Schedule Karachi Section 3

DESCRIPTION OF INSTRUMENTS PROPER STAMP DUTY
SCHEDULE
STAMP DUTY ON INSTRUMENTS
(SEE SESSION 3)
1. Acknowledgement of a debit written on signed by or on behalf of, a

debtor in order to supply evidence of such debt in any book other than a
banker’s pass-book or on separated piece of paper when such book or paper
is left in the creditor’s possession where acknowledgement does not contain
any promise to pay the debt or any stipulation to pay the interest or to
deliver any goods, other property, or
Receipt, as defined by section 2(23) for any money or other property the amount
of value which
(a) Where such amount is upto two thousand rupees Two rupees
(b) Where such amount exceeds Two thousand rupees Five rupees
EXEMPTIONS
Receipts
(a) endorsed on or contained in any instrument duly stamped or any instrument
exempted under the proviso to section 3 (instruments executed on behalf of
the Government) or any cheque or bill of exchange, payable on demand
acknowledging the receipt of the consideration money therein expressed, or
the receipt of any principal-money interest, or annuity, or other periodical
payment thereby secured;
(b) for any payment of money without consideration;
(c) for any payment of rent by a cultivator on account of land accessed to

government revenue;
(d) for pay or allowances by non-commissioned or petty officers, soldiers,

sailors or airmen of the armed forces of Pakistan, Pakistan military, naval
or airforces, when serving in such capacity, or by mounted police
constables;
(e) given by holders of family certificates in cases where the person from
whose pay or allowances the sum comprised in the receipt has been
assigned as a non-commissioned or petty officer, soldier sailor or airmen,
or any of the said forces and serving in such capacity;
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(f) for pensions or allowances by persons receiving such pensions or

allowances in respect of the services as such, non-commissioned or petty
officers, soldiers, sailors or airmen, and not serving the State in any other
capacity;
(g) given by a headman or lambardar for land-revenue or taxes collected by

him;
(h) given for money or securities for money deposited in the hands of any
banker to be accounted for;
Provided that the same is not expressed to be received of, or by the hands
of, any other than the person to whom the same is to be accounted for;
Provided also that this exemption shall not extend to receipt or

acknowledgement for any sum paid or deposited for, or upon a letter of
allotment of a share, or in respect of a call upon any script or share of, or in
any incorporated company or other body corporate or such proposed or
intended company or body in respect of a debenture being a marketable
security.
COMMENTARY
1. Joint receipts for a sum in excess of Rs. 160 composed of personal
salary and Government contingent not liable to stamp duty. Two
separate receipts to be given.
A joint receipt given by a Government servant for a sum in excess of

Rs. 160, is for his own salary part which, not exceeding Rs. 160 is for his
own salary and the rest for a contingent allowance which he receives for
expenditure on behalf of Government, is not liable to stamp duty. Such a
receipt is really two receipts in one. It is receipt given by him in his
personal character for his salary and it is a receipt given by him in official
capacity for money with which he is entrusted on behalf of Government.
Separate receipts should, however, be invariably given for money received

by an officer on his own account and for money drawn for expenditure on
behalf of Government (G.R. No. 7508, dated 20th September 1884).
2. Stamped receipts not necessary when an officer of a Civil Court

receives back the money paid to a Government Treasury for Custody.
8
When a Civil Court attaches money in the hands of Government, payable

by Government of a person against whom a decree has been passed by the
Civil Court, it is not necessary that the Civil Court should give to the
Government officer in whose possession the money is, a receipt on a one
rupee stamp before that money can be paid to the Court executing the
decree. Such receipts are exempted from stamp duty under article 15(b) of
Schedule 11 to the Stamp Act (1 of 1879) (now article 1) If money which
has been attached under Section 272 of the Civil Procedure Code, is
afterwards paid into the Court which attached it, the payment is a payment
of money without consideration it is a mere transfer of the money from the
custody of one authority to another, in order that the letter may disburse it
to the party or parties entitle to it. (LR. No. 519 dated 7th April 1892, vide
G.R. J.D. No. 2443 dated 6th May 1892 and G.M. No. 4423, dated 25th
idem).
3. Local Bodies
(a) Municipalities
Receipts for sums exceeding Rs. 160 passed by the Municipalities on
account of house tax are liable to stamp duty.
Receipts passed by municipalities on account of house tax and cesses, &c.,

for sums exceeding Rs. 160 are not exempt from stamp duty. Article 15(b)
of the schedule II to the Stamp Act (now Article 1) exempts from stamp
duty a receipt for payment of money “without consideration”. The
exemption was intended apparently to apply to receipts for “voluntary”
payments which in the ordinary legal acceptation of the terms are payments
without consideration, such as payments made merely in consideration of
natural love or affection or mere gifts. But the receipts in question are for
payment of house rent c., due to the Municipality under the Act constituling
the Municipality. The payment is not gratuitous, but one in satisfaction or
discharge of a legal obligation imposed by the Act, and in order or relieve
the payer from the consequence which would ensue in case of his
committing default and is therefore, not one without “consideration”. (G.R.
No. 586, dated 1st September, 1887).
(b) Local Boards.

Receipts and cheques executed by officers of Local Board not exempts
from duty.
Under Section 50 of the Local Boards Act, money required by a Local

Board to provide or replenish a permanent advance can only be drawn from
the Government Treasury by cheque. Rule 46 of the Bombay Local Board’s
9
Rules prescribes the form of cheque. It may be doubted whether this order
is properly designated a cheque as defined in the General Stamp Acct. On
the ground that, in the case of Local Funds which under section 44 of the
Act, Government is bound to keep, it cannot be said to be acting as a
banker. But even if this doubt is correct, the document fulfils the conditions
of a bill of exchange as defined in Section 5 of Act XXVI of 1881 and is
equally liable, if for more than Rs. 160 to a stamp duty of one rupee (or two
rupees) under Article 11 (a) of Schedule 1 of the General Stamp Act (now
article 1).
There is no rule which requires that first cheque drawn for money required
to begin a permanent advance to be accompanied by any receipt at all. In
the absence of any such rule, any demand for a receipt seems irregular. It
would be quite sufficient if the cheque were merely accompanied by a
memorandum stating the purpose for which the money was required, but
not in the form of a receipt. If however, for any reason a written
acknowledgment of the receipt of money (over Rs. 160) is given by the
officer drawing the cheque, it must be stamped, as it appears to be a receipt
as defined in the General Stamp Act.
As regards money drawn to recoup advances, Rule 45 prescribes exactly

what documents must accompany the cheque, viz. a bill supported by sub-
vouchers. There is nothing requiring the receipt of the officer who draws
the money, and the bill which he sends should not be in the form of a
receipt, if for any reason he does give a written acknowledgement of receipt
of money (over Rs. 160) it must be stamped, but his doing so seems quite
superfluous.
For the reasons given by the Adocate General of Bengal, (quoted in G.R.
No. 2759, dated 26th September 1885) documents executed by officers of
Local Boards are liable to stamp duty (L.R. No. 690, dated 20th May 1887,
vide G.R. No. 4021, dated 2nd July 1887).
Receipt Drawn on account of an Incorporated Local Fund liable to

stamp duty.
Extract para 2 of G.I. Letter No. 3429 S. R. dated 28th July 1889.
“It will be seen that the fund is an Incorporated Local Fund, deriving its
revenue from the cess levied under section 6 of Bombay Actg IV of 1881
for local purpose. Receipts drawn on account of such a fund are chargeable
with stamp duty when the value exceeds Rs. 160.” (Vide G.R. No. 6078,
dated 30th August 1899).
10
(c) Karachi Port Trust
Receipts granted by Karachi Port Trust in excess of Rs. 160 on account

of wharfage fees liable to stamp duty.
Receipts for sums in excess of Rs. 160 on account of wharfage fees, & c.,
granted by the Karachi Harbour Board are liable to stamp duty and
Government do not see any reason to exempt such receipts from the
payment of duty. (G.R. No. 4775, dated 11th June 1885).
4. Exemption
Endorsement on Railway receipt sent through post exempt from stamp

duty.
A one-rupee (or two rupees) receipts stamp is nto required on endorsement

on railway receipts sent through the Post Office under the value payable
system. (G.I.F. & C. No. 5198, dated 29th September 1887; vide G.R. No.
7801, dated 14th November 1887).
5. A receipt acknowledging the delivery of immovable property valued

more than Rs. 160 not liable to stamp duty.
A receipt acknowledging the delivery of immovable property valued
more than Rs. 160 not liable to stamp duty under article 53 of schedule
1 (now article) of the Act (L.R. No. 1078 dated 11th July 1902. G.R. No.
285 dated 31st July 1902).
2. Affidavit, including an affirmation or declaration Fifty rupees

in the case of persons by law allowed to affirm
or declare instead of swearing.
EXEMPTIONS
Affidavit or declaration in writing when made:
(a) as a condition of enrolment under the Indian Army Act, 1911,
or the Pakistan Army Act, 1952 or the Indian Air Force Act,
1932, or the Pakistan Air Force Act, 1953;
(b) for the immediate purpose of being filed or used in any Court
or before the office of any Court; or
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(c) for the sole purpose of enabling any person to receive any
pension or charitable allowance.
COMMENTARY
For the purpose of sub-section (3) of section 3 of the Ordinance, the proof of
being a non-Muslim will be constituted by a solemn affirmation to be witnessed
by two persons and to be submitted in writing even on plain paper and the proof
of being non-citizen of Pakistan will be constituted by a photo copy of the
passport accompanied by a soleman affirmation in writing even on plain paper
that the person does not hold the nationality of Pakistan (Clause 4 of Rule 4 of the
Zakat Deduction and Refund Rules, 1980).
3. Agreement or Memorandum of an Agreement

(a) if relating to the sale of transfer of a Five hundred
registered motor vehicle; rupees
(b) if relating to the sale of an immovable Five hundred

property; rupees
(c) if relating to the re-conveyance of Five hundred

mortgaged property; rupees
(d) if relating to the instrument of partner- Two thousand

ship or dissolution of partnership; rupees
(e) if not otherwise provided for; One hundred

rupees
COMMENTARY
(i) Explanation. Where there is an absolute bonafide sale and
conveyance, with collateral agreement for repurchase and re-
conveyance on repayment of purchase money, the latter agreement
does not legally cancel the original deed of sale and covert the sale
into a mortgage; the re-conveyance on the repayment of the original
money should not, therefore, be considered a re-conveyance or
mortgaged property within the meaning of article 53 (now 3) of
schedule 1 of the Stamp Act. (L.R. 065 dated 11th August 1885, vide
G.R. 6842 dated 22nd idem).
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(ii) Interpretation of the words “such consideration” in col. 2 of

Article 54. (now Article 3).
Extract from the letter No. 179 dated 27th April 1907 from District
Registrar, Sholapur.
I have the honor to inform you that in the case of the conveyance the
stamp duty levied by the Sub-Registrar appears to be correct, for the
words “such consideration” in column 2 of Article 54 of Sch. 1 of
the Stamp Act refer, in my opinion, to the words “the consideration
for which the property was mortgaged” in column 1, and do not
mean “the consideration of the re-conveyance.”
Para 3 of Commissioner’s letter No. V.R. No. 881 dated 17th June
1907 to Government.
The Commissioner, however concurs in the opinion expressed by the

Collector. The Inspector General of Registration reads the word ‘is’
between ‘as’ and ‘set forth’ in the declaration of duty; but on the
analogy of the declaration under 55-Release (now 29) that word is
not to be read in.
The Remembrance of Legal Affairs concurs with the Commissioner

in his letter No. P. 1293 dated 20th July 1907 (G.R. No. 8137, dated
the 17th August 1907).
(iii) Document is not an agreement but a will.
“The document in question is a Will in which testatrix states that so

long as she is living it will not hot be competent to her to dispose of
the property. I do not think that the language employed can be held
to amount to a distinct agreement, because looking to the voluntary
nature of a will it could not, I think, be construed into anything more
than an expression of the present determination of the testatrix not to
dispose of any part of the property before her death. The instrument
is in its principal intention a will; the mere incidental allusion which
if contains to the views of the testatrix as to her own future power
over the property, or as to her intention with regard thereto, cannot,
in my opinion afford sufficient reasons for regarding it as anything
more than a will.” (L.R. No. 400, dated 29th March 1881, vide G.R.
No. 2125 dated 12th April 1881).
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(iv) Agreements of the principal and his surety can be written on one
and the same paper.
Under the ruling of the High Court of Bombay given at page 188 of
the Indian Law Reports Bombay series Vol. V, there is no legal
objection to the agreements of the principal and his surety being
written on one and the same stamp paper, and treated as one
instrument, and not as two separate agreements, each chargeable
with stamp duty. (L.R. No. 669 dated 12th June 1882, vide G.R. No.
4391 dated 8th July 1882).
(v) Counterpart agreements executed under section 31 Akbari Act,

if not attested liable to stamp duty.
Licenses under the Abkari Act do not require to be stamped.

Counterpart agreements executed under section 31 of that Act, if not
attested require a stamp of eight annas (now Rs. 50/-) under article 5
(d) [now article 3 (e) ] of Schedule I of the Stamp Act 1899. (G.R.
No. 4631 dated 1st September 1879 and G.R. No. 8916 dated 4th
December 1893)/
(vi) Indemnity bond given to Railway liable to stamp duty.
Indemnity note given to Railway by a Consignee is not an indemnity

bond within article 28 (now 10-A) but an agreement, Article 5 (d)
[now article 3 (e)], chargeable only with rupees fifty stamp. (I.L.R. 5
B 478).
(vii) Exploring and prospecting license
Exploring and prospecting licenses are not leases for the purpose of
the definition in Section 2, sub-section (16), of the stamp Act II of
1899. A license does not become a lease merely because a rental is
reserved. These licenses are chargeable as agreements with stamp
duty of eight annas (now Rs. 50/-) under article 5 (d) [now article 3
(e)], of the stamp Act, II of 1899. (G.R. No. 3211, dated 9th May
1902)/
(viii) Agreement of commutation of pension.
Agreement executed in connection with the commutation of pension

for lump cash payment requires rupees fifty stamp as an agreement.
(G.R. No. 12809, dated 21st December 1914).
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(ix) Instrument of Cession of Rights.
Instrument of Cession of Rights executed by the owners of goods

lost through the action of Enemy Government are chargable with the
duty of rupees fifty only under Article 5 (d) [now article 3(e)], of the
schedule I of Act II of 1899. (G.R.R.D. No. 506, dated 15th January
1917).
(x) Contract Slips Stamping of counterparts of duplicates.
The document in question is a contract and liable to a duty of Rs.

50/- under Article 5 (d) [now article 3 (e)], of the Stamp Act.
Whether the duplicate marked C is liable, to a like duty depends in
the use it is put to. If it is executed and is a counterpart of the
original, it is liable to duty of Rs. 100/- under Article 25a) (now
article 17) of the Stamp Act I if it is a mere copy is not liable
(G.R.R.D. No. 9765, dated 4th January 1924).
(xi) Deeds of share transfers by inheritance.
Stamp duty on deeds of share transfers by inheritance is leviable

under Article 5 (d) (now Article 3(e) not under Article 62 (now
Article 31) of Schedule I of the Stamp Act of 1899. (G.R.R.D. Nos.
1621/24, dated 1st September 1924 and 1621 dated 24th November
1924).
4 Allotment orders or Transfer Allotment orders

issued by a developer, builder, Co-operative Society, housing society
or housing authority, or any other body or organization providing
open plots before lease
A- In respect of residential open plots-
a) up to 399 sq.yds. Ten rupees per Sq:yds
b) 400 sq.yds or above Thirty rupees per Sq:yds
ii) Commercial plots Forty rupees per Sq:yds
iii) Industrial plots Twenty rupees per Sq:yds
15
B-In respect of buildup property-
i) Residential house Ten rupees per Sq.ft
ii) Residential flats Five rupees per Sq.ft
iii) Commercial offices/ Fifteen rupees per Sq.ft

premises
iv) Industrial units/ Fifteen rupees per Sq.ft

factories
5. Article 5 omitted through the Sindh Finance Act, 2006, effective

from 01-07-2006.
6. Bank Guarantee
One hundred rupees for
every one lac rupees of
the amount of the
guarantee.
7. Bill of Entry including goods One Thousand rupees

declaration or any document relating to
goods declaration for the purpose of
custom clearance.
8. Bill of Exchange
As defined by section 2(2)
not being Bond, bank note
or currency note:
Where payable otherwise than on Rs.3

demand, for every one thousand or
part thereof of the amount of the bill
COMMENTARY
1. “After sight” means after acceptance or nothing for non-acceptance
or protest for non-acceptance. [Section 21, Negotiable Instruments
Act (XXVI of 1881)]
2. Post-dating bills-Sometimes Hundis, etc., are post-dated with the

object of evading stamp duty by marking to appear to be bills
16
payable on demand. For penalty for this offence, see section 68 of

the Stamp Act.
9. Bill of Landing Ten rupees for every one lac

(including a through bill of lading) rupees are part thereof the
value of the bill subject to
minimum of three hundred
rupees.
Note: If a bill of lading is drawn in parts, the proper stamps therefore must
be borne by each one of the sets.
EXEMPTIONS
(a) Bill of lading when the goods therein described are received at a
place within the limits of any port as defined under the Ports Act,
1908, and are to be delivered at another place within the limits of the
same port.
(b) Bill of lading when executed out of Pakistan and relating to property
to be delivered in Pakistan.
10 Bond
(A) Indemnity Bond, Security Bond or Five hundred rupees
Mortgage deed, executed by way of
security for the due execution of an
office, or to account for money or other
property received by virtue thereof or
executed in favour of a Court for the
due discharge of a contingent liability
or executed by surety to secure the due
performance of a contract.
EXEMPTIONS
Bond or other instrument, when executed-

(a) by any person for the purpose of guaranteeing that the local income
derived from private subscriptions to a charitable dispensary or
hospital or any other object of public utility shall not be less than a
specific sum per mensem;
(b) under No. 3-A of the rules made by the Provincial Government
under section 70 of the Sindh irrigation Act, 1879.
17
(c) executed by persons taking advances under the Land Improvement

Loans Act, 1883, or the West Pakistan Agricultural Loans Act, 1958,
or by their sureties, as security for repayment of such advances;
(d) executed by servants of the State or their sureties to secure the due
execution of an office or the due accounting for money or other
property received by virtue thereof.
(B) Custom Bond Five hundred rupees
(C) Debenture including a Participation Term 0.05 percent of the

Certificate, Term Finance Certificate and amount per annum
Commercial Papers. (whether a mortgage on first issue and
Debenture or not), being a marketable 0.02 percent per
Security transferable. annum of the
amount of the com-
mercial papers on
subsequent transfer
Explanation The term “Debenture” includes any interest coupons attached thereto,
but the amount of such coupons shall not be included in estimating the duty.
EXEMPTIONS
A debenture issued by an incorporated company or other body

corporate in terms of a registered mortgage-deed, duly stamped in
respect of the full amount of debentures to be issued there under,
whereby the company or body borrowing makes over, in whole or in
part, their property to trustees for the benefit of the debenture
holders, provided that the debentures so issued are expressed to be
issued in terms of the said mortgage-deed.
D. Bottomry Bond, that is to say, any 4.5 percent of the

instrument whereby the master of a amount of the
seagoing ship borrows money on the bond.
the ship or prosecute her voyage.
E. Respondentia Bond, that is to say, any 4.5 percent of the

instrument securing a loan on the cargo amount of the
laden or to be laden on board a ship and bond.
making repayment contingent on the arrival
of the cargo at port of destination.
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F. Any bond not otherwise provided for 4.5 percent of the

amount of the bond.
COMMENTARY
(1) Security bond on toll Contracts.

The legal Remembrancer is of opinion that security bonds on toll-
contract fall under No. 13 (now No. 10-A) because they do not fall
under any other number, and No. 14 (now No. 10-A) cannot apply
because it is in respect of money received by virtue of an office. The
Advocate General, however, is of opinion, that the bonds should be
charged under No. 28 (now No. 10-A), (G.R. No. 5271, dated 6th
October 1880).
(2) Agreement – Agreement to deliver a certain quantity of cotton

or in default to pay its price at then prevailing market rate.
An agreement to deliver a certain quantity of cotton or in default to

pay its price at the then prevailing market rate in consideration of a
present delivery of certain quantity of cotton is not an agreement for
sale of goods or merchandise. If such an agreement is attested, it
falls within sec.2, cl (5)(d) of the Stamp Act and must be stamped as
bond under Art 15. (now article 10-F) (Collector of Nimat v.
Lakhmichand 98 I.C. 631; A.I.R. 1927 Nag 72).
(3) Security bond for stay of execution against judgment debtor-stamp
A Security bond taken on an order for stay of execution must be

stamped in accordance with the Stamp Act and cannot be written on
a plain paper bearing a court fee of annas 8 43 I.C. 376 foll.
(Guranditta Mal v. Firm Gurdas Mal Ramchand A.I.R. 1925 Lah
552).
(4) Personal security bond for stay of execution – Stamp duty.
A security bond given at the time of stay of execution for the due
performance of the decree making the surety personally liable must
bear a Court-fee stamp as required by Art 6, Court Fees Act. No.
stamp under Stamp Act is necessary as it falls under the residuary
Act. 15 (now article 10) Stamp Act, A.I.R. 1925 Cal. 906 (F.B.)
Appeal; A.I.R. 1925 Lah 552 not followed (Mahomed Ewaz.v. Haji
Nanehmean. A.I.R. 1929 Lah 205)
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(5) Bonds executed by Exporters
Bonds executed by Exporters for the due production of a certificate

showing that the consignment exported has actually reached the
declared destination, should charged as “Customs Bond” item 26
(now article No. 10-B) of the Schedule 1 of Act. (G.O. No. 53 M.
dated 12th May 1916).
(6) Transfer of debentures of the Karachi Port Trust exempt from

Stamp duty
Transfer of debentures, whereby for the purpose of securing money

advanced by way of loan, a right over the wharfage fees levied by
the Karachi Harbour Board under Act III of 1879 is created in favour
of the creditor, are exempted from stamp duty by clause 17 (d) of
Schedule II of Act 1 of 1879. (L.R. No. 1109, dated 20th September
1881; vide G.R. No. 5649 dated 28th idem).
(7) Security bonds executed by municipal servants liable to Stamp

duty.
Secturity bonds executed by municipal servants are not exempt from

stamp duty (G.R. No. 3251, dated 21st May 1888).
(8) Security bonds executed by Stamp vendor liable to Stamp duty
(i) Ordinary licensed stamp vendors are not officers of Government within
the meaning of Article 12 (b) Schedule II, Act 1 of 1879. The article
would apply to the Government Officers who are appointed ex-official
vendor under the rules farmed under Section 55 of the Stamp Act. The
stamp necessary for stamp vendor’s security bond is the amount required
by Article 14 (now article 10) Schedule I of the Stamp Act. (L.R. No.
1324, dated 2nd October 1884, vide G.R. No. 8107, dated 14 idem,).
(ii) The existing practice of taking security bonds from the licensed
stamp vendors on Non-Judicial papers under article 15 (now article
10-F) read with article 57 (now article 10-A) of Schedule I of the
Stamp Act II of 1989 is correct and should continue to be followed.
It is not necessary to have any provision inserted into the rules,
which have nothing to do with the duty which is governed by
Scheduel I of the Stamp Act. (Letter No. Rev. 6186 dated 28th
September 1935 from the Revenue Commissioner for Sindh to all
Collectors in Sindh).
20
11. Certificate of Sale (in respect of each property 3 percent of the

put up as a separate lot and sold) amount of purchase
granted to the purchaser of any money only.
property sold by public auction
by a Civil, or Revenue Court, or
Collector or other Revenue Officer.
12. Certificate or other document evidencing the 0.50 percent of the

right or title of the holder thereof or any other face value of shares
person, either to any shares, scrip or stock mentioned in the
in or of any incorporated company or certificate subject to
other body corporate, or to become a minimum of one
proprietor of shares, scrip or stock rupee.
in or of any such company or body.
13. Charter Party, that is to say instrument One hundred rupees

(except an agreement for the hire of a tug for every one lac
steamer) whereby a vessel or some specified rupees or part
principal part thereof is let for the thereof the value of
specified purposes of the charterer, the charter party.
whether it includes a penalty clause or not.
14. In the Stamp Act, 1899, in its application to the Province of Sindh, in the
Schedule, Article 14 shall be omitted. (Sindh Finance Act, 2004, effective
from 01-07-2004)
15. Contract
(a) That is to say, any instrument in the nature Thirty Five paisa for
of memorandum or agreement made or every hundred
entered into by a contractor with rupees or part
Government, a corporation, local body, of the contract.
local authority, commercial or industrial
concern, whether singly owned or, run through
partnership, body registered under the Company
Law, a cooperative society or any other
organization to execute any works or to provide
engineering consultancy services or any
other services covered under above documents
including a work order, cargo bill a running
rate of contract and other levies and taxes
pertaining to local bodies.
21
(b) Purchase Order

That is to say, to supply Twenty Five paisa
or to undertake for every hundred
cartage of stores and rupees or part
materials. thereof of the
amount of the
purchase order.
16. (A) Conveyance as defined by section 2 (10) not

being a Transfer charged or exempted under
Article No. 31:
(i) To and from Real Estate Investment Trusts 2 percent in

Investment Trusts (REIST) accordance with
Valuation table or
0.25 percent on
Transaction value
which ever is higher.
(ii) In any other case 2 percent of the

value in accordance
with the valuation
table.
(B) Transfer of lease by way of assignment 2 percent of the

amount of
consideration for
such transfer or the
value in accordance
with the valuation
table which ever is
higher.
Explanation:
For the purpose of clause (a) “urban area” means

(i) an area specified by Government under section 3 of the Sindh Urban
Immovable Property Tax Act, 1958; or
(ii) any built up area together with the land appurtenant thereto or the
area occupied as a building site or enclosure and notified by
Government to be an urban area.
22
EXEMPTIONS
Assignment of copyright by entry made under the Copy-right Act, 914,

Section 5.
COMMENTARY
1. Meaning of the word “conveyance”

If a deed of sale of a mortgage right were a transfer of an interest
secured by a mortgage-deed it would fall under Article 60 (b) [(now
Article 31(b)] of Schedule I of the Stamp Act. It is true that such a
transfer is a ‘conveyance’. The term ‘conveyance’ is defined by the
Act, Section 2 (9), to mean ‘an instrument by which property is
transferred on sale, but Article 21 (now Article 16) of Schedule I,
which covers ‘conveyance’ generally, expressly expect conveyances
which are transfers of the Kind mentioned in Article 60. But if the
mortgage interest transferred by the deed rested upon a verbal
contract merely; or if it was an equitable mortgage, Article 60 of
Schedule I would not apply, and the deed of sale would fall under
article 21. (L.R. No. 1333, dated 23rd October 1883; vide G.R. No.
7828, dated 22nd idem).
2. Conveyance” Meaning of – Receipt mentioning fact of sale-

stamp duty.
The test to determine whether a document is a conveyance is to find

out whether the intention of the parties was that the document should
be the sole repository and appropriate evidence of the transaction of
sale. If it is so, that Court must hold it to be a conveyance. But if it
merely recites a part accomplished fact, it is not a conveyance liable
to be stamped or registered as such. A deed which merely
acknowledges as a fact that a right is vested in a particular person in
not a conveyance, it has to be shown that the right was created by the
particular deed in question. A document purporting to be receipt
recited that the executants had sold land to M.H. son of A d and MD
son of S for Rs. 1038-15-3 for the building purposes and that out of
the purchase money Rs. 700 had been received in cash and for the
balance another receipt would be passed at the time of payment. It
further recited that possession had been given to the purchaser etc.
Held the document was only a receipt and not a conveyance under
23
Art 23 (now Article 1) Stamp Act. (Mahmood Hashim v. Emperor,

13th Lah. L.T. 48 (1935)
3. Stamp duty to be regulated by amount of a consideration in

conveyance of a right secured by a decree.
A conveyance of a right secured by a decree, where the

consideration for such conveyance differs in amount from the
amount for which decree was passed, falls under S.I. of No. 21 (now
No. 16) and not under No. 60 (now No. 31), cl. (b) and the stamp
should be regulated by the amount of consideration (G.r. No. 3425
dated 24th April 1884).
4. Transfer of prospecting licenses and mining leases.
(i) A transfer of this kind mentioned will presumably assign an

interest in immovable property of the value of Rs. 100 or
upwards, and, if so,, can be effected by a registered deed
under section 17 of the Registration Act, 1877.
(ii) The commissioner S.D. is wrong in saying that is not

necessary to again register and Stamp an instrument which
has been executed and registered in England. Under section
3(e) of the Stamp Act, the transfer deed, as relating to
property situate in British India, must, if received in India, be
stamped in accordance with that Act, and section 18 allows
three months from the date of the 1st receipt in this country
for that purpose. Similarly sections 17 and 49 of the
Registration Act, 1874, require registration in accordance
with the provision of that Act, as the document relates to
property situate in part of British India in which the Act is in
force, and section 25 allows four months from date of first
receipt for the registration of a document executed out of
British India.
(iii) As regards the amount of stamp duty payable in the case of

transfer of a lease, the opinion of the Government Pleader,
Dharwar, and Commissioner S.D., on the point are in my
opinion correct. The case of transfer of a prospecting license
is more doubtful; but on the whole I agree that, if it is made
by way of sale it falls under the definition of “Conveyance”
[section 2(10))] under Article 23 (now Article-16) of the
24
Schedule of the Stamp Act, and that the duty would therefore
be 1 percent on the consideration of the conveyance. Which is
required to be stated in the instrument under section 27 of the
Act”. (L.R. Letter No. 1712 dated 28th July 1904, G.R. No.
6378 dated 19th August 1904).
5. Conveyance in consideration of discharge of debt-Mention

of less than actual amount due-Balance stated as waived-
Stamp Duty.
The charging words in Art 23 (now Article 16) “where the

amount or value of the consideration for such conveyance as
set forth therein” do not mean that revenue authorities must
have regard only to what the parties to the instrument have
elected to state the consideration to be but that the duty must
be assessed upon the amount or value of the consideration for
the transfer as disclosed upon an examination of the terms of
the instrument as a whole. Where in a conveyance of
immovable property, the consideration passing to the
transferor for executing the conveyance was therein stated to
be total sum of Rs. 300 made up of Rs. 250 being the total of
two items of principal sum and Rs. 50 being the balance of
interest arrived at by waiving Rs. 145-14-0 out of Rs. 195-14-
0, the total of two items of interest, Held that the benefit
which would accrue to the transferor as the result of duly
executing the conveyance was that he would obtain in
substance and effect the cancellation of the whole debt of Rs.
445-14-0 which was due from him to transferee, and that
stamp duty must be paid on that amount as the agreement to
release the balance of the debt formed part of the
consideration passing to the transferor for executing the
conveyance [(C.R.M.M.L.A. Chettyar Firm. In re-157 I.C.
538; A.I.R. 1935 Rang 243 (S.B.)]
6. Remission. The Stamp duty chargeable under article 23 and

62 (now Article 16 and 31) of Schedule I is remitted on
instruments evidencing transfer of property between
companies limited by shares as defined in the Companies Act
1913 in cases.
(i) where at lease 90 percent of the issued share capital of

the transferee company is in the beneficial ownership of
the transferor company, or.
25
(ii) Where the transfer takes place between a parent

company and subsidiary company one of which is the
beneficial owner of not less than 90 percent of the issued
share capital of the other, or
(iii) Where the transfer takes place between two subsidiary

companies each of which not less than 90 percent of the
share capital is in beneficial ownership of a common
parent company;
Provided that in each case a certificate is obtained by the parties

from the officer appointed in this behalf by the Local Government
concerned that the conditions above prescribed are fulfilled.
(G of I.F.D. Central Revenues No. 1 Stamps dated the 16th January
1937 vide S.G. Notification R.D. No. 30-C dated 30th January 1937).
17. Counterpart or Duplicate of any Five hundred rupees

instrument chargeable with duty and in
respect of which the proper duty has been paid.
EXEMPTIONS
Counterpart of any lease granted to cultivator when such lease is

exempted from duty.
COMMENTARY
1. Duplicate receipt for money is liable to stamp duty of one rupee

as original one.
The attention of the Board of Revenue, Lower Province, was

directed to a case in which a bank had granted a duplicate receipt to
another ban on unstamped paper, although the original receipt was
stamped with a duty of one rupee and the money for which the
original receipt was granted was required to be accounted was
required to be accounted for to a party other than the depositor. The
case was referred to the Advocated General for opinion as to
whether the duplicate was liable to stamp duty, and the following
opinion was given by him.
“A receipt for money is an instrument within the meaning of the

Stamp Act, (Act 1 of 1879). If follows that duplicate receipt
26
mentioned in this case is liable to a stamp of one rupee under Article

23 (a) of schedule 1. “(G.I.F. and C. No. 2153 dated 20th July 1883,
vide G.R. No. 5885, dated 8th August, 1883).
2. Duplicate receipt for money kept for record exempt from stamp
duty.
The preceding order does not apply to documents kept merely for
purposes of record. It seems clearly unnecessary that receipt stamp
should be affixed to the so-called ‘duplicate receipts’ which are of
the nature of office copies (G.R. 6573, dated 15th August 1884).
3. Remission of stamp duty on counterpart of agreement under

Section 31 of Abkari Act.
The Governor General in Council is pleased to remit the duty

chargeable under the Stamp Act II of 1899 on counterpart
agreements executed under Section 31 of the Abkari Act. V. of 1878
(G. of I. Not No. 563, F dated 25th November 1912 vide No. 11598
dated 19th December 1912).
4. Kind of Stamps. Non-Judicial stamped paper or special adhesive

stamps.
Note: In the matter of description of stamps to be used,

“Counterparts” or “Duplicates” should always follow the rule
applicable to the original documents (Endorsement on I.G. Letter
No. 813, dated 31st May 1879, to the Government of Bombay).
18. Exchange of Property The same duty as leviable

Instrument of on conveyance for a
consideration equal to the
value of the property of
greater value as set forth
in such instrument.
19. Financing document, that is to say, any

instrument or set of instruments in the nature
of sale and re-purchase on mark-up basis,
agreement of letter of hypothecation or pledge,
mortgage, memorandum of deposit of title deed
or deed of floating charge executed in favour
27
of a banking company by any of its customers

under any mode of finance not based on
interest, in a single transaction.
(i) Where the amount does not exceed 0.3 percent
Rs. 0.5 Million, (Advalorem)
(this clause effective from 01-07-2016)
(i-a) Where the amount does not exceed Fifteen hundred

Rs. 1.00 Million rupees
(ii) Where the amount exceeds Rs. 1.00 Three thousand

Million, but does not exceed 10.00 & Eight
Millions. hundred rupees
(iii) Where the amount exceeds Rs. 10.00 Fifteen thousand

Millions, but does not exceed 50.00 rupees
Millions,
(iv) Where the amount exceeds Rs. 50.00 Thirty-eight

Millions, but does not exceed 100.00 thousand
Millions. rupees
(v) Where the amount exceeds Rs. 100.00 Fifty Three

Millions. rupees.
(vi) Where the amount exceeds Rs. 300.00 Seventy Five

Millions, rupees
(vii) Where the amount exceeds Rs. 500.00 One lac fifty
Millions. thousand rupees
(rates revised with effect from 08-10-2002)
20. (a) (i) Gift-Instrument of, not

being settlement (No. 30) or will or
transfer (No. 31)
(ii) Affidavit or declaration in writing 2 percent of the

to confirm an oral gift made in favour of value of the
a person other than a legal heir; property as determ-
ined in accordance
with the valuation
28
table.
(b) Affidavit or declaration in writing to One fifth of the duty

confirm an oral gift made in favour of leviable on conveyance
Spouse, father, mother, son, daughter, (No. 16).
grand parents, grand children, Brother
and Sister
21. Lease , including an under lease or

Such lease, an agreement to let or sub-
let and the surrender of a lease.
(i) where the lease relates to open plots, One percent as per
flats, shops, offices town houses and valuation table
bungalows, together with the right in
the divided shares or otherwise of the
plot where the value thereof determined
in accordance with the valuation table
under Section 27-A.
ii) surrender including lease or Two percent of such

sub-lease and pre-lease in respect of value determined in
open or built up property in urban areas accordance with the
under section 27-A(except valuation table.
In case when surrender to KDA,DHA
or any other Government Agency)
(iii) in any other case 1.5 percent of the

total amount of the
rent payable under
the lease including
advance rent, if any,
payable under the
lease and two
percent on the
amount of premium
if any.
iv) Lease or Sub-lease to and 1 percent in accordance with the

from Real Estate Investment valuation table or 0.25 percent on
29
Trust (REITS) transaction value which ever is higher.
COMMENTARY
1. For definition of lease see section 2 (16) of Stamp Act.
2. An under-lease or sub-lease is to be distinguished from a transfer of

lease chargeable under article 16.
3. An agreement to let or sub-let has been expressly provided for in this

article. If a formal deed of lease is executed afterwards duty on it
will not exceed duty chargeable on an agreement under Article 3(e)
4. An agreement to let was contained in unstamped letters. The deed of

lease was written out on stamped paper but not executed. It was held
that the letter contained an agreement to let and duty and penalty
were levied accordingly (Body v. Kreig. 17 Cat. 548) See also
section 35 proviso (c).
5. Rent may be money, a share of crops, service or any other thing of

value, to be rendered periodically or on specified occasions, to the
lessor by the lessee. [Section 105, Transfer of Property Act (IV of
1882)].
6. There was a lease of rent and fixtures for 34 years at an annual rent
of Rs. 3,000 with stipulation for payment of certain sum on payment
of which the fixtures were to become the property of the lessee.
Held, that the sum so stipulated to be paid was not a fine or premium
and that the document was a lease for a rent of Rs. 3,000 per annum
for a term of 34 years and also an agreement falling under Article 5
(d) (now Article 3(e) in re United Provinces Electric Supply Co., 61
Cal. 556).
7. “Term” the option for renewal does not affect the term of lease (25
Mad 3).
30
8. The ruling of the Calcutta High Court (Amolia versus Ibrahim Ishak,
46 Cal. 804) is no longer good law, vide explanation 2 of this article.
Before the Legislature stepped in, the Allahabad High Court had
decided no to follow the Calcutta High Court and had held a lease
from month to month or year to year to be a lease for an indefinite
period (Mangal Puri versus Baldeo Puri, 1938 A.L.J.324)
9. A zar-i-peshgi lease for one year containing a stipulation that the

lease would remain in force until the money was paid off is a lease
for an indefinite period.
10. Where an annual rent is nominally, fixed but the whole rent is made
payable in advance the case falls under clause (ii).
11. Leases conferring occupancy rights are perpetual leases.
22. Letter of Credit, is to say the instrument

including application and agreements for
opening letter of credit by which one person
authorizes another to give credit to the person
in whose favour it is drawn.
(a) if the amount of letter of credit does not Two hundred

Exceed Rs. 50,000 rupees
(b) if the amount exceeds Rs. 50,000 but Four hundred

does not exceed Rs. 500,000 rupees
(c) for any amount exceeding Rs. 500,000 One thousand

Rupees
23. Mortage-deed or a deed of further charge

not being an Agreement relating to Deposit of
Title Deeds, pawn or pledge (No. 19), Bottomry
bond (No. 16), Financing document (No. 19),
Repondentia bond (No. 10), or Security bond
(No. 10)
(a) when possession of the property or any 3 percent of the

part of the property comprised in such amount secured
deed is given by the mortgagor or agreed by such deed.
to be given.
31
(b) when possession is not given or agreed 2 percent of the

To be given as aforesaid; amount secured by
such deed.
Explanation: A mortgagor who gives to the mortgagee power of attorney to

collect rents or a lease of the property mortgaged or part thereof, is deemed to give
possession within the meaning of this article.
(c) when a collateral or auxiliary or additional

or substituted security, or by way of further
assurance for the above-mentioned purpose
where the principal or primary security is
duly stamped.
For every sum secured not exceeding Fifteen rupees

Rs. 1,000;
and for every Rs. 1000 or part thereof Fifteen rupees

Secured in excess of Rs. 1,000;
(d) hypothecation of moveable property 0.2 percent of the

not based on interest. amount of the loan
or finance mention-
ed in the document.
EXEMPTIONS
(1) Instruments, executed by persons taking advances under the Land

improvement Loans Act, 1883 or the West Pakistan Agriculturist
Loans Act, 1951 or by their sureties as security for the repayment of
such advances.
(2) Letters of hypothecation accompanying a Bill of Exchange.
COMMENTARY
Mortgage deed is an instrument for further charge on the property already

mortgaged with possession.
The undermentioned noted opinion of Remembrancer of Legal Affairs No.

1117, dated 4th September 1885, was communicated to the Inspector
32
General of Registration and Stamps for information and guidance with

reference to the following letter No. 2046, dated 25th July 1885, from that
Officer.
1. A perusal of the correspondence confirms my opinion that the view

taken by the Inspector General of Registration and Stamps is correct.
2. The mistake committed by the Registrar is in saying that the property

mortgaged by deed be consisted of two houses. It consisted of one
house and portion of another house. A lien was not created on property
already hypothecated.
3. “I have the honour to submit translations, marked respectively. A and B,

of two deeds registered some months since, the one in the Viramgam,
the other in the Parantij Sub-Registry Office in the district of
Ahmedabad, concerning which, as regard the questions of stamp duty,
considerable correspondence has been passed between the Registrar of
Ahmedabad and myself, with the result that we cannot agree.
4. Deed A, I hold to be an instrument for further charge on which the

stamp duty instead of being Rs. 5 should have, under the provisions of
clause (a) of Article 30 (now Article 23 (b)) of Scchedule No. 1 of the
General Stamp Act, amounted to Rs. 10, the sum advanced on mortgage
being Rs. 1,000. I would shortly describe this deed as mortgaging
without possession certain property not previously under hypothecation,
and also at the same time confirming (or mortgaging a fresh) the
hypothecation of two gardens previously mortgaged confirming (or
motaging a fresh) the hypothecation of two gardens previously
mortgaged with possession. It is on the latter circumstance that I rely in
forming the opinion that the deed is an instrument of further charge on
property already mortgaged with possession.
5. instrument marked B, the Registrar of Ahmedabad holds to be on all

fours as regards its character, with instrument marked A and it is on this
point that I join issue with Mr. Reid. Instrument Marked B purports to
mortgage without possession certain houses and it recites the fact that a
room in one of these two houses had previously been mortgaged with
possession to the same mortgagee, but I do not understand that the
present instrument again mortgages that room, and I rely on the
following passages appearing in the deed for holding that opinion.
A room of this house No. 2 is in your possession under a deed of the

mortgage with possession previously executed to you. The remaining
33
portion of the said house is given to you in mortgage without

possession. In consideration of the above mentioned amount the whole
of house No. 1 and out of the house No. 2 the front potion of the ground
floor and excepting the mortgage on the room the remaining portion of
the said house are given in writing in mortgage.
6. The Registrar of Ahmedabad agrees with me in thinking that on the first

named deed a stamp of Rs. 10 is required, holding as I do that the
instrument imposes a further charge on property already mortgaged with
possession. In the second case he is apparently of opinion that the
instrument while mortgaging without possession, two houses, a room in
one of which was previously mortgaged with possession, creates a
further lien on that room and that room and that is the point on which
we differ, he holding that the stamp on the latter deed should have been
one of Rs. 2 on the sum of Rs. 140 received by the property
hypothecated, I holding that the stamp duty of Re. 1 actually paid is
sufficient, seeing that as I construe deed B the already hypothecated
room, is not again pledged as security for a further charge thereon.
7. The Registrar having asked that the point should be submitted to the
Legar Remembrancer for opinion, I have the honor respectfully to
request that these papers may be placed before the latter officer. (G.R.
No. 7500 dated 16th September 1885).
23-A Mortgage deed or any other financing One percent of the

instrument or set of instruments based on entire amount of loan
interest securing loan from any bank or advanced.
any other (effective from 30-07-2002)
24. Notarial Act, that is to say, any instrument Five rupees

endorsement, note, attestation, certificate or
entry made or signed by a Notary Public in the
execution of the duties of his office, or by any
other person lawfully acting as a Notary Public.
25. Partition Instrument of [as defined by section One percent of the

2 (15)] value of the separated
share or shares of
the property.
Explanation: The largest share remaining after the property is

partitioned (or if there are two or more shares of equal value and not
34
smaller than any of the other shares, then one of such equal shares) shall
be deemed to be that from which other shares are separated;
Provided always that

(a) when an instrument of partition containing an agreement to divide
property in severality is executed and a partition is effected in
pursuance of such agreement, the duty chargeable upon the
instrument affecting such partition shall be reduced by the amount of
duty paid in respect of the first instrument but shall not be less than
four rupees.
(b) when land is held on Revenue Settlement for a period not exceeding
thirty years and paying the full assessment, the value for purpose of
duty shall be calculated at not more than five times the annual
revenue;
(c) Where a final order for effecting a partition passed by any Revenue
authority or any Civil Court, or an award by an arbitrator directing a
partition, is stamped with the stamp required for an instrument of
partition in pursuance of such order or award is subsequently
executed, the duty on such instrument shall not exceed four rupees.
26. Policy of Insurance

A. Sea Insurance (See Section 7), and
Policy by Air.
(1) For each voyage If drawn If drawn in

singly. duplicate for
each part.
(i) where the premium or consideration Thirty Fifteen

does not exceed the rate of 1/8 paisa paisa
percent of the amount insured by
the policy; for every full sum of
Rs. 5,000 and also any fractional part
thereof insured by the policy;
(ii) in any other case, in respect of every Fifty Thirty

full sum of Rs. 2000 and also any paisa Five
fractional part thereof insured by paisa
the policy
35
(2) For time

In respect of every full sum of Rs. 2,000 or part thereof insured by the
policy.
(i) where the insurance shall be made Ninety Fourty
for any time not exceeding six months; paisa Five
paisa
(ii) where the insurance shall be made for One rupee Ninety
any time exceeding six months and Eight paisa paisa
not exceeding twelve months.
B. Fire-Insurance and Other Classes of

Insurance, not Elsewhere Included in
this article, covering goods, Merchadie,
Personal Effects, Crops and other property
Against Loss or Damage.
(1) in respect of an original policy

(i) when the sum insured does not One rupee fifty paisa
Exceed Rs. 5,000
(ii) in any other case Fifty rupees
(2) in respect of each receipt for any One half of the duty payable
payment of a premium on any renewal in respect of the original policy
of an original policy in addition to the amount if
any, chargeable under No.1
C. Accident and Sickness Insurance

(a) Against railway accident, valid for a Fifteen paisa
single journey only.
EXEMPTION
When issued to a passenger traveling by the intermediate or the third class in any
railway.
(b) In any other case for the maximum Seventy-Five paisa. Provi-
amount which may become payable in ded that in case of a policy
the case of any single accident or sickness of insurance against death
where such amount does not exceed by accident when the annual
Rs.2000 and also where such amount premium payable does not
36
exceed Rs.2,000, for every Rs.2,000 or exceed Rs.2.50 per Rs.1,000

part thereof. the duty on such instrume-
nt shall be five paisa for

every Rs.1,000 or part
thereof the maximum
amount which may become
payable under it.
D. Insurance by way of Indemnity
Against liability to pay damages on account Fifteen paisa

of accident to workman employed by or under
or against liability to pay compensation under
the Workmen’s Compensation Act, 1923 for
every Rs.100 or part thereof payable as premium.
E. Life, Health Insurance or the Insurance not

Specially Provided for except such
Re-Insurance as is described in Division
of this article.
if drawn if drawn in
singly duplicate
for each part.
(i) for every sum insured not Thirty paisa Fifteen paisa
Exceeding Rs.250;
(ii) for every sum insured Sixty paisa Thirty paisa

exceeding Rs.250 but not
exceeding Rs.500
(iii) for every sum insured One rupee Sixty paisa

exceeding Rs.500 but not twenty paisa
exceeding Rs.1,000 and also
for every Rs.1,000 or part
thereof, in excess of Rs.1,000
EXEMPTIONS
37
Policies of life insurance granted by the Director General of Post Officers

in accordance with rules for Postal Life Insurance issued under the
authority of the Central Government.
F. Re-Insurance by an Insurance Company Equal to the duty

Which has Granted a policy of the nature payable in respect of
specified in division A or division B of the original insurance
this article with another Company by way but not less than
of Indemnity or Guarantee against Payment five paisa or more
on the Original Insured of a certain part than one rupee.
Part of the Insured thereby.
GENERAL EXEMPTIONS
Letter of cover or engagement to issue a policy of insurance.
Provided that, unless such letter or engagement bears the stamp prescribed by this
Act for such policy nothing shall be claimble thereunder, nor shall it be available
for any purpose, except to compel the delivery of the policy therein mentioned.
27. Power of attorney as defined by section 2(21)

(a) when executed for the sole purpose of One hundred rupees
procuring the registration of one or more
documents in relation to a single transaction
or for admitting execution of one or more
such documents
(b) when authorizing one person or more to Two hundred

act in a single transaction other than the rupees
case mentioned in clauses (a), (e) and (ee)
(c) when authorizing not more than five persons Five hundred
to act jointly and severally in more than rupees
one transaction or generally; other than
the case mentioned in clauses (a), (e) and (ee)
(d) when authorizing more than five but not One thousand rupees
more than ten persons to act jointly and
severally in more than one transaction
or generally; other than the case mentioned
in clauses (a), (e) and (ee)
38
3 percent of the value

in accordance with
(e) when give for consideration and authorizing the valuation table
the Attorney to sell any immovable property or amount of consi-
deration which ever
is higher.
(ee) when given not for consideration and Five thousand

authorizing the Attorney to sell any rupees
immovable properties.
(f) in any other case. One hundred rupees
Explanation 1: For the purposes of this Article more persons that one
when belonging to the same firm shall be deemed to be one person.
Explanation 2: The term “Registration” includes every operation

incidental to registration under the Registration Act, 1908.
COMMENTARY
Clause(c)
1. A mukhtiarnama authorizing three persons to conduct all
privileges is a general power of attorney and to be stamped as
such.
A mukhtiarnama which authorizes three persons to exercise all khoti

privileges and to recover all khoti dues cannot be considered as
authority to act in a single transaction. A document of such nature
comes under Article 50 (c) (now Article 27(c)) of Schedule 1 of Act
of 1879., and should be written on a stamped paper of Rs. 5. (now
Rs.200/-) (G.R. No. 1365, dated 3rd March 1887).
2. The general authority or pass in Form-A issued by the holder of a

general license in Form G or H under Rule 4-A, Chapter V, part II of
the Rules under the Petroleum Act, is a power of attorney under
section 2(21) of the Stamp Act and is therefore chargeable to stamp
duty under Article 48 (now Article 27) of Schedule I of the Stamp
Act (G.R.R.D. No. 7427/28, dated 29th December 1931).
39
3. Power of attorney – Number of persons executing – if material
In computing the Stamp duty payable on a power of attorney, the

number of persons executing the power is not taken into account. It
is the number of agents appointed and the power of such agents
which determine the amount of the stamp duty (Jogi Ram v.
Mohammad Refi 73 I.C., 1923 Bom. 237)
4. Stamp duty not required on powers of attorney granted by

Government officers while on tour to receive payment out of
their salaries.
A power of attorney is not required in cases in which District

Officers and their subordinates while on tour in the districts order
payment out of the salaries at the quarter station; no stamp duty is,
thereof, necessary. (G.R. No. 7464 dated 19th December 1876)
5. Power of attorney executed by a Government Pensioner to draw

his salary from a Residency Treasury exempt from stamp duty.
A power of attorney executed by a Government pensioner

authorizing his agent to draw during his absence from Baroda, his
pension from the Residence Treasury which is situated in Baroda
territory, is not liable to stamp duty. (G.R. No. 3464 dated 4th June
1887).
6. Power of attorney by Collectors in favour of Government

Pleader to conduct suits, exempt from stamp duty.
Collectors against whom suits are pending in the High Court may
furnish a general power of attorney to the Government Pleader in
that Court on plain paper, it being not necessary to execute it on
stamped paper. But this ruling cannot be held to apply to
vakalatnamas given by a Collector to Government Pleader, for
general powers of attorney are governed by the Stamp Act which
specially exempts from stamp duty instruments executed by or on
behalf of Government, while vakalatnamas are governed by the
Court Fees Act, which contains no such exemption. Vakalatnamas
given by Collectors, when such documents are necessary, are liable
to the prescribed court fee. (G.R. No. 4683, dated 1st August 1877,
and 2436, dated 11th May 1878).
40
7. Authority granted by ministerial officers to draw their salary

whether liable to stamp duty.
Under Article 940 of the Civil Service Regulations the leave

allowance of a ministerial officer can be drawn only at the Treasury
where his salary is payable. In consequence of this rule, ministerial
officers, when spending their leave at station far removed from the
place of their employment, are obliged to have their allowances
drawn through fellow officers or friends living at the places where
they are employed. As these agents are in most cases only informally
appointed agent is not a valid dis-charge, the practice was
represented as unsafe. It was at the same time urged that it would be
great hardship to require men upon small salaries to go through the
formality of executing a regular stamped power of attorney, and that
the Government of India should exempt from stamp duty
instruments executed by public servants drawing not more than
Rs.200 a month, for the sole purpose of realzing their leave
allowances. Before finally deciding on the question, inquiry was
made by the Government of India as to the practice of the several
local Governments and Administrations in respect of the payment of
leave allowances of ministerial an other non-gazetted officers when
such allowances were not drawn by the absentees in person. The
Local Governments were also asked to report if a change in the
existing practice was considered necessary. From the replies
received it appeared that the arrangement varied in different
provinces, but the general consensus of opinion was that the present
arrangement worked well and did not require to be altered in any
way. Under these circumstance the Government of India decided
that the existing arrangements need not to be disturbed. (G.I.F. & C.
No. 58, dated 5th April 1882 vide G.R. No. 2642 dated 24th idem).
8. Stamp duty on power of attorney written in any other language

and executed out of British India to be indicated as prescribed
by Rules.
The stamp duty on power of attorney written in any other but the
English language and executed out of British India should be
indicated in the manner prescribed in Rule 11 of the ruels under the
Stamp Act, 1879 (promulgated under Financial Notificatio NO. 196,
dated 19th April 1879) which applies expressly to all documents
executed out of British India excepting those therein indicated
(G.I.F. & C. No. 2471 dated 29th August 1879, vide G.R. No. 4809,
41
dated 10th September 1879) see now Rule 12 of the Indian Stamp
Rules, 1925.
9. A general power of attorney executed by two persons authorizing

three persons to act jointly or severally (for the joint interest) falls
under clause (c) (Jogi Ram vs. Mohammad Rafi, 80 I.C. 467 Oudh).
10. A power of attorney which enables an agent to realize a judgement

debt and institute a suit and execute a decree is a general power of
attorney. (In Ire Gopal Rao, 3 Bom L.R. 890).
11. Clauses (e) – Power to sell any immovable property is liable to be

stamped as a conveyance only when that power is given for a
consideration.
12. Clause (f) – is a general provision for all such powers of attorney not
provided for by other clauses (Parmanand vs. Sat Prasad, 33 All.
487)
MORE POWERS THAN ONE

13. A and B executed a power of attorney in favour of C and D and
authorized them to act for their joint as well as separate interests.
Held, that the document consisted of two powers and was chargeable
with a duty of Rs.400.
14. A executed a power of attorney in favour of three persons (including
his son), he gave his son more power than was given to the other two
persons. Held, that the document consisted of two powers and was
chargeable with double duty.
28. Promissory Note as defined by Section 2 (22)-

(a) when payable on demand
(i) when the amount or value Five hundred rupees

does not exceed two hundred
fifty thousand rupees;
(ii) when the amount exceeds two One thousand rupees

Hundred fifty thousand rupees.
(b) when payable otherwise than 0.2 percent of the

on demand amount payable
otherwise than on
demand.
42
29. Release, that is to say, any instrument 2 percent of the value

(not being such a release as is provided of property determi-
for by section 23-A) whereby a person ned in accordance
renounces a claim upon another person with the valuation
or against any specified property. Table.
COMMENTARY
Explanation of the difference between “release” and “conveyance”

“It depends upon the nature of the mortgage whether a deed
executed by a mortgagee transferring his rights over the property to
the assignee of the rights of the mortgagor, is a re-conveyance or
release. If the original mortgage deed was ostensibly a sale the
subsequent document in question would be conveyance. Where,
however, as apparently in the case cited, the property has not been
sold to the mortgagee, the mortgagee need only execute a release to
convey his rights to the assignee of the mortgagor’s right of
redemption. The form of the document would generally show its
nature; the document of which a copy has been sent is clearly
release, not a conveyance. “(Para 2 of the letter No. 1090 dated 28th
April 1909 from the Remembrancer fo Legal Affairs). (G.R. No.
4519, dated 17th May 1909).
30. Settlement
A- Instrument of (including a deed of dower)
(i) where the settlement is made for a 4.5 percent of the
religious or charitable purpose. value of property
settled
(ii) in any other case. Two percent of the

value in accordance
with the valuation
table under section
27-A and 27-B or
five percent of the
value of moveable
property settled.
Provided that, where

an agreement to
settle is stamped
43
with the stamp requ-

ired for an instr-
ument of settlement
and an instrument of
settlement in purs-
uance of such
agreement is sub-
sequently executed,
the duty on such
instrument shall not
exceed four rupees;
Provided further,
where an instrument
of settlement conta-
ins any provision for
the revocation of the
settlement, the amo-
unt or value of the
property settled
shall, for the
purposes fo duty, be
determined as if no
such provisions
were contained in
the instrument.
EXEMPTIONS
Deed of dower executed on the occasion of marriage between Muslims.

B-Revocation of-
5 percent of the
value of the
property concerned,
as set forth in the
instrument of
Revocation but not
exceeding fifty
rupees.
COMMENTARY
44
Distinction between dower and settlement in Mahomedan marriges for

purpose of stamp duty.
A deed of dower is a settlement, and all settlements between Mahomedan

are liable to stamp duty except deeds of dower executed on the occasion of
a marriage. Exemption follows only on two separate conditions being
fulfilled:-
(1) The settlement must be a deed of dower.
(2) It must be executed on the occasion of a marriage
Whether or not each of these condition is fulfilled is a question of fact in

each case. I know no authority for the proposition that a deed of dower
must be absolutely unconditional. On the order hand there are several kinds
of marriage agreements which are not deeds of dower. Hence (in my
opinion) neither the Collector nor the inspector General is right. Each
document much be judged on its own merits as to whether it complies with
both the condition supra. (Memo from the Remembrancer of Legal Affairs,
No. 0 Stamp 4 dated 10th April 1928 G.R.R.D. No. 355/28, dated 27th April
1928).
31. Transfer (whether with our without consideration)-

(a) of shares in an incorporated company or (i) 1.5 percent of the
Other body corporate face value of shares
subject to a
minimum of one
rupee; on physical
and on withdrawal
from the Central
Depository Company.
(ii) 0.15 percent of
the face value of
shares deposited to
the Central Deposit-
ory Company.
(b) of debentures being marketable securities 3 percent of the face

whether the debenture is liable to duty or of debentures subject
not except debentures provided for by minimum of two
section 8; rupees.
45
(c) of any interest secured by a bond,

A mortgage – deed or policy of insurance-
(i) if the duty on such bond, mortgage The duty with which
deed, or policy does not exceed twenty such bond,mortgage
rupees; deed or policy of
insurance is
chargeable
(ii) in any other case Thirty rupees
(d) of any property under the Administrator Thirty rupees

General’s Act, 1913, Section 31;
(e) of any trust-property without consideration Twenty rupees or

from one trustee to another trustee or from such smaller amount
a trustee to a beneficiary. chargeable under
clause (a) to (c) of
this Article.
EXEMPTIONS
Transfers by endorsement-
(a) of a bill exchange, cheque or promissory not;
(b) of a bill of lading, delivery order, warrant for goods, or other

mercantile document of title to goods.
(c) of a policy of insurance
(d) of securities of the Central Government.
COMMENTARY
1. Clause (a) and (e)
On the question whether the transfer of shares, in the following

circumstances to the name of the constituent of a Bank from that of its
nominee is chargeable under clause (a) or clause (e) of schedule I of the
Stamp Act-
(1) Where a constituent of a Bank has transferred shares to the nominee

of the Bank as security for an overdraft and when he has no longer
the overdraft with the Bank but is temporarily or permanently in
46
credit requests that certain shares should be transferred back to his

own name from that of the nominee.
(2) Where a constituent of a Bank purchases two or three lots of shares

and pays for the same out of his credit balance and subsequently
purchases more shares against a loan from the Bank eventually the
Bank finds itself in possession of a considerable quality of security
consisting of shares in the name of the nominee of the Bank against
a loan or comparatively small dimensions as compared with the
amount of security hold. Finally the constituent requests that certain
shares may be transferred back from the nominee to his own name.
(3) Where the Banker or any other Agent acting as such purchases
shares for a constituent and as a matter of convenience, places these
shares in the name of a nominee; assuming in such a case that at no
time during the currency of the transation had there been any
overdraft, loan or consideration of any kind whatsoever.
The opinion of the Remembrancer of Legal Affairs, Bombay.
In first and second cases, the shares being held by the Banker at one time as
security for the overdraft, the relation between the parties is that of creditor
and debtor and not or trustee and “cestuique” trust. The subsequent release
and transfer is therefore, chargeable under Article 62 (a) (now article 31(a)
of the Stamp Act, 1899.
The third case.
It is clear from the wording of Article 62 (e) (now article 31 (e) in the 2 nd
column of Schedule 1 of the Stamp Act that the operation of Article 62 (a)
is limited by Article 62 (e) and that if the shares are transferred from a
trustee to a beneficiary the case would be governed by Article 62 (e).
The only question, therefore is, whether the parties in the case suggested,
do stand to one another in the relation of trustee and beneficiary. In my
opinion the effect of the transaction is to create an implied trust. In English
Law the transfer of property to a person who gives no value for it is deemed
prima facie to be a transfer of the legal but not of the equitable estate and
by operation of law “a resulting trust” arises in favour of the transferor.
Similarly when one person advances the purchaser money, and the property
is formerly conveyed to another who is stranger to such person a resultant
trust arises in favour of the real purchaser (vide Colletts Specific Relief
Act, page 9). The Trust Act, II of 1882, embodies the principle in section
82.
47
It would seem, therefore, that the stamp duty payable is regulated in the
case quoted by Article 62 (e) (now article 31 (e) of the Schedule. (G.R.R.D.
Nos 6009 dted 8th January 1923 and 14th March 1923).
2. Clause (c)
Interpretation
The stamp duty to be levied in the case of transfers of mortgage loans should be
what is chargeable now on the mortgage deed if the duty charged on the mortgage
deed the interest of which is sought to be transferred, is not more than Rs. 5 and in
an other case Rs. 10. Thus transfer of a mortgage for Rs. 400 the mortgage deed
being executed before 1st April 1922, the stamp duty on the transfer would be Rs.
6 and not Rs. 10 (G.R.R.D. No. 6240, dated 25th October 1922).
3. Clause (e)
Stamp duty to be charged on a deed evidencing a transfer of assets of a

Syndicate who had gone into liquidation by reason of its having only one
shareholder who had paid off the cumulative preference shares issued by
the Syndicate and the debenture loan raised by that body.
The Tata Iron and Steel Company Ltd., having paid off the loan of debenture
stock raised by the Indian Collieries Syndicate Ltd., as also the whole of the
cumulative preference shares issued by that body, purchased for cash the
whole of the ordinary share capital of the Syndicate, and had these transferred
to itself. The Syndicate then having only one shareholder went into voluntary
liquidation, and the Tata Company asked the liquidators to cause the property
and assets of the Syndicate to be transferred to the Company. A deed was
accordingly drawn up evidencing such transfer and characterizing it as a
transfer of trust property, without consideration, from a trustee to a
beneficiary. The document was stamped with a stamp of Rs. 10, Rs. 5 being
for a transfer under Article 62 (e) (now article 31 (e) of Schedule I of Act II of
1899 and the balance for a release under Article 55 (b) now article 29)
On a reference to the High Court (Calcutta) under section 57 (1) it was held
that Article 62 (e) did not apply as this was not a case of transfer of trust
property, without consideration, from a trustee to a beneficiary the
transferee company not being a beneficiary in whom ownership had already
48
vested (for the assets of the Syndicate until dissolution continued to belong
to the Syndicate) nor could the liquidator be a trustee, nor the transfer a
transfer without consideration. The document was accordingly found to
attract duty under Article 23 (now article 16 Schedule I, Act II of 1899, on
the whole sum paid by the Tata Company, on account of the debenture loan
an of both preference shares and ordinary shares. The duty of Rs. 5 for
release under Article 55 (b), was not payable, such release being merely
ancillary to the main purpose of the deed. Extract from the Bengal Stamp
Manual 1911,SECTION 29 OF THE
Note 3 to Article STAMPI, ACT
23, Schedule 1899
page 124).
(DUTY BY WHOM PAYABLE)
29. In the absence of any agreement to the contrary, the expense of providing
the proper stamp shall be borne in the case of any instrument described in
any of the following Articles of Schedule namely:-
No.1 (Acknowledgement and Receipt) by the person(s) executing the

same.
No.2 (Affidavit or declaration) by the deponent(s)
No.3 (Agreement or Memorandum of an Agreement (a) and (b) by the

purchaser(s) by the person(s) in whose favour the reconveyance is
executed, (d) by the partner(s); and (e) by the executants(s)
No.4 (Allotment Order or Transfer of Allotment Order) by the person(s)

in whose favour it is issued.
No.6 (Bank Guarantee) by the person(s) in whose favour it is issued.
No.7 (Bill of Entry by the executant(s)
No.8 (Bill of Exchange) by the executant(s)
No.9 (Bill of Lading) by the consignee(s)
No.10 (Bond) by the executant(s)
No.11 (Certificate of Sale) by the purchaser(s)
No.12 (Certificate or other document) by the company or body corporate

issuing such certificate or document.
No.13 (Charter Party) by the charterer
49
No.15 (a) (Contract) by the contractor

(b) Purchase Order by the Purchaser
No.16 (Conveyance) vendee or transferee
No.17 (Counterpart or Duplicate of and instrument) equally by the

executants except in case of the lease by the lessee.
No.18 (Exchange of Property Instrument) by the parties in equal share.

No.19 (Financing document) by the borrower.
No.20 (Gift Instrument) by the donee(s)
No.21 (Lease including an under-lease or sub-lease, an agreement to let or

sub-let and the surrender of a lease) by the lessee.
No.22 (Letter of Credit) by the person(s) in whose favour it is drawn.
No.23 (Mortgage deed or a deed of further charge) by the mortgagee.
No. 23A (Mortgage deed or any other financing document) by the

mortgagee.
No.24 (Notarial Act) by the Notary Public.
No.25 (Partition instrument) by the parties in their respective shares or for

the execution of order by court arbitrator as directed by the court or
arbitrator.
No.26 (Policy of Insurance) by the person(s) in whose favour the policy is

issued.
No.27 (Power of Attorney) by the Attorney otherwise by the Principal.
No.28 (Promissory Note) by the executant(s)
No.29 (Release) by the person renouncing a claim upon antoher person or

against any specified property.
No.30 (Settlement) by the person(s) making the settlement.
No.31 (Transfer) by the transferee.
50
GOVERNMENT OF SINDH, BOARD OF REVENUE (RS & EP) WING 79-SINDH SECTT. KARACHI.
NOTIFICATION
NO.CIS/SW/BOR/2016-726:- In exercise of the Powers conferred by Section 27-A of the Stamp Act, 1899, and in supersession of this
Department’s Notification No. CIS/SW-397/BOR/2010-1216, dated 02.07.2010, the Chief Inspector of Stamps is pleased to notify the
following Valuation in respect of urban properties located within Province of Sindh with effect from 1 st July, 2016.
Urban Areas A-I I II III IV V VI

RS. RS. RS. RS. RS. RS. RS.
Open Plot residential 17820 11550 6600 2970 1980 1188 594
Minimum Value per sq.yard
DESCRIPTION OF INSTRUMENTS
51
Open Plot Commercial 41400 25876 12420 6210 3312 2070 1036
Open Plot Industrial 2640 1320
Built-up residential property 27720 14850 9240 3960 2970 1980 1386
Built-up Commercial 49680 34500 17940 8280 5590 3726 2484
Built-up Industrial 463 463
Minimum Value per sq.Fit
Built-up Fltas 2970 2146 1188 594 496 298 150
PROPER STAMP DUTY
Minimum Value per sq. foot of the covered area

CATEGORIES OF PROPERTIES SITUATED IN

DIFFERENT AREAS OF KARACHI
Residential Commercial Industrial Flats

Abdullah Haroon Road I A-I I I
Al-Hilal Cooperative Housing Society I I I I
Artillary Maidan Quarters I I I I
Akhtar Colony III III II III
Al-Falah Cooperative Housing Society III II II III
Aminabad III III II III
Azam Basti III III II III
Area facing Drig Colony (PIA Green Colony) IV IV II IV
Ashraf Nagar IV IV II IV
Ali Basti V V II V
Bhutta Village V V II V
Bin Qasim (Pipri excluding Gulshan-e-Hadeed V V II V
Bakhshan Village IV IV II IV
Baba & Bhit Island IV IV II IV
Behar Colony, Clayton Road III III II III
Baloch Colony III III II III
Burns Road I I I I
Bombay Bazar I A-I I I
Bandar Quarters I I I I
Bath Island Quarters A-I II I A-I
Bohri Bazaar II A-I I II
Bufar Zone 14-A, 14-B, 15-A-I, 15-A-II II I I II
15-A-III, 15-A-IV, 15-A-V, 15-B & 16-A
Baldia Town VI VI II VI
Chandio Village P.S. Defence IV IV II IV
Civil Line Quarters A-I I I A-I
Clifton Quarters A-I I I A-I
Cattle Colony V V II V
Chanser Goth V V II V
Chandni Chow, KDA Scheme No. 7 II II I II
Deh Thanno V V II V
DodaVillage V V II V
Defence Officers Cooperative Housing Authority, A-I I I A-I
Phase-I-II, III & V
Defence Officers Cooperative Housing Authority, I I I I
Phase IV, VI, & VII (excluding Phase VII
extention)
Defence Officers Cooperative Housing Authority, IV IV II IV
Phase VII extention & VIII
Defence Officer Housing Scheme, Malir II II I II
Cantonment
Depot Line I I I I
Doli Khata IV IV II IV
Dhoraji Cooperative Housing Society A-I I I A-I
Dehli Mechantile I I I I
Dehli Colony III III II III
Drigh Cantonment III III II III
Darakhshan Cooperative H. Society III II II III
Deh Drig IV IV II IV
Ejaz Colony III III II III
Firdous Colony II II I II
Fatima Jinnah Colony I I I I
Federal B. Area II II I II
Frere Quarters I I I I
52

Future Colony V V II V
Gulshan-e-Iqbal, Block-17 I I I I
Gulshan-e-Iqbal, excluding Block-17 II II I II
Gulshan-e-Faisal I I I I
Garden East Quarters A-I I I A-I
Garden West Quarters I I I I
G. Allam Road I I I I
Ghulam Hussain Qasim Quarters I I I I
Gulnar Cooperative Housing Society II II I II
Gul Bai V V II V
Gulistan-e-Jauhar II II I II
Gulshan-e-Hadeed IV IV II IV
Gizri Village IV IV II IV
Gulshan-e-Jamal Project-II II II I II
Government approved Katchi Abadies VI VI II VI
Haji Mureed Goth V V II V
Harchandrai Vinshandas Quarters II II I II
Hasrat Mohani Colony IV IV II IV
Hawks Bay IV IV II IV
Hyderabad Colony III III II III
Iqbal Colony III III II III
I.I. Chundrigar Road I A-I I I
Ishaqabad IV IV II I
Jamoria Colony III III II I
Joria Bazar II A-I I II
Jamshed Quarters I I I A-I
Junna Market I I I -
Jacobline (including Lines Area) II II I I
Karachi Administrative Cooperative H. Society A-I I I A-I
K.P.T. Industrial Area - - I -
K.D.A. Officers Cooperative Housing Society A-I I I I
K.D.A. Scheme 1 & 1A A-I I I A-I
Karachi Cooperative Housing Society Union Ltd
(Modern Jinnah M.S.G.P. School New Karachi,
B.Y. Jang, Behar Muslim C.P. & Merar, Karachi A-I I I A-I
Memon, Rohail Khand, Daudi Bohra, Mamia,
Dehli, Hassni, Naseem, Ovarans, Al-Hamra,
Banglore, Kathiawar & Al-Riaz)
Kagzi Bazar I I I I
Kiamari IV IV II IV
Khaliquzaman Colony III III II III
Khadad Colony III III II III
Khanto Colony V V II V
Khokhrapar V V II V
Korangi Township V V II V
Korangi Industrial Area - - II -
Kausar Niazi Colony V V II V
K.B.R. V V II V
Liaquat Ashraf Colony VI IV II VI
Laiqabad V V II V
Lyari Quarters V V II V
Lea Quarter III III II III
Landhi Industria Area - - I -
Landhi Township KDA IV IV II IV
Liaquatabad IV IV II IV
Lawrance Quarters II II I II
Muhammad Ali Coopeative Housing Society A-I I I A-I
Marriot Road II A-I I I
53

Market Quarters I I I I
M.A. Jinnah Road I I I I
Moolji Street I I I I
Muslim Colony II II I II
Model Colony III III II III
Modern Colony III III II III
Muslim League Quarters III III II III
Mahmoodabad III III II IV
Malir Cantonment III III II IV
Malir City V V II V
Manora IV IV II IV
Maripur IV IV II IV
Metroville-I IV IV II IV
Metroville-II, Corridor Area III III II III
Metroville-II and III KDA V V II V
Mustafabad V V II V
Muhajir Colony VI VI II VI
Mangho Pir Road & Adjacent locality VI VI II VI
KMC Sewerage Form
Nasim Colony V V II V
Nusrat Bhutto Colony V V II V
New Golimar V V II V
Navel Colony IV II II IV
North Karachi Sector 1 to 6 IV IV II IV
Nafeesabad III III II III
North Karachi (all sector except I to 6 and Buffe III III II III
Zone)
Neelam Colony III III II III
National Cement Employees Cooperative Housing II II I II
Society
Nazimabad II II I II
Napier Quarters II I II II
New Challi I A-I I I
North Nazimabad (excluding Block-P,Q,S&T) I I I I
North Nazimabad Block-P,Q,S&T II II II II
Old Frere Street I I I I
Old Town Quarters I I I I
Orangabad Quarters IV IV II IV
Old Golimar V V II V
Orangi Town V V II V
Pasban Muhallah V V II V
Peerabad V V II V
Paposh Nagar Quarters IV IV II IV
Pakistan Employees Cooperative Housing Society A-I A-I I A-I
Preedy Quraters I I I I
Paria Street I I I I
Parsi Colony (Silence Towers) I I I I
P.S. Mahmoodabad I I II I
P.I.B. Colony III III I III
Pak Colony III III II III
Queens Road Quarters I A-I II I
Qasba Colony V V I V
Quaidabad V V II V
Qasimabad IV IV II IV
Rafa-e-Aam Cooperative Housing Society III III II III
R.A. Lines I I I I
Railway Quarters I A-I I I
Rizvia Colony II II I II
54

Ram Swami Quarters II II I II
Ranchore Quarters II II I II
Ram Bagh Quraters I I I I
Soldier Bazaar Quarters II II I II
Sindhi Muslim Cooperative H. Society A-I I I A-I
Saddar Bazaar Quarters I I I I
Sarafa Bazaar I A-I I A-I
Saleh Mohammad Street Housing Society I A-I I I
Sirai Quarters I A-I I I
South Napier Road I I I I
Shahrah-e-Faisal I A-I I I
Shahrah-e-Liaquat (Frere Road) I I I I
Shahrah-e-Iraq I I I I
Site Industrial Area - - I -
Shah Faisal Town III III II III
Shireen Jinnah Colony III III II III
Saeedabad IV IV II IV
Surjani Town (Scheme 41) Subsector V V II V
No.4A,7A,5B,7B,5D & L1
Surjani Town (Scheme 41) remaining Sectors VI VI II VI
Saudabad IV IV II IV
Scheme No. 33 (excluding Metroville-II Corrisor IV IV II IV
Area)
Sands Pit V V II V
Shershah Colony & Village V V II V
Shanti Nagar V V II V
Shah Latif Town Scheme-25, KDA VI VI II VI
Shah Faisal Colony V V II V
Tahilram Quarters II II II II
Upper Gizri PS. Gizri A-I I II A-I
Usmani Colony Society near Rizvia Colony III III II III
U.P. Mahajireen Society V V II V
Wadhomal Odhoram Quarters II I II II
Wilayatabad IV IV II IV
Waheedabad V V II V
Zaibunnisa Street I A-I I I
55
Part-I
Sindh Provincial
Capital Value Tax (CVT)
As per Section 4 of
Sindh Finance Act, 2010
As amended from July, 2010 to July 2014
Capital Value Tax (CVT) (Clause 3 of Section 4 of

Sindh Finance Act 2010)
Capital Value Tax (CVT) shall be levied and collected on the capital value
of immovable property in Sindh.
56
4. There shall be levied and collected a tax on the capital value of immovable property to be called Capital
Value Tax on immovable property which shall be payable by every individual, association of persons, firm, a
development authority or a company which acquires by purchase, by gift, exchange owner of attorney other
than revocable and time bound (not exceeding 60 days) executed between spouses, father, mother and son or
daughter, grand parents and grand children, brother and sister, surrender or relinquishment of rights by the
owner, whether affected orally or by deed or obtained through court decree except by inheritance or gift from
spouse, parents, grand parent, a brother and a sister or a right to use thereof for more than 20 years or
renewal of the lease by a resident of Sindh of by any other person who is non-resident and acquires
immovable property in Sindh, at the rates specified in sub-section (3):
Provided that in case of a bank the capital value tax shall be paid when the general power of attorney is used
to sale the mortgaged immovable property offered as collateral other than traded security for obtaining loan.
(2) Definition and explanation expression and terms for the purpose of this section:
(a) “ association of persons” includes a firm, a Hindu undivided family, any

artificial juridical person and any body of persons formed under a foreign law, but does not include a
company;
(b) “firm” shall have the same meaning as defined in the Partnership Act.
(c) “ company” means-
(i) a company defined in the Companies Ordinance, 1984 (XLVII of

1984);
(ii) a body corporate formed by or under any law in force in Pakistan.
(iii) a modarba;
(iv) a body incorporated by or under the law of a country outside Pakistan

relating to incorporation of companies;
(v) a trust, a co-operative society or a finance society (for any other

society established or constituted by or under any law for the time
being in force)
(vi) a foreign association, whether incorporated or not, which the

(Government) has, by general or special order, declared to be
a company for the purpose of this Ordinance.
(d) “ Development Authority” means an authority formed by or under any law for the purpose of
development of an area and includes an authority, society, agency, trust association or institution
declared or formed or created by law or formed by order, rule, regulation, as development authority
which also operates or is located in Sindh, or as may be declared as development authority by
Government;
(e) “ Government” means the Government of Sindh.
(f) “ area ” means such areas as Government may from time to time, by notification in the official gazette
specify;
(g) “prescribed” means prescribed under the rules, made by the Government.
(h) “ tax” means tax on the capital value on the immovable property;
(i) “ immovable property” includes property defined in the Sindh Urban Immovable Property Act,1958
and includes property items as shown in sub-section (3).
57
(j) “Market Value” means the fair value of the property to be determined by the authority notified by the
Board of Revenue Sindh in constitution with Finance Department; provided that such market value
shall not be below the value specified in Valuation Table;
(k) “ Real Estate Investment Trust” means the Real Estate Investment Trust registered with the Security
Exchange Commission of Pakistan;
(l) “Valuation Table” means Valuation Table notified under Section 27-A of the Stamp Act, 1899(Act
No.II of 1899);
(3)The Capital Value Tax on immovable property referred to in sub-section (1) shall be charged at the
following rates:-
A. Residential immovable property (other than flats) situated in Sindh.

i. Where the value of immovable property is recorded or
according to valuation table whichever is higher.
(a) From 240 sq. yd to 499 sq. yd.

2%
(b) From 500 sq. yd to 1000 sq. yd.
2.5%
(c) From 1001 sq.yd and above
3%
ii. Where the value of immovable property is not recorded Rs. 75 per square yard of the
landed area.
B. Residential flats situated in Sindh.

i. Where the value of immovable property is recorded or
(a) From 1000 sq. ft to 1500 sq. ft. areas in category

A.1 and 1 of the valuation table.
2%
(b) From 1501 sq. ft to 2200 sq. ft. in all categories
of the valuation table.
2%
(c) From 2201 sq. ft in all categories of the
valuation table.
2.5%
Where the value of immovable property is not recorded Rs. 10 per square feet of the landed
area.
58
C. Commercial and Industrial immovable property situated in Sindh.

i. Where the value of immovable property is recorded or 2.5%
ii. Where the value of immovable property is not recorded Rs. 100 per square yard of landed
area
(4) The Capital value tax shall be collected by the person responsible for registering or attesting the transfer
of immovable property under law in respect of which tax is payable at the time of registering or attesting the
transfer.
(5) Where any person fails to collect or having collected fails to pay the capital value tax as required, he shall
be personally liable to pay the tax (alonwith additional tax at the rate of 155 per annum for the period for
which such tax or part thereof remain inpaid).
(6) Government may revise the assessment of value of the tax, where revision is necessitated on the basis of
the application filed.
(7) The Government may, by notification in the official gazette, exempt any person or class of persons or
asset or class of assets from the capital value tax provided that such exemption may be subjected to such
conditions as may be specified in the notification.
(8) Notwithstanding anything contained in any other law for the time being in force in the Province, the tax
on the value of immovable property shall be in addition to any tax or duty, charge, cess or any other levy on
the immovable property.
(9)Notwithstanding anything contained in this Act, the Capital Value Tax for all properties to be transferred
to and from Real Estate Investment Trust shall be charged rate as applicable under Section 4 of the Sindh
Finance Act,2010 or 0.5% on market value whichever is higher .
(10) The Registration Fee for all properties to be transferred to and from Real Estate Investment Trust shall
be charged 1 percent in accordance with the valuation table or 0.25% of the market value of the property
which ever is higher.
59

Schedule Karachi Section 3

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DESCRIPTION OF INSTRUMENTS PROPER STAMP DUTY

1. Acknowledgement of a debit written on signed by or on behalf of, a

(b) for any payment of money without consideration;

(c) for any payment of rent by a cultivator on account of land accessed to

(d) for pay or allowances by non-commissioned or petty officers, soldiers,

(f) for pensions or allowances by persons receiving such pensions or

(g) given by a headman or lambardar for land-revenue or taxes collected by

Provided also that this exemption shall not extend to receipt or

A joint receipt given by a Government servant for a sum in excess of

Separate receipts should, however, be invariably given for money received

2. Stamped receipts not necessary when an officer of a Civil Court

When a Civil Court attaches money in the hands of Government, payable

Receipts passed by municipalities on account of house tax and cesses, &c.,

(b) Local Boards.

Under Section 50 of the Local Boards Act, money required by a Local

As regards money drawn to recoup advances, Rule 45 prescribes exactly

Receipt Drawn on account of an Incorporated Local Fund liable to

(c) Karachi Port Trust

Receipts granted by Karachi Port Trust in excess of Rs. 160 on account

Endorsement on Railway receipt sent through post exempt from stamp

A one-rupee (or two rupees) receipts stamp is nto required on endorsement

5. A receipt acknowledging the delivery of immovable property valued

2. Affidavit, including an affirmation or declaration Fifty rupees

3. Agreement or Memorandum of an Agreement

(b) if relating to the sale of an immovable Five hundred

(c) if relating to the re-conveyance of Five hundred

(d) if relating to the instrument of partner- Two thousand

(e) if not otherwise provided for; One hundred

(ii) Interpretation of the words “such consideration” in col. 2 of

The Commissioner, however concurs in the opinion expressed by the

The Remembrance of Legal Affairs concurs with the Commissioner

(iii) Document is not an agreement but a will.

“The document in question is a Will in which testatrix states that so

(v) Counterpart agreements executed under section 31 Akbari Act,

Licenses under the Abkari Act do not require to be stamped.

(vi) Indemnity bond given to Railway liable to stamp duty.

Indemnity note given to Railway by a Consignee is not an indemnity

(vii) Exploring and prospecting license

(viii) Agreement of commutation of pension.

Agreement executed in connection with the commutation of pension

(ix) Instrument of Cession of Rights.

Instrument of Cession of Rights executed by the owners of goods

(x) Contract Slips Stamping of counterparts of duplicates.

The document in question is a contract and liable to a duty of Rs.

(xi) Deeds of share transfers by inheritance.

Stamp duty on deeds of share transfers by inheritance is leviable

4 Allotment orders or Transfer Allotment orders

A- In respect of residential open plots-

a) up to 399 sq.yds. Ten rupees per Sq:yds

b) 400 sq.yds or above Thirty rupees per Sq:yds

ii) Commercial plots Forty rupees per Sq:yds

iii) Industrial plots Twenty rupees per Sq:yds

B-In respect of buildup property-

i) Residential house Ten rupees per Sq.ft

ii) Residential flats Five rupees per Sq.ft

iii) Commercial offices/ Fifteen rupees per Sq.ft

iv) Industrial units/ Fifteen rupees per Sq.ft

5. Article 5 omitted through the Sindh Finance Act, 2006, effective