Department of Stamps and Registration

Frequently asked Questions on NRI Registration

Q1. Who is a non-resident Indian (NRI)?
Ans:- An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs) for the purpose of certain facilities.

Q2. Who is a person of Indian Origin?
Ans:- For the purposes of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India: A foreign citizen (other than a citizen of Pakistan or Bangladesh) is deemed to be of Indian origin, if, He, at any time, held an Indian passport, or He or either of his parents or any of his grandparents was citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955). Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses. For investments in immovable properties A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal), is deemed to be of Indian origin if, He held an Indian passport at any time, or He or his father or paternal grand-father was a citizen of India by virtue of the (Constitution of India or the Citizenship Act, 1955 (57 of 1955).

Q3.What is an OCB?
Ans:- Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs as long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%.

Q4. Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?
Ans:- In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/trust is required to initially furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs, and in form OAC 1 where it is held indirectly by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees. Thereafter a simple certificate signed by the Managing Director or Chief Executive Officers of the OCB on the lines indicated above may be submitted. Note: In the case of closely held OCBs (i.e. where shareholders belong to the same family or are closely related to each other, certificate in form OAC/OAC1 may be submitted in the first instance along with documentary evidence to the effect that the shareholders belong to the same family or are closely related to each other. Annual submission of OAC/OAC1 thereafter is not necessary and it will suffice if a certificate signed by the Managing Director/Chief Executive Officer of the OCB is submitted stating that there is no change in the shareholding pattern since submission of the last certificate.

Q5. What are the various facilities available to NRIs/OCBs?
Ans:- NRIs/OCBs are granted the following facilities: Maintenance of bank accounts in India. Investments in securities/shares of, and deposits with, Indian firms/companies. Investments in immovable properties in India.

Q6.What is the procedure for obtaining Reserve Bank permission in this regard?
Ans:- Application for the purpose should be made by the concerned Indian company to the Central Office of Reserve Bank in Mumbai [in Form ISD(R)].

Q7. Will repatriation of the original investment and/or dividend income be freely permitted?
Ans:- Yes. Repatriation of original investment will be permitted after a lock-in period of three years from the date of issue of the equity shares/convertible debentures. In addition, OCBs will be permitted to repatriate net profit (up to 16 per cent) arising from the sale of such investment after the lock-in-period of three years. (This facility is, however, not available to individual NRIs.) Annual dividend/interest on equity shares/debentures can, however, be freely remitted subject to payment of tax.

Q8. Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial property in India?
Ans:- No. Permission is not required.

Q9. Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use?
Ans:- Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain permission of Reserve Bank.

Q10. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?
Ans:- The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.

Q11. What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission?
Ans:- They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Q12. Can such property be sold without the permission of Reserve Bank?
Ans:- Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Q13. Can sale proceeds of such property if and when sold are remitted out of India?
Ans:- In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993 will have to be credited to the ordinary non-resident rupee account of the owner of the property

Q14. Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?
Ans:- Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

Q15. What is the procedure for seeking such repatriation?
Ans:- Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.

Q16. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?
Ans:- Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

Q17. Can foreign citizens of Indian origin acquire commercial properties in India?
Ans:- Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Q18. Can sale proceeds of such property are remitted out of India?
Ans:- Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8

Q19. Can the properties (residential/commercial) be given on rent if not required for immediate use?
Ans:- Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation.

Q20. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?
Ans:- Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., and authorized dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investors' NRE/FCNR/NRO accounts

Q21. Can Indian companies grant loans to their NRI staff?
Ans:- Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions.

Q22. Can authorized dealer grant housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-obligant/guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Ans:- Yes. However, in such cases the payment of margin money and repayment of the loan installments should be made by the NRI borrower.

Frequently Asked Questions - Probate will

Q1.What is meant by Probate of a Will?
Ans:- According to Section 2 of the Indian Succession Act, 1925, Probate means "the copy of a Will certified under the seal of a court of competent jurisdiction with a grant of administration of the estate of the testator". It is nothing but a decree passed by a competent court declaring the legality/correctness and genuineness of the Will of the deceased.

Q2. Is it necessary to Probate a Will?
Ans:- Under Section 219 of the Indian Succession Act, 1925, if the deceased has died intestate and was not a person belonging to any of the classes referred to in Section 218 (i.e, Hindu, Mohammedan, Buddhist, Sikh or Jain or an exempted person), those who are connected with him either by marriage or by consanguinity are entitled to obtain Letters of Administration of his estate and effects in the order and according to the rules framed in this section. Under Section 212(2) of the Indian Succession Act, 1925, Hindus, Muslims, etc. are not bound to apply for letters of administration (Probate). It is optional and not mandatory for these persons to seek probate of the Will.

Q3.What are the advantages of a Probated Will?
Ans:- Probate of a Will when granted, establishes the genuineness of Will from the death of the testator and renders valid all intermediate acts of the Executor as such.

Q4. What will be the legal consequences if the Will is not Probated?
Ans:-If the Will which is required to be probated, under the Act, if not probated, has no legal sanctity and binding force.

Q5. What is the time frame within which a Will is to be Probated?
Ans:- There is no limitation for grant of letters of administration or probate. Where the estate is in the possession of administrator there is no question of the Probate Court delivering the possession to him but the probate will be decisive only with regard to the genuineness of the Will propounded and the right of the executor to represent the estate.

Q6. Which is the appropriate Court to file the suit for the Probate of a Will?
Ans:- Principal Court of Original Jurisdiction as per the local City Civil Court Act. The High Court also enjoys concurrent jurisdiction to grant probate of the Will.

Q7. Who can apply for the Probate of a Will?
Ans:- According to Section 222 of the Indian Succession Act, 1926, Probate shall be granted only to an Executor appointed by the Will. The appointment may be expressed or by necessary implication. In the absence of the Executor being named in the Will, the Legatees or the Beneficiaries under the Will could also seek probate of the Will.

Q8. What are the documents to be submitted for obtaining the Probate?
Ans:- Following must be submitted:- Original Will of the deceased. Title Deeds pertaining to the immovable property mentioned in the Will, if any. Documents pertaining to the movables, mentioned in the Will, if any

Q9. What is the fee payable for a Probate?
Ans:- Uttar Pradesh Court Fees Rules,1973 as applicable in Uttarakhand has several parameters for levy of court fees on probate application and the same is exhaustive.

Q10. What is the procedure for obtaining a Probate?
Ans:- A petition has to be filed before the Principal Court of Original Jurisdiction or before the Hon'ble High Court under Section 374 of the Indian Succession Act. The Court in question will issue the court notices at the initial stage and a paper publication will be caused besides a Gazette publication as well. In case such a petition is contested, it will be converted into a regular suit and upon contest the same will be disposed of, by delivering the judgment and decree, in accordance with law.

Property Purchase - Precautions

Purchasing a property/land requires utmost care. One has to examine and find out the title of the seller or nature of his right. A seller can sell only what he possesses. Therefore if a seller has proper and valid title, on purchase you will get valid title. If the seller's title is defective, you will get only defective title. The simple reasoning is that he can sell what he has, and nothing more. When buying a property, legal due diligence is essential to avoid getting entangled in legal issues later. Here are some of the precautions you can take before finalizing a property deal. Check the antecedents of the vendor(s) - We all verify title deeds and all connected documents before buying the property. But we fail to verify the antecedents of the vendor(s). It is better to verify the character and antecedents of the vendor(s) beforehand.If the vendor(s) are habitual offenders and involved in the real-estate offences or other crimes, then it is better to drop the idea of buying the property from them notwithstanding whether the title is perfect or not. If the vendor has good background; and his character and reputation are unquestionable, then the transaction will be very smooth. Even, in future, if there is any dispute regarding title or any other issue pertaining to the property, then you are dealing with a respectable person in the society; and you need not to spend your valuable money and time on unnecessary litigation. You are not facing any embarrassment in the shape of physical or verbal abuse.

The issues can be resolved through gentlemen agreement without involving external forces. Check the title of the property- The title of the property forms the foundation of any contract. According to the Indian Contract Act, no seller can pass on to the purchaser a better title than what he already possesses. Therefore, the title of the seller must be clear and free from any encumbrance. Before you buy a property, verify the title of the seller. A search of the records at the sub-registrar's office may be carried out for documents that may affect the property and may have been registered .The report will show the recorded owner of title of the property and changes in the title of the property. If the land is an agriculture land than check revenue record as khata,khatoni / khasra of that land and Title Deed can be requested from the seller. Assessment Register Ledger entry (called Khata in some parts of the country) is basically a supporting document of title. It is the entry of the present owner in the municipal/panchayat records relating to house properties. The absence of Assessment Register entry in the name of a current owner can be rectified at any time by applying for mutation.

This has become important because it is required for loans, title opinions, electricity meter name change, etc. Assessment Register Ledger entry is changed after a sale deed is executed or after a property is inherited through a will, gift, partition, etc., if applied and requested for a mutation. Verify the title of the seller- The vendor may have acquired his title either by purchase, by inheritance, by partition, by gift, by settlement or by grant. To find out the source of title there must be some document like.

Right of Purchase	Sale Deed
Inheritance	Entries in revenue records, and predecessor's title
Partition	Deed of partition
Gift	Gift deed
Settlement	Settlement deed
Grant	Grant order
Release	Release deed
Lease Deed	Deed of Lease or permanent lease

Personal inspection of property under sale (site/building/flat/agricultural land) - Buyer beware is the golden mantra in the immovable property transactions. Therefore, the entire onus lies on the purchaser in verifying the title, ownership and possession of the property. He must take all reasonable steps to ensure that he is purchasing the property from a right person and also a right property. The most important precaution is undertaking a personal inspection of the property under the sale. During the personal inspection, the buyer shall inquire with the neighbours regarding the ownership and possession of the property, disputes if any, character of the vendor(s), charges/mortgages on the property, joint owners of the property or part of the property etc.

This is the most important aspect of the title verification, therefore, it is better at least three persons from buyer side shall take up this task. And they shall make discrete enquiries with various persons in and around the property like elders of the locality, longstanding property owners/tenants, workmen, etc. It is easy to undertake the inspection of site and building in the densely populated areas. It is also easy to enquire in villages where the people could identify persons by name. But it is difficult to enquire in the suburban, newly developing and agricultural lands converted as plots – where no habitation exists. In these cases a lot of effort is required to get the right answers to the questions and at times we may not get answers at all since there would be no person to contact except the vendor or his men.

Sale by holder of power of attorney- If the sale documents are being executed by a person holding power of attorney on behalf of the owner, the said power of attorney should be scrutinised thoroughly. The person must not only possess the power to sell property, the power of attorney should also be validly executed. An agreement holder (as explained above) who also has a power of attorney to sell the land and/or building is normally a developer. Alternatively, a person may have paid the entire consideration to the owner and holds on to the property for some time to sell it at a later date for a profit. The sale will be effected by the power of attorney holder on behalf of the owner. Such power of attorney must be properly stamped and registered (if it is coupled with sale agreement/development agreement/given for consideration). It should also not be revoked. Check the original documents- Always inspect the original documents of the seller and read all the documents carefully before signing them. If the vendor states that the original documents were missing/stolen/lost, then it is better to know the full facts relating to missing documents. Know whether the vendor has filed a complaint in the concerned police station and got the copy of FIR with regard to missing of documents; and/or what are the other steps he had taken to trace them as a prudent person. There is a possibility of keeping the original documents in banks/financial institutions/private lenders to create mortgage/charge over the property by way of deposit of title deeds.

So it is better to get full information regarding original documents that are missing. And it is always better to give a public notice with regard to purchase of the property on the basis of certified copies of the title deeds instead of original documents which were lost. Colour Photostat copies – frauds- Today, the technology used in Colour Photostat machines is very advanced one; and copies generated using these machines are of high quality. Innocent purchasers can be duped by clever vendors by delivering colour Photostat copies instead of original. Therefore, a proper check shall be done in verifying whether the documents are original or Colour Photostat copies. Verify photographs and thumb impressions of the vendor-Section 32A of Registration Act, 1908 prescribes that in case of sale deeds both the vendors and buyers should affix their photographs and thumb impressions along with the document. This provision has come into force from the year 2001. Therefore, if your vendor has acquired the property after 2001 through a registered document, then you have one more evidence to check regarding the identity of your vendor. Verify carefully the photographs and thumb impression of the vendor in the registered document where he appears as purchaser. Tax receipt and bills-Property taxes which are paid to government or municipality are a first charge on the property. Hence, enquiries must be made in government and municipal offices to ascertain whether all taxes have been paid up to date. The owner should also possess the latest tax receipts, which you may inspect. While investigating in different departments of the municipality, you need to ascertain whether any notices or requisitions relating to the property have been issued and are outstanding and not yet complied. While inspecting the property tax receipt, it can be noted that there are two columns in the tax receipt.

Make sure that the name entered in the owner's column is correct. The second column will be for the name of the one who paid the tax. Sometimes the owner may not have the tax receipt with him, in such cases, contact the village office with the survey number of land and confirm the original owner of the land. If you are buying a house along with the property, then the house tax receipt should also be checked. Also make sure water bills and electricity bills have been paid up to date and if there is any balance payment to be made, ensure that it is made by the seller. Encumbrance Certificate -Before purchasing the land or house, it is important to confirm that the land does not have any legal dues. Check the Encumbrance Certificate (EC) (EC) issued by the sub register office where the deed has been registered (in Uttarakhand), stating that the said land does not have any legal dues and complaints. Pledged land-Some people may have taken loan from the bank by pledging their land. Ensure that the seller has paid back the entire amount due. Don't be satisfied with the receipt of the payment made. Release certificate issued by the bank is necessary for all the debts over the land. You could buy a land without the release certificate. But if you want to take a loan in future, the release certificate is a must. Place a public notice-A public notice may be placed in newspapers calling for claims in respect of the property being purchased. Claims can come even afterwards, public notice helps in proving that you purchased the property bona fide and in good faith.

This will prove that you have taken all measures that can be expected from bona fide and prudent purchaser thereby you will get favourable order/view from the Courts, in case of any litigation that may arise in future with regard to patent or latent defects in the title of the property. Inspect the plans-If the building is under construction then inspect the plans to check whether they have been sanctioned by the concerned authority. Also check whether the construction was done according to the plan approved by Municipal authority. If there is any deviation from the approved plan, then it is to be verified whether it can be regularized or not. In respect of deviation that can be regularized by paying penalty to the municipal authority, it is better to record, in the agreement, that who should pay that penalty to the municipal authority. If the deviation is not allowed to be regularized then the purchaser is taking the risk of demolition of the building partly/fully by the municipal authorities.

Payments of stamp duty-Always verify documents of title to check payment of stamp duty. If the ownership of property has changed hands more than once, examine all the documents for payment of stamp duty by the predecessors. Today, many States (including Uttarakhand) have amended the Stamp law providing for creation of charge over the property in case there is any deficit stamp duty in any document relating to property. Therefore, the present owner of the property obliged to pay the deficit stamp duty and penalties, if any on the documents registered earlier notwithstanding whether he is a party in it or not. If the property belongs to a minor-In case where the property is owned by a minor, prior approval of the court is required to enable the minor's other/natural guardian to sell the property. In the absence of such permission, the sale could be voidable at the option of the minor on attaining majority. Or otherwise, soon after attainment of majority, the sale has to be perfected by obtaining a registered ratification deed by the person who was a minor at the time of sale.

Check the minimum tenure of land if taken on lease-If the flat that is being purchased is in a building built on a land which is given on lease, lease rent would have to be paid for the land by the flat owners. If the lease is to expire shortly, it is possible that the lease rent may increase substantially. Hence, the terms of the lease must be verified before buying the flat. Engage a competent lawyer-There are several laws involved in immovable property transactions. Therefore, it is better to engage a competent lawyer to investigate the title, possession, ownership and other aspects. The lawyer shall associate and his scope of work shall include in investigating the title, negotiations, drafting of agreements/sale deeds, payment of consideration, registration of documents, mutation, etc Reputed attesting witnesses-The attesting witnesses are the persons who actually witness the signing of the sale or any document by the parties and sign as witnesses on the document. It is always important to have reputed and respectable people as attesting witnesses. Attesting witness is an important and key witness in the civil litigation in case any court case arises in future. Their statement will be having a lot of weight in deciding the case.

Therefore, it is advisable to request good and reputed young and middle aged people as attesting witness. Check the occupation certificate-Occupation certificate should be verified to ensure that the building has been built legally, especially in case of new buildings as per proper sanction of Development Authority. Check whether the flat/portion is mortgaged to Municipal authority-As per the municipal regulations, the builder/owner shall create charge over 10% of the area under construction to ensure compliance with building regulations. So it is necessary to verify whether the flat/portion of the building under sale is mortgaged to the municipality. If it is mortgaged, then it is not possible to get a registered sale deed from the builder/owner. Purchaser has to wait till it is cleared by municipality. Check the carpet area-You can verify the carpet area by taking actual measurement of the property if the same is ready.

Plinth area includes carpet area (area between the external walls of the flat/portion) and common areas (like passages, staircase, verandah, park etc). Search for records-A search of the records at the sub-registrar's office may be carried out for documents that may affect the property and may have been registered. Section 57 of Registration Act, 1908 allows citizens to get certified copies and encumbrance certificates from the Registrar/Sub Registrar Offices. Any person can verify personally the registered document entries in the books of the Registrar/Sub Registrar Offices by paying prescribed fee. Certified copies-When copies of the documents are given for perusal, the buyer need rely only on them, but instead can apply for certified copies too. The certified copies of the back (link) documents should also be obtained. The copies of the sale deeds are preserved in the SubRegistrar's office in Book 1 and are given to anyone on application after paying a prescribed fee. Power of attorney is a document in which the principal grants authority to an agent to act on his behalf. Through executive instructions, today, in Uttarakhand, the power of attorney if given in respect of immovable property is registered in Book 1 so as to enable the interested parties to get certified copy of it. This step is a progressive one since it will check frauds being played, to some extent, under the guise of power of attorney as it is no more a confidential document.

FREQUENTLY ASKED QUESTIONS ON STAMPD DUTY MATTERS

1. What is meant by Stamp Duty?
Ans:-Stamp duty is a kind of tax levied on instruments(documents)

2. What are the documents on which Central Government can only prescribe stamp duty?
Ans:-Union Government can fix stamp duty in respect of the following instrumentso Bill of exchange o Cheques o Promissory Note o Bill of landing o Letter of Credit o Policy of Insurance o Transfer of Shares o Debenture and Receipt

3. What are the documents for which State Government can prescribe Stamp duty?
Ans:-Other than the above mentioned (question No.2) instruments, on any other instrument, the State legislature can fix the stamp duty. Example: Affidavit, adoption deed, sale deed, gift deed, lease deed, mortgage, license, partition deed and settlement deed etc.

4.How to pay stamp duty and where it can be paid?
Ans:-Stamp duty can be paid through a) Purchase of impressed stamps from treasury or licensed stamp vendors or from sub-registrar offices OR b) Purchase of adhesive stamps OR c) Payment to the Government through DD / pay order issued by any nationalised bank / scheduled bank or challan. OR d) Instrument (document) can be written on plain paper and stamp duty can be paid through DD / pay order issued by any nationalised bank / scheduled bank or challan within one year from the date of execution of the instrument (document) and get it Certified by the jurisdiction District Registrar under Section 41 of Indian Stamp Act, 1899. In Uttarakhand, the Government has introduced the challan system in respect of documents come for registration. Now, in Uttarakhand the Non-Judicial Stamp papers up to Rs.100/- only available. So, the people who require to get their document registered may use these low denomination NJ Stamp papers. For example, if an instrument has to be stamped with Rs.10000/-. The parties may buy 5 NJ Stamp papers of Rs.100/- value. Therefore, they have paid Rs.500/- stamp duty. Remaining stamp duty of Rs.9500/- shall be paid through challan. Each Sub Registrar Office has been tagged with a designated branch of SBH/SBI bank. The parties after filling the challan shall pay the amount through the challan provided by the Sub Registrar. A copy of challan shall be produced before the SR in evidence of the payment of stamp duty. The SR will register the document on the basis of the challan produced before him. A safe mechanism has been in place to check the genuineness of the challans produced by the parties.

5.Can a stamp paper used for one purpose be used for another transaction?
Ans:- No. A stamp paper once used for a purpose cannot be used for another purpose. Example: An affidavit executed for a purpose cannot be executed for another purpose.

6.When stamp duty is to be paid?
Ans:-(a) Generally stamp duty shall be paid before or at the time of executing a document. (b) Instrument (document) can be written on plain paper and stamp duty can be paid through DD / pay order issued by any nationalised bank / scheduled bank or challan within a year from the date of execution of the instrument (document) and get it Certified by the jurisdictional District Registrar.

7.How to pay stamp duty in respect of a document executed out of India to be used in Uttarakhand? What is the procedure to be followed?
Ans:-Stamp duty can be paid within three months from the date of receipt of such document in India. Document may be produced before the District Registrar. Who will certify on payment under Section 18 of Indian Stamp Act, 1899.

8. Is it mandatory to pay stamp duty as per schedule-IA or Indian Stamp Act as applicable in the State of AP to a document relating to property situated in AP which is executed in other states of India? What is the procedure to be followed?
Ans:-When a document is executed on stamp paper purchased in other state and executed in other state but it is in respect of property situated in Uttarakhand, if such duty is less than the duty prescribed under the Indian Stamp Act, the deficit duty shall be paid. Example: A power of attorney is executed in favour of a person other than family member, 1 percent stamp duty on value of the property shall be made good after deducting stamp duty, if any, already paid in that state.

9. Is it mandatory to pay stamp duty on interest to be accrued on the loan in respect of documents executed as a security for such loan?
Ans:-No. Stamp duty is to be paid on loan amount. No duty needs be paid on interest to be accrued.

10.Is there deduction of stamp duty in respect of sale deed relating to property executed in favour of mortgagee of the same property?
Ans:-Yes. Deduction to the extent of duty paid on mortgage deed is available.

11. What is the stamp duty to be paid in respect of instruments in which amount is to be paid in annuity or periodically?
Ans:-In respect of instruments executed to pay amount annually or periodically, stamp duty is to be paid as follows depending on the circumstances. Where the sum payable during the period is previously ascertained, stamp duty is to be paid on whole of the amount. Where the sum payable is in perpetuity or for an indefinite time not terminable with any life, stamp duty shall be on the sum payable during the period of 20 years calculated from the date on which the first payment becomes due. Where the sum payable for an indefinite time terminable with any life, the stamp duty shall be paid on the sum payable during the period of 12 years calculated from the date on which the first payment becomes due.

12. Generally there are two parties to a document i.e. executing party and claiming party. Who is liable to pay stamp duty among them?
Ans:-In the absence of agreement to the contrary, the expense of providing the proper stamp shall be borneo In the case of mortgage by way of deposit of deed, hypothecation, further charge, indemnity bond, bond, mortgage, settlement, by the person drawing making or executing such instrument; o In case of conveyance (sale etc.) deed including re-conveyance by the grantee, Example: in case of sale deed purchaser is liable to pay stamp duty. o In case of lease –lessee o In case of power of attorney executing party o In case of Certificate of sale on auction of property -the purchaser, o In case of exchange deed both parties equally o In case of partition deed, all the parties in proportion to their share are liable to pay stamp duty.

13. Is there any provision to get authentic opinion on the duty payable on any document when it is doubtful? What is the procedure if such a provision exists?
Ans:-In case of any doubt about the duty payable on any instrument (document), application may be made to the District Registrar under Section 31 of Indian Stamp Act, 1899 with following records: o Draft of the proposed deed or deed itself. o Affidavit (on stamp paper of Rs.20) Fee Rs.15.

14. What are the consequences of non-payment of stamp duty?
Ans:-When Stamp duty leviable on a document is not paid it cannot be accepted or received in evidence. No transaction is valid if done on the basis of instrument not duly stamped. Instruments presented to any public officer (excluding police) will be impounded. Stamp duty and penalty will be levied.

15. What is the procedure to be followed after a document is impounded?
Ans:-(a) A public officer impounding an instrument will send it to Collector (District Registrar) concerned to determine the stamp duty to be paid. District Registrar will determine the stamp duty to be paid after giving opportunity to the party concerned to put forth his arguments on the duty to be paid. He may levy penalty of minimum of Rs.5 or up to ten times of the deficit total duty to be paid depending on the case, if he finds the document was not duly stamped. Appeal can be preferred to the Chief Controlling Revenue Authority (Commissioner and Inspector General of Registration and Stamps, Uttarakhand) in first instance, and then to the High Court if the parties are aggrieved.

16. Is there a provision to write document on the stamp paper available and pay deficit duty afterwards in urgent situations?
Ans:- Yes there is a provision, if the party concerned voluntarily comes forward to pay deficit stamp duty within one year from the date of execution (signature). District Registrar will accept deficit stamp duty and certify accordingly on the document without levying penalty under Section 41 and 42 of Indian Stamp Act, 1899.

17. Is there a provision to get refund of penalty paid in case of impounded document?
Ans:-Yes there is a provision. Chief Controlling Revenue Authority (IGR & S) may order refund on appeal, if he found the penalty levied is on higher side.

18.Stamp duty is levied on market value of property involved in sale, gift, exchange or settlement. How to know the market value of property?
Ans:-(a) As defined under Sec.47A of the Indian Stamp Act, 1899, market value of property is the value it would fetch if sold in the open market. (b) Government has formed Committees to estimate market value of properties. They would survey and enquire regarding open market values of different localities. They would collect the data from different sources like open auctions conducted by HUDA and other urban development authorities, Banks, Financial Institutions, registered document reflecting real consideration, land acquisition compensation, etc. The committee will estimate the value from time to time as per laid down norms and principles and publish the same for information of public. The committees after hearing the objections, if any from the public will modify/amend the proposals or if they found the objections are unfounded, then they may go ahead to approve the proposed values. We have urban and rural committees to fix market values. Revenue Department, Municipal, ZillaParishad, Registration Department officials are part of this committee. From the year 2010, the market value guidelines registers are being published and sold through Sub Registrar and District Registrar Offices. (c) When a document is presented to the Sub Registrar for registration, he will give market value slip in prescribed form about the market value of property as the market value estimated by the committee. If the party concerned agrees to pay the stamp duty on such value, he will register the document. (d) If parties to the document do not agree to pay stamp duty on the market value informed above, Sub Registrar will keep the document pending and refer the document for determination of market value after collecting 50% of the deficit stamp duty as a deposit to refer it to the Collector (District Registrar) under Section 47A. (e) District Registrar will hear the parties and determine market value after spot inspection if necessary. (f) Appeal may be preferred to the Civil Court within 60 days from the date of receipt of order of the District Registrar.

19.Is there provision to get refund of value of stamp papers not used or spoiled etc?
Ans:-Yes, there is a provision to refund of value of NJ Stamp papers not used or spoiled under Indian Stamp Act, 1899. But in the State of Uttarakhand, the NJ Stamp papers are available up to Rs.100/- denomination only. Therefore, this provision serves no better purpose. But, the Government of Uttarakhand issued a G.O., allowing refund of the amounts paid through challan system. A copy of the G.O., may be seen by clicking here.

20.Is there time limit for the usage of the stamp papers purchased?
Ans:-No, there is no time limit. They may be used anytime

21. How to prevent use of fake stamps?
Ans:-In Uttarakhand State sale of Non-judicial stamp papers is restricted to the denomination maximum of Rs.100/-. Therefore, in a way, the Government has checked effectively the circulation of fake stamps. Purchase the stamps from only authorized/licenced Stamp Vendors or from Government Offices (Sub Registrar and District Registrar Offices). Remaining stamp duty can be paid through challan

22. What is the stamp duty and registration fee payable for partition among joint family?
Ans:-1% stamp duty on the market value of the value of separated share. Example: If there are three parties by name A,B and C in a partition deed. Party by name ‘A’ got Rs.500000/- value of property. Party B got Rs.400000/- and Party C got Rs.300000/-. Now, the parties have to pay the stamp duty on the value of separate share means on Rs.4 and 3 lakhs exempting Rs.5 lakh. A stamp duty of Rs.7000/- has to be paid on the instrument of partition. In case all the shares are of equal value, then one share has to be exempted from calculation to levy stamp duty.

23. What is the stamp duty payable on gift settlement made in favour of a family member?
Ans:-3% stamp duty on the market value of the property. Family includes, mother, father, son, daughter, brother, sister, wife, husband, adopted father, adopted mother, adopted son, adopted daughter, grandfather, grandmother, grandson, granddaughter.

24. Is there any concession of stamp duty on mortgage deeds executed by agriculturists to obtain loan from banks for agricultural improvements?
Ans:-There is full exemption of stamp duty for the instrument executed by farmers, in favour of commercial/co-operative bank, societies or other recognized financial institutions to obtain any amount of loan. But there is no concession of registration fee if they are to be registered instead of sending under Sec.89 of the Registration Act.

25. Is there any concession for sale deeds made in favour of educational institutions while registering their buildings?
Ans:- There is concession of stamp duty to the extent of 50 percent.

26. Is there any concession for the mortgage deeds executed by State Government employees to obtain loan for house building /repair/advance? If so to what extent?
Ans:-There is cent percent exemption from payment of stamp duty