Question

ACC213: Introduction to Income Tax

Identify and describe any seven (7) circumstances for which relief or exemption from Stamp Duty may be sought.

Answer 1

NOTES : 1. Stamp duty is levied when consideration moves from the buyer of the property to the seller of the property. The rate of stamp duty varies from state to state.

In the following cases stamp duty gets exempted and no need to pay the same:

1. No monetary consideration moves from the buyer to the seller and the property is transferred as a gift.

2. if the asset is purchase under lease arrangement and the annual lease rental is less than pound 1000.

3. The asset gets transferred under dissolution of a firm .

4. property gets transferred under a will.

5. If a freehold property is purchased whose value is less than pounds 40000

6. If asset is acquired under a sharia law or alternative financial arrangements

7. leasehold property acquired where the lease is less than 7 years.