Everything you wanted to know about Stamp Duty

Q. 1. What is the bombay stamp Act,1958?

The Bombay Stamp Act, 1958 comes into force on 16th February, 1959 and is applicable in the State of
Maharashtra. This Act is intended to levy Stamp duty on certain types of documents executed in the State or brought
from outside for acting upon the same in the State. The various instruments/documents are broadly covered under
different 62 articles listed in Schedule-I appended to the Act. The rates at which stamp duty is levied on these
documents are mentioned in Schedule –I. The Bombay Stamp Act, levies Stamp duty on documents/instruments by
which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.
The stamp duty is payable on instrument and not on the transactions.

Q. 2. What is Stamp Duty ?

It is a type of tax which is paid for the transaction performed by way of document or instrument under the provisions
of Bombay Stamp Act, 1958 and Indian Stamp Act, 1899.

Q. 3. Whether Stamp duty is payable on transactions or on instruments?

It is payable on instruments and not on transactions. The definition of the term instrument is very wide.

Q. 4. What is instrument ?
Instrument means any document by which any right or liability is, or purports to be, created, transferred, limited,
extended, extinguished or recorded.

Q. 5. What is document ?
As defined in Evidence Act, document means only matter expressed or described upon substance by means of
letters, figures or marks or by more than any of those means intended to be used or which may used for the purpose
of recording that matter.

Q. 6. Why Stamp Duty has to paid on document/instrument ?

The payment of proper Stamp duty on instruments bestows legality on them. Such instruments get evidentiary value
and are admitted in evidence in Court of law. The instruments which are not properly stamped are not admitted in
evidence .

Q. 7. Which provisions/ Articles of Indian Stamp Act, 1899 attracts Stamp duty in the state of Maharashtra ?
The following Articles of The Indian Stamp Act, 1899 attract Stamp duty in the state of Maharashtra

Article No. Description of instrument.

13 Bill of Exchange
14 Bill of Lading-
27 Debenture
37 Letter of Credit
47 Policy of Insurance
49 Promissory Note
52 Proxy
53 Receipt
62 Transfer

Q. 8. What is meant by execution of instruments?

Execution means putting signatures on the instruments by the person/persons executing the instruments.

Q. 9. How Stamp Duty is calculated.?

Broadly the 62 articles of Schedule I are grouped in three categories.
Category i) Articles whose amount of Stamp duty is fixed irrespective of the value mentioned in the document /
instrument. ( Viz. Administration Bond, Adoption deed, Affidavit, Divorce, Appointment in execution of power ,
Apprenticeship deed, Article of clerkship, Award, Cancellation deed, Charter party, Duplicate, Copy of Extracts,
Entry of Memorandum of Marriage, Indemnity Bond, Letter of license, Memorandum of Association of a company,
Notarial Act, Power of attorney, etc.)

Category ii) Articles where depending upon the value mentioned in the document, the amount of stamp duty is
varied. (Viz. Agreement relating to deposit of title deeds, pawn, pledge or hypothecation, Clearance List, Lease ,
Article of association, Mortgage deed, Security Bond, etc.)

Category iii) Articles which attracts Stamp duty on the consideration mentioned in the document or True Market
Value, whichever is higher. ( Viz. Conveyance, Agreement for sale, Gift, Exchange,Partnership Deed,Partition,
Development Agreement, Transfer, Trust, etc.)

For category I and II types of instruments the Stamp duty payable can be ascertained by referring to the Schedule I;
but to ascertain the Stamp duty on the instruments mentioned in Category III, the expertise in valuation is required.
The True Market Value is determined as per the provision of the Bombay Stamp ( Determination of True market
value of the property ) Rules, 1995.

Q. 10. What point of time of Stamp Duty payable. ?

The Section 17 & 18 of the Act states the time of payment stamp duty. Generally all the instruments executed in the
state shall be stamped before or at the time of execution or immediately thereafter or on the next working day
following the day of execution. Similarly, the instruments which is executed out of the state and within three months
from its receipt in the state, shall be stamped.

Q. 11. How is Stamp Duty payable?

Stamp Duty can be paid by
1. Using Stamp paper
2. Using adhesive stamps
3. Franking

Q. 12. Who is liable to pay Stamp Duty ?

As per the provisions of Section 30 the onus of payment of Stamp duty in the absence of an agreement to the
contrary, shall be borne by the executing in the manner provided their with respect of certain kinds of documents
viz. Mortgage deed, release, security bond, settlement, bond etc. in the case of conveyance, the grantee and lease the
lessee shall pay the stamp duty in the case of exchange of property, both the parties in equal share shall pay stamp
duty. In case of partition, the parties thereto in proportion to their respective shares should pay stamp duty.

Q. 13. What is meant by adjudication of instruments? Which authority is to be approached for adjudication
of instruments ? What is the amount of fees required to be paid for adjudication? What documents are to be
enclosed while submitting application for adjudication ?
Section 31, of Bombay Stamp Act, 1958 deals with the adjudication of the instruments. Adjudication means
determining the chargeability of stamps duty on instruments. The authority to be approached is the Collector of
Stamps appointed in each District. Application for adjudication should be accompanied by ¸ true copy or an abstract
of the instrument and also with such affidavit or other evidence as may be necessary to prove that all facts affecting
the chargeability of the instrument have been truly setforth in the instrument along with the proof of payment of Rs.
50/- as adjudication fee. Adjudication can be done both for signed as well as unsigned documents.

Q. 14. How to pay Stamp Duty ?

The Document which is chargeable with Stamp duty can be prepared on the non-judicial Stamp paper of appropriate
value. Unexecuted document can be got franked with special adhesive Stamps by Franking Machine intended for
stamping such documents, by tendering required amount in the office of collector of Stamps whereever this facility
is available. When documents is lodged for adjudication, on receiving intimation as to the amount of Stamp duty
payable by tendering appropriate amount equal to the amount of Stamp duty and penalty if any, the Collector of
Stamp shall certify the document as to the payment of proper duty.
Q. 15. What is the validity of Stamps ?
As per the provisions of Section 52-B, the stamps which are purchased and not used within six months shall be
rendered invalid thereafter. The stamps purchased and not used for intended purpose are entitled for refund after
deduction of certain charges, if lodged for refund within six months from the date of purchase and on fulfilling the
conditions stipulated in Chapter V of the Bombay Stamp Act, 1958.

Q. 16. What are the consequences of not paying Stamp duty?

The documents if not duly stamped, shall not be admissible in evidence in the court of law. As per the provision of
Section 59, any person who, with the intention to evade the Stamp duty, executes or signs any instruments
chargeable with stamp duty, without the same being duly stamped, shall on conviction, be punished with rigorous
imprisonment for ¸ term which shall not be less than one month but which may be extended upto six months and fine
upto Rs. Five Thousand. The Section 67 and 68 empowers the authorities to enter upon any premises and to inspect
and impound/seize the documents which are not duly stamped and burden is casted upon every public officer to
assist the authorities in detection of evasion. The documents impounded for want of proper duty, attracts penalty @
2 % per month from the date of execution of such document.Miscellaneous

Q. 17. In whose name the stamps are required to be purchased ?

The stamps are required to be purchased in the name of one of executors to the instrument.

Q. 18. What happens if the instrument is executed on stamps which does not bear the name of one of the
executors.?
Such instruments are not admitted in evidence, for any purpose. These instruments are also treated as not properly
stamped. These instruments are liable to be impounded and sent to the Collector of Stamps for recovery of proper
stamp duty.

Q. 19. What are the rates of Stamp duty on instruments relating to transfer of immovable property.
The rates of stamp duty on instruments relating to transfer of immovable property vary from place to place. The
rates are specified in Article 25 of Schedule 1 appended to the Bombay Stamp Act, 1958. However, Article 25(d)
which deals with the instruments of transfer of residential premises in ¸ Co-operative Housing Society or where the
provisions of Maharashtra Ownership Flats Act 1963 and the Maharashtra Apartment Ownership Act, 1970 apply,
provides for levy of concessional rates of Stamp duty. In areas, where the provisions of the aforesaid Acts apply,
residential premises upto ¸ market value of Rs. 1,00,000/- attract such concessional rates. Instruments relating to the
transfer of residential premises of market value of more than Rs. 1,00,000/- attract normal rates of stamp duty for
values over and above Rs. 1,00,000/- as applicable in that area. Such normal rates are 8 %, 6%, 3 %, 5 %. Etc.
depending on where the property is situated.

Q. 20. Whether any penalty is levied in cases referred to the Collector by the Sub-Registrar for determination
of true market value of the property where the Collector comes to the conclusion that the true market value
of the property was not stated in the instrument ?
In addition to recovery of deficit Stamp duty in such cases, the concerned party is required to pay penalty of Rs.
250/- plus 15 % interest for each year or part of the year on the deficit amount from the date of presentation of
instrument before the Sub-Registrar.

Q. 21. What remedy is available to the parties, in case they do not agree with the true market value of the
property as determined by Collector of the District ?
The parties can go in appeal to the Chief Controlling Revenue Authority, Maharashtra State, Pune. under section 32
B of Bombay Stamp Act, 1958.

Q. 22. Is the chargeability of stamp duty determined by the Collector of stamps in adjudication final? Can ¸
person go in an appeal against the order passed by the Collector of Stamps? Is there any time limit for filing
the appeal?
The chargeability of stamp duty on the instrument as determined by the Collector of Stamps is not final. The person
affected by the order of the Collector of Stamps can go in appeal to the Chief Controlling Revenue Authority,
Maharashtra State, Pune as provided in section 53 of the Bombay Stamp Act, 1958, limit prescribed for the filing of
an appeal is within 60 days.

Q. 23. Why do the authorities insist on disclosure of relevant facts and circumstances to be fully and truly set
forth in the instrument?
Section 28 of the Bombay Stamp Act, 1958 casts the duty on the executants to disclose and truly set forth relevant
facts and circumstances in the instruments. This helps in finding out the types of transactions involved in the
instruments which in turn helps in the determination of proper stamp duty payable on such instruments. Duty is not
payable on the title or the heading given on the top of the instrument but on the recitals as stated in the instruments.

Q. 24. Can there be refund of Stamp duty in case if the Stamp paper is unused or multiliated?
Yes, Refund can be claimed v/s 47 of The Bombay Stamp Act 1958. However such claim can be made to the
collector of Stampswithin a period of 6 months from the date of purchase of Stamps

Q. 25. What is meant by impounding of instruments?

Every person having by law or consent of parties authority to receive evidence and every person in charge of ¸
public office before whom any instrument chargeable with stamp duty is produced or comes in the performance of
his functions. Shall if it appears to him that instrument is not duly stamped, impound the same, irrespective whether
the instrument is not valid in law. Such impounded document is required to be forwarded to the Collector of Stamps
for recovery of deficit stamp duty in addition to penalty at the rate of 2 % per month .

Q. 26. As the cost of flat is required to be paid in installment as per agreement whether the stamp duty can be
recovered in part at the time of payment of such installments instead of making full payment at the time of
entering into the agreement ?
No. Stamp duty cannot be paid in settlements, Various chambers Associations have made suggestions and
representations to the stamp authorities in this regard. However till date no effort is made by the Stamp authorities
towards implementation of the same.

Q. 27. In case where the builder sells ¸ flat to an individual in ¸ building where the society is not formed and
the document is not stamped and the individual resells the flat to another persons who pays the stamp duty.
The builder confirms the said agreement and thereafter the society is formed. The purchaser becomes ¸
member of ¸ society. Whether the original purchaser in future will be liable to pay stamp duty and whether
stamp duty can be charged on the flat and whether the first purchaser can be forced to pay the stamp duty by
the Government or it will be have to be borne by the second purchaser again who is the present owner of the
flat. ?
The original purchaser will be liable to pay stamp duty on the fair market value prevalent at the date of the document
as determined by the Stamp authorities as stamp duty is paid on each transaction. However, the reply is subject to
the confirmation of the Hon’ble Supreme court of India. In the question under consideration in my opinion person is
responsible to pay stamp duty on only his own purchase transaction and hence the second purchase in my opinion
will not be liable to pay the unpaid stamp duty of the first purchaser.

Q. 28. On what basis ( Carpet, Built-up or Super built-up ) are the rates fixed by the stamp authorities ?
For the purpose of determination of True Market Value, the Built-up area is taken into account.

Q. 29. Will stamp duty have to be paid if there is a ¸deed of family settlement and a flat is transferred
amongst family members ?
Yes. As per the provisions of Bombay Stamp Act, Stamp duty will have to be paid on a deed of family settlement.

Q. 30. Will stamp duty have to be paid if the flat is gifted by a donor ?
Yes. Stamp duty will have to be paid if the flat is gifted by the donor.

Q. 31. Is the decree of final order of a civil court by which immovable property is transferred be liable to be
stamped as a conveyance ?
Yes, After the amendment of Article 25 of the Bombay Stamp Act. The definition of conveyance has been widened,
in view of the amendment decree or final order of the court by which immovable property is transferred is liable to
be stamped as a conveyance.

Q. 32. In case of resale of the flat who has to pay the Stamp duty, the purchaser or the seller ?
The parties can themselves decide who shall pay the stamp duty. If nothing is mentioned in the agreement then as
per section 30 of the Bombay Stamp Act, 1958 if the transaction relates to resale of flats then the stamp duty will
have to be paid by the purchase.

Q. 33. Are orders made by the High court under section 394 of the Companies Act, 1956 in respect of
amalgamation of companies be liable for payment of stamp duty as on a Conveyance ?
Yes, after the amendment made in 1993, the preview of Article 25(d) has been widened so as to bring orders made
by the High Court under section 394 of the Companies Act, 1956. In respect of amalgamation of companies.
Therefore stamp duty as on a Conveyance will have to be paid on such orders.

Q. 34. In whose name should the stamp paper be purchased. ? Can the client execute the document on ¸
stamp paper purchased by an Advocate ?
As per section 34 of the Bombay Stamp Act, 1958 the stamp papers should be in the name of one of the parties who
has signed the documents. Therefore the stamp paper should be purchased in the name of one of the parties who
would be signing the instruments. If the stamp paper has been purchased in the name of an Advocate, C.A., etc than
such instrument shall be treated as an instrument not duly stamped and shall be inadmissible in evidence.

Q. 35. What are the different types of documents?

As of today there are 62 kinds of documents each one signifying a separate kind of deed. These are as follows:
(numbers in italics indicate the serial no. of support documents required from the support document list furnished
below; absence of number indicates that no support documents are required).

1. Acknowledgement
2. Administration Bond
3. Adoption Deed
4. Affidavit
5. Memorandum of an Agreement.
6. Agreement relating to deposit of Title deeds, pawn, pledge or hypothecation
7. Appointment in execution of power
8. Appriasal or Valuation
9. Apprenticeship Deed
10. Articles of Association of a company
11. Articles of clerkship
12. Award
13. Bond
14. Bottomory Bond
15. Cancellation
16. Certificate of sale
17. Certificate or other document
18. Charter Party
19. Clearance List (purchase or sale of Government Securities)
20. Clearance List (purchase or sale of cotton)
21. Clearance List (purchase or sale of bullion)
22. Clearance List (purchase or sale of oil seeds)
23. Clearance List (purchase or sale of yarn)
24. Composition Deed
25. Conveyance ( 1,2,3,4,5,6)
26. Copy or Extract
27. Counterpart or Duplicate
28. Customs Bond or Excise Bond.
29. Delivery Order
30. Divorce
31. Entry or memorandum of marriage.
32. Exchange of property (1,2,3,4,5,6)
33. Further charge
34. Gift (1,2,3,4,5,6)
35. Indemnity Bond
36. Lease (1,2,3,4,5,6)
37. Letter of allotment of shares
38. Letter of license
39. Memorandum of association of a company
40. Mortgage Deed (1,2,3,5,6)
41. Mortgage of crop
42. Notarial Act
43. Note or Memorandum
44. Note of protest by master of ship
45. Order for the payment of money
46. Partition (4,5,6)
47. Partnership
48. Power of Attorney
49. Protest of Bill or Note
50. Protest of the master of ship
51. Reconveyance of mortgaged property
52. Release (1,2,3,4,5,6)
53. Respondentia Bond
54. Security Bond or Mortgage Deed (1,2,3,5,6)
55. Settlement (1,2,3,4,5,6)
56. Share Warrants
57. Shipping Order
58. Surrender of Lease (1,2,3,4,5,6)
59. Transfer (1,2,3,4,5,6)
60. Transfer of Lease (1,2,3,4,5,6)
61. Trust (1,2,3,4,5,6)
62. Warrant of goods.
Documents can also be classified as Testamentary and Non Testamentary depending upon the time when they come
into force. E.g. Will is of testamentary type because it doesn’t come into force immediately whereas a sale deed is a
non-testamentary document since it has immediate effect.On the same lines, some documents have to be
compulsorily registered e.g. a sale or lease deed while registration for some is optional e.g. affidavit.

Q. 36. What are the different support documents generally required to be submitted for registration?
For registration purpose, some of the above documents should be accompanied by one or more support documents.
The list of support documents is as follows:
1. Income Tax clearance certificate under 230 A-1 (ITC) Act 1961.
2. Income Tax certificate 269 UL (37I) Act 1961.
3. Permission under Urban Land Ceiling Act 1976 , section 26.
4. Bombay Stamp Act 1958, section 32 A.
5. Bombay Stamp Act 1958, section 33.
6. Registration Act 1908 sections 25 and 34.
 Everything you wanted to know about Registration
Q.1. What is Registration?
Registration means recording of the contents of a document with a Registering Officer and preservation of copies of
the original document.

Q.2. Why documents are to be registered?

The documents are registered for the purpose of conservation of evidence, assurance of title, publicity of documents
and prevention of fraud. Also, registration helps an intending purchaser to know if the title deeds of a particular
property have been deposited with any person or a financial institution for the purpose of obtaining an advance
against the security of that property.

Q.3. Which documents require to be compulsorily registered?

Section 17 of the Registration Act, 1908 lays down different categories of documents for which registration is
compulsory. The documents relating to the following transactions of immovable properties are required to be
compulsorily registered;
(a) Instruments of gift of immovable property
(b) Lease of immovable property from year to year or for any term exceeding one year or reserving a yearly
rent.
(c) Instruments which create or extinguish any right or title to or in an immovable property of a value of more
than one hundred rupees.
Under section 2(6) of the Registration Act, 1908 the term “ Immovable property” includes: “Land,
buildings, hereditary allowances, rights to ways, lights, fisheries or any other benefit to arise out of land,
and things attached to the earth, or permanently fastened to any thing which is attached to the earth, but not
standing timber, growing crops nor grass.”

Q.4. Whose document has to be registered?

Section 28 of the Registration Act, 1908 states that all documents of which registration is compulsory if it relates to
an immovable property as well as a few documents of which registration is optional should normally be presented
for registration in the office of Sub-Registrar within whose sub-district the whole or some portion of the property to
which the document relates is situated.

Q.5. Is it possible to register a document at a person’s private residence?

Under Sections 31 of the Act, a provision has been made authorising the Registering Officer, on special cause being
shown ( for instance if the person is physically handicapped ) to attend at the residence of any person desiring to
present a document for registration and accept for registration such a document or a “Will”, provided Registering
Officer is satisfied about the special cause shown is sufficient.
Q.6. What procedure is followed at the time of lodging a document for registration ?
For registration of any instrument, the original document which should be typed/printed on one side only along with
two photocopies of the original have to be submitted to the Registering Officer. The copies are required to be
photocopied only on one side of the paper and there has to be a butter paper between the two photocopies papers.
This is done so as to prevent the typed matter from getting spoilt. The registration procedure also requires the
presence of two witnesses and the payment of the appropriate registration fees. On completion of the procedure, a
receipt bearing a distinct serial number is issued. The following requirements are completing the registration are
usually stated on the receipt:

(a) Market Value of the property;

(b) Income-Tax clearance, i.e. NOC. under Section 269 YL (3) issued by the Appropriate Authority constituted
under Chapter XX-C of the Income Tax Act, 1961 if the same is applicable;
(c) Certificate under section 230-A of the Income Tax Act, 1961 granted to the Transferor by the assessing
officer of the Transferor
d) Urban Land Ceiling declarations of the transferor/s and the transferee/s.
Q.7. What are the fees for registration of a document?
The State Government has been empowered to fix the fees for registration of the document. The registration fees at
present fixed for registering documents relating to property transactions are approximately 1 % of the consideration
of the document but subject to a maximum limit of Rs. 20,000/- The registration fee for the following immovable
property transactions is leviable on the market value of property on which stamp duty is charged. The transactions
are as under:
(i) Conveyance,
(ii) Exchange,
(iii) Gift,
(iv) Partition,
(v) Transfer of Lease by way of Assignment,
(vi) Sale,
(vii) Settlement,
(viii) Power of Attorney given for consideration and
(ix) Authorising the attorney to sell the property.

In the case of lease, the amount of registration fees will be dependent either on the premium or on the sum payable
under the lease or period/periods of lease.

Q.8. Who can present the document for registration?

Section 32 of the Registration Act, 1908 deals with the provisions relating to the presenting of documents for
registration by a person. Subject to certain exceptions, every document which is to be registered under the provisions
of the Act should be presented at the proper registration office by: (a) the concerned person himself/herself, or (b)
the representative or the agent of such a person duly authorised in manner as is stated in Section 33 of the
Registration Act, 1908.

Q.9. What should be the language of the document?

The language of a document presented for registration should be in a language commonly used in the district
existing in the State. Under section 19 of the Act, the Registering Officer is empowered to refuse to register a
document if it is presented for registration in a language which is not commonly used in the district unless the
document is accompanied by a true translation into a language commonly used in the district and also by a true
copy.

Q.10. Is a description of an immovable property, which is the subject matter of the document to be registered
necessary to be set out in the Schedule attached to the agreement? Is it necessary to annexe maps or plans of
the immovable property?
Section 21 of the Act deals with the provisions relating to the description of an immovable property alongwith maps
or plans. It is always necessary, with a view to identify the property involved in a document, that the description of
the property is mentioned in a separate schedule, preferable with maps or plans, so as to enable the Registering
Authority to make notes in the books to be preserved. The description should mentioned the area of the property, the
number of the property, the boundaries of the property, the streets on which it is situated, along with the name of the
village, Taluka, district. The city Survey Number, with Hissa Number if any, should also be mentioned. It is the
discretion of the registering officer to refuse to accept a document if the description of the immovable property is not
sufficient to identify the property correctly.

Q.11. Is the Registration of a document relating to the transfer of a property in a unregistered society
compulsory?
Yes, in such circumstances it is advisable to register such a type of a document. However, for further details in a
various situations of transfer, please refer to the chart in Annexure XII in page 90 of this book dealing with various
situations wherein registration of a document is compulsory or optional.

Q.12. What are those documents, of which registration is optional?

Section 18 of the Act lays down the instruments of which registration is optional. Some of these instruments are
listed as under :-
(a) Instruments ( other than instruments of gifts and wills) relating to the transfer of an immovable property, the
value of which is less than one hundred rupees.
(b) Instruments acknowledging the receipt or payment of any consideration.
(c) Lease of an immovable property for a term not exceeding one year.
(d) Instruments transferring any decree or order of a court where the subject matter of such decree or order is an
immovable property, the value of which is less that one hundred rupees.
(e) Wills.

Q.13. Is the registration of a document compulsory under the provisions of the Maharashtra Ownership Flat
Act, 1963?
Yes, registration is necessary under the provisions of this Act. Under Section 41(1) of the Maharashtra Ownership
Flats ( Regulation of promotion of construction, sale, management and transfer) Act, 1963, it is laid down that
notwithstanding the provisions of any other laws, the agreement in respect of flats to be sold by the
owner/promoter/developer to the flat purchaser requires compulsorily to be registered under the Registration Act.

Q.14. Is registration necessary under the provisions of the Maharashtra Apartments’ Ownership Act, 1970?
Yes, registration is necessary under this Act. Under Section 13 of the Maharashtra Apartment Ownership Act, 1970
it is necessary on the part of the owner/owners to execute a declaration with regard to description of the land on
which the building and improvements are to be located, including the number of storeys, basements, number of each
apartment, area of each apartment, number of rooms and immediate common area etc. Alongwith a set of floor plans
of the building showing the layout, location, and dimensions of the appurtenance and bearing the verify statement of
an architect certifying that the same is an accurate copy of the floor plans of the building as filed with and approved
by the local authority within whose jurisdiction the building is located.
Section 13(3) of the said Act requires that in all registration offices a book called Register of Declarations and Deeds
of Apartments under The Maharashtra Apartment Ownership Act, 1970 and a relevant index, be in a particular form
and should contain such particulars as the State Government may prescribe. Under Section 13(5) of the said Act, the
sub-Registrar or Registrar must register the declaration along with floor plans of the building and the Deed of
Apartments in a Register of Declarations and Deed of Apartments under the said Act and shall also enter the
particulars prescribed in the index kept under sub-section (3). Any person acquiring any apartment or any apartment
owner shall be deemed to have notice of the Declaration and of the Deed of Apartments as form the date of its
registration under this section.

Q.15. Is registration of the agreement necessary if a person agrees to transfer his right, title or interest in a
premise purchased from an owner/promoter/developer to another person before the society is formed?
Yes, it is advisable to get an agreement registered in these circumstances.

Q.16. Is the registration of an agreement to transfer a flat necessary after the registration of a co-operative
society?
No. After registration of a co-operative society the purchasers of various premises become members and
shareholders of such a society, and as such the members are thereby governed under the provisions of The
Maharashtra Co-operative Societies Act, 1960.
Under Section 41 of the Maharashtra Co-Operative societies Act, 1960, the provisions of clause (b) and (c) of sub
section (1) of Section 17 of the Registration Act, 1908 do not apply to any instrument relating to shares in a society
although the assets of the society consist in whole or in part of immovable property. In a registered society, the
member actually transfers his right in the shares held by him and consequently transfers the premises in his use,
occupation and possession. Thus, it is not necessary to register such an agreement.

Q.17. What are the consequences of non-registration of a document which are compulsorily registrable?
According to Section 49(c) of the Act, if a document of which registration is compulsory under Section 17 of
Registration Act, has not been registered, it cannot be produced as an evidence in a court of law.

Q.18. What is the time frame prescribed for registration of a document?

Under Section 23 of the Act, subject to certain exceptions, any document other than a will has to be presented for
registration Within Four Months from the date of its execution. The term “execution” means signing of the
agreement. Under the present rules and regulations, all agreements in respect of a transfer of a premise or an
immovable property have to be duly stamped, under the provisions of the Bombay Stamp Act, 1958 before the
document is presented for registration.

Q.19. What is the remedy, if document is not registered within a prescribed period of four months?
As per the provisions of Section 25 of the Indian Registration Act, 1908 if a document is not presented for
registration within the prescribed time period of four months, and if in such a case the delay in presentation of the
document does not exceed a subsequent period of four months, then the parties to the agreement can apply to the
Registrar, who may direct that on payment of a fine not exceeding ten times the proper registration fees, such a
document should be admitted for registration.

Q.20. If the delay goes even beyond these additional four months, can the parties concerned make an
application to condone the delay? And to whom should it be made?
The Parties followed in such an event is that the parties to the document execute a Deed of Confirmation confirming
that the main deed is valid and binding upon them. By way of such a deed the transferor/s also confirm/s that he/they
hold/s no right, title and interest in the property and the same is being transferred to the transferee/s. A copy of the
main deed is annexed to this Deed of Confirmation. This is the only manner in which the lapse in registration can be
rectified.

Q.21. Can a document relating to an immovable property in India be executed out of India ? If so, can it then
be registered in India?
Yes, a document relating to an immovable property can be executed out of India and later it can be presented for
registration in India. As per Section 26 of The Registration Act, 1908 if a document purporting to have been
executed by all or any of the parties out of India is presented for registration within the prescribed time, the
Registering Officer may, on payment of proper registration fee, accept such document for registration if he is
satisfied that :
(a) the instrument was executed out of India.
(b) the instrument has been presented for registration within four months after its arrival in India.

Q.22. Does a Deed of Rectification rectifying the mistakes in the names of the parties, the figures, the description
etc. In the duly registered main document require registration ?
If the main document/agreement is registered, then in that event it is always necessary to register the Deed of
Rectification too.

Q.23. Is the Registering Officer empowered to make any enquiry about any person purporting to have
executed the document?
The Registering Officer is empowered under Section 34(3) of The Registration Act, to enquire whether or not such a
document was executed by the person by whom it purports to have been executed. In order to satisfy himself, the
Registering Officer may ask the person appearing before him to prove his identity. In the case of any person
appearing as a representative or agent, the Registrar may ask for relevant documents which show that the has the
right to appear on behalf of his Principal. After carrying out such an enquiry, the Registering Officer is entitled to
refuse the registration of a document if he is not satisfied with his findings.

Q.24. What is the recourse available to a person wishing to register a document which has been refused by
the Registrar?
Where the refusal order/direction of the Registrar/Sub-Registrar is on the ground other than that of denial of
execution, the appeal lies to the Registrar under Section 72 of the Act. On such a refusal to admit a document for
registration, any person wishing to register the same should, within 30 days from the date of refusal, appeal to the
Registrar to whom such Sub-Registrar is subordinate, in order to establish his right to have the document
registered.In such an event, under Section 74 of the Act, the Registrar may enquire whether the document has been
executed and whether the requirements of the law currently in force have been complied with on the part of the
applicant or the person presenting the document for registration, as the case may be, so as to admit the document for
registration. For the purpose of an enquiry, as per Section 74(4) of the Act, the Registrar is empowered to issue
summons to enforce the attendance of witnesses and compel them to give evidence as if he were a Civil Court. As
per Section 75(1) of the Act, if the Registrar finds that the document has been executed and that the said requirement
had been complied with he can order for registration of the document. As per Section 77 of the Act, when the
Registrar refuses to order the document to be registered, any person claiming under such a document or his
representative, assignee or agent may within 30 days after making the order of refusal institute a suit in the proper
Civil Court for a decree directing the document to be registered.

Q.25. What is the procedure on admitting a document to registration?

If all the persons executing the document appear personally before the officer and/or are personally known to him or
if he is otherwise satisfied that they are the persons they represent themselves to be and if they all admit the
execution of the document, the Registering Officer should register the document as required under Section 58 of the
said Act.
He should endorse the following particulars, namely :
(a) The signature and admission of every person admitting the execution of the document in person or by his
representative, assign or agent;
(b) The signature and admission of every person examined in reference to such a document;
(c) Any payment of money or delivery of goods made in the presence of the Registering Officer in reference to
the execution of the document and any admission or receipt of consideration made in his presence in
reference to such execution. If any person admitting the execution of a document refuses to endorse the
same, the Registering Officer nevertheless is empowered to register such a document but he should endorse
a note of such a refusal and as required under Section 59 of the Act, as he should affix the date and his
signature to all endorsements made under Sections 52 and 58 of the Act which is relating to the same
document.
After completion of all formalities related to registration, the Registering Officer shall endorse on the
document a certificate containing the word “Registered” together with the number and page of the book in
which the document has been copied. Later, the endorsements and certificate shall thereupon be copied into
the margin of the Register book. The copy of maps on plans of any, shall be filed in Book No.1. The
registration of the document is then deemed to be completed and the document is returned to the person
who presented the same for registration or to such other person if any, who has been nominated in writing
in that behalf on the receipt mentioned in Section 52 of the Act. However, such original documents are
returned by post or by hand delivery only after the proper procedure for the preservation of the original
document has been completed by the Registration Authorities.

Q. 26. What is a Power of Attorney?

A Power of Attorney is a document which empowers a specific person to act on behalf of the person who is
executing the same. It also includes any document by which a person is authorised to appear and act on behalf of a
person who is executing the power of attorney. A power of attorney may also be given by a person to another to
appear before any Court, Tribunal or Authority or before a Co-operative Society or any Body or Association.

Q. 27. Is the confirming parties Income Tax Clearance Certificate required while registering an agreement?
No, the confirming parties Income Tax Clearance Certificate is not required while registering an agreement as held
in the judgement delivered by the Bombay High Court in the Writ Petition No.734 of 1993 on 13.6.95 in the case of
Freight Wings and Travels Pvt. Ltd. and others v/s. Sub Registrar of Mumbai and others.

Q. 28. In what circumstances income tax clearance certificate of the seller required while registering the
document ?
Income Tax Clearance Certificate of the seller is required if the apparent consideration exceeds Rs. Five Lacs.

Q. 29. What other documents are required while registering a document?

The parties should as far as possible :-
(a) Obtain an Income Tax Clearance Certificate of the seller for all properties above Rs. Five Lacs and the
NOC from the Appropriate Authority if applicable (if the consideration exceeds Rs. Seventy Five Lacs for
the city of Mumbai then the permission from the Appropriate Authority will be required).
(b) Get the documents adjudicated from the Collector of the Stamps and duly certified that the proper stamp
duty has been paid.
(c) Comply with the formalities of Urban Land Ceiling and Registration Act, 1975 (if applicable) if the area
exceeds 500 sq.mts.
If the above formalities are not complied then the original agreement will not be received by the parties
after registration.
Q. 30. Where the registration of document is done?
As per Section 28 and 29 of the Registration Act the document should be presented for registration at the office of
the Sub-Registrar of Assurances within whose sub district the whole or some portion of the property to which such
document relates is situated or in the office of the Sub-Registrar situated at Mumbai, Delhi, Madras or Calcutta.

Q. 31. Under what circumstances the registration of document is refused?

The normal grounds for non-registration of document/s are :-
(a) Document is opposed to public policy.
(b) Parties have not complied with the formalities as laid by the Registration Act and by any reasons by which
registering authority is not satisfied.
(c) The Survey No. Of the property is not mentioned in the document/s.
(d) The language in which the document is executed is not in the language that is normally prevalent in the area
where the office of the registering authority is situated.

Q. 32. How is the title of the property verified?

Normally the person purchasing the property has to ensure that the seller has a good and marketable title. In order to
find out if the title of the seller is clear and marketable, one has to take search of the property. The search of the
property has to be taken at the offices of the relevant Sub-Registrars, normally 30 years search has to be taken. The
purchaser can also ask copies of the documents lodged with the office of the Sub-Registrar to the seller. The
objections pertaining to the title of the property can be easily verified after taking the search, for example : if the
party has mortgaged and registered the documents with the Sub Registrar of Assurances then it can be known only
after taking the search of the property. After satisfying the title of the property the party should proceed with the
transaction

Q. 33. What are the different types of fees?

Various kinds of fees and their particulars as of date are listed below

(1) Registration fee: Charged as service fee and 1% of the market value of the property. Maximum limit on
registration fee charged is Rs. 25000/-.
(2) Copy fee: levied at Re. 1 for 2 folios (1 folio = 100 words) for making a copy of the document.
(3) Postage fee: for dispatching the document to the executant by post.
(4) Search fee: charged for search of the document as per the applied by the party. The amount depends on no.
of years on which search is to be taken Rs. 5 for first year and Rs. 2 per subsequent year.
(5) Fine : The executant is fined for lapses on his part in following cases

(A) As per section 25 of The Registration Act the executant is

fined if he does not present the document at the SRO within four months of date of execution .The
time frames and fine amount are as
(i) Fine is 2.5 times of the registration a fee for the first month after the initial four-month period.
(ii) times the registration fee for second month.
(iii) 7.5 times the registration fee for third month.
(iv) 10 times the registration fee for fourth month.

(B) As per section 34 starts if the executant fails to register the document four months after the date of
admission. The fine to time span relation remains same as prescribed in section 25.
* Fine charged is inclusive of the registration fee.
* Fine is not levied simultaneously under both 25 and 34 sections.
(6) Certified copies fee: fixed and charged for providing the applicant with a true copy of document.
(7) Index II fee : for giving a copy of Index II to the applicant
(8) Extra fee: charged towards recovery of partly paid registration fee.
(9) Comparing fee: fixed and applicable when two copies of printed document are to be manually compared for
mismatches if any.
(10) Filing fee: levied for binding the document in the volume.
(11) Power of Attorney fee: separate format. Fixed at Rs.5 for general and Rs.3 for special.
(12) Attendance fee: Applicable if the SR has to personally visit the executant at his place of convenience for
admission and identification.
(13) Will registration fee: fixed at Rs. 20 for registering the will at JDR office.
(14) Will opening fee: fixed at Rs.20 and levied for opening the sealed will envelope.
(15) Will withdrawal fee: Applicable if the applicant reverts already registered will, fixed Rs. 20.
(16) Dead stock fee sales fee: charged on dead stock sold at government offices.
(17) Travelling expenses: For court attendance of an official. Claimed in TA bills and paid by the client.
(18) Allowance : payable according to no. Of days of travel and place of travel.
(19) Marriage fee : Fixed for registering a marriage. Fixed Rs. 3.