Section 147 of The Delhi Municipal Corporation Act, 1957 in hindi
- (1)Save as otherwise provided in this Act, 1[2[the Corporation]] shall levy a duty on transfers of immovable property situated within the limits of 3[4[Delhi]] in accordance with the provisions hereafter in this section contained.
- (2)The said duty shall be levied--
- (a)in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899 (2 of 1899) as in force for the time being in the Union territory of Delhi, on every instrument of the description specified below, and
- (b)at such rate as may be determined by 1[2[the Corporation]] not exceeding five per cent, on the amount specified below against such instruments:--- Description of instrument Amount on which duty should be levied
- (i)Sale of immovable property. The amount or value of the consideration for the sale, as set forth in the instrument.
- (ii)Exchange of immovable property. The value of the property of the greater value, as set forth in the instrument.
- (iii)Gift of immovable property. The value of the property, as set forth in the instrument.
- (iv)Mortgage with possession of immovable property. The amount secured by the mortgage as set forth in the instrument.
- (v)Lease in perpetuity of immovable property. The amount equal to one-sixth of the whole amount or value of the rent which would be paid or delivered in respect of the first fifty years of the lease as set forth in the instrument. 5[(vi) Contract for transfer of immovable property Ninety percent of the value of the consideration for the transfer as set out in the contract.]
Summary
- Section 147 mandates that the Corporation must collect a duty, which is a tax, on the transfer of immovable property located within Delhi.
- This duty is applied as a surcharge, or an extra fee, on top of the regular stamp duty imposed by the Indian Stamp Act of 1899.
- The Corporation decides the rate of this duty, but it cannot be higher than five percent of the specified amount.
- For property sales, the duty is calculated based on the sale price listed in the transfer document.
- For property exchanges, the duty is based on the value of whichever exchanged property is worth more.
- For a perpetual lease, the duty is based on one-sixth of the total rent that would be paid over the first fifty years.
Practical examples
FAQ
1. What is the maximum transfer duty rate the Corporation can charge under Section 147 of The Delhi Municipal Corporation Act, 1957?
The Corporation can set the rate, but under Section 147 of The Delhi Municipal Corporation Act, 1957, it cannot exceed five percent.
2. How is the transfer duty calculated for a property gift under Section 147 of the Delhi Municipal Corporation rules?
For a gift of immovable property, Section 147 of The Delhi Municipal Corporation Act, 1957 states that the duty is levied on the value of the property as written in the instrument of gift.
3. Does the transfer duty apply to properties outside Delhi under Section 147 of the Act?
No, Section 147 of The Delhi Municipal Corporation Act, 1957 specifies that the duty is only levied on transfers of immovable property situated within the limits of Delhi.
Test yourself
Q1.Under Section 147 of The Delhi Municipal Corporation Act, 1957, how is the transfer duty on an exchange of immovable property calculated?
Q2.What is the maximum percentage rate that the Corporation can set for the transfer duty under Section 147 of The Delhi Municipal Corporation Act, 1957?
Q3.For a contract for the transfer of immovable property, on what amount is the duty levied under Section 147 of The Delhi Municipal Corporation Act, 1957?
Q4.How does the duty on transfer of property function in relation to existing laws under Section 147 of The Delhi Municipal Corporation Act, 1957?