What is an Agreement ?
Not to bore you with legal definitions, an agreement in layman terms simply means when you agree to do something with or without something in return.
What is a Deed ? A deed as the name suggests simple means when you have done something i.e. completed certain action.
But why are agreements favoured for stamp duty refund & Deeds are not?
To understand this you will have to bear with me a little longer. You see a stamp duty is but a tax which you pay to the government on a completed transaction (eg: You purchase a land and receive possession of the same). Here the transaction is complete and your stamp duty has been received by the government i.e. the deed is done. Hence any kind of registered DEEDS are not considered for stamp duty refund.
But what if I cancel it, you say??
Take a deep breath, now close your eyes and remember the most embarrassing moment of your life, sorry for that but could you cancel it? Could you make it unhappen? Exactly you can’t, at the most you could make amends. Similarly you cannot cancel a deed, whether a Sale Deed, Mortgage Deed or any other Deed, you could amend them but cancellation is not possible and so refund is not too
But I still haven’t explained why agreements are special….
You see every once in a while our friends egg us on to do a particularly stupid thing which you know you will regret but still you agree to do. Now for some reason on the last instant, sanity prevails and you backoff. Consider, what would have happened if you have done the thing? Most probably your life would have taxed you. But you being the smart, intelligent person you are didn’t do it because the thing about agreements is that they can be cancelled. Just because you agreed to do a thing doesn’t mean that the thing happened, doesn’t mean that the transaction was completed. As long as you do not complete the transaction you have the opportunity to get your stamp duty amount back.
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