REGISTRATION

&
STAMP ACT

IMPORTANT
PROVISIONS
 CONTENT OUTLINE:
MODULE 18
▪ Law related to Registration
▪ Understanding the need for registration and effects of non- registration
▪ Basic Reading: The Registration Act, 1908

MODULE 19
Law relating to Stamp Duty in India
▪ Analyzing the salient features of the Stamp Duty Act, 1899.
REGISTRATION ACT

IMPORTANT PROVISIONS
The Registration Act, 1908 was set up with the purpose of ensuring registration
of documents and that all the important information related to deal regarding
land or other immovable property. Having a document registered can add
more authenticity to that of the document.

▪ Objectives of the Registration Act, 1908

▪ Registration of a document ensures proper preservation and record of such document.
▪ Documents which are required to be registered act as valid evidence in a court of law.
▪ Registered documents assist in the prevention of fraud.
▪ Registration Act gives people information regarding legal rights and obligations arising
or affecting a particular property.
 Documents of which registration is
compulsory
Section 17(1) of the Act provides for mandatory registration of certain documents which are as follows :
▪ a) gift deed of immovable property.
▪ b) non-testamentary documents signifying any operation, declaration, assignment, limitation and extinguishment of
any right, title or interest in immovable property worth rupees one hundred and above.
▪ c) non-testamentary instruments granting receipt or payment of any consideration on account of creation,
limitation, assignment, declaration or termination of such right, title or interest.
▪ d) leases of such immovable property for a term exceeding one year or reservation of yearly rent.
▪ e) non-testamentary documents conveying or assigning any decree or award of the court involving creation,
declaration, assignment, limitation or extinguishment of any right, title or interest in an immovable property worth
rupees one hundred and above.
▪ f) The documents of contracts regarding transfer of any immovable property for consideration for the purpose of
section 53 A of The Transfer of Property Act, 1882 that has been executed on or after the inception of Registration
and Other Related Laws Amendment Act, 2001.
▪ (Ins. by Act 48 of 2001, s. 3 (w.e.f. 24-9-2001).
However, it must be noted that The State Government has the right to exclude any lease executed in any district or part
of a district, the terms granted by which do not exceed five years and annual rents which do not exceed fifty rupees.
 ▪ High Court of Delhi, consisting Justice Subramonium Prasad in the case of Joginder Tuli
vs. State NCT of Delhi & Ors. [W.P.(CRL) 1006/2020] on 17.01.2022

▪ In order to get benefits of Section 53A of the Transfer of Property Act, the document
relied upon must be a registered document: High Court of Delhi
▪ The High Court of Delhi held that in order to give benefits of Section 53A of the Transfer of
Property Act, the document relied upon must be a registered document. Any unregistered
document cannot be looked into by the court and cannot be relied upon on or taken into
evidence in view of Section 17(1A) read with Section 49 of the Registration Act. Thus,
benefit of Section 53A could have been given to the respondent, if and only if the alleged
Agreement to Sell cum receipt satisfied the provisions of Section 17(1) A of the Registration
Act.
▪ Had the petitioner been in lawful possession, he definitely would have filed a suit under
Section 6 of the Specific Relief Act within six months.
▪ The Court stated that the present petition looked like an attempt by the petitioner to get the
possession of the property and to get over the limitation for filing the suit. Therefore, the
writ petition was dismissed with the above observations along with pending applications.
 Optional registration of documents
Section 18 of this Act lists the following documents that may be registered under this Act :-

▪ a) Adoption Deed

▪ b) Instruments which relate to share in Joint Stock company

▪ c) Debenture issued by Joint Stock Company

▪ d) Endorsement upon or Transfer of Debenture, which is issued by Joint Stock Company.

▪ e) Decree or order of the court involving creation, declaration, assignment and extinguishment of any right, title or interest in an immovable property of value less than one hundred rupees.

▪ f) Document of Past transaction

▪ g) Wills

▪ h) Grant of immovable property by the Government.

▪ i) Instrument of Collateral Security

▪ j) Power of Attorney

▪ k) Agreement to Sell

▪ l) Agreement of Mortgage

▪ m) Certificate of Sale

▪ n) Counterpart of Lease

▪ o) Promissory Note

▪ p) Leases of immovable property not exceeding one year and leases excluded under section 17.
 Effect of registration
▪ Section 47 and 48 of the Registration Act, 1908 notifies the effects of
registration of a document. So the effect of registration are:
▪ Section 47 of the Act states that a registered document shall operate
from the time it would have normally operated if there was no
provision or procedure of registration.
▪ Section 48 states that all non-testamentary documents which are duly
registered under this Act and relating to any movable or immovable
property will take effect against any oral and other document
relating to such a document unless where the agreement has been
accompanied by the delivery of possession.
 Effects of non-registration of
documents
Section 49 of this act states that :
▪ No document required to be registered under section 17 of
this Act shall be valid for creation, operation, declaration,
limitation and assignment of any right, title or interest in any
immovable property unless it’s registered within the
specified time period.
▪ The document shall not confer any power to adopt.
▪ The document cannot be received as an evidence of any
transaction affecting such property or conferring such
power.
 Time limit for presentation of a
document for registration
▪ A document other than a will must be presented for registration
within four months of its execution.
▪ Section 24 of the Act states that when one document is executed by
more than one person and the execution took place at different
dates then, in that case, such document must be presented for
registration within 4 months from the date of each execution.
▪ When a document is executed outside the territory of India, then, in
that case, the document must be registered in India.
▪ These limits are mandatory but in case there is a delay on behalf
of the court regarding registration or re-registration of a document
then in that case these limits that are disregarded.
 Why registration of documents is
important?
▪ The Registration Act, 1908 was implemented to provide discipline and public notice
concerning transactions in relation to immovable property. The Act provides for mandatory
registration of certain documents to protect them from any type of fraud.

▪ It acts as a valid proof and aids a person in taking a legal action during any dispute.
▪ It ensures transparency in deals.
▪ It’s easier to find out if there’s any impediment or ongoing litigation with regard to a
property if the document is registered.

▪ Registration of documents is mandatory to prevent any property dispute. The necessary

documents must be properly registered by following the procedure mentioned under this Act
otherwise it may become invalid. It also provides for a proper administration in the court
system within a definite time frame.
STAMP ACT

IMPORTANT PROVISIONS
Indian Stamp Act was amended in 1899 by the British Government with
the sole purpose of acting as a revenue-generating mechanism for the
Government. This Act imposes liability to pay stamp duty on certain
and specific documents. Indian Stamp Act acts as fiscal legislation.

▪ Objectives of the Stamp Act, 1899

▪ The main purpose of this Act is to generate revenue for the Indian government.
▪ A document which is stamped acts as valid evidence in a court of law.
▪ The Stamp Act also makes payment of stamp duty on some documents
compulsory which in return makes those documents legally valid and
authentic.
 Stamp Duty
▪ The tax payable on a certain and specific document is termed as stamp duty.
Stamp duty can be fixed or varied based on the value of the product.
▪ Basically, stamp duty is a tax which is paid on the exchange of documents or
execution of instruments.

▪ There are basically two kinds of stamp duty and they are:
Impressed stamp- An impressed stamp is produced by the process of engraving or embossing. The
labels in impressed stamps are affixed and these impressions are done by franking machines in
the bank.
Adhesive stamp- Adhesive stamps are those stamps which can be stuck to a document using any
form of adhesive. There are two types of adhesive stamps and they are:
Postal stamps- Postal stamps have their limited application. Postal stamps are used for post office
related transactions.
Non-postal stamps- Non-postal stamps have wider application compared to postal stamps.
Non-postal stamps are revenue stamp, court fee stamp, insurance policy stamp etc.
 Valuation of Instrument for levy of
stamp duty
As we already know that Instruments are chargeable with duty but then it raises another question and that is how is the valuation of instruments is
done, the answer to that question is from Section 20 to Section 27 of The Indian Stamp Act.
▪ Section 20 of the Act states that where an instrument is chargeable in respect of money in any currency other than that of India then, in that
case, the duty shall be calculated on Indian currency and the exchange rate shall be applicable on the date of the instrument.
▪ Section 21 provides that where an instrument is chargeable with ad valorem duty in respect of stock, securities then, in that case, the value of
the day is calculated by the average price of the stock or security in the day of the instrument.
▪ Section 23 deals with interest, it states that where interest is payable by the terms of an instrument in such a case the value of the duty shall not
exceed the charge by which it would have been initially chargeable.
▪ Section 24 states that duty is also payable on the amount of debt when a property is transferred wholly or partially.
▪ Section 25 talks about the computation of duty in the case of annuity and it is as follows:
▪ When the annuity payable is for a definite period and a certain amount then, in that case, it is the total amount.
▪ When the annuity payable is for an indefinite period or in perpetuity and a certain amount then, in that case, it is the amount payable in the first 20 years
from the date on which the first payment becomes due.

▪ Section 26 states that where the instrument is chargeable with ad valorem duty but the value of the subject matter cannot be ascertained at
the date of its execution, then, in that case, the executants can value the instrument as they please. However, they cannot recover under such
a document any amount which is in excess of the amount of stamp duty that has been paid.
▪ Section 27 sets that parties of an instrument are bound to set forth all the facts and circumstances affecting the chargeability of an
instrument.
 By whom stamp duty is payable
Section 29 of the Indian Stamp Act provides for the person who is
liable to pay the stamp duty.
For various instruments, there are various people who are liable to
pay the stamp duty and they are as follows:
1. Administration bond agreement, pawn agreement, pledge
agreement, bills of exchange, bonds- In such instruments the
person who is drawing, making or executing such instrument is
liable to pay the stamp duty.
2. Lease agreement or agreement to lease- In such instruments, the
lessee or the intended lessee is liable to pay the stamp duty.
3. Certificate of sale- The purchaser of the property is liable to pay
the stamp duty in case of a certificate of sale.
 Evidentiary value of an instrument
not duly stamped
Section 35 of the Indian Stamp Act does not allow an instrument
chargeable with the duty to be admitted as evidence if it is not duly
stamped, however, there are certain exceptions to this section and those
exceptions are:
▪ Courts and arbitrators may admit documents which are unstamped or
deficiently stamped on payment of proper duty and penalty.
▪ An unstamped receipt is admissible only against the person on whose
fault the receipt was not stamped on payment of penalty.
▪ When a contract has two letters attached and any one of those
letters are stamped then in that case the contract will be treated as it
is completely stamped.
THANK
YOU
KHYATI NAYAK
Assistant Professor (Law)
KPMSOL, NMIMS, MUMBAI

Email : khyati.nayak@nmims.edu