Facts affecting duty to be set forth in instrument
Section 27 of the Indian Stamp Act, 1899 deals with facts affecting duty to be set forth in instrument. The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it its chargeable, shall be fully and truly set forth therein. The Act came into force on 01 Jul 1899.
The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it its chargeable, shall be fully and truly set forth therein.
STATE AMENDMENT
Assam--
Amendment of section 27.--In the principal Act, in section 27, for the words and brackets, "The consideration (if any)", the words "the market value of the property" shall be substituted."
[Vide Assam Act 22 of 2004, s. 4]
Amendment of section 27.--In the principal Act, after section 27, the following new section shall be inserted namely:--
"27A. Instrument of conveyance etc. under valued how to be dealt with.--(1) If the Registering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property as fixed by the Government/Collector of the district, which is subject matter of conveyance, exchange or gift had 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 proper and the property 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 subject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon the difference, if any, in the amount of duty, shall be payable by the persons liable to pay the duty.
(3) The Collector may, on his own motion or otherwise, within two years from the date of registration of any instrument or 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 as set forth in such instrument, 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 such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid and thereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to instrument registered before the date of commencement of the Indian Stamp (Assam Amendment) Act, 2004.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may prefer an appeal to the Civil Judge of appropriate jurisdiction and all such appeals shall be preferred within such time and shall be heard and disposed of in such manner as may be prescribed.
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 Civil Judge Senior Division, 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.
[Vide Assam Act 22 of 2004, s. 5]
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 27.--For the words and brackets "The consideration (if any)" occurring in section 27 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter called as the principal Act), the words and signs "The consideration, if any, the market value of the property" shall be substituted.
[Vide Himachal Pradesh Act 7 of 1989, s. 2]
Orissa.--
Amendment of section 27.-- In Section 27 of the principal Act, for the words and brackets "the consideration if any", the words and commas "the consideration, if any, the market value of the property" shall be substituted.
[Vide Orissa Act 7 of 1987, s. 3]
Section 27, The Indian Stamp Act, 1899 (Act 2 of 1899).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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The Sub Registrar Amudalavalasa vs Dankuni Steels LTD
Court's Decision & Legal Precedent
When a single sale deed purports to convey multiple distinct matters including land, building, and plant and machinery permanently embedded to earth, the entire transaction must be examined by reading the preamble, recitals, operative part and schedule together. If the underlying transaction (such as an auction sale) was for all assets as a composite lot, and the parties' conduct indicates intention to operate the unit as a going concern, then plant and machinery permanently embedded to earth constitutes immovable property subject to stamp duty under Section 5 of the Indian Stamp Act. The registering authorities have power under Section 27 (as amended) and Section 47A to verify the true value and nature of property transferred and to refer the matter to the Collector for determination of market value and proper stamp duty payable. The mere fact that the sale deed describes only land and buildings does not permit avoidance of stamp duty liability on plant and machinery that was actually transferred as part of the composite transaction.
On this section: Facts affecting duty to be set forth in instrument - consideration and all facts affecting chargeability must be fully and truly set forth
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V. V. S. Rama Sharma vs State of U. P.
Court's Decision & Legal Precedent
Under the constitutional scheme, particularly Entry 91 of Union List covering rates of stamp duty for insurance policies, the power to prescribe insurance stamp rates belongs to Parliament. States cannot, through rule-making power or administrative action, impose restrictions on purchase of insurance stamps from authorized sources outside their borders, as this would circumvent central legislation and exceed State authority. Purchasing insurance stamps from any duly authorized licensed stamp vendor throughout the country is legally permissible and does not constitute any criminal offense under IPC Sections 420/409 or Stamp Act Sections 64/69. Consequently, an FIR alleging only such purchasing practice, without any additional element of fraud, deception, or actual deprivation of government revenue, discloses absolutely no criminal offense and can be quashed under Section 482 CrPC as manifestation of malicious prosecution.
On this section: Requires facts affecting chargeability of stamp duty to be fully set forth in instrument; not violated by appellants' purchasing decisions
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Once a document is impounded, then the course which follows is prescribed under Section 38 of the Stamp Act or under Section 40 or 41, as the case may be. 24. Section 27 of the Indian Stamp Act provides under the State Amendment for Madhya Pradesh as under :- "27. Fact affecting duty to be set forth in instrument.- (1) The consideration if any, the market value of the property and all other facts and circumstances affecting the chargeability of any instrument with duty or the …
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 27
What have the courts held on Section 27 of the Indian Stamp Act?
The Sub Registrar Amudalavalasa vs Dankuni Steels LTD (26 Apr 2023) is the leading judgment on this section among those set out below: Facts affecting duty to be set forth in instrument - consideration and all facts affecting chargeability must be fully and truly set forth. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2009 to 2023.
How do I find court cases under Section 27 of the Indian Stamp Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Stamp Act 27, section 27 Stamp Act, section 27 of the Indian Stamp Act. People searching for it also type indian stamp act article 27. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with The Sub Registrar Amudalavalasa vs Dankuni Steels LTD (26 Apr 2023).
What should I read with Section 27 of the Indian Stamp Act, and has it changed?
2 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently The Indian Stamp Rules 1925 (as in force of Tamil Nadu) (1964).
When did Section 27 of the Indian Stamp Act come into force?
Section 27 of the Indian Stamp Act, cited as Stamp Act 27, came into force on 01 Jul 1899, having been enacted on 27 Jan 1899. It is in force as at the date shown on this page.
Other sections of this Act
- 47. Power of payer to stamp bills, and promissory notes received by him unstamped4923 words
- 2. Definitions3110 words
- 3. Instruments chargeable with duty1916 words
- 10. Duties how to be paid1187 words
- 28. Direction as to duty in case of certain conveyances961 words
- 73. Books, etc., to be open to inspection932 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.