Market Value On Execution Date Controls Stamp Duty, Rules High Court

Introduction

Stamp duty, a form of tax levied on legal instruments under the Indian Stamp Act, 1899, plays a crucial role in property transactions by ensuring the enforceability of documents and contributing to state revenue. A recurring issue in its application has been whether the duty on a sale deed should be assessed based on the market value prevailing on the date of the agreement to sell or at the time of execution and registration of the sale deed. This question came under judicial scrutiny in a recent decision of the Punjab and Haryana High Court dated 14 July 2025, where a Division Bench comprising Justice Anil Kshetarpal and Justice Rohit Kapoor clarified that the relevant date for valuation is the date of execution of the sale deed, not the date of the earlier agreement to sell.