Where any property is transferred to any person in consideration, wholly or in part, of 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 bedeemed 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 is mentioned in Article No. 18 of Schedule I.

   Explanation.—In 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 sale:

   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.

Illustration.

   (1)  A owes B Rs. 1,000. A sells a property to 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.

   (2)  A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 1,000 and unpaid interest Rs 200. Stamp-duty is payable on Rs. 1,700.

   (3)  A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. 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.

STATE AMENDMENT

Himachal Pradesh

   Amendment of section 24.— In the proviso to section 24, of the said Act, for the full stop shall be substituted a comma followed by the words “or Schedule I -A, as the case may be.

[Vide Himachal Pradesh Act 4 of 1953, s. 9]

Orissa

   Amendment of section 24.— In Section 24 of the Indian Stamp Act, 1899 (2 of 1899) (herein after referred to as the principal Act), for the words “in respect whereof the transfer is chargeable with ad valorem duty” the words “and the transfer is chargeable with ad valorem duty in respect of the consideration or the market value of the property so transferred, whichever is higher,” shall be substituted.

[Vide Orissa Act 7 of 1987, s. 2]