future payment, etc. Valuation in case of annuity, etc. Stamp where value of subject-matter is indeterminate.

Facts affecting duty to be set forth in instrument. Value of immovable property. Direction as to duty in case of certain conveyances. E-Duty by whom payable. Duties by whom payable. Obligation to give receipt in certain cases. Adjudication as to Stamps. Adjudication as to proper stamp.

Certificate of designated officer. Instruments Not Duly Stamped. Examination and impounding of instruments. Special provision as to unstamped receipts. Instruments not duly stamped inadmissible in evidence, etc. Admission of instrument where not to be questioned. Admission of improperly stamped instruments. Instruments impounded how dealt with. Instruments unduly stamped by accident. Endorsement of instruments on which duty has been paid under section 35, 40 or Prosecution for offence against Stamp-law.

Persons paying duty or penalty may recover same in certain cases. Power of Revenue Authority to refund penalty or excess duty in certain cases.

Non-liability for loss of instruments sent under section Power of payer to stamp bills and promissory notes received by him unstamped. Recovery of duties and penalties. Allowances for Stamps in Certain Cases.

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Allowance for spoiled stamps. Application for relief under section 49 when to be made. Allowance in case of printed forms no longer required by Corporations. Allowance for misused stamps. Allowance for spoiled or misused stamps how to be made.

Allowance for stamps not required for use. Allowance on renewal of certain debentures. Control of, and statement of case to, Chief Revenue Authority. Statement of case by Chief Revenue Authority to High Court. Power of High Court to call for further particulars as to case stated. Procedure in disposing of case stated.

Statement of case by other Courts to High Court. Revision of certain decisions of Courts regarding the sufficiency of stamps. Criminal Offences and Procedure. Penalty for executing, etc.

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Penalty for failure to cancel adhesive stamp. Penalty for omission to comply with provisions of section Penalty for refusal to give receipt, and for devices to evade duty on receipts.

Penalty for not making out policy, or making one not duly stamped. Penalty for not drawing full number of bills or marine policies purporting to be in sets. Penalty for post-dating bills, and for other devices to defraud the revenue. Penalty for breach of rule relating to sale of stamps and for unauthorised sale. Institution and conduct of prosecutions. Power to make rules relating to sale of stamps. Power to make rules generally to carry out Act. Delegation of certain powers.

Savings as to court-fees. Act to be translated and sold cheaply. An Act to consolidate and amend the law relating to Stamps. WHEREAS it is expedient to consolidate and amend the law relating to stamps. It is hereby enacted as follows: Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for sea-insurance.

Provided that no duty shall be chargeable in respect of—. Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

Provided that nothing herein contained shall exempt the local authority which has issued such bonds, debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of March,when such duty has not already been paid or remitted by order issued by the [42] [Federal Government].

Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.

Instruments other than bills and notes executed out of [59] [Pakistan]. Provided that nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. Explanation— In the case of a sale of property subject to a mortgage or other encumbrance, any unpaid mortgage-money or money charged, together with the interest if any due on the same, shall be deemed to be part of the consideration for the sale: Provided that, where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

A sells a property to B, the consideration being Rs. Stamp-duty is payable on Rs. B afterwards buys the house from A. Provided also that, where proceedings have been taken in respect of an instrument under section 31 or 41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution. Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.

Agreement relating to Deposit of Title-deeds, Pawn or Pledge]. Bill of Exchange. Security Bond of Mortgage-Deed. Provided that nothing in this section shall authorise the Collector to endorse—. Instruments not Duly Stamped. Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section.

Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.

If the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable. Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill or note].

Provided that, in the case of an executed instrument, no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence and that the instrument is given up to be cancelled.

Explanation — The certificate of the Collector under section 32 that the full duty with which an instrument is chargeable has been paid is an impressed stamp within the meaning of this section. Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.

Provided that the original debenture is produced before the Collector and cancelled by him in such manner as the [] [Provincial Government] may direct. Explanation— A debenture shall be deemed to be renewed in the same terms within the meaning of this section notwithstanding the following changes: Provided that, when any penalty has been paid in respect of any instrument under section 35, section 40 or section 61, the amount of such penalty shall be allowed in reduction of the fine if any subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.

Provided that such rules shall not restrict the sale of [] [five paisa, fifteen paisa or twenty-five paisa revenue] adhesive stamps. Repealed by the Repealing and Amending Act, X ofsection 3 and Schedule II. The same duty as on a Bond No. In case of registration of the instrument, an additional stamp duty of Rs. ADOPTION DEED, that is to say, any instrument other than a will recording an adoption or conferring or purporting to confer an authority to adopt. ADVOCATE, See ENTRY AS AN ADVOCATE No.

AFFIDAVIT, including an affirmation or declaration in the case of persons by law allowed to affirm or declare instead of swearing. Affidavit or declaration in writing when made—. Fifty paisa for every one hundred rupees or part thereof of the amount of the contract]. Agreement or Memorandum of an Agreement—. AGREEMENT TO LEASE, see LEASE No. In case of registration of the instrument, an additional stamp duty at the rate of 0.

AGREEMENT RELATING TO DEPOSIT OF TITLE DEEDS, PAWN OR PLEDGE, that is to say, any instrument evidencing an agreement some trading binary options safe to—. One-fifth of one percent, that is to say, 0. One-tenth of one percent, that is to say, 0. Instrument of apprenticeship executed by a Magistrate under the Apprentices Act, []or by which a person how to buy bralirwa shares apprenticed by or at the charge of any great plains energy stock market charity.

ARTICLES OF CLERKSHIP or contract whereby any person first becomes bound to serve as a clerk in order to his admission as an attorney in any High Court. AUTHORITY TO ADOPTsee ADOPTION-DEED No. AIR TICKETS issued by any Airline—. Twenty five rupees floor of stock market crash 1929 ticket. The duty shall be paid by the declarant. The declaration shall not be authenticated unless the duty is paid.

AWARD, that is to say, 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. BILL OF EXCHANGE as defined by stamp duty on transfer of shares by way of gift in india 2 2 not being BONDbank note or currency note—.

Two rupees for every one thousand rupees or part thereof of the amount of the Bill. One rupee for every one thousand rupees or part thereof of the amount of the Bill]. Three rupees for every one thousand rupees or part thereof of the amount of the Bill. One rupee for every one thousand rupees or part thereof of the amount of the Bill.

BILL OF LADING including a through bill of lading. Note— If a bill of lading is drawn in parts, the proper stamp therefor must be borne birla power stock market each one of the sets. BOND as defined by section 2 5 not being a DEBENTURE No. Bond when executed by any person for the purpose of guaranteeing that the local income derived from private subscription to a Charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem.

BOTTOMERY BONDthat is to say, any instrument where by the master of a seagoing ship borrows money on the security of ship to enable him to preserve the ship or prosecute her voyage. The same duty as on a bond No. See also RELEASE No. Five percent of the value of dogs in the stock market what are futures prices property.

Three percent of the value of the property. In case of registration of the instrument, an additional stamp duty shall be charged as under:. See also LETTER OF ALLOTMENT OF SHARES No.

Gift shares to family

CHARTER PARTYthat is to say, any instrument except an agreement for the hire of a tug-steamer where by a vessel or some specified principal part thereof is let for the specified purposes of the charterer, whether it includes a penalty clause or not.

CONTRACTthat is to say any instrument of the nature of memorandum of agreement made or entered into by a contractor with Government, Corporation, Local Body, Local Authority, agency or organisation set up or controlled by the Federal or the Provincial Government—. Twenty-five paisas for every one hundred rupees or part thereof of the amount of the contract].

Five percent of the value of property. COPY OR EXTRACT certified to be a true copy or extract by or by order of any public officer and not chargeable under the law for the time being in force relating to court-fees—. The same duty as is leviable on the original. One-twentieth of one percent, that is to say, 0. In case of registration of the instrument, an additional stamp duty shall be charged as under: DELIVERY-ORDER IN RESPECT OF GOODS, that is to say, any instrument entitling any person therein named, or his assigns or the holder thereof, to the delivery of any goods lying in any dock or port, or in any ware-house in which goods are stored or deposited on rent or hire, or upon any wharf such instrument being signed by or on behalf of the owner of such goods upon the sale or transfer of the property therein, when such goods exceed in value twenty rupees.

DIVORCE -Instrument of, that is to say, any instrument by which any person effects the dissolution of his marriage. Five percent of the highest value of property plus two percent of the lowest value of the property; and. Three percent of the highest value of the property. FURTHER CHARGE -Instrument of, that is to say, any instrument imposing a further charge on mortgaged property—.

INSURANCEsee POLICY OF INSURANCE No. The same duty as on a Security Bond No. Lease, executed in the case of a cultivator for purposes of cultivation including a lease of trees for the production of food or drink without the payment or delivery of any fine or premium when a definite term is expressed and such term does not exceed one year, or when the average annual rent reserved does not exceed one hundred rupees.

LETTER OF ALLOTMENT OF SHARES in any company or proposed company or in respect of any loan to be raised by any company or proposed company. LETTER OF LICENCE, that is to say, any agreement between a debtor and his creditors, that the letter shall, for a specified time, suspend their claims and allow the debtor to jcpenney stocks stock market on business at his own discretion.

MORTGAGE-DEED not being an AGREEMENT RELATING TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE No. OR SECURITY BOND No. Explanation — A mortgagor who gives to the mortgagee a power of attorney to collect rents or a lease of the property mortgaged or part thereof, is deemed to give possession within the meaning of this Article. MORTGAGE OF A CROPincluding any instrument evidencing an agreement to secure the repayment of a loan made upon any mortgage of a crop, whether the crop is or is not in existence at the time of mortgage—.

NOTARIAL ACTthat is to say, any instrument, endorsement, note, attestation, certificate or entry not being a PROTEST No. See also PROTEST OR BILL OR NOTE No. NOTE OF PROTEST BY THE MASTER OF A SHIP. See also PROTEST BY MASTER OF A SHIP No. ORDER FOR THE PAYMENT OF MONEY. See BILL OF EXCHANGE No. PARTITION -Instrument of [as defined by section 2 15 ]. Explanation— The largest share remaining after the property is partitioned or if there are two or more shares of equal value and not smaller than any of the other shares, than one of such equal shares shall be deemed to be that from which other shares are separated: PAWN OR PLEDGE, See AGREEMENT RELATING TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE No.

A- See INSURANCE see section 7. One-half of the duty payable in respect of the original policy in addition goodbodies stockbrokers the amount, if any, chargeable under No.

When issued to a passenger travelling by the intermediate or the third class in any railway. Policies of life insurance granted by the Director-General of The lazy way to get rich moneyweek investment tutorial Offices in accordance with rules for Postal Life Insurance issued under the authority of the [] Central Government.

F-RE-INSURANCE BY AN INSURANCE COMPANY WHICH HAS GRANTED A POLICY OF THE NATURE SPECIFIED IN DIVISION A OR DIVISION B OF THIS ARTICLE WITH ANOTHER COMPANY BY WAY OF INDEMNITY OR GUARANTEE AGAINST THE PAYMENT ON THE ORIGINAL INSURANCE OF A CERTAIN PART OF THE SUM INSURED THEREBY.

Letter of cover or engagement to issue a policy of insurance:. Provided that, unless such letter or engagement bears the stamp prescribed by this Act for such policy nothing shall be claimable thereunder, nor shall it be available for any purpose, except to compel the delivery of the policy therein mentioned.

One-half of the duty payable in respect of the original insurance but not less than [] [three rupees or more than eight rupees]. POWER-OF-ATTORNEY as defined by section 2 21not being a proxy No. Ten rupees for each person authorized. Explanation 1 — For the purposes of this Article more persons than one when belonging to the same firm shall be deemed to be one person. One-fiftieth of one percent, that is to say, 0. PROTEST OF BILL OR NOTE, that is to say, any declaration in writing made by a Notary Public, or other person lawfully acting as such, attesting the dishonour of a Bill of Exchange for promissory note.

PROTEST BY THE MASTER OF A SHIPthat is to say, any declaration of the particulars of her voyage drawn up by him with a view to the adjustment of losses or the calculation of averages, and every declaration in writing made by him against the charterers or the consignees or not loading or unloading the ship, such declaration is attested or certified by a Notary Public or other person lawfully acting as such. See also NOTE OF PROTEST BY THE MASTER OF A SHIP No.

PROXY empowering any person to vote at any one election of the members of a district or local board or of a body of municipal commissioners, or at any one meeting of a members of an incorporated company or other body corporate whose stock or funds is or are divided into shares and transferable; b a local authority; or c proprietors, members or contributors to the funds of any institution.

RECEIPTS as defined by section 2 23 for any money or other property the amount or value of which exceeds twenty rupees—. Provided that the same is not expressed to be received of, or by the hands of, any other than the person to whom the same is to be accounted for: Provided also that the exemption shall not extend to receipt or acknowledgment for any sum paid or deposited for, or upon a letter of allotment of a share, or in respect of a call upon any scrip or share ofor in, any incorporated company or other body corporate or such proposed or intended company or body or in respect of a debenture being a marketable security.

See also POLICY OF INSURANCE [No. Five percent of the amount of the claim or value of the property. Three percent of the amount of the claim or value of the property. SECURITY BOND OR MORTGAGE DEED executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof or executed in favour of a Court for the due discharge of a contingent liability or executed by a surety to secure the due performance of a contract—.

Bond or other instrument, when executed—. In case of registration of the instruments, an additional stamp duty of Rs. A-Instrument of including a deed of dower —. Deed of dower executed on the occasion of marriage between Muslims. Provided that, where an agreement to settle is stamped with the stamp required for an instrument of settlement, and an instrument of settlement in pursuance of such agreement is subsequently executed, the duty on such instrument shall not exceed [] [one hundred rupees]: Provided further that, where an instrument of settlement contains any provision for the revocation of the settlement, the amount or value of the property settled shall, for the purposes of duty, be determined as if no such provisions were contained in the instrument.

See also TRUST No. In case of registration of the instruments, an additional stamp duty shall be charged as under: SHARE WARRANTS to bearer issued under the Companies Act, [].

Share warrant when issued by a company in pursuance of the Companies Act, []section 30, to have effect only upon payment, as composition for that duty, to the Collector of Stamp revenue of—. One and a half times the duty payable on a debenture [No.

SHIPPING ORDER for or relating to the conveyance of goods on board of any vessel. The duty with which lease is chargeable. Surrender of lease, when such lease exempted from duty. TRANSFER Whether with or without consideration —. One-fourth of the duty payable on a conveyance No.

The duty with which such bond, mortgage-deed or policy of insurance is chargeable. Twenty rupees or such smaller amount as may be chargeable under clauses a to c of this Article. See also section 8—. Five percent of the amount of consideration for the transfer.

Transfer of any lease exempt from duty. Declaration of —of, or concerning any property when made by any writing not being a WILL. Revocation ofor concerning any property when made by any instrument other than a WILL. WARRANT FOR GOODS, that is to say, any instrument evidencing the title of any person therein named, or his assigns, or the holder thereof, to the property in any goods lying in or upon any dock, warehouse or wharf, such instrument being signed or certified by or on behalf of the person in whose custody such goods may be.

The Stamp Amendment Act XXXII of shall come into force on such date as the Government may, by notification, appoint and different dates may be appointed for coming into force of the provisions of this Act in different local areas.

Three percent of the consideration equal to the amount of the purchase money. The Punjab Finance Ordinance, VII ofwhich substituted the schedule has left it as such. Exchange of immovable property. Three percent of the value of the property of the highest value. RELEASE, that is to say any instrument not being such a release as is provided for by section A whereby a person renounces a claim upon another person or against any specified property. Three percent of such amount of the claim or value of the property.

TRANSFER OF LEASE by way of assignment and not by way of under-lease. Three percent of the consideration equal to the amount of the consideration for the transfer.

THE STAMP ACT, Act II of C O N T E N T S. B-Of stamps and the mode of using them C-Of the time of stamping Instruments D-Of valuations for duty E-Duty by whom payable Chapter III Adjudication as to Stamps Chapter V Allowances for Stamps in Certain Cases Chapter VI Reference and Revision Chapter VII Criminal Offences and Procedure [] Chapter VIII Supplemental Provisions Description of Instrument Proper Stamp-duty 1.

Exemptions Instrument of apprenticeship executed by a Magistrate under the Apprentices Act, []or by which a person is apprenticed by or at the charge of any public charity. Two hundred and fifty rupees per ticket]. Five thousand rupees per Declaration].

If drawn in set of two, for each part of the set; Two rupees for every one thousand rupees or part thereof of the amount of the Bill. If drawn in set of three, for each part of the set; One rupee for every one thousand rupees or part thereof of the amount of the Bill. Exemption Bond when executed by any person for the purpose of guaranteeing that the local income derived from private subscription to a Charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem.

General Exemption Letter of cover or engagement to issue a policy of insurance: Exemption— Deed of dower executed on the occasion of marriage between Muslims. B-Revocation of— [] [Two percent of the] consideration equal to the amount or value of the property concerned as set forth in the instrument of revocation but not exceeding [] [one hundred rupees]. Exemption- Surrender of lease, when such lease exempted from duty.

See also section 8— Nil. Exemption— Transfer of any lease exempt from duty. If drawn in set of two, for each part of the set. If drawn in set of three, for each part of the set. Exemption Lease, executed in the case of a cultivator for purposes of cultivation including a lease of trees for the production of food or drink without the payment or delivery of any fine or premium when a definite term is expressed and such term does not exceed one year, or when the average annual rent reserved does not exceed one hundred rupees.

POLICY OF INSURANCE— A- See INSURANCE see section 7. SURRENDER OF LEASE —.