Legal Question in Banking Law in India

Stamp duty on balance confirmation in agriculture loans

The state of Uttarakhand has

exempted all agricultural advances

from stamp duty to the extent of

Rs.3 lacs.In order to comply

limitation act banks take balance

confirmation from borrowers within

3 years of advance.Pl advise on the

following points-

1. Whether stamp duty exemption

will be admissible on balance

confirmation in view of exemption of

stamp duty on agriculture advances

too.

2. Is it compulsory to take stamp

duty in the form of non judicial

stamp paper only


Asked on 7/13/09, 6:54 am

5 Answers from Attorneys
Pranav Desai PD Legal & Associates

Re: Stamp duty on balance confirmation in agriculture loans

Consult a local lawyer because it is difficult to comment based on a single line notification. Or provide us with the copy of the notification.

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Answered on 7/16/09, 3:21 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Stamp duty on balance confirmation in agriculture loans

1. Yes.

2. Yes.

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Answered on 7/13/09, 7:04 am
deval mapara mapara advocates

Re: Stamp duty on balance confirmation in agriculture loans

yes it wll be accordingly.

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Answered on 7/13/09, 7:27 am
deval mapara mapara advocates

Re: Stamp duty on balance confirmation in agriculture loans

yes

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Answered on 7/13/09, 7:41 am
J. Radhakrishnan independent Practice

Re: Stamp duty on balance confirmation in agriculture loans

strictly speaking balance confirmation being an acknowledgment of debt does not at all require stamp if one goes by the definition of "Acknowledgment of Debt" in the Schedule to Stamp Act. There is also a judgment of Bombay High Court on that matter. In view of the exemption from stamp duty also, it is not necessary to stamp it. Acknowledgment of debt is taken on 1 Re. revenue stamp and not on nJS paper.

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Answered on 7/13/09, 8:27 am


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