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INDIAN STAMP (MADHYA PRADESH AMENDMENT) ACT, 2022

INDIAN STAMP (MADHYA PRADESH AMENDMENT) ACT, 2022

INDIAN STAMP (MADHYA PRADESH AMENDMENT) ACT, 2022

[Act No. 17 of 2022]

[29th September, 2022]

PREAMBLE

An Act further to amend the India Stamp Act, 1899 in its application to the State of Madhya Pradesh.

Be it enacted by the Madhya Pradesh Legislature in the seventy-third year of the Republic of India as follows--

Section 1 - Short Title and Commencement

(1)     This Act may be called the Indian Stamp (Madhya Pradesh Amendment) Act, 2022.

(2)     It shall come into force from the date of its publication in the Madhya Pradesh Gazette.

Section 2 - Amendment of Central Act No. II of 1899 in its application to the State of Madhya Pradesh

The Indian Stamp Act, 1899 (No. II of 1899) (hereinafter referred to as principal Act), shall in its application to the State of Madhya Pradesh be amended in the manner hereinafter provided.

Section 3 - Amendment of Schedule I-A

In Schedule I-A to the principal Act,--

(i)       in article 6, for clause (d) and the Explanation given thereafter, the following clause and Explanation shall be substituted, namely:--

"(d) If relating to the development or redevelopment of land or property and/or construction or reconstruction thereon, by a person or agency other than owner or lessee of such land or property:

(i) if having the stipulation that after development or redevelopment, such developed or redeveloped property or part thereof shall be held or sold by the developer, by whatever name called, either severally or jointly with the owner or lessee.

The same duty as a conveyance (No. 25) on the market value of only that portion of the entire land proposed to be developed or redeveloped which is proportionate to the developed or redeveloped property to be held or sold by the developer jointly or severally, or half of the duty as a conveyance (No. 25) on the market value of the entire land proposed to be developed or redeveloped, whichever is higher.

(ii) for cases not covered by (i) above.

0.25 percent of the market value of the entire land proposed to be developed or redeveloped, subject to minimum of one thousand rupees.

Explanation.-- For the purpose of this article, --

 

(i) "development" and "developer" shall have the same meaning as assigned to them respectively in Section 2(f) of the Madhya Pradesh Nagar Tatha Gram Nivesh Adhiniyam, 1973 (No. 23 of 1973) and rule 2(1)(b) of the Madhya Pradesh Special Project and Township (Development, Regulation and Control) Rules, 2011.

(ii) where the developed property is held or sold jointly but the share of the developer is not expressly mentioned in the document, the developer's share shall be deemed to be 100

 

(ii)      in article 7, for clause (b) and Explanation I and Explanation II thereafter, the following clause and Explanations shall be substituted, namely :--

"(b)

the pawn, pledge or hypothecation of movable property, where such pawn, pledge or hypothecation has been made by way of security for the repayment of money advanced, or to be advanced by way of loan or an existing or future debt, Where debt or loan amount is:--

 

(i)

upto Rs. 50,000

Fifty rupees.

(ii)

Above Rs. 50,000 but upto Rs. 5 lakhs

Five hundred rupees.

(iii)

Above Rs. 5 lakhs but upto Rs. 10 lakhs

Two thousand rupees.

(iv)

Above Rs. 10 lakhs but upto Rs. 50 lakhs

Ten thousand rupees.

(v)

Above Rs. 50 lakhs

0.25 percent of the amount of loan or debt subject to a maximum of seven lakh and fifty thousand rupees.

Explanation I.- On an instrument relating to deposit of title deeds or pawn or pledge or hypothecation for securing repayment of money advanced or to be advanced by way of loan or an existing or future debt of a higher amount than one secured by

 

earlier instruments of like nature, the duty shall be chargeable only on the additional amount in case the proper stamp duty has been paid on the earlier instrument.

Explanation II.- For the

purpose of clause (a) of this article, notwithstanding anything contained in any judgment, decree or order of any court or order of any authority, any letter, note, memorandum or writing relating to the deposit of title deeds whether written or made either before or at the time when or after the deposit of title deeds is effected, and whether it is in respect of the security for the first loan or any additional loan or loans taken subsequently, such letter, note, memorandum or writing shall, in the absence of any separate agreement or memorandum of agreement relating to deposit of such title deeds, be deemed to be an instrument, evidencing an agreement relating to the deposit of title deeds.";

 

(iii)     in article 13, in column (2), the following explanation shall be added, namely -

"Explanation.-- In case of renewal of a bank guarantee, executed between the same parties for the same amount, payable duty shall be one thousand rupees, in all other cases, payable duty shall be as per article 13.";

(iv)    in article 25, in column (2), in proviso, for clause (b), the following clause shall be substituted, namely--

"(b) When an instrument relates to an assignment of a debt, the duty shall be one thousand rupees" ;

(v)      in article 38, for clause (a), the following clause shall be substituted, namely :--

(a) Lease, including an under lease or sub-lease and any agreement to let or sub-let or any renewal of lease, other than mining lease--

 

(i) where the lease purports to be for a term less than one year.

Five hundred rupees.

(ii) where the lease purports to be for a term of one year or more, but up to five years.

0.1 percent of the sum of the amount of premium or money advanced or to be advanced and the average annual rent reserved, or of the market value of the property, whichever is higher, subject to a minimum of five hundred rupees.

(iii) where the lease purports to be for a term exceeding five years, but up to ten years.

0.5 percent of the sum of the amount of premium or money advanced or to be advanced and the average annual rent reserved, or of the market value of the property, whichever is higher, subject to a minimum of five hundred rupees.

(iv) where the lease purports to be for a term exceeding ten years, but up to twenty years.

One percent of the sum of the amount of premium or money advanced or to be advanced and the average annual rent reserved, or of the market value of the property whichever is higher, subject to a minimum of five hundred rupees.

(v) where the lease purports to be for a term exceeding twenty years, but less than thirty years.

Two percent of the sum, of the amount of premium or money advanced or to be advanced and the average annual rent reserved, or of the market value of the property, whichever is higher, subject to a minimum of five hundred rupees.

(vi) Where the lease purports to be for a period of thirty years or more, or in perpetuity, or does not purport to be for a definite period.

Five percent of the sum of the amount of premium or money advanced or to be advanced and the average annual rent reserved, or of the market value of the property, whichever is higher, subject to a minimum of five hundred rupees.".