Section 28 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 28 answers a question that arises whenever property bought under one contract ends up in several hands: on what consideration is each conveyance charged? It covers a price split between parts, a joint purchase conveyed separately, a sale on to a sub-purchaser, and a residue left with the original purchaser.
Under section 28, each conveyance is charged with ad valorem duty on its own consideration, not on the original price for the whole. Where a sub-purchaser takes a conveyance directly from the original seller, the conveyance is charged on the price the sub-purchaser paid. The conveyance of the residue to the original purchaser is charged only on the excess of the original consideration over what the sub-purchasers paid, and the duty on it is never less than one rupee. A later conveyance to a sub-purchaser who already holds a duly stamped conveyance is capped at five rupees.
Scope and approach
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State of execution must be checked. This article explains the central Act only and states no State rate. Section 28 never gives a rate. It decides which consideration each conveyance is charged on. The amounts of one rupee and five rupees in it are quoted as printed. Before you buy into a chain of sales, a legal due diligence check of the title and the stamping is the safer course.
Section 28 is in Part D of Chapter II. It follows section 27, which requires the consideration to be fully and truly set forth (see Section 27). Its heading in the copy is "Direction as to duty in case of certain conveyances". The term "conveyance" is defined in section 2(10) and treated in our article on that definition.
Sub-section (1): one price, separate parts, separate instruments
Property is contracted to be sold for one consideration for the whole. It is conveyed to the purchaser in separate parts by different instruments. The consideration "shall be apportioned in such manner as the parties think fit", on one condition: a distinct consideration for each separate part is set forth in the conveyance relating to it. Each conveyance is then chargeable with ad valorem duty on its own distinct consideration.
Two things follow. The parties are at liberty to choose the split, since the text says "as the parties think fit", but the split must be written into each conveyance. And the condition links back to section 27: a conveyance that does not state its own distinct consideration cannot take the benefit.
Example. Anita Desai agrees to buy a land parcel for a single price and takes the title in two conveyances, one for the eastern half and one for the western half. If each deed sets out the part of the price that belongs to its half, each deed is charged on that part.
Sub-section (2): joint or nominee purchase conveyed in parts
Property is contracted to be purchased for one consideration for the whole "by two or more persons jointly, or by any person for himself and others, or wholly for others". It is conveyed in parts, by separate instruments, to the persons by or for whom it was purchased, for distinct parts of the consideration. The conveyance of each separate part is chargeable with ad valorem duty on the distinct part of the consideration therein specified.
This is the same idea as sub-section (1), applied to several buyers. A purchaser who buys for himself and for relatives, or wholly as agent for others, can have the title split among them without the full price being charged to each deed.
Sub-section (3): one sub-sale, conveyed straight through
A person has contracted to buy property but has not obtained a conveyance. He contracts to sell the same property to another, and "the property is in consequence conveyed immediately to the sub-purchaser". The conveyance is chargeable with ad valorem duty "in respect of the consideration for the sale by the original purchaser to the sub-purchaser".
So when title passes in one step from the original seller to the sub-purchaser, the duty is on the sub-sale price. The original purchaser never holds a conveyance, so no separate conveyance to him is charged.
Sub-section (4): several sub-purchasers and the residue
The original purchaser contracts to sell the whole or any part to one or more persons, and the original seller conveys the property to different persons in parts. The rule has two limbs.
- The conveyance of each part sold to a sub-purchaser is chargeable "in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration".
- The conveyance of the residue, if any, to the original purchaser is chargeable "in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers".
The proviso adds that the duty on that last conveyance "shall in no case be less than one rupee".
Example with invented figures. Harish Menon agrees to buy a farm for a total consideration of 100 and, before taking title, agrees to sell one portion to Imran Shaikh for 60 and another to Divya Nair for 30. The original seller conveys the two portions directly to Imran and Divya and the residue to Harish. Imran's conveyance is charged on 60, Divya's on 30, and Harish's on the excess of 100 over 90, which is 10, subject to the minimum duty of one rupee. The numbers are units, not rupee amounts, and nothing here converts them to a duty.
| Conveyance | Consideration on which duty is charged |
|---|---|
| To sub-purchaser Imran | 60, the price he paid |
| To sub-purchaser Divya | 30, the price she paid |
| Residue to the original purchaser Harish | 10, the excess of 100 over 90 (60 plus 30) |
Sub-section (5): a later conveyance after the sub-purchaser has one
A sub-purchaser takes "an actual conveyance of the interest of the person immediately selling to him". That conveyance is chargeable with ad valorem duty on the consideration he paid and is duly stamped accordingly. If a conveyance is afterwards made to him of the same property by the original seller, it "shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees".
In plain words, the sub-purchaser has already paid duty on his own purchase, so the confirming conveyance from the original seller is capped. The measure is the duty on the consideration the original seller obtained, with a ceiling of five rupees as printed.
Points to watch
- A distinct consideration for each part is the condition in sub-section (1). Record it in the conveyance, not elsewhere.
- Sub-sections (3) and (4) apply where the conveyance is made "in consequence" of the sub-contract. The sub-purchaser's price drives the duty only if title passes in that way.
- The residue rule has a floor, not a ceiling: the duty on the residue conveyance is never less than one rupee.
- The five-rupee limit is in sub-section (5) only. It is not a general cap on conveyances.
- Amounts are quoted as printed. Whether a State fixes different amounts for these conveyances is a question for the law of the State where each deed is executed.
For the instrument-wise duty tables, see stamp duty on a sale deed and our Schedule I article on conveyance, part performance and certificate of sale. The transfer itself is explained in sale of immovable property under section 54 of the Transfer of Property Act. If the transfer is made for a debt or subject to a mortgage, see Section 24.
Need help with a chain of sales?
Back-to-back sales, joint buyers and nominee purchases need the title deeds and the stamping to line up. Our team can examine the chain, the consideration in each deed and the stamping through our legal due diligence work before you pay.
Key takeaways
- Each conveyance is charged on its own distinct consideration, not on the original price for the whole.
- A price split among parts must be stated separately in each conveyance.
- A sub-purchaser's conveyance is charged on what he paid; the residue to the original purchaser is charged on the excess, with a minimum of one rupee.
- A later conveyance to a sub-purchaser who already has a duly stamped conveyance is capped at five rupees as printed.
- The duty amounts and rates come from the schedule of the State where each conveyance is executed.
Read next
- Section 29 of the Indian Stamp Act, 1899: who bears the stamp duty
- Section 27 of the Indian Stamp Act, 1899: consideration and facts to be set out
- Section 24 of the Indian Stamp Act, 1899: transfer for a debt or subject to a mortgage
- Agreement to sell compared with a sale deed
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.