3/14/2020 INDIAN STAMP ACT, 1899

INDIAN STAMP ACT, 1899

Section 47A - Instruments of conveyance etc., under-valued how to be dealt with

1[2[47A. Instruments of conveyance etc., under-valued how to be dealt with

5[(1) The registering officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908)
while registering any instrument of conveyance, dissolution of partnership, exchange of property, gift,
partition, release or settlement shall estimate the market value of the property of which is the subject
matter of such instrument as per the market value guidelines of properties by the "Valuation committee"
constituted under section 47-AA and communicate the said estimated value to the parties concerned and
unless the parties pay the duty on the basis of such valuation, he shall keep pending the process of
registration of such instrument and refer the matter within a month along with a copy of such instrument
to the Collector for determination of the market value of such property and the proper duty payable
thereon.]

(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 5[subject matter
of any instrument of, conveyance, dissolution of partnership, exchange of property, gift, partition,
release or settlement and the duty payable thereon within a period of ninety days from the date of
receipt of such reference.] The difference, if any, the amount of duty, shall be payable by the person
liable to pay the duty.

[(3) 10[The Collector may, suo motu or otherwise, within five years] from the date of registration of any
instrument of conveyance, 11[exchange, gift, release of benami right or settlement], 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,
11[exchange, gift, release of benami right or settlement], 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). The difference, if any, in the amount of
duty, shall be payable by the persons liable to pay the duty:]

Provided that nothing in this sub-section shall apply to any instrument registered before the date
of commencement of the Indian Stamp (Tamil Nadu Amendment) Act, 1967.

4[(4) Every person liable to pay the difference in the amount of duty under sub-section (2) or sub-
section (3) shall, pay such duty within such period as may be prescribed. In default of such payment,
such amount of duty outstanding on the date of default shall be a charge on the property affected in
such instrument. On any amount remaining unpaid after the date specified for its payment, the person
liable to pay the duty shall pay, in addition to the amount due,6[interest at one per cent per month on
such amount for the entire period of default:

Provided that where a person has preferred an appeal against the order under sub-section (2) or
sub-section (3), the interest payable under this sub-section shall be postponed till the disposal of
appeal and shall be calculated on the amount that becomes due in accordance with the final order
passed in appeal as if such amount had been determine under sub-section (2) or sub-section
(3), as the case may be]

(5) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3), may
appeal to such authority as may be prescribed in this behalf. All such appeals shall be preferred within

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such time, and shall be heard and disposed of in such manner, as may be prescribed by rules made
under this Act.

7[Providedthat no appeal shall be entertained unless the person aggrieved has deposited in such
manner as may be prescribed twenty-five per cent of the difference in the amount of the duty
determined and payable under sub-section (2) or sub-section (3) as the case may be.]

(6) The Chief Controlling Revenue Authority may, suo motu, 8[or otherwise] call for and examine an
order passed under sub-section (2) or sub-section (3) and if such order is prejudicial to the interest of
revenue, he may make such inquiry or cause such inquiry to be made and, subject to the provisions of
this Act, may initiate proceedings to revise, modify or set aside such order and may 5[pass such order
thereon as he thinks fit, within such time as may be prescribed.]

(7) The Chief Controlling Revenue Authority shall not initiate proceedings against any order passed
under sub-section (2) or sub-section (3) if,--

(a) the time for appeal against that order has not expired; or

(b) more than five years have expired after the passing of such order.

(8) No order under sub-section (6) adversely affecting a person shall be passed unless that person has
had a reasonable opportunity of being heard.

(9) In computing the period referred to in clause (b) of sub-section (7), the time during which the
proceedings before the Chief Controlling Revenue Authority remained stayed under the order of a Court
shall be excluded.

(10) any person aggrieved by an order of the authority prescribed under sub-section (5) or the Chief
Controlling Revenue Authority under sub-section (6) may, within such time and in such manner, as may
be prescribed by rules made under this Act, appeal to the High Court.

9[***]

8[(11) Where the duty paid is found to be in access as a result of an order passed on appeal or revision,
the access duty paid shall be refunded.]

______________________

1. Section 47A was inserted by T.N. Act 24 of 1967.

2. Note : In S. 47A, for the words "exchange or gift" wherever they occur, the words "exchange, gift, release of benami right or
settlement" were substituted by T.N. act 42 of 1981.

3. For the expression "The Collector may, suo motu, within two year" the above expression was substituted by T.N. Act 1 of 2000, w.e.f.
6.3.2000.

4. The above sub-sections (4) to (10) including the explanation were substituted for the sub-sections (4) and (5) by T.N. Act 1 of 2000,
w.e.f. 6.3.2000.

5. Substituted by T. N. Act 13 of 2008, not yet come into force.

6. Substituted by T. N. Act 13 of 2008, w.e.f. 01.09.2010.

7. The proviso was added by T. N. Act 13 of 2008, not yet come into force.

8. Inserted by T. N. Act 13 of 2008, not yet come into force.

9. The explanation was omitted by T. N. Act 13 of 2008, not yet come into force.

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 Chief Controlling Revenue Authority or the High Court, 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, gift, release of benami
right or settlement.

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10. For the expression 'The Collector may, suo motu, within two years" the above expression was substituted by T.N. Act 1 of 2000,
w.e.f. 6.3.2000 for the following :-

"(3) 3[The Collector may, suo motu or otherwise, within five years] from the date of registration of 5[any instrument of,
conveyance, dissolution of partnership, exchange of property, gift, partition, release or settlement] 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 5[conveyance, dissolution of partnership, exchange of property, gift, partition,
release or settlement] 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). The difference, if any, in the amount of duty, shall be
payable by the persons liable to pay the duty:"

11. Substituted for the words "exchange or gift" by T.N. Act 42 of 1981.

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