Under Section 24 of the Indian Stamp Act, 1899, where property is tran…

Question

Under Section 24 of the Indian Stamp Act, 1899, where property is transferred to a person in consideration of any debt due to him, or subject to the payment of money:

Accepted Answer

A. {'text': 'Such debt, money or stock is to be deemed the whole or part of the consideration in respect whereof the transfer is chargeable with ad valorem duty', 'label': 'A'}

1. Section 24 of the Act prevents stamp-duty avoidance through structured transfers.
2. Where property is transferred in consideration of any debt due to the transferee, or subject to the payment of money or stock, "such debt, money or stock is to be **deemed the whole or part of the consideration** in respect whereof the transfer is chargeable with ad valorem duty".
3. Example from the lesson: A owes B Rs. 1,000. A sells property to B for Rs. 500 plus release of the Rs. 1,000 debt. Stamp duty is payable on **Rs. 1,500**.
4. *Collector of Ahmedabad v. Deepak Textile Industries*, AIR 1966 Guj 227 affirms the rule.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'No stamp duty whatsoever is chargeable on the transfer under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'B'}

Answer

{'text': 'Only a flat duty of one rupee is chargeable on the transfer under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'C'}

Answer

{'text': 'The transfer is exempt from any duty whatsoever under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'D'}