Stamp duty payable on receipt where the amount is exceeding ten lakhs
Querist :
Anonymous
(Querist) 30 December 2011
This query is : Resolved
RESPECTED EXPERTS,
what is the correct stamp duty payable on receipt acknowledging the receiving of certain amount.say up to one lakh rupees and more than that amount.
first of all is every receipt of amount is payable with stamp duty and what if a stamp is not affixed on a receipt.
V R SHROFF
(Expert) 30 December 2011
"is every receipt of amount is payable with stamp duty and what if a stamp is not affixed on a receipt." Ans: MO.
The answers to your queries are as under:
(i) In view of the amendment of Schedule I, to the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. This amendment has come w.e.f. 10.09.04. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act:
“Receipt” include any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.
(ii) In view of the above, the cheque received would also be covered for the affixation of the stamp.
(iii) The definition of receipt would definitely cover the cases referred to by you.
(iv) The withdrawals from bank account is not in the nature of receipt as defined herein above. However, the payment on a maturity of fixed deposit would definitely be covered.
The instrument which is not duly stamped is inadmissible as an evidence
Querist :
Anonymous
(Querist) 31 December 2011
THANK YOU SIR, SHROFF JEE, YOU HAVE VERY CLEARLY EXPLAINED. WHAT I HAVE UNDERSTOOD IS THAT AN INSTRUMENT ACKNOWLEDGING THE RECEIPT OF MORE THAN Rs. 5000/- HAS TO BE AFFIXED WITH A REVENUE STAMP OF Rs.1/-. IT MEANS WHAT EVER MAY BE THE AMOUNT OF RECEIPT I.E. ONE LAKH OR ONE CRORE OR EVEN MORE, ONLY ONE RUPEE REVENUE STAMP WOULD BE SUFFICIENT.
Anirudh
(Expert) 31 December 2011
While payment by cheque does not require any such stamp duty, stamp duty as informed by Mr. Shroff is payable only in respect of receipt towards cash payments.
BUT IT SHOULD BE CLEARLY UNDERSTOOD AND REMEMBERED, THAT SUCH HUGE CASH TRANSACTIONS ARE NOT PERMITTED UNDER THE I.T. LAWS.
Sailesh Kumar Shah
(Expert) 31 December 2011
Please note you can't give expenses/loan in cash for more than Rs.20000, both are restricted u/s 269SS/269T as income tax act. Still waiting answer of my question from author.
Deepak Nair
(Expert) 31 December 2011
Rightly answered by Mr. Shroff
prabhakar singh
(Expert) 31 December 2011
Aptly and lucidly answered by Mr. Shroff.
Querist :
Anonymous
(Querist) 31 December 2011
RESPECTED SHAILESH SIR, THE AMONT IS BEING PAID AS ADVANCE SALE CONSIDERATION UNDER AN UN REGISTERED AGREEMENT OF SALE. AFTER PAYING THE BALANCE SALE CONSIDERATION THE SALE DEED WILL BE EXECUTED IN DUE COURSE.
Querist :
Anonymous
(Querist) 31 December 2011
DEAR ANIRUDH SIR,
GENERALLY THE MARKET VALUE IS MORE THAN THE GOVT VALUE FOR REGISTRATION OF SALE DEED. SO UNREGISTERED AGREEMENT CONTAINSNS THE ACTUAL AGREED PRICE AND THE ACTUAL ADVANCE PAID AND THE REMAINING AMOUNT TO THE EXTENT OF GOVERNMENT VALUE IS PAID BY CHEQUE AND THE BALANCE IS AGAIN PAID IN CASH. SO THE FINAL DEED WILL CONTAIN THE PRICE AS PER GOVT RATE WHEREBY THE STAMP DUTY IS PAID ONLY TO THAT EXTENT. REST OF THE ACTUAL PRICE IS PAID IN CASH AS THE SELLER WONT AGREE TO RECEIVE THE ENTIRE AMOUNT BY CHEQUE SO ALSO THE PURCHASER WILL AGREE FOR THE SAME AS HE SAVES SOME STAMP DUTY WHICH IS ALMOST 9 PERCENT OF THE PRICE.
Anirudh
(Expert) 31 December 2011
I heard the saying that there should be method in madness.
Similarly, even while dealing in Black money, you want to observe Rules! Great.
In any case, such a receipt will have no real value to you, though it can definitely have nuisance value, the moment it gets into the hands of the I.T. Department!
