A owes B ₹1,000. A sells property to B for ₹500 in cash plus release of the debt. What amount counts as…
Under section 24, release of a debt due to the transferee counts as consideration for the transfer. The cash and released debt add up to ₹1,500. The question asks for the…
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A owes B ₹1,000. A sells property to B for ₹500 in cash plus release of the debt. What amount counts as consideration under section 24 of the Indian Stamp Act, 1899?
Answer and explanation
Correct answer C
Under section 24, release of a debt due to the transferee counts as consideration for the transfer.
The cash and released debt add up to ₹1,500. The question asks for the section 24 consideration amount.
Option feedback
Option A
This includes the cash and omits the released debt.
Option B
This includes the released debt and omits the cash.
Option C
This adds ₹500 in cash to ₹1,000 in released debt.
Option D
The agreed transaction contains no additional ₹500 beyond the cash and released debt.
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Himachal Pradesh Judicial Services