The Indian Stamp (Tamil Nadu Amendment) Act, 1958

1. (1) This Act may be called the 'Indian Stamp (Tamil Nadu Amendment) Act, 1958'.
2. (2) It extends to the whole of the State of Tamil Nadu.

For section 24 of the Indian Stamp Act, 1899 (Central Act 11 of 1899) (hereinafter referred to as the principal Act), the following section shall be substituted, namely:- "24. How transfer of property subject to mortgage to be charged.-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. A mortgages a house to B for Rs. 5,000. A afterwards sells the house to B. The market value of the house at the time of sale is Rs. 10,000. Stamp duty is payable on Rs. 10,000 less the amount of stamp duty already paid for the mortgage."

In section 3 of the principal Act, the following proviso shall be added, namely:- " Provided that any increase in the amount of duty chargeable under the Madras Stamp (Increase of Duties) Act, 1922 (Madras Act VI of 1922), shall not have the effect of increasing the duty payable in respect of any other instrument."

In section 27 of the principal Act, after the words "The consideration (if any)", the words "market value" shall be inserted.

In section 6 of the principal Act-

1. (i) the words, figure and letter "or in Schedule I-A as the case may be" shall be omitted;
2. (ii) for the proviso, the following proviso shall be substituted, namely:-

In section 11, clause (a), of the principal Act, for the words "one and a half annas", the words "ten naye paise" shall be substituted.

In section 19-A of the principal Act-

1. (iii) the words "the first proviso to" shall be omitted;
2. (iv) for the words "or in Schedule I-A as the case may be" shall be omitted.

After section 47 of the principal Act, the following section shall be inserted, namely:- "47-A. Instruments of conveyance, etc., under-valued how to be dealt with.-(1) If the registering officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property which is the subject-matter of conveyance, exchange or gift has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.

1. (2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner, as may be prescribed by rules made under this Act, determine the market value of the property which is the subject-matter of conveyance, exchange or gift and the duty as aforesaid. The difference, if any, in the amount of duty, shall be payable by the person liable to pay the duty.
2. (3) The Collector may suo motu, within two years from the date of registration of any instrument of conveyance, exchange or gift not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject-matter of conveyance, exchange or gift and the duty payable thereon, and if after such examination, he has reason to believe that the market value of the property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2). Explanation.-For the purpose of this Act, market value of any property shall be estimated to be the price which, in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange or gift."

For section 78 of the principal Act, the following section shall be substituted, namely:- "78. Duty or allowance to be rounded off to the next higher multiple of five paise.-If the total amount of duty payable, or of allowance to be made, under this Act is not a multiple of five paise, the total amount shall be rounded off to the next higher multiple of five paise."

In section 29, clause (a), of the principal Act, the words, figure and letter "or the corresponding articles of Schedule I-A as the case may be" shall be omitted.

Schedule I-A to the principal Act shall be omitted.

All references in any enactment or in any notification, rule or order under any enactment or in any contract, deed or other instrument to any stamp duty payable under Schedule I-A to the principal Act shall be construed as references to the stamp duty payable under Schedule I to the principal Act as amended by this Act.

The Madras Stamp (Amendment) Act, 1922 (Madras Act VI of 1922) and the Madras Stamp (Increase of Duties) Act, 1943 (Madras Act XVI of 1943), are hereby repealed as from the commencement of this Act: Provided that section 8-A of the [Tamil Nadu] General Clauses Act, 1891 ([Tamil Nadu] Act I of 1891), shall apply as if section 4 of the Madras Stamp (Increase of Duties) Act, 1943 (Madras Act XVI of 1943) [directing that during the continuance of the said Madras Act XVI of 1943, the Indian Stamp Act, 1899 (Central Act II of 1899), shall have effect as if it had been amended in the manner specified in the said section 4] had expressly amended the text of the said Central Act II of 1899.

1. (1) The principal Act, as in force immediately before the commencement of this Act in the [State of Tamil Nadu] except in the transferred territory and in so far as it relates to matters with respect to which the State Legislature has power to make laws for the State and as amended by this Act (hereinafter in this section referred to as the Central Act) is hereby extended to, and shall be in force in, the transferred territory.
2. (2) If immediately before the commencement of this Act, there is in force in the transferred territory any law corresponding to the Central Act, such corresponding law shall stand repealed on such commencement.
3. (3) The repeal by sub-section (2) of any law corresponding to the Central Act in force in the transferred territory immediately before the commencement of this Act shall not affect-
   • (a) the previous operation of any such law or anything done or duly suffered thereunder,
   • (b) any right, privilege, obligation or liability acquired, accrued, or incurred under any such law,
   • (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against any such law,
   • (d) any investigation, legal proceeding, or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed.
4. (4) Subject to the provisions of sub-section (3), any act or thing done or any action taken including any appointment or delegation made, notification, order, instruction or direction issued, rule, regulation or form framed, certificate obtained or penalty imposed under any such corresponding law shall be deemed to have been done or taken under the corresponding provision of the Central Act and shall continue to be in force accordingly, unless and until superseded by anything done or any action taken under the Central Act.
5. (5) For the purpose of facilitating the application of the Central Act in the transferred territory, any court or other authority may construe the Central Act with such alterations not affecting the substance as may be necessary or proper to adapt the matter before the court or other authority.
6. (6) Any reference in the Central Act to a law which is not in force in the transferred territory shall, in relation to that territory, be construed as a reference to the corresponding law, if any, in force in that territory.
7. (7) Any reference in any law which continues to be in force in the transferred territory after the commencement of this Act to any law repealed by sub-section (2) shall, in relation to that territory, be construed as a reference to the Central Act. Explanation.-For the purpose of this section, the expression 'transferred territory' shall mean the Kanyakumari district and the Shencottah taluk of the Tirunelveli district.