Section 27 of the Indian Stamp Act, 1899 requires that the considerati…

Question

Section 27 of the Indian Stamp Act, 1899 requires that the consideration and all other facts and circumstances affecting chargeability shall be:

Accepted Answer

C. {'text': 'Fully and truly set forth in the instrument', 'label': 'C'}

1. Section 27 of the Act mandates full disclosure of consideration in the instrument.
2. "The consideration and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of duty with which it is chargeable, **shall be fully and truly set forth in the instrument**."
3. "Value of any property" means the real value of the property in the open market at the time the document was executed.
4. The Collector cannot proceed to ascertain the value himself (*In Re. Muhammad Muzaffar Ali*, AIR 1922 All 82), but he can prosecute under Section 64 for deliberate undervaluation.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'Set forth in a sealed envelope filed with the Collector of Stamps at the time of execution 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', 'label': 'A'}

Answer

{'text': 'Set forth orally by the executant in the presence of the Sub-Registrar at the time of registration 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', 'label': 'B'}

Answer

{'text': 'Set forth in a separate side-letter exchanged between the parties at the time of execution 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', 'label': 'D'}