Why is it necessary to pay stamp duty according to True Market Value?

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Payment of stamp duty according to True market value is necessary for the following reasons: 1. If payable stamp duty is not paid on the true market value of the property than the concerned document is considered as 'not duly stamped'. 2. A document which is not duly stamped is not accepted as a legal proof of the transaction evidencing it. 3. If stamp duty is not properly paid it invites penal action.

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