“Receipt.”

 

           (23) “receipt” includes any note, memorandum or writing-

 

(a)   whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or

 

(b)   whereby any other moveable property is acknowledged to have been received in satisfaction of a debt, or

 

(c)   whereby any debt or demand, r any part of a debt or demand, is acknowledged to have been satisfied or discharged, or

 

(d)   which signifies or imports any such acknowledgement ;

 

and whether the same is or is not signed with the name of any person :   1   *         *

 

“Settlement.”

 

           (24) “settlement” means any non-testamentary disposition, in writing, of moveable or immoveable property made-

 

(a)   in consideration of marriage;

 

1The word “and” was omitted by India Act 18 of 1928, section 2.

 

(b)   for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or

 

(c ) for any religious or charitable purpose ;

 

and includes an agreement in writing to make such a disposition 1[and where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition];         2*           *

 

“Soldier.”

 

           3(25) ‘soldier’ includes any person below the rank of non-commissioned officer who is enrolled under the Indian Army Act, 1911;

 

4[(26)  *         *         *         *         *         *.

 

CHAPTER II.

STAMP-DUTIES.

 

A.-Of the Liability of Instruments to Duty.

 

3.                Instruments chargeable with duty-Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore, respectively that is to say-

 

(a)       every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 5[India] on or after the first day of July, 1899;

 

1Added by the Indian Stamp (Amendment) Act, 1904 (15 of 1904), section 2.

          

2The word “ad” was omitted by the Adaptation of Laws Order, 1950, First Schedule.

          

3Added by India Act 18 of 1928, section 2.

          

4The words “States” means all the territories for the time being comprised within part A States and part C States have been omitted by Parliament Act, 43 of 1955, section 4, clause (c ).

          

5See Foot-note, under clause (6) or clause (11) ante.

 

           (b) every bill  of exchange 1[payable otherwise than on demand or promissory note drawn or made out of [India] on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred, or otherwise negotiated in 3[India]; and

 

(c ) Every instrument (other than a bill of exchange or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of 3[India] on or after that day, relates to any property situate, or to any matter or thing done or to be done in 3[India] and is received in 3[India] :

 

           4[Provided that, notwithstanding anything contained in clause (a), (b) or (c ) of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefore, respectively, that is to say-

 

           (aa) every instrument mentioned in Schedule I-A as chargeable with duty under that schedule, which, not having been previously executed by any person, is executed in 1 5[Punjab] on or after the date of commencement of this Act ;

 

           (bb) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed by out of 5[Punjab] on or after the date of the commencement of this Act and relates to any property situated, or to any matter or thing done or to be done in 1[Punjab], and is received in 1[Punjab].

 

1Inserted by Act 5 of 1927, section 5(1).

 

2The word “cheque” was omitted by Act 5 of 1927, section 5(1).

          

3See foot-note, under clause (6) or clause (11) of section 2 ante.

 

4Added by Punjab Act, 8 of 1922, section 5.

 

5Substituted for the words “East Punjab” by the Adaptation of Laws Order, 1950. The words “East Punjab” had been substituted for the word “the Punjab” by the India (Adaptation of Existing Indian Laws) Order, 1947.

 

In the Indian Stamp Act, 1899 :-

 

(a)   section 3A shall be omitted:-

 

(It shall come into force on the Ist day of April, 1973.)

(Act 13 of 1973.)

 

In the Indian Stamp Act, 1899, after section 3, the following section shall be inserted, namely:-

 

“3A     (1) Every instrument chargeable with duty under section 3 read with Article No. 13, 14, 27, 37, 47, 49, 52, 53 or 62 (a) of Schedule I shall, in addition to such duty, be chargeable with a duty of ten paise.

 

           (2) The additional duty with which any instrument is chargeable under sub-section (1) shall be paid and means of adhesive stamps bearing the inscription “refugee relief” whether with or without any other design, picture or inscription.

 

(4) Except as otherwise provided in sub-section (2) the provisions of this Act shall, so far as may be, apply in relation to the additional duties chargeable under sub-sections (1) in respect of the instruments referred to therein as they apply in relation to the duties chargeable under section 3 in respect of these instruments:

 

It shall be deemed to have come into force on the 15th day of November, 1871.)

 

Provided 2[also] that no duty shall be chargeable in respect of –

 

           (1) any instrument executed by, or on behalf of, or in favour of, 3[Government] in cases where, but for this exemption, the 3[Government], would be liable to pay the duty chargeable in respect of such instrument ;

 

           (2) any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Merchant Shipping Act, 1894, or under Act XIX of 1838, or the Indian Registration of Ships Act, 1841, as amended by subsequent Acts.

 

4.        Several instruments used in single transaction of sale, mortgage or settlement - (1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule 4[I-A], for the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty of 5[two rupees] instead of duty (if any) prescribed for it in that Schedule.

          

           (2) The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument :

 

           Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

 

1Substituted for the words “East Punjab” by the Adaptation of Laws Order, 1950. The words “East Punjab” had been substituted for the words “the Punjab” by the India (Adaptation of Existing Indian Laws) Order, 1947.

 

2Added by Punjab Act 8 of 1922, section 5.

 

3Substituted for the word “Crown” by the Adaptation of Laws Order, 1950.

 

4Substituted for the figure I by Punjab Act 8 of 1922, section 6.

 

5Substituted for the words “one rupee and eight annas” by East Punjab Act 27 of 1949, section 2.

 

5.        Instruments relating to several distinct matters -Any instrument comprising, or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.

 

6.        Instruments coming within several descriptions in Schedule I and Schedule I-A - Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions [given] in Schedule I [and Schedule I-A] shall, where the duties chargeable thereunder be different, be chargeable only with the highest of such duties :

           Provided that nothing in this Act contained shall render chargeable with duty exceeding 3[two rupees] a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid 4[unless it falls with the provisions of section 6-A.]

Payment of the Punjab Stamp duty on copies, counterparts or duplicates when that duty has not been paid on the principal or original instrument.

 

5[6-A.  (1) Notwithstanding anything contained in section 4 or 6 or in any other law, unless it is proved that the duty chargeable under the Indian Stamp (Punjab Amendment) Act, 1922, has been paid-

           on the principal or original instrument as the case may be, or

           in accordance with the provisions of this section,

           the duty chargeable on an instrument of sale, mortgage or settlement other than a principal instrument or on a counterpart, duplicate, or copy of any instrument shall, if the principal or original instrument would, when received in 1[Punjab], have been chargeable under the Indian Stamp (Punjab Amendment) Act, 1922, with a higher rate of duty be the duty with which the principal or original instrument would have been chargeable under section 19-A.

1Inserted by Punjab Act 8 of 1922, section 7(1).

 

2Added by Punjab Act 8 of 1922.

 

3Substituted for the words “one rupee and eight annas” by East Punjab Act 27 of 1947, section 3.

 

4Inserted by Punjab Act 8 of 1922, section 7(2).

 

5Inserted by Punjab Act 8 of 1922, section 8.

           (2) Notwithstanding anything contained in section 35 or in any other law, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence as properly stamped unless the duty chargeable under this section, has been paid thereon;

 

7.        Policies of sea-insurance – Where any sea-insurance is made for or upon a voyage and also for time or extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a policy for time.

 

 

8.        Bonds, debentures or other securities issued on loans under Act XI of 1879 - (1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the 3Local Authorities Loan Act, 1879, or of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with duty of 4[one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

1Substituted for the words “East Punjab” by the Adaptation of Laws Order, 1950. The words “East Punjab” had been substituted for the words “the Punjab” by the India (Adaptation of Existing Indian Laws) Order, 1947.

 

2Sub-sections (1), (2) and (3) repealed by Act 11 of 1963, section 92 (w.e.f. 1st August, 1963).

 

3See now Act 9 of 1914. Unrepealed Central Acts; Volume VI.

 

4Substituted for the words “eight annas per centum” by the Indian Stamp (Amendment) Act, 1910 (6 of 1910), section 2.

 

          

(2)       The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or other securities shall be valid, whether the same are stamped or not :

           Provided that nothing herein contained shall exempt the local authority which has issued such bonds, debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of March, 1897, when such duty has not already been paid or remitted by order issued by the 1[Central Government].

(3)       In the case of willful neglect to pay the duty required by this section the local authority shall be liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.

 

9.        Power to reduce, remit or compound duties - 2(1) The 3[* *         *] Government may, by rule or order published in the 4Official Gazette-

           (a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of [the territories under its administration], the duties with which any instruments, or any particular class of instruments, or any of the instruments belonging to such class or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable :

 

1Substituted for the words “Governor-General in Council” by the Government of India (Adaptation of Indian Laws) Order, 1937.

 

2The existing section renumbered as sub-section (1) of section 9, by the Adaptation of Laws Order, 1950, First Schedule.

 

3The word “collecting” omitted by the Adaptation of Laws Order 1950; First Schedule.

 

4Substituted for the words “Gazette of India” by the Government of India (Adaptation of Indian Laws) Order; 1937

 

5Substituted for the words “British India” by the Government of India (Adaptation of Indian Laws) Order, 1937

.

           1[Provided that with respect to instruments which are chargeable with duty under Schedule I-A, such reduction or remissions may, by notification be granted by the 2[(State Government)], and

           (b) provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate of debentures, bonds or other marketable securities.

1[ (2) In this section the expression “the Government” means,-

           (a) in relation to stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading letters of credit policies of insurance, transfer of shares, debentures, proxies and receipts, and in relation to any other stamp duty chargeable under this Act and falling within entry 96 in List I in the Seventh Schedule to the Constitution, the Central Government ;

Save as aforesaid, the State Government.].

 

B.-Of Stamps and the mode of using them.

 

10.      Duties how to be paid - (1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid and such payment shall be indicated on such instruments, by means of stamps-

           (a)       according to the provisions herein contained, or

(b)       when no such provision is applicable there-to as the 4[State Government] may be rule direct.

1Inserted by Punjab Act 8 of 1922, section 9.

2Substituted for the word “Provincial” by the Adaptation of Laws Order, 1950. The words “Governor-General in Council” were substituted by the words “Provincial Government” by the Government of India (Adaptation of Indian Laws) Order, 1937.

 

3Added by the Adaptation of Laws Order, 1950 First Schedule.

 

4Substituted for the words “Collecting Government” by the Adaptation of Laws Order, 1950, (First Schedule).

 

(2) The rules made under sub-section (1) may, among other matters, regulate,-

(a)       in the case of each kind of instrument-the description of stamps which may be used;

(b)       in the case of instruments stamped with impressed stamps-the number of stamps which may be used ;

(c)       in the case of bills of exchange or promissory notes 1[*       *         *          *], the size of the paper on which they are written.

 

 

11.      Use of adhesive stamps - The following instruments may be stamped with adhesive stamps, namely :-

(a)       instruments chargeable 2[with a duty not exceeding ten naye paise], except parts of bills of exchange payable otherwise than on demand and drawn in sets;

(b)       bills of exchange, *     *         3          *         * and promissory notes drawn or made out of 4India];

(c)       entry as an advocate, vakil or attorney on the roll of a High Court;

(d)       notarial acts; and

(e)       transfers by endorsement of shares in any incorporated company or other body corporate.

 

12. Cancellation of adhesive stamps (1)     (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and

 

1The words “written in any Oriental Language” have been omitted by Parliament Act 43 of 1955, section 5.

2Substituted by the Indian Stamp (Amendment) Act; 1958; (19 of 1958) section 2. It came into force on 1st October, 1958.

3The word “cheques” was omitted by Act 5 of 1927, 5(2).

4Substituted by Parliament Act No. 43 of 1955, section 2; for the words “the States” which were substituted for the words “the Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances Order, 1948, section 3(2).

 

(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.

 

(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.

The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.

 

13.      Instruments stamped with impressed stamps how to be written - Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.

 

14.      Only one instrument to be on same stamp - No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written :

           Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment r delivery of which is secured thereby.

 

15.      Instrument written contrary to section 13 or 14 deemed unstamped - Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.

 

16.      Denoting duty -Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last mentioned duty shall, if application is made in written to the Collector for that purpose, and on production of both the instruments, be denoted upon such first mentioned instrument, by endorsement under the hand of the Collector or in such other manner (if any) as the 1[State Government] may by rule prescribe.

 

C.-Of the time of stamping Instruments :

 

17.      Instruments executed in 1India - All instruments chargeable with duty and executed by any person in 1[India] shall be stamped before or at the time of execution.

 

18.      Instruments other than bills, and notes executed out of 1India  - (1) Every instrument chargeable with duty executed only out of 2[India], and not being a bill of exchange,           *         *    4    *         or promissory note, may be stamped within three months after it has been first received in 2[the States].

           (2)       Where any such instrument cannot, with reference to the description of stamp prescribed therefore, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the 1[State Government] may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.

1Substituted for the words “Collecting Government” by the Adaptation of Laws Order, 1950, (First Schedule).

 

2Substituted by Parliament Act No. 43 of 1955, section 2, for the words “the States” which were substituted for the words “the Provinces” by the Adaptation of Laws Order, 1950. The words the “Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, section 3(2).

3Substituted for the words “the Provinces” by virtue of change made in the section.

 

4The word “cheque” was omitted by Act 5 of 1927, section 5(3) and (4), respectively.

          

 

19.      Bills and notes drawn out of India - The first holder in 1[India] of any bill of exchange, 2[payable otherwise than on demand]         *         *  3      * or promissory note drawn or made out of        1[India] shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in 1[India] affix thereto the proper stamp and cancel the same :

           Provided that,-

           (a) if, at the time any such bill of exchange,   3*        * or note comes into the hands of any holder thereof in 1[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12, and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled ;

(b)       nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.

 

4[19-A. Payment of duty on certain instruments liable to increased duty in 5Punjab under clause (bb) of section 3. - Where any instrument has become chargeable in any part of 1[India] other than 6Punjab with duty under this Act or under any other law for the time being in force in any part of 1[India] and there-after becomes chargeable with a higher rate of duty in Punjab under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Punjab Amendment) Act, 1922-

1Substituted by Parliament Act No. 43 of 1955, section 2, for the words “the States” which were substituted for the words “the Provinces” by the Adaptation of Laws Order, 1950. The words the “Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, section 3(2).

 

2Inserted by Act 5 of 1927, section 5(4).

3The word “cheque” was omitted by Act 5 of 1927, section 5 (3) and (4), respectively.

4Inserted by Punjab Act 8 of 1922; section 10.

5Substituted for the words “East Punjab” by virtue of change made in the section.

6Substituted for the words “East Punjab” by the Adaptation of Laws Order, 1950. The words “East Punjab” had been substituted for the word “Punjab” by the India (Adaptation of Existing Indian Laws) Order, 1948.

 

           notwithstanding anything contained in the said proviso, the amount of duty chargeable on such instrument shall be the amount chargeable on it under Schedule I-A less the amount of duty, if any, already paid on it in 1[India] ;

in addition to the stamps, if any, already affixed thereto such instrument shall be stamped with the stamps necessary for the payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same persons as though such instrument were an instrument received in 1[India] for the first time at the time when it become chargeable with the higher duty.]

 

D -Of Valuations for Duty.

 

20. Conversion of amount expressed in foreign currencies (1) Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of 1[India], such duty shall be calculated on the value of such money in the currency of 1[India] according to the current rate of exchange on the day of the date of the instrument.

           (2) The 2[Central Government] may, from time to time, by notification in the 3[Official Gazette], prescribe a rate of exchange for the conversion of British or any foreign currency into the currency of 1[the States] for the purposes of calculating stamp-duty and such rate shall be deemed to be the current rate of the purposes of sub-section (1).

1Substituted by Parliament Act No. 43 of 1955, section 2, for the words “the States” which were substituted for the words “the Provinces” by the Adaptation of Laws Order, 1950. The words the “Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, section 3 (2).

 

2Substituted for the words “Governor-General in Council” by the Government of India (Adaptation of India Laws) Order, 1937.

3Substituted for the words “Gazette of India” by the Government of India (Adaptation of Indian Laws) Order, 1937.

 

21.      Stock and marketable securities hw to be valued - Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.

 

22.      Effect of statement of rate of exchange or average price - Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement it shall, so far as regards the subject-matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

 

23.      Instruments reserving interest - Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.

 

1[23-A Certain instruments connected with mortgages of marketable securities to be chargeable as agreements -  (1) Where an instrument (not being promissory note or bill of exchange) –

(a)       is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of laon, or for an existing or future debt, or,

(b)       makes redeemable or qualifies a duty stamped transfer, intended as a security, of any marketable security,

(c)       is shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under [Art No. 5(c) of Sch.I]

(2)       a release or discharge of any such instrument shall only be chargeable with the like duty.  

 

24.      How transfer in consideration of 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 contingently 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 is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty :

 

1Section 23-A was added by the Indian Stamp (Amendment) Act, 1904, (XV of 1904), section 3.

2Substituted for the words and figures “Article No. 5 (b)” by amendment Act No.1 of 1912, section 3.

3Substituted for the letter I by Punjab Act 8 of 1922, section 11.

 

           Provided that nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule I, 1[or Schedule I-A, as the case may be.].

 

           Explanation.-In the case of a sale of property subject to a mortgage or other encumbrance, any unpaid mortgage-money or money charged, 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 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.

A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp-duty is payable on Rs. 1,500.

 

A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 200. Stamp-duty is payable on Rs. 1,700.

 

           (3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. 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.

 

25.      Valuation in case of annuity, etc.Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be-

 

where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained-such total amount ;

 

1Inserted by Punjab Act 8 of 1922, section 12.

 

where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance-the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

 

where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance-the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.

 

 

Contents        Next