Duty on transfers of immovable properties

(1) The duty on transfers of immovable property shall be levied in the form of a surcharge at the rate of two percent of the duty imposed by the Karnataka Stamp Act, 1957, on instruments of sale, gift, mortgage, exchange and lease in perpetuity, of immovable property situated within the limits of a smaller urban area. Provided that no such duty is leviable in respect of a mortgage where the amount secured by the mortgage does not exceed two thousand and five hundred rupees. (2) On the introduction of the transfer duty,— (a) section 28 of the Karnataka Stamp Act, 1957, shall be read as if it specifically required the particulars to be set forth separately in respect of property situated within and without the municipal area; (b) section 61 of the same Act shall be read as if it referred to the municipal council as well as the Government. (3) The Government may make rules for regulating the collection of the duty, the payment thereof to the municipal council or Town Panchayat and the deduction of any expenses incurred by the Government in the collection thereof. (4) No duty shall be chargeable,— (i) in respect of any instrument executed by or on behalf of or in favour of the Government in cases where but for this exemption the Government would be liable to pay the transfer duty under this section in respect of such instrument, or (ii) in respect of any instrument exempt from stamp duty under the Karnataka Stamp Act, 1957.