206. Duty on transfer of property

1. The duty on transfer of property shall be levied –
   
   1. in the form of a surcharge on the duty imposed by the Kerala Stamp Act, 1959, on every instrument of the description specified below, which relates to the immovable property situated in the area under the jurisdiction of a village panchayat; and
   2. at such rate as may be fixed by the Government not exceeding five per cent on the amount specified below against such instruments

   Description of instrument	Amount on which duty should be levied
   (1)	(2)
   (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	(ii) Exchange of immovable property
   (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
   153[(v) (a) assignment on lease of immovable property for more than one year	The same stamp duty on a bottomry bond (item 14 of the Schedule to the Kerala Stamp Act, 1959) which may be remitted or payable as per the lease deed.
   (b) assignment on lease of immovable property for not less than one year but not more than five years.	The same stamp duty on a bottomry bond (item 14 of the Schedule to the Kerala Stamp Act 1959) on one year’s average lease amount or price fixed.
   (b) assignment on lease of immovable property for not less than one year but not more than five years.	The same stamp duty on a bottomry bond (item 14 of the Schedule to the Kerala Stamp Act 1959) on one year’s average lease amount or price fixed.
   (c) assignment on lease of immovable property for more than five years but not exceeding ten years.	The same stamp duty on a sale deed (items 21 or 22, as the case may be, of the Schedule to the Kerala Stamp Act, 1959) for a consideration equal to the average of lease amount fixed for an year.
   (d) assignment on lease of immovable property exceeding	If the lease is subsisting for a very long period the same stamp duty as on a sale deed (item 21 or 22, as the case may be, of the Kerala Stamp Act, 1959) for a consideration equal to three times the average yearly lease amount or price remitted or paid for the first ten years.
   (e) Perpetual lease of immovable property	Total amount of lease remitted or paid during the first fifty years, as shown in the instrument]
   (vi) Release, that is to say, any instrument whereby a person renounces a claim upon another person or against any specified property when such release does not operate in favour of his or her spouse or children.	The amount or value as set forth in the released deed.

2. On the introduction of the duty as aforesaid, -
   
   1. Section 28 of the Kerala Stamp Act, 1959 shall be read as if it specifically required the particulars to be set forth separately in respect of property situated in the area under the jurisdiction of a village panchayat and in respect of property situated outside such area; and
   2. Section 62 of the Kerala Stamp Act, 1959 shall be read as if it referred to the village panchayat as well as Government.
3. The Government may make rules not inconsistent with this Act for regulating the collection of the duty, the payment thereof to the Village Panchayat and the deduction of any expenses incurred by the Government in the collection thereof.
4. The amounts collected in all the village panchayats in the State as duty on transfer of property under this section shall be pooled every year for the entire State and distributed among the village panchayats after deducting three per cent thereof towards collection charges.
5. Seventy-five per cent of the amounts payable to the village panchayats under subsection (4) shall be distributed among all the village panchayats in the State in proportion to the population of the village panchayat areas as ascertained at the latest census of which the relevant figures have been published. The balance of twenty-five per cent of the amounts shall be distributed to the village panchayats in such proportion as may be fixed by the Government or such other officer as they may authorise by special or general order having regard to the area, available resources, needs of development and cost of Panchayat administration.

¹⁵³Inserted by Act 7 of 1995.