Section 23
/r·sf1 ume1.t teS'J vtng mtcresl -Where interest is ex·pressly made payable by the terms of an instrument, such instrument shall not be chargeable wtth duty higher than that with which it would have been chargeable had no mention of interest been made therein.
23. /r·sf1 ume1.t teS'J vtng mtcresl -Where interest is ex·pressly made payable by the terms of an instrument, such instrument shall not be chargeable wtth duty higher than that with which it would have been chargeable had no mention of interest been made therein.
Cerlni11 imltttmmfs comrcclcd with morlgngcs of mmkclnblt secrmties to be cllllrgeafJ!e ns ag1 ccnwt/s.-(1) Where an instrument-
( a) is given upon the occasion of the d\Jposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt; or
(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable secunty,
it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article 5 of the Schedule.
A release c.r discharge of any such instrument shall be chargeable with the like duty,
How lra11S/cr i11 cotlszderaltotz of debt, or sub? eel to fulm e paymmt etc, to be cltargcd.-Where any property is transferred to any person in consideration, wholly or in part, o{ any debt due to him or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not such debt, money, or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
Provided that nothing in this section shall apply to any such certificate of sale as in mentioned in Article 16 of the Schedule.
E:.pla11atio11.-ln the case of a sale of property subject to a mortgage or other incumbrance any unpaid mortgage money or money charged, together with the interest, if any, due on the same, shall be deemed to be part of the consideration for the
Provided that, where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.
Illustrations.
(l) A. owes B Rs. J ,000. A sells a property lo B the consideration being Rs 500 and the release of the previous debt of Rs. 1,000. Stamp duty is payable on Rs. 1,500.
A sells a property to B for Rs 500 which is subject to a mortgage to C for Rs 1,000 and unpaid intP.rec;t Rs. 200. Stamp duty is payable on Rs. 1,'700.
i
I
I
!
1
(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5000. B afterwards buys the house from A Stamp duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the mortgage.