Home  /  Indian Stamp Act  /  Section 27

Section 27: Facts affecting duty to be set forth in instrument

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 26 All 78 Sections Schedule I (Arts 1–65) Section 28

Legal Commentary & Landmark Judgments: Section 27

Section 27 of the Indian Stamp Act, 1899 mandates that all facts affecting the chargeability of an instrument with duty and the true consideration shall be fully and truly set forth in the instrument.

  • Statutory Rights & Obligations: Section 27 enacts an imperative statutory disclosure obligation: the consideration (if any).
  • Framing & Alteration of Charges: All other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.

Section 27 requires full and honest disclosure of consideration and facts affecting duty, penalizing fraudulent under-declaration in property transactions.

The legislative intent is to prevent tax evasion and undervaluation. Parties cannot suppress actual market value, conceal ancillary payments, or misdescribe the nature of property (e.g., describing commercial land as agricultural) to depress stamp duty liability. Deliberate omissions violate Section 27 and trigger criminal prosecution under Section 64.

Key Landmark Precedents:
  • V.N. Devadoss v. Chief Revenue Control Authority, (2009) 7 SCC 438: The Supreme Court held that where property is purchased through an open, transparent public auction, the auction price reflects the genuine market value; there is no suppression of facts under Section 27 to justify reference for undervaluation.
  • Ramesh Chand Bansal v. District Magistrate, Ghaziabad, (1999) 5 SCC 62: The Supreme Court affirmed that circle rates / circle values serve as a prima facie guideline to check evasion under Section 27, though actual market value remains determinable upon inquiry.
Legal Commentary:

Section 27 is the cornerstone of anti-evasion enforcement. Conveyancers must ensure that market value, circle rates, previous encumbrances, and actual consideration are truthfully recorded. Intentional misstatement to depress duty exposes both the executant and the scribe to penal sanctions under Section 64.

Section 26 All 78 Sections Schedule I (Arts 1–65) Section 28