Question
A. Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949. In general
A. Stamp duty is a tax levied on a variety of written instruments specifies in the First Schedule of Stamp Duty Act 1949. In general term, stamp duty is imposed to legal, commercial, and financial instruments and not on transactions.
The following information is related to Lakshimi a Malaysian citizen:
i. Lakshimi inherited a house from her late father on 15 December 2019 where the market value of the house was RM1,850,000. The house had been acquired by Lakshimis father in 2004 for RM550,000. The house was transferred to Lakshimi on 7 November 2020 when its market value was RM1,965,000.
ii. The house was badly damaged and the entire house needed to be demolished. In March 2020, Lakshimi constructed a new house for RM760,000 and transferred the ownership to her husband, Vijaykonda.
REQUIRED: Explain the stamp duty implications of the above property transactions above for Lakshimi. Support your answer with workings and justifications. (6 Marks)
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