Where an instrument is executed to secure the payment of an annuity, or other sum payable periodically, or where the consideration for a 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,—
(a) where the sum is payable for a definite period, the total amount payable;
(b) where the sum is payable in perpetuity or for an indefinite time, the total amount which will or may become payable during the period of twenty years.
Legal Commentary & Landmark Judgments: Section 25
Section 25 of the Indian Stamp Act, 1899 prescribes the statutory formula for assessing ad valorem duty on conveyances or instruments executed to secure annuities or periodic payments, establishing fixed statutory multipliers based on whether payments are for a definite period, perpetual, or life-contingent.
In matrimonial settlement agreements, family maintenance deeds, or lifetime commercial annuity contracts, structure payment covenants clearly as life annuities or fixed-term annuities. In the recitals, apply the statutory multiplier under Section 25(c) (12x annual sum) to determine the precise stamp duty, protecting the settlement from arbitrary valuation by the Sub-Registrar.