30. How transfer in consideration of debt, or subject to future payment etc. to be charged. -
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 conditionally to the payment or transfer of any money or stock, whether being or constituting a charge or encumbrance upon the property or not, such debt, money or stock shall be deemed to be 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 18 of the Schedule.Explanation. - In the case of a sale of property subject to mortgage or other encumbrance, any unpaid mortgage money or money 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 any 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.Illustrations(1)A owes B Rs. 1000. A sells property to B, the consideration being Rs 500 and the release of the previous debt of Rs. 1000. Stamp duty is payable on Rs. 1500.(2)A sells a property to B for Rs. 500, which is subject to a mortgage to C for Rs 1000 and unpaid interest Rs 200. Stamp duty is payable on Rs 1700.(3)A mortgaged a house of the value of Rs. 10,000 to B for Rs. 5000. 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.
