Stamp Duty for gift of property or item

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There are certain instruments, which although a gift of property, can be called “settlement”. The Bombay Stamp Act, applicable to the whole of the State of Maharashtra, does not define what is gift; however, it defines an “instrument of trust” (See Section 2 [la] of the said Act). Section 2(t) defines a “settlement”. It is not necessary to reproduce the provisions pertaining to Stamp Duty. The Stamp Duty will be chargeable as per the category in which the instrument falls. These provisions are as follows;

i. Instrument of gift: Stamp Duty is levied in the same manner and in the same quantum as is payable on a conveyance, as per the market value of the properties, which is the subject matter of the case. (See Article 34 and 25 of the said Act);

ii. If the settlement is made for a religious or charitable purpose, duty is payable at the rate of Rs.10/- for every Rs.500 or part thereof, equal to the amount settled or, the market value of the property settled;

iii. If the settlement is in consideration of marriage, the formula set out in the foregoing paragraph (i) will apply;

iv. A deed of dower, which is executed on the occasion of or, in connection with, marriage between Muhammadans, whether executed before or after marriage, is, totally, exempt from Stamp Duty.

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