Stamp duty for future transfer

Dear Client

The answer depends on the legal effect of the document, not merely on the wording used.

If the agreement executed in 2024 itself creates or declares a present enforceable right, vested interest, or obligation in favour of the trust, it may attract stamp duty as prescribed under the applicable State Stamp Act. In such a case, it cannot be assumed that execution on a ₹10 stamp paper would be sufficient.

Merely changing the wording to state that the trust will acquire a vested interest or ownership in the future does not, by itself, determine the stamp duty payable. The authorities and courts will examine the substance of the transaction rather than its form. If the document only records a future intention without creating any present legal rights, the applicable stamp duty may differ. However, this requires examination of the complete instrument.

You may consult a local lawyer or advocate to determine the appropriate stamp duty applicable to the proposed agreement under the relevant State Stamp Act.