State Act

The Greater Hyderabad Municipal Corporation Act, 1955.

261. (1) The tax on transfer of property (hereinafter referred as transfer tax) shall be levied- (a) in the form of a surcharge on the duty imposed by 291[the Indian Stamp Act, 1899] on every instrument of the description specified below which relates to immovable property situate within the City; and (b) 291[at such rate as may be fixed by the Government, not exceeding five percentum] on the amount specified below against each instrument :- Description of instrument. Taxable Amount. 291[(i) sale of immovable Property. The amount or value of the consideration for the sale, as set-forth in the instrument or the market value of such property, whichever is higher. (ii) Exchange of immovable Property. The value of the property of the greater value, as set forth in the instrument or the market value of such property, whichever is higher. (iii) Gift of immovable property. The value of the property as set-forth in the instrument or the market value of such property, whichever is higher.] (iv) Mortgage of immovable property. The amount secured by the mortgage, as setforth in the instrument. (2) All the provisions of 292[the Indian Stamp Act, 1899] and the rules made thereunder shall mutatis mutandis apply to the said tax as they apply in relation to the duty chargeable under that Act. (3) No registering authority shall accept any instrument for registration unless the amount of transfer tax is paid in cash. (4) Every registering authority shall maintain an account of the transfer tax paid in respect of each instrument registered by him and a separate account showing the amount of the consideration, 293[the market value of the property], or the amount secured by a mortgage as the case may be. (5) The transfer tax collected under this Act shall be credited to the Municipal Fund. In the absence of an agreement to the contrary the transfer tax shall be paid by the person who is primarily liable for payment of the stamp duty in respect of the instrument executed.