CHAPTER I
PRELIMINARY
CHAPTER II
STAMP DUTIES
A.--Of the liability of instruments to duty
AA.--- Of the liability of instruments of transaction in stock exchanges and depositories to duty
B.---Of Stamps and the mode of using them
C. ---Of the time of stamping Instruments
D. ---Of Valuations for Duty
E. --Duty by whom payable
CHAPTER III
ADJUDICATION AS TO STAMPS
CHAPTER IV
INSTRUMENTS NOT DULY STAMPED
CHAPTER V
ALLOWANCES FOR STAMPS IN CERTAIN CASES
CHAPTER VI
REFERENCE AND REVISION
CHAPTER VII
CRIMINAL OFFENCES AND PROCEDURE
CHAPTER VIII
SUPPLEMENTAL PROVISIONS
Section 1.Short title, extent and commencement.
(1) This Act may be called the Indian Stamp Act, 1899.
1[(2) It extends to the whole of India 2***:
Provided that it shall not apply to 3[the territories which, immediately before the 1st November, 1956, were comprised in Part B States] (excluding the State of Jammu and Kashmir) except to the extent to which the provisions of this Act relate to rates of stamp-duty in respect of the documents specified in Entry 91 of List I in the Seventh Schedule to the Constitution].
(3) It shall come into force on the first day of July, 1899.
1. Subs. by Act 43 of 1955, s. 3, for sub-section (2) (w.e.f. 1-4-1956).
2. The words "except the State of Jammu and Kashmir" omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10- 2019).
3. Subs. by the A.O. (No. 2) 1956, for "Part B States".
Section 2.Definitions.
In this Act, unless there is something repugnant in the subject or context,--
1[(1) Allotment list.--"allotment list" means a list containing details of allotment of the securities intimated by the issuer to the depository under sub-section (2) of section 8 of the Depositories Act, 1996 (22 of 1996);
(1A) "banker" includes a bank and any person acting as a banker;]
(2) Bill of exchange-- "bill of exchange" means a bill of exchange as defined by the Negotiable Instruments Act, 1881, (26 of 1881), and includes also a hundi, and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money;
(3) Bill of exchange payable on demand-- "bill of exchange payable on demand" includes
(a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;
(b) an order for the payment of any sum of money weekly, monthly, or at any other stated period; and
(c) a letter of credit, that is to say, any instrument by which one person authorizes another to give credit to the person in whose favour it is drawn:
(4) Bill of lading. "bill of lading" includes a through bill lading, but does not include a mate's receipt:
(5) Bond-- "bond" includes--
(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;
(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and
(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;
2[but does not include a debenture;]
(6) Chargeable-- "chargeable" means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and, as applied to any other instrument, chargeable under the law in force in 3[India] when such instrument was executed or, where several persons executed the instrument at different times, first executed;
(7) Cheque-- "cheque" means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;
4[(7A) "clearance list " means a list of transactions of sale and purchase relating to contracts traded on the stock exchanges submitted to a clearing corporation in accordance with the law for the time being in force in this behalf;
(7B) "clearing corporation " means an entity established to undertake the activity of clearing and settlement of transactions in securities or other instruments and includes a clearing house of a recognised stock exchange;]
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(9) Collector. "Collector"--
(a) means, within the limits of the towns of Calcutta, Madras and Bombay, the Collector of Calcutta, Madras and Bombay, respectively, and, without those limits, the Collector of a district, and
(b) includes a Deputy Commissioner and any officer whom 6the 7State Government may, by notification in the Official Gazette, appoint in this behalf;
(10) Conveyance-- conveyance includes a conveyance on sale every instrument by which property, whether moveable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by schedule I;
8[(10A) debenturte.--"debenture" includes--
(i) debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not;
(ii) bonds in the nature of debenture issued by any incorporated company or body corporate;
(iii) certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time;
(iv) securitised debt instruments; and
(v) any other debt instruments specified by the Securities and Exchange Board of India from time to time;
(10B) "depository" includes--
(a) a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); and
(b) any other entity declared by the Central Government, by notification in the Official Gazette, to be a depository for the purposes of this Act;]
(11) Duly stamped-- "duly stamped", as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in 9[India]:
(12) Executed and execution-- executed and execution used with reference to instruments, mean signed and signature;
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(13) Impressed stamp-- "impressed stamp" includes--
(a) labels affixed and impressed by the proper officer; and
(b) stamps embossed or engraved on stamped paper;
11[(13A) India-- "India" means the territory of India excluding the State of Jammu and Kashmir;]
12[(14) "instrument" includes--
(a) every document, by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;
(b) a document, electronic or otherwise, created for a transaction in a stock exchange or depository by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded; and
(c) any other document mentioned in Schedule I,
but does not include such instruments as may be specified by the Government, by notification in the Official Gazette.]
(15) Instrument of partition-- "instrument of partition" means any instrument where by coowners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue-authority or any Civil Court and an award by an arbitrator directing a partition;
13[(15A) Issue. --"issue" means any person making an issue of securities;]
(16) Lease-- "lease" means a lease of immovable property, and includes also
(a) a patta;
(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy, or pay or deliver rent for, immovable property;
(c) any instrument by which tolls of any description are let;
(d) any writing on an application for a lease intended to signify that the application is granted;
14[(16A) Marketable security.-- "marketable security" means a security capable of being traded in any stock exchange in India;
(16B) Market value.--"market value", in relation to an instrument through which--
(a) any security is traded in a stock exchange, means the price at which it is so traded;
(b) any security which is transferred through a depository but not traded in the stock exchange, means the price or the consideration mentioned in such instrument;
(c) any security is dealt otherwise than in the stock exchange or depository, means the price or consideration mentioned in such instrument;]
(17) Mortgage-deed-- "mortgage-deed" includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over or in respect of specified property;
(18) Paper-- "paper" includes vellum, parchment or any other material on which an instrument may be written;
(19) Policy of insurance-- "policy of insurance includes"--
(a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event;
(b) a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance; 15***
16* * * * *
17[(19A) "Policy of group insurance"-- "policy of group insurance" means any instrument covering not less than fifty or such smaller number as the Central Government may approve, either generally or with reference to any particular case, by which an insurer, in consideration of a premium paid by an employer or by an employer and his employees jointly, engages to cover, with or without medical examination and for the sole benefit of persons other than the employer, the lives of all the employees or of any class of them, determined by conditions pertaining to the employment, for amounts of insurance based upon a plan which precludes individual selection :]
(20) Policy of sea-insurance or sea-policy-- "Policy of sea-insurance" or "sea-policy"--
(a) means any insurance made upon any ship or vessel (whether for marine or inland navigation), or upon the machinery, tackle or furniture of any ship or vessel, or upon any goods, merchandise or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel; and
(b) includes any insurance of goods, merchandise or property for any transit which includes, not only a sea risk within the meaning of clause (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;
Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for sea-insurance;
(21) Power-of-attorney-- "power-of-attorney" includes any instrument (not chargeable with a fee under the law relating to Court-fees for the time being in force) empowering a specified person to act for and in the name of the person executing it:
(22) Promissory note-- "promissory note" means a promissory note as defined by the Negotiable Instruments Act, 1881 (XXVI of 1881);
It also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;
(23) Receipt-- "receipt" includes any note, memorandum or writing
(a) whereby any money or any bill of exchange, cheque or promissory note is acknowledged to have been received, or--
(b) whereby any other moveable property is acknowledged to have been received in satisfaction of a debt, or
(c) where by any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledgment,
and whether the same is or is not signed with the name of any person; 18***
19[(23A) Securities.--dbqtdsecurities" includes--
(i) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(ii) a "derivative" as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934 (2 of 1934);
(iii) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India ma specify from time to time; and
(iv) any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of this Act.]
(24) Settlement--"settlement" means any non-testamentary disposition, in writing, of moveable or immovable property made--
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose;
and includes an agreement in writing to make such a disposition 20and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition; 21***
22[(25) Soldier-- "soldier" includes any person below the rank of non-commissioned officer who is enrolled under the 23Indian Army Act, 1911 (8 of 1911).]
24[(26) Stamp. "stamp" means any mark, seal or endorsement by any agency or person duly authorised by the State Government, and includes an adhesive or impressed stamp, for the purposes of duty chargeable under this Act.]
25[(27) Stock exchange.-- "stock exchange" includes--
(i) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); and
(ii) such other platform for trading or reporting a deal in securities, as may be specified by the Central Government, by notification in the Official Gazette, for the purposes of this Act.]
STATE AMENDMENTS
Assam--
Amendment of section 2 of Act II of 1892.--In section 2 of the principal Act, after clause (7), the following shall be inserted, namely:--
"(8) "Chief Controlling Revenue Authority" means the Superintendent of Stamps, Assam."
[Vide Assam Act 10 of 1968, s. 2]
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 2.-- In clause (10) of section 2 of the Indian Stamp Act, 1899, hereinafter referred to as the said Act, for the colon shall be substituted a comma, followed by the words "or by Schedule I-A as the case may be.
[Vide Himachal Pradesh Act 4 of 1953, s. 2]
Uttarakhand.--
Amendment of section 2.--Indian Stamp (Uttarakhand Amendment) Bill, 2011 (as passed by the Uttarakhand Legislative Assembly on dated 16 March, 2011) clause 9 shall be substituted as follows; namely:--
"Voting or attempting to cote under any proxy not duly stamped shall for every such offence, be punishable with fine which may extend to five thousand."
[Vide Uttarakhand Act 20 of 2013, s. 2]
Amendment of section 2.--In section 2 of the Indian Stamp Act, 1899 (hereinafter referred to as the principal Act),:--
(a) For clause (14), the following clause shall be substituted; namely:--
(14) "Instrument" instrument includes every document and record created or maintained in or by an electronic storage and retrieval device or media by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;
(b) After clause (14), the following clause shall be inserted, namely:--
(14-A) "Instrument of Gift" Instrument of gift includes an instrument whether by way of declaration or otherwise, for making or accepting an oral gift;
(c) After clause (22), the following clause shall be inserted namely:--
(22-A) "Public Officer" Public Officer means a Public Officer as defined in clause (17) of section 2 of the Code of Civil Procedure, 1908 and includes every officer working in connection with the affairs of any of the following of the organizations, namely:--
(a) Any statutory body or authority Constituted under any Uttarakhand State Act;
(b) A "Financing Bank" or "Central Bank" as defined in clause (L) of section 2 of the Uttarakhand Cooperative Societies Act, 2003.
[Vide Uttarakhand Act 1 of 2016, s. 2]
Uttar Pradesh
Amendment of Section 2 of Act no. 2 of 1899.In section 2 of the Indian Stamp Act, 1899, hereinafter referred to as the principal Act, in clause (16), after sub-clause (d), the following clause shall be inserted, namely :
(e) any instrument by which mining lease is granted in respect of minor minerals as defined in clause (e) of section 3 of the Mines and Minerals (Regulation and Development) Act, 1957. [Vide Uttar Pradesh Act 11 of 1992, s. 2]
Amendment of section 2 of Act II of 1899.In section 2 of the Indian Stamp Act, 1899 as amended in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, in clause (10), the following Explanation shall be inserted in the end, namely :
Explanation An instrument whereby a co-owner of a property having defined share therein, transfers such share or part thereof to another co-owner of the property, is for the purposes of this clause an instrument by which property is transferred.
[Vide Uttar Pradesh Act 19 of 1981, s. 2]
Amendment of section 2 of Act II of 1899.-- In section 2 of the Indian Stamp Act, 1899, hereinafter referred to as the principal Act, for clause (15), the following clause shall be substituted, namely :--
"(15) "instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and also includes---
(i) a final order for effecting a partition passed by any revenue authority or any civil court ;
(ii) an award by an arbitrator directing a partition ; and
(iii) when any partition is effected without executing any such instrument, any instrument of instruments signed by the co-owners and recording, whether by way of declaration of such partition or otherwise, the terms of such partition amongst the co-owners ;--
[Vide Uttar Pradesh Act 20 of 1974, s. 2]
Amendment of section 2 of Act no. 2 of 1899.---In section 2 of the Indian Stamp Act, 1899, hereinafter referred to as the Amendment of principal Act,--
(a) for sub-section (14), the following sub-section shall be substituted, namely-
"(14) Instrument" "Instrument includes every document and record created or maintained in or by an electronic storage and retrieval device or media by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;
(b) after sub-section (14), the following sub-section shall be inserted, namely:--
(14-A) 'Instrument of Gift' '1nstrument of Gift' includes an instrument whether by way of declaration or otherwise, for making or accepting an oral gift;
(c) after sub-section (22), the following sub-section shall be inserted, namely :--
(22-A) 'Public Officer' Public Officer' means a Public Officer as defined in clause (17) of section 2 of the Code of Civil procedure, 1908 and includes every officer working in connection with the affairs of any of the following of organizations, namely :---
(a) any statutory body or authority constituted under any Uttar Pradesh Act;
(b) a 'Financing Bank or 'Central Bank' as defined in clause (k) of section 2 of the Uttar Pradesh Co-operative Societies Act, 1965 ;
[Vide Uttar Pradesh Act 38 of 2001, s. 2]
Amendment of section 2 of Act II of 1899.-- In section 2 of the Indian Stamp Act, 1899, as amended in its application to Uttar Pradesh (hereinafter referred to as the principal Act), after clause (26- A), the following clause shall be inserted, namely:--
27. 'quarter' means a quarter of the financial year.
[Vide Uttar Pradesh Act 49 of 1975, s. 2]
1. Subs. by Act 7 of 2019, s. 12, for clause (1) (w.e.f. 1-7-2020).[Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
2. Added by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
3. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
4. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
5. Clause (8) omitted by the A.O. 1937.
6. Subs. by the A.O. 1937, for "the L.G.".
7. Subs. by the A.O. 1950, for "collecting Government".
8. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
9. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
10. Clause (12A) omitted by the A.O. 1950. Earlier ins. by the A.O. 1937.
11. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956).
12 Subs. by Act 7 of 2019, s. 12, for clause (14) (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
13. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020[
14. Subs. by s. 12, ibid., for clause (16A) (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
15. The word "and" omitted by Act 5 of 1906, s. 2.
16. Clause (c) omitted by s. 2, ibid.
17. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956).
18. The word "and" omitted by Act 18 of 1928, s. 2 and the First Schedule.
19. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
20. Ins. by Act 15 of 1904, s. 2.
21. The word "and", omitted by the A.O. 1950. Earlier ins. by Act 18 of 1928, s. 2 and the First Schedule.
22. Added by Act 18 of 1928, s. 2 and the First Schedule.,
23. See Now the Army Act 1950 (46 of 1950).
24. Ins. by Act 23 of 2004, s. 117.
25. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
Section 3.Instruments chargeable with duty.
Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore respectively, that is to say--
(a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 1[India] on or after the first day of July, 1899;
(b) every bill of exchange 2[payable otherwise than on demand] 3*** or promissory note drawn or made out of 1[India ]on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in 1[India]; and
(c) every instrument (other than a bill of exchange, 3***or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of 1[India] on or after that day, relates to any property situate, or to any matter or thing done or to be done, in 1[India] and is received in 1India:
Provided that no duty shall be chargeable in respect of--
(1) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Merchant Shipping Act 1894, Act No. 57 & 58 Vict. c. 60 or under Act XIX of 1838 Act No. or the Indian Registration of Ships Act, 1841, (CX of 1841) as amended by subsequent Acts.
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 3.-- In section 3 of the said Act- (1) After clause (c), the following proviso shall be inserted, namely: --- "Provided that, notwithstanding anything contained in clauses (a), (b) or (c) of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefor, respectively, that is to say:
(aa) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule which, not having been previously executed by any person is executed in the Himachal Pradesh on or after the date of commencement of this Act;
(bb) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed out of Himachal Pradesh, on or after the date of commencement of this Act and relates to any property situated, or to any matter or thing done or to be done in the Himachal Pradesh, and is received in the Himachal Pradesh".
(2) Between the word Provided and the words that no duty the word also shall be inserted.
[Vide Himachal Pradesh Act 4 of 1953, s. 3]
Odisha.--
Insertion of new section 3A.--After section 3 of the Indian Stamp Act, 1899, (2 of 1899) the following section shall be inserted, namely:--
"3.A Duty chargeable on mining lease. -- (1) Notwithstanding anything contained in this Act and the rules made thereunder, on every instrument of grant or renewal of a mining lease, the stamp duty chargeable shall be equivalent to fifteen percentum of the amount of average royalty that would accrue out of the highest annual extraction of minerals permitted under the approved mining plan or mining scheme, as the case may be, for such mining lease under the relevant law in force, multiplied by the period of such mining lease.
Explanation.--For the purpose of this sub-section, the average royalty of the highest grade of minerals based on the date available for past twelve months beginning from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013 shall be taken into consideration:
Provided that where an application for renewal of mining lease has been made to the State Government prior to the expiry of the lease, but renewal of lease has not been granted by the State Government or the mining lease is deemed to have been extended by a further period in accordance with the provisions contained in the relevant law in force, till the State Government passes an order, prior to the commencement of the Indian Stamp (Odisha Amendment) Act, 2013, the sum total of the quantity of mineral permitted for extraction, year wise, in the approved mining plan or mining scheme, as the case, may be, or the actual quantity raised, whichever is higher, shall be taken into consideration for calculation of the stamp duty:
Provided further that in case the production level is enhanced on account of subsequent modification or review of the mining plan, the stamp lease period and the lessee shall deposit the differential stamp duty before such enhancement is carried out by him:
Provided also that in case a lessee is required to surrender the mining lease or, permanently prohibited from undertaking the extraction of mineral by, or for reasons of any operation of law, court orders passed or any order issued under any law for the time being in force and the reasons of such prohibition are not in any manner attributable to such lessee or his agents, servants, employees or persons claiming through or under such lessee, the lessee shall be entitled for refund of the stamp duty paid by him to the extent of such balance period of lease outstanding:
Provided also that where the lessee is prohibited from undertaking the extraction of minerals for a temporary period for the reasons mentioned in the third proviso and subject to the conditions specified therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that would be payable for the mining lease under the relevant law in force, for the period of such prohibition.
(2) Where an application for renewal of a mining lease has been made to the State Government prior to the expiry of the lease but renewal of the lease has not been granted by the State Government or the mining lease is deemed to have been extended as per the provisions contained in the relevant law in force, by a further period till the State Government passes an order thereon, the stamp duty payable under sub-section (1) shall be paid by the applicant on or before the date of expiry of the lease or within sixty days from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013, whichever is later, the manner as may be prescribed.
(3) If the application for grant or renewal of mining lease is rejected by the State Government, the applicant shall be entitled for refund of full stamp duty by him without any interest.
(4) In case of a mining lease whose period is deemed to have been extended by a further period till the State Government passes an order thereon and the State Government, at a later date, passes an order rejecting the renewal of the lease, the applicant shall be entitled for refund of such amount of stamp duty paid under sub-section (1), as arrived at by deducting from the total amount of stamp duty paid, the amount of stamp duty chargeable in respect of such mining lease till the date of such rejection order without any interest.
(5) No refund as mentioned in sub-sections (3) and (4) shall be made if the order rejecting the application is challenged or the time limit for presenting the application for revision of the order of rejection is not expired".
[Vide Odisha Act 16 of 2013, s. 2]
Meghalaya.--
Insertion of a new section in Central Act II of 1899.--After section 3 of the Indian Stamp Act, 1899, the following shall be inserted as section 3A, namely:--
"3A. Surcharge on Stamp Duty.--(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, herein after referred to as Stamp Surcharge on the instruments mention on the following items of Schedule I of the principal Act, namely:--
Item Nos. 1-10, 12,15-20, 22-26, 28, 29,31,38-46,48,50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument.
(3) The Stamp Surcharge shall be payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of stamp Surcharge.
Provide that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rule generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge."
[Vide Meghalaya Act 13 of 1972, s. 2]
Meghalaya.--
Insertion of a new section in Central Act II of 1899.--After section 3 of the Indian Stamp Act, 1899 the following shall be inserted as section 3A, namely:--
"3A. Surcharge on Stamp Duty.--(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, hereinafter referred to as Stamp Surcharge on the instruments mentioned in the following items of Schedule I to the principal Act, namely:--
Item Nos. 1-10, 12, 15-20, 22-26, 28, 29, 31, 36, 38-46, 48, 50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty. Five paise per instrument.
(3) The Stamp Surcharge shall by payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of Stamp Surcharge.
Provided that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this Act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rules generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge."
[Vide Meghalaya Act 15 of 1973, s. 2]
1 Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).
2. Ins. by Act 5 of 1927, s. 5.
3. The word cheque omitted by s. 5, ibid.
Section 3A.[Repealed.].
[Instruments chargeable with additional duty.] Omitted by the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973), s. 2 (w.e.f. 1-4-1973).
Tripura.--
Substitution of section 3B.-- For section 3B of the principal Act, as inserted by the Union Territories Taxation Laws (Amendment) Act, 1971, the following shall be substituted, namely: --
"3B. Instrument Chargeable with additional duty.--(1) Every instrument chargeable with duty under section 3, read with Schedule 1, not being an instrument mentioned articles Nos. 13, 14, 27, 37, 47, 49, 52, 53 or 62(a), shall, in addition to such duty, be chargeable with a duty of ten paise. (2) The additional duty with which any instrument is chargeable under sub-section (1) shall be paid and such payment shall be indicated on such instrument by means of adhesive stamp.".
[Vide Tripura Act 5 of 1973, s. ]
Section 4.Several instruments used in single transaction of sale, mortgage or settlement.
(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, for the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty of one rupee instead of the duty (if any) prescribed for it in that Schedule.
(2) The parties may determine for themselves which of the instrument so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:
Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.
1[(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be the principal instrument for the purpose of this section and no stamp-duty shall be charged on any other instruments relating to any such transaction.]
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 4.-- In sub-section (1) of section 4 of the said Act--
(a) for the word and figure "Schedule I" the word, figure and letter "Schedule I-A" shall be substituted, and
(b) for the words one rupee, the words "two rupees" shall be substituted.
[Vide Himachal Pradesh Act 4 of 1953, s. 4]
Orissa.--
Amendment of section 4. --In section 4 of the Indian Act, 1899 (2 of 1899) (hereinafter referred to as the principal Act) in sub-section (1), for the words, "one rupee", and eight annas the words "ten rupees" shall be substituted.
[Vide Orissa Act 1 of 2003, s. 2]
Manipur
Amendment of sections 4 and 6.-In sub-section (1) of section 4 and in the proviso to section 6 of the Indian Stamp Act, 1899 s application to the State of Manipur hereinafter referred to as the Principal Act the words "two rupees" wherever they occur, the words "two rupees and paise fifty" shall be substituted.
[Vide Manipur Act 4 of 1989, s. 2]
1. Ins. by Act 7 of 2019, s. 13 (w.e.f. 1-4-2020).
Section 5.Instruments relating to several distinct matters.
Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.
Section 6.Instruments coming within several descriptions in Schedule I.
Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions in Schedule I, shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties:
Provided that nothing in this Act contained shall render chargeable with duty exceeding one rupee a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 6-- In section 6 of the said Act- (1) After the word and figure "Schedule I" the words, figure and letter "or Schedule I-A" shall be inserted.
(2) In the proviso, for the words "one rupee" the words "two rupees" shall be substituted and after the words "has been paid" the following shall be added, namely;--
"unless it falls within the provisions of section 6-A".
[Vide Himachal Pradesh Act 4 of 1953, s. 5]
Orissa.--
Amendment of section 6.--In the proviso the section 6 of the principal Act, for the words "one rupees and eight annas", the words "ten rupees" shall be substituted.
[Vide Orissa Act 1 of 2003, s. 3]
STATE AMENDMENT
Himachal Pradesh.--
Addition of a new section 6-A.--After section 6 of the said Act, the following new section shall be inserted: --
6-A. Payment of Himachal Pradesh stamp duty on copies, counter-parts or duplicates when that duty has not been paid on the principal or original instrument.-- (1) Notwithstanding anything contained in sections 4 or 6 or in any other law, unless it is proved that the duty chargeable under the Indian Stamp (Himachal Pradesh Amendment) Act, 1952 has been paid:--
(a) on the principal or original instrument as the case may be; or
(b) in accordance with the provisions of this section, the duty chargeable on an instrument of sale, mortgage or settlement other than a principal instrument or on a counterpart, duplicate or copy of any instrument shall, if the principal or original instrument would, when received in Himachal Pradesh, have been chargeable, under the Indian Stamp (Himachal Pradesh Amendment) Act, 1952, with a higher rate of duty with which the principal or original instrument would have been chargeable under section 19-A.
(2) Notwithstanding anything contained in section 35 or in any other law, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence as properly stamped unless the duty chargeable under this section has been paid thereon:
Provided that a court before which any such instrument, counterpart, duplicate or copy is produced, shall permit the duty chargeable under this section, to be paid thereon and shall then receive it in evidence.
[Vide Himachal Pradesh Act 4 of 1953, s. 6]
Section 7.Policies of sea-insurance.
1 * * * **
(4) Where any sea-insurance is made for or upon a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a policy for time.
1. Sub-sections (1), (2) and (3) rep. by Act 11 of 1963, s. 92 (w.e.f. 1-8-1963).
Section 8.Bonds, debentures or other securities issued on loans under Act XI of 1879.
(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local Authorities Loan Act, 1879 (XI of 1879) or, of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of 1 [one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.
(2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or other securities shall be valid, whether the same are stamped or not:
Provided that nothing herein contained shall exempt the local authority which has issued such bonds, debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of March, 1897, when such duty has not already been paid or remitted by order issued by the Central Government.
(3) In the case of wilful neglect to pay the duty required by this section, the local authority shall be liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.
1. Subs. by Act 6 of 1910, s. 2, for "eight annas per centum".
Section 8A.Securities dealt in depository not liable to stamp-duty.
1[8A. Securities dealt in depository not liable to stamp duty.---Notwithstanding anything contained in this Act or any other law for the time being in force,---
(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue, be chargeable with duty on the total amount of securities issued by it and such securities need not be stamped;
(b) the transfer of registered ownership of securities from a person to a depository or from a depository to a beneficial owner shall not be liable to duty;
Explanation.---For the purposes of this section, the expression "beneficial ownership" shall have the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996)]
1. Subs. by Act 7 of 2019, s. 14, for section 8A (w.e.f. 1-4-2020).
Section 8B.Corporatisation and demutualisation schemes and related instruments not liable to duty.
1[8B. Corporatisation and demutualisation schemes and related instruments not liable to duty---Notwithstanding anything contained in this Act or any other law for the time being in force,--
(a) a scheme for corporatisation or demutualisation, or both of a recognised stock exchange; or
(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in connection with, the corporatisation or demutualisation, or both of a recognised stock exchange pursuant to a scheme,
as approved by the Securities and Exchange Board of India under sub-section (2) of section 4B of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), shall not be liable to duty under this Act or any other law for the time being in force.
Explanation.-- For the purposes of this section,--
(a) the expressions "corporatisation", "demutualisation" and "scheme" shall have the meanings respectively assigned to them in clauses (aa), (ab) and (ga) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(b) "Securities and Exchange Board of India" means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).]
1. Ins. by Act 18 of 2005, s.114 (w.e.f. 13-5-2005).
Section 8C.Negotiable warehouse receipts not liable to stamp duty.
1[8C. Negotiable warehouse receipts not liable to stamp-duty.--Notwithstanding anything contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.]
1. Ins by Act 37 of 2007, s. 55 (w.e.f. 25-10-2010).
Section 8D.Agreement or document for assignment of receivables not liable to stamp duty.
1[8D. Agreement or document for assignment of receivables not liable to stamp-duty. --Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement or other document for assignment of receivables as defined in clause (p) of section 2 of the Factoring Regulation Act, 2011 in favour of any factor as defined in clause (i) of section 2 of the said Act shall not be liable to duty under this Act or any other law for the time being in force.]
1. Ins. by Act 12 of 2012, s. 35 and the Schedule (w.e.f. 1-2-2012).
Section 8E.Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of a bank to a holding company of bank not liable to duty.
1[8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of a bank to a holding company of bank not liable to duty. ---Notwithstanding anything contained in this Act or any other law for the time being in force,--
(a) conversion of a branch of a bank into a wholly owned subsidiary of the bank or transfer of shareholding of a bank to a holding company of the bank in terms of the scheme or guidelines of the Reserve Bank of India shall not be liable to duty under this Act or any other law for the time being in force; or
(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in connection with, the conversion of a branch of a bank into a wholly owned subsidiary of the bank or transfer of shareholding of a bank to a holding company of the bank in terms of the scheme or guidelines issued by the Reserve Bank of India in this behalf, shall not be liable to duty under this Act or any other law for the time being in force.
Explanation.--
(i) For the purposes of this section, the expression bank means--
(a) "a banking company" as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(b) "a corresponding new bank" as defined in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(c) "State Bank of India' constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);
(d) "a subsidiary bank" as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(e) "a Regional Rural Bank" established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);
(f) "a Co-operative Bank" as defined in clause (cci) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(g) "a multi-State co-operative bank" as defined in clause (cciiia) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) For the purposes of this section, the expression the Reserve Bank of India means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934).]
1. Ins. by Act 4 of 2013, s. 17 and the Schedule (w.e.f. 17-1-2013).
Section 8F.Agreement or document for transfer or assignment of rights or interest in financial assets not liable to stamp duty.
1[8F. Agreement or document for transfer or assignment of rights or interest in financial assets not liable to stamp-duty.---Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement or other document for transfer or assignment of rights or interest in financial assets of banks or financial institutions under section 5 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), in favour of any asset reconstruction company, as defined in clause (ba) of sub-section (1) of section 2 of that Act, shall not be liable to duty under this Act.]
1. Ins. by Act 44 of 2016, s. 43 and the First Schedule (w.e.f. 1-9-2016).
Section 9.Power to reduce, remit or compound duties.
1[(1)] 2[The 3***Government] may, by rule or order published in the Official Gazette,--
(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of 4[the territories under its administration, the duties with which any instruments or any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable, and
(b) provide for the composition or consolidation of duties 5[of policies of insurance and] in the case of issues by any incorporated company or other body corporate 6[or of transfers (where there is a single transferee, whether incorporated or not)] of debentures, bond or other marketable securities.
7[(2) In this section the expression "the Government" means,--
(a) in relation to stamp-duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, and in relation to any other stamp-duty chargeable under this Act and falling within entry 96 in List I in the 8[Seventh Schedule to the Constitution, expect the subject matters referred to in clause (b) of sub-section (1)]; the Central Government;
(b) Save as aforesaid, the State Government.]
STATE AMENDMENT
Karnataka--
Insertion of new section 9A.--After section 9 of the Indian Stamp Act, 1899 (Central Act 2 of 1899), the following section shall be inserted, namely:--
"9A. Power of State Government to consolidate duties in respect of receipts.--Subject to such conditions as may be specified, the State Government may, by order, provide for the consolidation of duties in respect of any receipts or class of receipts given by any person or class of persons including any Government."
[Vide Karnataka Act 29 of 1978, s. 2]
1. S. 9 re-numbered as sub-section (1) of that section by the A.O. 1950.
2. Subs. by the A.O. 1937, for the G.G. in C.
3. The word collecting omitted by the A.O. 1950.
4. Subs. by the A.O. 1937, for British India.
5. Ins. by Act 23 of 2004, s. 117.
6. Ins. by Act 32 of 1994, s. 99 (w.e.f. 13-9-1994).
7. Added by the A.O. 1950.
8. Subs by Act 21 of 2006 s. 69, for Seventh Schedule to the Constitution. (w.e.f. 18-4-2006).
| Year | Description | Hindi Description | Files(Eng) | Files(Hindi) |
|---|---|---|---|---|
| 22-10-2018 | Stamp Duty chargeable on Instruments | |||
| 22-10-2018 | Amendment in the rate of Stamp Duty on specified Instruments | |||
| 22-10-2018 | Amendment in the Order of Stamp Duty on specified Instruments |
| Year | Description | Hindi Description | Files(Eng) | Files(Hindi) |
|---|---|---|---|---|
| 28-01-2004 | Stamps Order number S.O. 130(E) | |||
| 07-04-2005 | Stamps Order No. S.O.522(E) | |||
| 12-09-2008 | Stamps Order No. S.O.2189(E) |
Section 9A. Instruments chargeable with duty for transactions in stock exchanges and depositories.
1[9A. Instruments chargeable with duty for transactions in stock exchanges and depositories.--(1) Notwithstanding anything contained in this Act,--
(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock exchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of the State Government by the stock exchange or a clearing corporation authorised by it, from its buyer on the market value of such securities at the time of settlement of transactions in securities of such buyer, in such manner as the Central Government may, by rules, provide;
(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is made by a depository otherwise than on the basis of any transaction referred to in clause (a), the stamp-duty on such transfer shall be collected on behalf of the State Government by the depository from the transferor of such securities on the consideration amount specified therein, in such manner as the Central Government may, by rules, provide;
(c) when pursuant to issue of securities, any creation or change in the records of a depository is made, the stamp-duty on the allotment list shall be collected on behalf of the State Government by the depository from the issuer of securities on the total market value of the securities as contained in such list, in such manner as the Central Government may, by rules, provide.
(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section (1) shall be chargeable with duty as provided therein at the rate specified in Schedule I and such instruments need not be stamped.
2[Provided that no such duty shall be chargeable in respect of the instruments of transaction in stock exchanges and depositories established in any International Financial Services Centre set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).]
(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the State Government on any note or memorandum or any other document, electronic or otherwise, associated with the transactions mentioned in sub-section (1).
(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may be, shall, within three weeks of the end of each month and in accordance with the rules made in this behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty collected under this section to the State Government where the residence of the buyer is located and in case the buyer is located outside India, to the State Government having the registered office of the trading member or broker of such buyer and in case where there is no such trading member of the buyer, to the State Government having the registered office of the participant:
Provided that before such transfer, the stock exchange or the clearing corporation authorised by it or the depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as may be specified in such rules.
Explanation.--The term participant shall have the same meaning as assigned to it in clause (g) of section 2 of the Depositories Act, 1996 (22 of 1996).
(5) Every stock exchange or the clearing corporation authorised by it and depository shall submit to the Government details of the transactions referred to in sub-section (1) in such manner as the Central Government may, by rules, provide.]
1. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020.]
2. Ins. by Act 12 of 2020, s. 143, (w.e.f. 1-4-2020).
Section 9B.Instruments chargeable with duty for transactions otherwise than through stock exchanges and depositories.
1[9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges and depositories.--Notwithstanding anything contained in this Act,--
(a) when any issue of securities is made by an issuer otherwise than through a stock exchange or depository, the stamp-duty on each such issue shall be payable by the issuer, at the place where its registered office is located, on the total market value of the securities so issued at the rate specified in Schedule I;
(b) when any sale or transfer or reissue of securities for consideration is made otherwise than through a stock exchange or depository, the stamp-duty on each such sale or transfer or reissue shall be payable by the seller or transferor or issuer, as the case may be, on the consideration amount specified in such instrument at the rate specified in Schedule I.]
1. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-4-2020).
Section 10.Duties how to be paid.
(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps--
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto0--as the 1[State Government] may be rule direct.
(2) The rules made under sub-section (1) may, among other matters, regulate,--
(a) in the case of each kind of instrument--the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps--the number of stamps which may be used;
(c) in the case of bills of exchange or promissory notes 2*** the size of the paper on which they are written.
STATE AMENDMENTS
Assam--
Insertion of section 10A.--The principal Act, after the existing section the following shall be inserted as section 10A, namely:--
"10A. For shortage of stamps how duty to be paid--(1) Notwithstanding anything contained in Section 10, where the State Government or the Collector, as the case may be, is satisfied that there is shortage of stamps in the district or stamps of required denominations are not available, the State Government or the Collector may permit payment of the duty to be paid in cash or by way of Demand Draft or by Pay Order and authorize the Treasury Officer or Sub-Treasury Officer or Sub-Registrar or any other authorised officer, as the case may be, on production of a challan evidencing payment of duty in the Government Treasury or Sub-Treasury of a Demand Draft or by Pay Order drawn on a branch of any Schedule bank, as the case may be, after due verification, to certify in such manner as may be prescribed, by endorsement on the instrument of the amount of duty so paid in cash.aid in cash.
Explanation.--Government Treasury includes a Government Sub-Treasury and any other place as the State Government may, by notification in the Assam Gazette, appoint in this behalf:
Provided that the State Government may, be order published in the Official Gazette, direct that the power exercisable by it or by the Collector under this Section may be exercised by such other officers as may be specified in the order.
(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps in accordance with the requirements of section 10.
(3) Nothing in this section shall apply to,--
(i) the payment of stamp duty chargeable on the instruments specified in Entry 91 of List I of the Seventh Schedule to the Constitution of India; and
(ii) the instruments presented after six months from the date of their execution or first execution."
[Vide Assam Act 22 of 2004, s. 2]
Meghalaya--
Amendment of section 10 of Central act 2 of 1899.--In the Indian Stamp Act, 1899 after section 10 the following new section shall be inserted as section 10A, namely:--
"10A. Notwithstanding anything contained in section 10 where,
(a) (i) The State Government, in relation to any area in the State; or
(ii) the Deputy Commissioner, in relation to any area in District under his charge, is satisfied that on account of temporary, shortage of stamps in any area, duty cannot be paid, and payment of duty cannot be indicated on instruments, by means of Stamps, the State Government, or as the case may be, the Deputy Commissioner may, by notification, in the Official Gazette, direct that in such area and for such period as maybe specified in such notification, the duty may be paid in cash in any Treasury or Sub-Treasury and shall on production of a challan evidencing payments of stamp duty in the Government treasury certify endorsement on the instrument in respect of which the stamp duty is paid, that the duty has been paid, and state in the said endorsement the amount of the duty so paid.
(b) An endorsement made on any instrument under clause (a) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement had been paid in respect of, and such payment has been indicated on, such instrument by means of stamps, under section 10.".
[Vide Meghalaya Act 6 of 1973, s.2]
Uttarakhand--
Amendment of section 10.--After section 10(A) the following section shall be inserted, namely:--
10(B) "Various modes of payment of duty" Notwithstanding anything contained in section 10 & 10(A) all duties with which any instruments are chargeable shall be paid,--
(1) by way of cash; or
(2) by demand draft; or
(3) by pay order; or
(4) by e-payment;
in Government Treasury or Sub-Treasury or General Stamp Office or, as the case may be, Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury) and such payment shall be indicated by endorsement on such instruments by an officer authorised by the State Government.
[Vide Uttarakhand Act 1 of 2016, s. 3]
Uttar Pradesh
Amendment of section 10-A.— In section 10-A of the Principal Act, for sub-section (1) the following sub-section shall be substituted namely :—
(1) Notwithstanding anything contained in section 10—
(a) where the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of required denominations are not available, he may permit duty to be paid in cash and authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty in the Government treasury or sub-treasury, to certify by endorsement on the instrument or instruments the amount of duty so paid in cash ;
(b) where the State Government considers it expedient so to do, it may, in any district, permit duty to be paid in cash and authorize any officer, to receive payment of duty in cash and to certify by endorsement by means of a Franking machine on the instrument or instruments the amount of duty so paid in cash.
[Vide Uttar Pradesh Act 11 of 1992, s. 3]
Uttar Pradesh
Insertion of new section 10-A.— After section 10 of the principal Act, the following section shall be inserted, namely :—
“10-A. Payment of duty in cash.—(1) Notwithstanding anything contained in section 10, where the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of required denominations are not available, he may permit duty to be paid in cash and authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty in the Government treasury or sub-treasury, to certify by endorsement on the instruments or instruments the amount of duty so paid in cash.
(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps in accordance with the requirement of section 10.”
[Vide Uttar Pradesh Act 20 of 1974, s. 4]
1. Subs. by the A.O. 1950, for "collecting Government".
2. The words "written in any oriental language" omitted by Act 43 of 1955, s. 5 (w.e.f. 1-4-1956).
Section 11.Use of adhesive stamps.
The following instruments may be stamped with adhesive stamps, namely:--
(a) instruments chargeable 1[with a duty not exceeding ten naye paise], except parts of bills of exchange payable otherwise than on demand and drawn in sets;
(b) bills of exchange, 2*** and promissory notes drawn or made out of 3[India];
(c) entry as an advocate, vakil or attorney on the roll of a High Court; (d) notarial acts; and
(e) transfers by endorsement of shares in any incorporated company or other body corporate.
STATE AMENDMENT
Uttar Pradesh
Amendment of section 11.--In section 11 of the principal Act, in clause (c), after the words "State Bar Council of Uttar Pradesh " the words and certificates of enrolment issued to Revenue Agents or Mukhtars" shall be inserted.
[Vide Uttar Pradesh Act 19 of 1982, s. 3]
Insertion of section 11-A.— After section 11 of the principal Act, the following section shall be inserted, namely :—.
“11-A. Payment of duty in cash on such memos.— (1) Notwithstanding anything contained in section 11, the stamp duty due under Article 25-A of Schedule I-B on a counterpart or duplicate (including counterfoil or carbon copy) of a bill or cash memo may be paid either by means of stamps on the date of issue of such instruments, or in cash once in every quarter, for all such instruments issued in the previous quarter, into the treasury or sub-treasury under such head as the State Government may by general or special order direct..
(2) The treasury challan prepared for deposit of duty in cash shall be accompanied by such statement and shall be preserved for the purpose of verification for such period and proper account thereof shall be maintained in such form as the State Government may by general or special order direct.” [Vide Uttar Pradesh Act 49 of 1975, s. 4].
Amendment of section 11.—In section 11 of the principal Act, in clause (c), after the words “State Bar Council of Uttar Pradesh” the words “and certificate of enrolment issued to Revenue Agents or Mukhtars” shall be inserted..
[Vide Uttar Pradesh Act 19 of 1981, s. 3].
1. Subs. by Act 19 of 1958, s. 2, for with the duty of one anna or half an anna (w.e.f. 1-10-1958).
2. The word cheques omitted by Act 5 of 1927, s. 5.
3. Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).
Section 12.Cancellation of adhesive stamps.
(1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3)The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.
Section 13.Instruments stamped with impressed stamps how to be written.
Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.
Section 14.Only one instrument to be on same stamps.
No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:
Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.
Section 15.Instrument written contrary to section 13 or 14 deemed unstamped.
Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.
Section 16.Denoting duty.
Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of the Collector or in such other manner (if any) as the 1[State Government] may by rule prescribe.
1. Subs. by the A.O. 1950, for "collecting Government".
Section 17. Instrument executed in India.
All instruments chargeable with duty and executed by any person in 1[India] shall be stamped before or at the time of execution.
STATE AMENDMENT
Assam--
Amendment of section 17.--In the principal Act, in Section 17, after the existing provision, the following proviso shall be inserted namely:--
"Provided that nothing in this Section shall apply to the instrument in respect of which stamp duty has been paid under section 10-A."
[Vide Assam Act 22 of 2004, s. 3]
1. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
Section 18.Instruments other than bills and notes executed out of India.
(1) Every instrument chargeable with duty executed only out of 2[India], and not being a bill of exchange 3*** or promissory note, may be stamped within three months after it has been first received in 2[India].
(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefore, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the 1[State Government] may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.
1. Subs. by the A.O. 1950, for "collecting Government".
2. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
3. The word "cheque" omitted by Act 5 of 1927, s. 5.
Section 19.Bills and notes drawn out of India.
The first holder in 1[India] of any bill of exchange 3[payable otherwise than on demand], 2*** or promissory note drawn or made out of 1[India] shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in 1[India], affix thereto the proper stamp and cancel the same:
Provided that,--
(a) if, at the time any such bill of exchange, 2*** or note comes into the hands of any holder thereof in 1[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;
(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.
STATE AMENDMENT
Himachal Pradesh.--
Addition of a new section 19-A.--After section 19 of the said Act the following new section shall be inserted, namely:---
19-A. Payment of duty on certain instruments liable to increased duty in Himachal Pradesh under clause (bb) of section 3.-- Where any instrument has become chargeable in any part of India and thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952--
(i) notwithstanding anything contained in the said proviso, the amount of duty chargeable on such instrument shall be the amount chargeable on it under Schedule- I-A less the amount of duty, if any already paid on it in India,
(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for the payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same person as though such instrument were an instrument received in India for the first time at the time when it became chargeable with the higher duty.
[Vide Himachal Pradesh Act 4 of 1953, s. 7]
1. Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).
2. The word cheque omitted by Act 5 of 1927, s. 5.
3. Ins. by s. 5, ibid.
Section 20.Conversion of amount expressed in foreign currencies.
(1) Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of 1[India] such duty shall be calculated on the value of such money in the currency of 1[India] according to the current rate of exchange on the day of the date of the instrument.
(2) The Central Government may, from time to time, by notification in the Official Gazette, prescribe a rate of exchange for the conversion of British or any foreign currency into the currency of 1[India] for the purposes of calculating stamp-duty, and such rate shall be deemed to be the current rate for the purposes of sub-section (1).
1. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
Section 21.Stock and marketable securities how to be valued.
Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on 1[the market value of such stock or security.]
2[Provided that the market value for calculating the stamp-duty shall be, in the case of--
(i) options in any securities, the premium paid by the buyer;
(ii) repo on corporate bonds, interest paid by the borrower; and
(iii) swap, only the first leg of the cash flow.]
1. Subs. by Act 7 of 2019, s. 16, for "the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument." (w.e.f. 1-4-2020).
2. Ins. by s. 16, ibid.,(w.e.f. 1-4-2020).
Section 22.Effect of statement of rate of exchange or average price.
Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject-matter of such statement, be presumed, until the contrary is proved, to be duly stamped.
Section 23.Instruments reserving interest.
Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
Section 23A.Certain instruments connected with mortgages of marketable securities to be chargeable as agreements.
1[23A. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements. --(1) Where an instrument (not being a promissory note or bill of exchange)--
(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or
(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security,
it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under 2[Article No. 5 (c)] of Schedule I.
(2) A release or discharge of any such instrument shall only be chargeable with the like duty.].
STATE AMENDMENT
Himachal Pradesh--
Amendment of section 23-A.-- In sub-section (1) of section 23-A of the said Act, for the word and figure ‘Schedule-I’ the word, figure and letter “Schedule I-A” shall be substituted.
[Vide Himachal Pradesh Act 4 of 1953, s. 8]
1. Ins. by Act 15 of 1904, s. 3.
2. Subs. by Act 1 of 1912, s. 3, for "Article No. 5(b)".
Section 24.How transfer in consideration of debt, or subject to future payment, etc., to be charged.
Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
Provided that, nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule I.
Explanation.-- In the case of a sale of property subject to a mortgage or other incumbrance, any unpaid mortgage-money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:
Provided that, where property subject to a mortgage is transferred to the mortgage, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.
Illustrations
(1) A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp-duty is payable on Rs. 1,500.
(2) A sells a property to B for Rs. 500 which is subject to a mortgagee to C for Rs. 1,000 and unpaid interest Rs 200. Stamp-duty is payable on Rs. 1,700.
(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. B afterwards buys the house from A. Stamp-duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the mortgage.
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 24.--- In the proviso to section 24, of the said Act, for the full stop shall be substituted a comma followed by the words "or Schedule I -A, as the case may be.
[Vide Himachal Pradesh Act 4 of 1953, s. 9]
Orissa.--
Amendment of section 24.-- In Section 24 of the Indian Stamp Act, 1899 (2 of 1899) (herein after referred to as the principal Act), for the words "in respect whereof the transfer is chargeable with ad valorem duty" the words "and the transfer is chargeable with ad valorem duty in respect of the consideration or the market value of the property so transferred, whichever is higher," shall be substituted.
[Vide Orissa Act 7 of 1987, s. 2]
Section 25.Valuation in case of annuity, etc.
Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,--
(a) where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained---such total amount;
(b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance----the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and
(c) where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance---- the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.
Section 26.Stamp where value of subject-matter is indeterminate.
Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
1[Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp-duty,
(a) when the lease has been granted by or on behalf of 2[the Government], at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to 3[the Government under the lease, or
(b) when the lease has been granted by any other person, at twenty thousand rupees a year,
and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:]
Provided also that where proceedings have been taken in respect of an instrument under section 31 or 41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.
1. Subs. by Act 15 of 1904, s. 4, for the proviso.
2. Subs. by the A.O. 1937, for "the secretary of State in Council".
3. Subs., ibid., for "the said Secretary of State in Council".
Section 27.Facts affecting duty to be set forth in instrument.
The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it its chargeable, shall be fully and truly set forth therein.
STATE AMENDMENT
Assam--
Amendment of section 27.--In the principal Act, in section 27, for the words and brackets, "The consideration (if any)", the words "the market value of the property" shall be substituted."
[Vide Assam Act 22 of 2004, s. 4]
Amendment of section 27.--In the principal Act, after section 27, the following new section shall be inserted namely:--
"27A. Instrument of conveyance etc. under valued how to be dealt with.--(1) If the Registering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property as fixed by the Government/Collector of the district, which is subject matter of conveyance, exchange or gift had not been truly set forth in the instrument, he may after registering such instrument, refer the same to the Collector for determination of the market value of such proper and the property duty payable thereon.
(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon the difference, if any, in the amount of duty, shall be payable by the persons liable to pay the duty.
(3) The Collector may, on his own motion or otherwise, within two years from the date of registration of any instrument or conveyance, exchange or gift not already referred to him under sub-section (1) call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property as set forth in such instrument, which is the subject matter of conveyance, exchange or gift and the duty payable thereon and if after such examination he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid and thereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to instrument registered before the date of commencement of the Indian Stamp (Assam Amendment) Act, 2004.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may prefer an appeal to the Civil Judge of appropriate jurisdiction and all such appeals shall be preferred within such time and shall be heard and disposed of in such manner as may be prescribed.
Explanation--For the purpose of this Act, market value of any property shall be estimated to be the price which in the opinion of the Collector or the Civil Judge Senior Division, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange or gift.
[Vide Assam Act 22 of 2004, s. 5]
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 27.--For the words and brackets "The consideration (if any)" occurring in section 27 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter called as the principal Act), the words and signs "The consideration, if any, the market value of the property" shall be substituted.
[Vide Himachal Pradesh Act 7 of 1989, s. 2]
Orissa.--
Amendment of section 27.-- In Section 27 of the principal Act, for the words and brackets "the consideration if any", the words and commas "the consideration, if any, the market value of the property" shall be substituted.
[Vide Orissa Act 7 of 1987, s. 3]
Section 28.Direction as to duty in case of certain conveyances.
(1) Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.
(2) Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.
(3) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.
(4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers:
Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.
(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.
STATE AMENDMENT
Orissa.--
Amendment of section 28.-- In Section 28 of the principal Act,--
(i) for sub-section (1), the following sub-section shall be substituted, namely:--
"(1) where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit:
Provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration:
Provided further that the market value of the separate part shall be set forth along with the consideration for each part and the conveyance shall be chargeable with ad valorem.
[duty in respect of such distinct consideration or the market value, whichever is higher.".
(ii) to sub-section (2) the following words and comma shall be added at the end, namely:--
"or the market value of each such separate part whichever is higher.".
(iii) to sub-section (3) the following words and comma shall be added at the end, namely:--
"or the market value of the property, whichever is higher.".
(iv) for sub-section (4), the following sub-section shall be substituted, namely:--
"(4) where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in part, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect of the consideration paid by such sub-purchaser or the market value of each part whichever is higher without regard to the amount or value of the original consideration; and the conveyance of the residue, if any, of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers or the market value of the residue of such property whichever is higher:
Provided that the duty on such last mentioned conveyance shall in no case be less than one rupee.".
(v) for sub-section (5), the following sub-section shall be substituted, namely:--
"(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of consideration paid by him or the market value of the property whichever is higher and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller or the market value of such property whichever is higher, or, where such duty would exceed five rupees with a duty of five rupees",]
[Vide Orissa Act 7 of 1987, s. 4]
Section 29.Duties by whom payable.
In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne --
(a) in the case of any instrument described in any of the following Articles of Schedule I, namely:--
No. 2. (Administration Bond),
1[No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),]
No. 13 (Bill of exchange),
No. 15 (Bond),
No. 16 (Bottomry Bond),
No. 26 (Customs Bond),
2* * * * *
No. 32 (Further charge),
No. 34 (Indemnity-Bond),
No. 40 (Mortgage-deed),
No. 49 (Promissory-note),
No. 55 (Release),
No. 56 (Respondentia Bond),
No. 57 (Security-bond or Mortgage-deed),
No. 58 (Settlement),
3* * * * *
4* * * * *
No. 62 (c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),--
by the person drawing, making or executing such instrument:
5[(b) in the case of a policy of insurance other than fire-insurance---by the person effecting the insurance;
(bb) in the case of a policy of fire-insurance--by the person issuing the policy;]
(c) in the case of a conveyance (including re-conveyance of mortgaged property) by the grantee: in the case of a lease or agreement to lease---by the lessee or intended lessee:
(d) in the case of a counterpart of a lease---by the lessor;
(e) in the case of an instrument of exchange 6[including swap]--by the parties in equal shares,
(f) in the case of a certificate of sale---by the purchaser of the property to which such certificate relates; 7***
(g) in the case of an instrument of partition---by the parties thereto in proportion to their respective shares in the whole property partitioned or, when the partition is made in execution of an order passed by a Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator directs.
8[(h) in the case of sale of security through stock exchange, by the buyer of such security;
(i) in the case of sale of security otherwise than through a stock exchange, by the seller of such security;
(j) in the case of transfer of security through a depository, by the transferor of such security;
(k) in the case of transfer of security otherwise than through a stock exchange or depository, by the transferor of such security;
(l) in the case of issue of security, whether through a stock exchange or a depository or otherwise, by the issuer of such security; and
(m) in the case of any other instrument not specified herein, by the person making, drawing or executing such instrument.]
STATE AMENDMENT
Uttarakhand.--
Amendment of section 29.--In Section 29 of the Principal Act,--
(a) In clause (a), after the words (and figures, "No. 40 (Mortgage deed))," the words (and figures "No. 43 (Note or memorandum))," shall be inserted;
(b) after clause (f), the following clause shall be inserte
d, namely,--
"'(f-f) in the case of an Instrument of Gift by the donee;"
[Vide Uttarakhand Act 1 of 2016, s. 4]
1. Subs. by Act 15 of 1904, s. 5, for ,"No. 6 (Agreement to Mortgage),".
2. The words, figures and brackets ,"No. 27 (Debenture)," omitted by Act 7 of 2019, s. 17 (w.e.f. 1-4-2020). ic950Earlier notified w.e.f. 9- 1-2020 followed by 1-4-2020]
3. The words, figures, brackets and letter ,"No. 62 (a) (Transfer of shares in an incorporated Company or other body corporate)," omitted by s. 17, ibid. (w.e.f. 1-4-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
4. The words, figures, brackets and letter ,"No. 62 (b). (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided for by section 8),," omitted by s. 17,ibid (w.e.f. 1-4-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
5. Subs. by Act 5 of 1906, s. 4, for clause (b).
6. Ins. by Act 7 of 2019, s. 17 (w.e.f. 1-4-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
7. The ,"and," omitted by s. 17, ibid. (w.e.f. 1-4-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
8. Ins. by s. 17, ibid. (w.e.f. 1-4-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
Section 30.Obligation to give receipt in certain cases.
Any person receiving any money exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees, or receiving in satisfaction or part satisfaction of a debt any moveable property exceeding twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same.
1[Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same. ]
1. Added by Act 5 of 1906, s. 5.
Section 31.Adjudication as to proper stamp.
(1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than 1[fifty naye paise]) as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable.
(2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application until such abstract and evidence have been furnished accordingly:
Provided that--
(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and
(b) every person by whom any such evidence is furnished, shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.
STATE AMENDMENTS
Orissa.--
Amendment of Section 31.--In section 31 of the principal Act, in sub-section (1), for the words "not exceeding five rupees" and "not less than fifty naye paise", the words "not exceeding twenty rupees" and "not less than five rupees", shall respectively be substituted..
[Vide Orissa Act 1 of 2003, s. 4]
Uttarakhand.--
Amendment of section 31.----In sub-section (1), for the words, "Pays a fee of such amount not exceeding five rupees and not less than fifty paisa as the collector may in Each case direct," the words, "Pays a fee such amount as may be fixed by State Government By notification in the Official Gazette", shall be substituted.
[Vide Uttarakhand Act 1 of 2016, s. 5]
1. Subs. by Act 19 of 1958, s. 3, for "eight annas" (w.e.f. 1-10-1958).
Section 32.Certificate by Collector.
(1) When an instrument brought to the Collector under section 31 is, in his opinion, one of a description chargeable with duty, and
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid,
the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.
(3) Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped:
Provided that nothing in this section shall authorize the Collector to endorse--
(a) any instrument executed or first executed in 1[India] and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
(b) any instrument executed or first executed out of 1[India] and brought to him after the expiration of three months after it has been first received in 1[India]; or
(c) any instrument chargeable 2[with a duty not exceeding ten naye paise], or any bill of exchange or promissory note, when brought to him, after the drawing or execution thereof, on paper not duly stamped.
STATE AMENDMENT
Himachal Pradesh.
Amendment of section 32.-- In section 32 of the said Act.--
(1) in clause (a) of the proviso, after the words "any instrumentsbqts the words "other than an instrument chargeable with a duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952" shall be inserted.
(2) the word "or" at the end of clause (b) of the proviso shall be omitted,
(3) after clause (c) of the proviso the word "or" shall be inserted, and the following new clause shall be added:--
(d) any instrument chargeable with duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952, and brought to him after the expiration of three months from the date on which it is first received in Himachal Pradesh.
[Vide Himachal Pradesh Act 4 of 1953, s. 10]
1. Subs. by Act 43 of 1955 s. 2 for "the States" (w.e.f. 1-4-1956).
2. Subs. by Act 19 of 1958, s. 4 for "with the Duty of one anna or half an anna" (w.e.f. 1-10-1958).
Section 33.Examination and impounding of instruments.
(1) Every person having by law or consent of parties authority to receive evidence, and every person in charge of a pubic office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the performance of his functions, shall, if it appears to him that such instrument is not duly stamped, impound the same.
(2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in 1[India] when such instrument was executed or first executed:
Provided that--
(a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898);
(b) in the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.
(3) For the purposes of this section, in cases of doubt,--
(a) 2[the 3[State Government]] may determine what offices shall be deemed to be public offices; and
(b) 4[the 2[State Government]] may determine who shall be deemed to be persons in charge of public offices.
STATE AMENDMENT
Orissa.--
Amendment of Section 33.--In section 33 of the principal Act after sub-section (1), the following sub-sections shall be inserted, namely:--
"(1-a) If it appears to such person from the copy of an instrument produced or coming in performance of his functions, within three years from the date of registration of the instrument, that such instrument is not duly stamped, he shall call for the original instrument and if he is satisfied on production of the instrument that it has not been duly stamped, impound the same and the deficient amount of duty shall be payable by the person liable to pay the duty.
"(1-b) Where the original instrument is not produced such person shall refer the copy of the instrument to the Collector for determination of the market value of the property and the duty payable thereon and the Collector may determine the market value of the property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2) of section 47-A.".
[Vide Orissa Act 7 of 1987, s. 5]
Uttar Pradesh
Amendment of section 33 of Act no. 11 of 1899.—In section 33 of the Indian Stamp Act, 1899, as amended in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, --
(i) in sub-section (2), in the proviso, in clause (a), for the words and figures Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898”, the words and figures “sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall be substituted.
(ii) after sub-section (2), for the existing sub-sections, the following sub-sections shall be substituted, namely:--
“(3) For the purpose of this section the State Government may in cases of doubt, determine what offices shall be deemed to be public offices and who shall be deemed to be persons in charge of public offices.
(4) Where deficiency in stamp duty paid is noticed from the any court or from the Commissioner of Stamps or an, Additional Commissioner of Stamp or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board of Revenue in that behalf, call for the original instrument so purpose, and the instrument so produced before the Collector shall be deemed to have been produced or come before him in the performance of his functions.
(5) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty under section 40 on the copy of the instrument:
Provided that no action under sub-section (4) or sub-section (5) shall be taken after a period of four years from the date of execution of the instrument.”
[Vide Uttar Pradesh Act 6 of 1980, s. 6]
1. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
2. Subs. by the A.O. 1937, for "the G.G. in C.".
3. Subs. by the A.O. 1950, for "collecting Government".
4. Subs. by the A.O. 1937, for "the L.G.".
Section 34.Special provision as to unstamped receipts.
Where any receipt chargeable 1[with a duty not exceeding ten naye paise] is tendered to or produced before any officer unstamped in the course of the audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefore.
1. Subs. by Act 19 of 1958, s. 5, for "with a duty of one anna" (w.e.f. 1-10-1958).
Section 35.Instruments not duly stamped inadmissible in evidence, etc.
No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped :
Provided that--
(a) any such instrument 1[shall] be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion;
(b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it;
(c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;
(d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure 1898 (V of 1898);
(e) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act. STATE AMENDMENT
Uttar Pradesh
Amendment of section 35.--In section 35 of the principal Act, in the proviso in clause (d), for the words and figures Chapter XII or Chapter XXXVI of the Code of criminal Procedure, 1898, the words and figures sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973 shall be substituted.
[Vide Uttar Pradesh Act 6 of 1980, s. 7]
Amendment of section 35. In section 35 of the principal Act, in clause (a) of the proviso for the words five rupees. or, when ten times the amount of the proper duty of deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion: the following words shall be substituted, namely :--
a sum equal to ten times the amount of the proper duty or deficient portion thereof ;
[Vide Uttar Pradesh Act 22 of 1998, s. 3]
1. Subs. by Act 21 of 2006, s. 69, for not being an instrument chargeable with a duty not exceeding ten naye paise only, or a bill of exchange or promissory note, shall, subject to all just exceptions,
Section 36.Admission of instrument where not to be questioned.
Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
Section 37.Admission of improperly stamped instruments.
1[The 2[State Government]] may make rules providing that, where an instrument bears a stamp of sufficient amount but of improper description, it may, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.
1. Subs. by the A.O. 1937, for "the G.G. in C"..
2. Subs. by the A. O. 1950, for "collecting Government".
Section 38.Instruments impounded how dealt with.
(1) When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the Collector, or to such person as he may appoint in this behalf.
(2) In every other case, the person so impounding an instrument shall send it in original to the Collector.
Section 39.Collector's power to refund penalty paid under section 38, sub-section (1).
(1) When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, 1*** refund any portion of the penalty in excess of five rupees which has been paid in respect of such instrument.
(2) When such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may refund the whole penalty so paid.
1. The words "upon application made to him in this behalf or, if no application is made, with the consent of the chief Controlling Revenue-authority" omitted by Act 4 of 1914, s. 2 and the Sch. Pt I.
Section 40.Collector's power to stamp instruments impounded.
(1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), not being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, he shall adopt the following procedure:--
(a) if he is of opinion that such instrument is duly stamped, or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamp, or that it is not so chargeable, as the case may be;
(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same, together with a penalty of five rupees; or, if he thinks fit, 2[an amount not exceeding] ten times the amount of the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five rupees:
Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section.
(2) Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be conclusive evidence of the matters stated therein.
(3) Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer.
STATE AMENDMENTS
Uttarakhand.--
Amendment of section 40.--After sub-section (1), the following sub-sections shall be inserted, namely:--
"(1-A) The Collector shall also require, alongwith the amount of deficit Stamp Duty of penalty required to be paid under clause (b) of sub-section (1), the payment of a simple interest at the rate of one and half percent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment;
Provided that the amount of interest under this sub-section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.
(1-B) The amount of interest payable under sub-section (1-A) shall be added to the amount due and be also deemed for all purposes to part of the amount required to be paid.
(1-C) Where realization of the deficit stamp duty reminded stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (1-A) shall be payable also for any period during which such order of stay remain in operation.
(1-D) Any amount paid or deposited by, or removed, or refundable to a person under the provisions of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess, if any, shall then be adjusted towards the interest, in any, due from him."
[Vide Uttarakhand Act 1 of 2016, s. 6]
1. Subs. by Act 19 of 1958, s. 6, for "with a duty of one anna or half an anna" (w.e.f. 1-10-1958).
2. Ins. by Act 15 of 1904, s. 6.
Section 41.Instruments unduly stamped by accident.
If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, is produced by any person of his own motion before the Collector within one year from the date of its execution or first execution, and such person brings to the notice of the Collector the fact that such instrument is not duly stamped and offers to pay to the Collector the amount of the proper duty, or the amount required to make up the same, and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity, he may, instead of proceeding under sections 33 and 40, receive such amount and proceed as next herein after prescribed.
1. Subs. by Act 19 of 1958, s. 6 for "with a duty of one anna or half an anna" (w.e.f. 1-10-1958).
Section 42.Endorsement of instruments on which duty has been paid under sections 35, 40 or 41.
When the duty and penalty (if any), leviable in respect of any instrument have been paid under section 35, section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them.
(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct:
Provided that--
(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under section 35, shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate;
(b) nothing in this section shall affect the1 Code of Civil Procedure (XIV of 1882), section 144,clause 3.
STATE AMENDMENT
Uttarakhand.--
Amendment of section 42.--In section 42 of the Principal Act, --
(a) in the heading, of the words and figures "Sections 35, 40 or 41", the words and figures, "sections 35, 40, 41 or 47-A" shall be substituted.
(b) in sub-section (1), for the words and figures "section 40 or section 41", the words and figures, "section 40, section 41 or section 47-A" shall be substituted.
[Vide Uttarakhand Act 1 of 2016, s. 7]
1. See now the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order XIII, Rule 9.
Section 43.Prosecution for offence against Stamp-law.
The taking of proceedings or the payment of a penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against the Stamp-law in respect of such instrument:
Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.
Section 44.Persons paying duty or penalty may recover same in certain cases.
(1) When any duty or penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
(2) For the purpose of such recovery, any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or proceeding to which such persons are parties and in which such instrument has been tendered in evidence. If the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable.
Section 45.Power to Revenue-authority to refund penalty or excess duty in certain cases.
(1) Where any penalty is paid under section 35 or section 40, the Chief Controlling Revenue-authority may, upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.
(2) Where, in the opinion of the Chief Controlling Revenue-authority, stamp-duty in excess of that which is legally chargeable has been charged and paid under section 35 or section 40, such authority may, upon application in writing made within three months of the order charging the same, refund the excess
Section 46.Non-liability for loss of instruments sent under section 38.
(1) If any instrument sent to the Collector under section 38, sub-section (2), is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.
(2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same, may require a copy thereof to be made at the expense of such first-mentioned person and authenticated by the person impounding such instrument
Section 47.Power of payer to stamp bills, and promissory notes received by him unstamped.
When any bill of exchange 1[or promissory note] chargeable 2[with a duty not exceeding ten nayepaise] is presented for payment unstamped, the person to whom it is so presented, may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill 3[or note], and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill 3[or note], shall, so far as respects the duty, be deemed good and valid:
Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill, 3[or note].
STATE AMENDMENTS
Himachal Pradesh.--
Insertion of section 47-A. --After section 47 of the principal Act, the following new section shall be added, namely:--
47-A. Instruments under-valued, how to be dealt with.--(1) If the Registering Officer, appointed under the Registration Act, 1908 (16 of 1908) while registering any instrument relating to the transfer of any property, has reason to believe that the market value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner, as may be prescribed by rules, made under this Act, determine the market value or consideration and the duty, as aforesaid, and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.
(3) The Collector may, suo moto or on receipt of reference from the Inspector General of Registration or the Registrar of a District, in whose jurisdiction the property, or any portion thereof, which is the subject-matter of the instrument, is situated, appointed under the Registration Act, 1908 (16 of 1908) shall, within three years from the date of registration of any instrument, not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its market value or consideration, as the case may be, and the duty payable thereon and if, after such examination, he has reason to believe that the market value or consideration has not been truely set forth in the instrument, he may determine the market value or consideration and the duty, as aforesaid, in accordance with procedure provided for in sub-section (2), and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to any instrument registered before the date of the commencement of the Indian Stamp (Himachal Pradesh Amendment) Act, 1988.
(4) Where for any reason the original document called for by the Collector under sub-section (3) is not produced or cannot be produced, the Collector may, after recording the reasons for its nonproduction, call for a certified copy of the entries of the document from the registering officer concerned and exercise the powers conferred on him under sub-section (3).
(5) Any person, aggrieved by an order of the Collector, under subsection (2) or sub-section (3), may, within thirty days from the date of the order, prefer an appeal before the District Judge and all such appeals shall be heard and disposed off in such manner as may be prescribed by rules made under this Act.
(6) For the purpose of this section "market value" of any property shall be estimated to be the price which, in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of the instrument relating to the transfer of such property.
[Vide Himachal Pradesh Act 7 of 1989, s. 3]
STATE AMENDMENT
Orissa.--
Amendment of section 47-A, (Act 2 of 1899). In section 47-A of the Indian Stamp Act, 1899 (Act 2 of 1899)-
(a) after sub-section (2), the following new sub-section shall be inserted, namely:--
"(2-a) The Collector may sou motu, within two years from the date of registration of any instrument not already referred to him under sub-section (1), call for purpose of satisfying himself as to the correctness of its value or consideration, as the case may be, and the duty payable thereon and if after such examination, he has reasons to believe that the value or consideration has not been truly set forth in the instrument, he may determine the value or consideration and the duty as aforesaid in accordance with the procedure provided for in sub-section (2); and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.";
(b) in sub-section (3), after the word, brackets and figure "sub-section (2)" the words, brackets, figure and letter "or sub-section (2-a)" shall be inserted.
[Vide Orissa Act 11 of 1965, s. 2]
Orissa.--
Amendment of section 47-A.--In section 47-A of the principal Act, in sub-section (2-a), for the words "two years", the words "three years" shall be substituted.
[Vide Orissa Act 1 of 2003, s. 5]
Orissa.--
(a) Amendment of section 47-A.--for sub-section (1) the following sub-section shall be substituted, namely:--
(1) where the registering officer under the Registration Act, 1908, (16 of 1908) while registering any instrument of conveyance, exchange, gift, partition or settlement has reasons to believe that the market value of the property which is the subject matter of such instrument has not been rightly set forth in the instrument or is less than the minimum value determined in accordance with the rules made under this Act, he shall, before registering such instrument, refer the matter to the Collector, with an intimation in writing to the person concerned, for determination of the market value of such property and the proper duty payable thereon.; and
(b) in sub-section (2-a) for the words "truly set forth in the instrument" , the words "rightly set forth in the instrument or is less than the minimum value determined in accordance with the rules made under this Act" shall be substituted.
[Vide Orissa Act 8 of 2009, s. 2]
Orissa.--
Insertion of new section 47-A, Act 2 of 1899. --After section 47 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter referred to as the Principal Act), the following new section shall be inserted, namely:--
47-A. Instruments under-valued how to be dealt with -- (1) If the registering officer appointed under the Indian Registration Act, 1908, while registering any instrument transferring any property, has reasons to believe that the value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the value or consideration and the duty as aforesaid and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.
(3) Any person aggrieved by an order of the Collector under sub-section (2) may, within thirty days from the date of the order, prefer an appeal before the District judge and all such appeals shall be heard and disposed of in such manner as may be prescribed by rules made under this Act.
[Vide Orissa Act 35 of 1962, s. 2]
Orissa.--
Amendment of Section 47-A.-- In section 47-A of the Principal Act, for sub-sections (1), (2) and (2-a), the following sub-sections shall be substituted, namely:--
"(1) Where the registering officer under the Registration Act, 1908 (16 of 1908), while registering any instrument of conveyance, exchange, gift, partition or settlement has reason to believe that the market value of the property which is the subject matter of such instrument has not been truly set forth in the instrument, he may, after registering such instrument, refer the matter to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties an opportunity of making their representations and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of such instrument, and the duty as aforesaid and the deficient amount, if any, shall be payable by the person liable to pay the duty.
(2-a) The Collector may suo motu within two years from the date of registration of such instrument, not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of such instrument and the duty payable thereon and if after such examination, he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2) and the deficient amount of duty , if any, shall be payable by the person liable to pay the duty".
[Vide Orissa Act 7 of 1987, s. 6]
Tripura.--
In the Indian Stamp Act, 1899 as in force in the State of Tripura, after section 47, the following new section shall be inserted namely: --
"47A" Instruments of conveyance etc. undervalued, how to be, dealt with :-- (1) If the Registering Officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908), while registering any instrument of conveyance, exchange, gift or partition, has reason to believe that the value of the property which is the subject matter of the instrument, as has been set forth therein is lower than the market value thereof and proper duty has not been paid he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under Sub-Section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of such property and the proper duty payable thereon and then return the instrument to the Registering Officer after making and endorsement over his signature thereon indicating the market value of the property so determined and deficient amount of duty, if any, that shall be payable by the person liable to pay the duty.
(3) The Collector may, within a period of two year from the date of registration of any instrument of conveyance, exchange, gift or partition, not already sent to him under sub-section (I), call for as examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of such instrument and the duty paid thereon and if after such examination, he has reasons to believe that the market value of such property has not been truly set forth in the instrument and the proper duty has not been truly set forth in the instrument and the proper duty has not been paid, he may determine the market value thereof and the proper duty payable thereon in accordance with the provision of sub-section (2). The difference, if any between the duty determined by the Collector and the duty already paid shall be payable by the person liable to pay the duty on the instrument:
Provided that nothing in this sub-section shall apply to any instrument registered before the date of the commencement of the Indian Stamp (Tripura Third Amendment) Act, 1984.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may appeal to the appellate authority specified in sub-section (5), All such appeals shall be preferred within such time, and shall be heard and disposed of in such manner, as may be prescribed by rules made under this Act.
(5) The State Government shall, by a Notification in the Official Gazette, appoint a person not below the rank of a Secretary of any Department to be the appellate authority referred to in sub-section (4).
(6) The amount of deficient duty, if any, shall be paid by deposit into Government Treasury by the person, liable to pay the duty, within a period of thirty days from the date of Notice in this behalf from the Registering Officer and in case of default in payment, such amount shall be recovered as arrears of land revenue.
Explanation:-- For the purpose of the section the market value of any property shall be estimated to be the price which in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of the instrument of conveyance, exchange gift or portion.
[Vide Tripura Act 2 of 1986, s. 2]
Meghalaya.--
Insertion of new Section 47A in Act 11 of 1899.--In the Indian Stamp Act,1899 after the existing Section 47, the following new Section as Section 47A, shall be inserted, namely:--
"47A. Instruments under-valued how to be dealt with.--(1) If registering officer appointed under the Indian Registration Act, 1908, while registering any instrument transferring any property, has reason to believe that the value of the property or the consideration, as the case may be has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Deputy Commissioner, for determination of the value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of the reference under sub-section (1), the Deputy Commissioner shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, by order, determine the value of the property or the consideration and the duty aforesaid; and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty and, on payment of such duty, the Deputy Commissioner shall endorse a certificate of such payment on the instrument under his seal and signature.
(3) The Deputy Commissioner may, suo motu, within six months from the date of registration of any instrument not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its value or consideration, as the case may be, and the duty payable thereon, and if after such examination, he has reason to believe that the value of consideration has not been truly set forth in the instrument, she may determine the value or consideration and the duty aforesaid in accordance with procedure provided for in sub-section (2); and the deficient amount of duty if any, shall be payable by the person liable to pay the duty and, on the payment of such duty the Deputy Commissioner shall endorse a certificate of such payment on the instrument under his seal and signature.
(4) Any person aggrieved by an order of the Deputy Commissioner under sub-section (2) or subsection (3) may appeal to the Meghalaya Board of Revenue.
(5) An appeal under sub-section (4) shall be filed within 90 (ninety) days of the date of the order sought to be appealed against."
[Vide Meghalaya Act 8 of 1983, s. 2]
Uttarakhand.--
Amendment of section 47-A.--In section 47-A of the Principal Act, :--
(a) For sub-section (1), the following sub-sections shall be substituted, namely--
"(1) (a) If the market value of any property which is the subject of any instrument, on which duty is chargeable on the market value of the property as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the 39 said Act, immediately after presentation of such instrument and before accepting it for registration and taking any action under section 52 of the said Act, require the person liable to pay stamp duty under section 29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instruments for presenting again in accordance with section 23 of the Registration Act, 1908;
(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any instrument and the instrument is presented again for registration, the registering officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and the residence of the person paying them and register the same;
(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty may be paid under clause (a) in the form of impressed stamps containing such declaration as may be prescribed;
(d) If any person does not make the payment of the deficit stamp duty after receiving the order referred to in clause (a) and presents the instrument again for registration, the registering officer shall, before registering the instrument, refer the same to the Collector, for determination of the market value of the property and the proper duty payable thereon.
(b) in sub-section (3) of section 47-A the following explanation shall be inserted, namely:--
"Explanation--The payment of deficit stamp duty by any person under any order of registering officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any instrument under sub section (3)."
(c) after sub-section (4), the following sub-section shall be inserted namely:--
"(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and a half per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment;
Provided that the amount of interest under this sub-Section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.
(4-B) The amount of interest payable under sub section (4-A) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A) shall be payable also for any period during which such order of stay remained in operation.
(4-D) Any amount paid or deposited by or recovered from, or refundable to, a person under the provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess if any, shall then be adjusted towards the interest, if any, due from him."
[Vide Uttarakhand Act 1 of 2016, s. 8]
Uttar Pradesh
Amendment of section 47.In section 47-A of the principal Act, in sub-section (4), for the words, "Chief Inspector of Stamp, Uttar Pradesh or any officer of the Stamp Department of the Board of Revenue", the words "Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board of Revenue in that behalf" shall be substituted.
[Vide Uttar Pradesh Act 6 of 1980, s. 8]
Amendment of section 47-A.--In section 47-A of the principal Act--
(a) in sub-section (1) for the words, of conveyance, exchange, gift, settlement, award or trust" the words "on which duty is chargeable on the market value of the property" shall be substituted ;
(b) in sub-section (2) for the words "of conveyance, exchange, gift, settlement, award or trust" where they occur for the first time, the words "on which duty is chargeable on the market value of the property" and for the said words where they occur for the second time, the words "of such instrument" shall be substituted ;
(c) in sub-section (3), for the words "of conveyance, exchange, gift, settlement, award or trust," the words "of the instrument" shall be substituted ;
(d) in sub-section (4) for the words, "of conveyance, exchange, gift, settlement, award or trust," where they occur for the first time, the words "on which duty is chargeable on the market value of the property" and for the said words, where they occur for the second time, the words "of such instrument" shall be substituted.
[Vide Uttar Pradesh Act 11 of 1992, s. 4]
Amendment of section 47-A.In section 47-A, in sub-section (4), for the words "two years", the words "four- years" shall be substituted and be deemed always to have been substituted :
[Vide Uttar Pradesh Act 20 of 1974, s. 5]
Substitution of section 47-AFor section 47-A of the principal Act. the following section shall be substituted, namely :
"47-A (1) If the market value of any property which is the subject of any instrument, on which duty is chargeable on market value of such property, as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, before registering the instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an inquiry in such manner as many be prescribed by rules made under this Act, determine the market value of the property which is the subject of such instrument and the proper duty payable thereon.
(3) The Collector may, suo motu, or on a reference from any court or from the Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the State Government in that behalf, within four years from the date of registration of any instrument on which duty is chargeable on the market value of the property not already referred to him under sub-section (1) call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject for of such instrument, and the duty payable thereon and if after such examination he has reason to believe that market value of such property has not been truly set forth in such instrument he may determine the market value of such property and the duty payable thereon :
Provided that, with the prior permission of the State Government, an action under this sub-section may be taken after a period of four years but before a period of eight years from the date of registration of the instrument on which duty is chargeable on the market value of the properly.
(4) If on enquiry under sub-section (2) and examination under sub-section (3) the Collector finds the market value of the property :
(i) truly set forth and the instrument duly Stamped, he shall certify by endorsement that it is duly stamped and return it to the person who made the reference ;
(ii) not truly set forth and the instrument not duly stamped he shall require the payment of proper duty or the amount required to make up the deficiency in the same together with a penalty of an amount not exceeding four time the amount of the proper duty or the deficient portion thereof.
(5) The instrument produced before the Collector under sub-section (2) or under sub-section (3) shall be deemed to have come before him in the performance of his functions.
(6) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty on the copy of the instrument in accordance with the procedure laid down in sub-sections (2) and (4).
[Vide Uttar Pradesh Act 22 of 1998, s. 6]
Amendment of section 47-A. in section 47-A of the principal Act,
(a) for sub-section (1), the following sub-section shall be substituted, namely:
"(1) (a) If the market value of any property which is the subject of any instrument, on which duty is chargeable on the market value of the property as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the said Act, immediately after presentation of such instrument and before accepting it for registration and taking any action under section 52 of the said Act, require the person liable to pay stamp duty under section 29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instrument for presenting again in accordance with section 23 of the Registration Act, 1908.
(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any instrument and the instrument is presented again for registration, the registering officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and the residence of the person paying them and register the same.
(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty may be paid under clause (a) in the form of impressed stamps containing such declaration as may be prescribed.
(d) If any person does not make the payment of deficit stamp duty after receiving the order referred to in clause (a) and presents the instrument again for registration, the registering officer shall, before registering the instrument, refer the same to the Collector, for determination of the market value of the property and the proper duty payable thereon."
(b) in sub-section (3), the following explanation shall be inserted, namely :
Explanation : The payment of deficit stamp duty by any person under any order of registering officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any instrument under sub-section (3)."
(c) after sub-section (4), the following sub-sections shall be inserted, namely :
(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and half per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment :
Provided that the amount of interest under this sub-section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.
(4-B) The amount of interest payable under sub-section (4-A) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A) shall be payable also for any period during which such order of stay remained in operation.
(4-D) Any amount paid or deposited by, or recovered from, or refundable to, a person under the provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess, if any, shall then be adjusted towards the interest, if any, due front him."
[Vide Uttar Pradesh Act 38 of 2001, s. 7]
Amendment of section 47-A. In section 47-A of the principal, Act
(a) in sub-section (1) for the words. "is less than that determined in accordance with any rules made under this Act", the words, "is less than even the minimum value determined in accordance with any rules made under this Act" shall be substituted ,
(b) in sub-section (4), for the words, "or on a reference from Chief Inspector of Stamps, Uttar Pradesh" the words, "or on a reference from any court or from the Chief Inspector of Stamps, Uttar Pradesh or any officer of the Stamp Department of the Board of Revenue." shall be substituted.
[Vide Uttar Pradesh Act 49 of 1975, s. 6]
1. Subs. by Act 5 of 1927, s. 5, for "promissory note or cheque".
2. Subs. by Act 19 of 1958, s. 7, for "with the duty of one anna" (w.e.f. 1-10-1958).
3. Subs. by Act 5 of 1927, s. 5, for "note or cheque".
Section 48.Recovery of duties and penalties.
All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land-revenue.
STATE AMENDMENT
Orissa.--
Amendment of Section 48-A.--For Section 48-A of the Principal Act, the following section shall be substituted, namely:--
"48-A. Notwithstanding anything contained in this Act, no certificate or endorsement under this Act , in respect of any instrument chargeable in the State of Orissa with a higher rate of duty under this Act, for the time being in force as amended from time to time by the Orissa Acts shall be received in evidence or be in any way valid in respect of the payment of duty on such instrument or in respect of the chargeability of such instrument with duty unless the duty chargeable under the Orissa Act, has been paid on such instrument.".
[Vide Orissa Act 7 of 1987, s. 7]
Section 49.Allowance for spoiled stamps.
Subject to such rules as may be made by 1[the 2[State Government ]] as to the evidence to be required, or the enquiry to be made, the Collector may, on application made within the period prescribed in section 50, and if he is satisfied as to the facts, make allowance for impressed stamps spoiled in the cases herein after mentioned, namely: --br
(a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in writing or any other means rendered unfit for the purpose intended before any instrument written thereon is executed by any person:
(b) the stamp on any document which is written out wholly or in part, but which is not signed or executed by any party thereto:
(c) in the case of bills of exchange 3[payable otherwise than on demand ] 4*** or promissory notes--
(1) the stamp on 5[any such bill of exchange] 6***signed by or on behalf of the drawer which has not been accepted or made use of in any manner whatever or delivered out of his hands for any purpose other than by way of tender for acceptance: provided that the paper on which any such stamp is impressed, does not bear any signature intended as or for the acceptance of any bill of exchange 6*** to be afterwards written thereon:
(2) the stamp on any promissory note signed by or on behalf of the maker which has not been made use of in any manner whatever or delivered out of his hands:
(3) the stamp used or intended to be used for 5[any such bill of exchange] 7*** or promissory note signed by, or on behalf of, the drawer thereof, but which from any omission or error has been spoiled or rendered useless, although the same, being a bill of exchange 6*** may have been presented for acceptance or accepted or endorsed, or, being a promissory note, may have been delivered to the payee: provided that another completed and duly stamped bill of exchange 7***or promissory note is produced identical in every particular, except in the correction of such omission or error as aforesaid, with the spoiled bill, 7*** or note;
(d) the stamp used for an instrument executed by any party thereto which--
(1) has been afterwards found to be absolutely void in law from the beginning:
(2) has been afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended:
(3) by reason of the death of any person by whom it is necessary that it should be executed, without having executed the same, or of the refusal of any such person to execute the same, cannot be completed so as to effect the intended transaction in the form proposed:
(4) for want of the execution thereof by some material party, and his inability or refusal to sign the same, is in fact incomplete and insufficient for the purpose for which it was intended:
(5) by reason of the refusal of any person to act under the same, or to advance any money intended to be thereby secured, or by the refusal or non-acceptance of any office thereby granted, totally fails of the intended purpose:
(6) becomes useless in consequence of the transaction intended to be thereby effected being effected by some other instrument between the same parties and bearing a stamp of not less value:
(7) is deficient in value and the transaction intended to be thereby effected has been effected by some other instrument between the same parties and bearing a stamp of not less value:
(8) is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped:
Provided that, in the case of an executed instrument, no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence and that the instrument is given up to be cancelled.
Explanation.--The certificate of the Collector under section 32 that the full duty with which an instrument is chargeable, has been paid is an impressed stamp within the meaning of this section.
1. Subs. by the A.O. 1937, for the L.G..
2. Subs. by the A.O. 1950, for "collecting Government".
3. Ins. by Act 5 of 1927, s. 5.
4. The word "Cheques" omitted by s. 5, ibid.
5. Subs. by Act 5 of 1927, s. 5, for "any bill of exchange".
6. The words or "cheque" omitted by s. 5, ibid.
7. The word "cheque" omitted by s. 5, ibid.
Section 50.Application for relief under section 49 when to be made.
The application for relief under section 49 shall be made within the following periods, that is to say,
(1) in the cases mentioned in clause (d) (5), within two months of the date of the instrument:
(2) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto, within six months after the stamp has been spoiled:
(3) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed:
Provided that,
(a) when the spoiled instrument has been for sufficient reasons sent out of 1[India], the application may be made within six months after it has been received back in 1[India] ;
(b) when, from unavoidable circumstances, any instrument for which another instrument has been substituted, cannot be given up to be cancelled within the aforesaid period, the application may be made within six months after the date of execution of the substituted instrument.
1. Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).
Section 51.Allowance in case of printed forms no longer required by Corporations.
The Chief Controlling Revenue-authority 1[or the Collector if empowered by the Chief Controlling Revenueauthority in this behalf ] may, without limit of time, make allowance for stamped papers used for printed forms of instruments 2[by any banker] or by any incorporated company or other body corporate, if for any sufficient reason such forms have ceased to be required by the said 2[banker], company or body corporate: provided that such authority is satisfied that the duty in respect of such stamped papers has been duly paid.
1. Ins. by Act 4 of 1914, s. 2 and Sch. pt. 1.
2. Ins. by Act 5 of 1906, s. 6.
Section 52.Allowance for misused stamps.
(a) When any person has inadvertently used for an instrument chargeable with duty, a stamp of a description other than that prescribed for such instrument by the rules made under this Act, or a stamp of greater value than was necessary, or has inadvertently used any stamp for an instrument not chargeable with any duty; or
(b) when any stamp used for an instrument has been inadvertently rendered useless under section 15, owing to such instrument having been written in contravention of the provisions of section 13;
the Collector may, on application made within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed, and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, cancel and allow as spoiled the stamp so misused or rendered useless.
Section 53.Allowance for spoiled or misused stamps how to be made.
In any case in which allowance is made for spoiled or misused stamps, the Collector may give in lieu thereof--
(a) other stamps of the same description and value; or
(b) if required and he thinks fit, stamps of any other description to the same amount in value; or
(c) at his discretion, the same value in money, deducting 1[ten naye paise] for each rupee or fraction of a rupee.
1. Subs. by Act 19 of 1958, s. 8, for "one anna" (w.e.f. 1-10-1958).
Section 54.Allowance for stamps not required for use.
When any person is possessed of a stamp or stamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for which he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in money, deducting 1[ten naye paise] for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the Collector's satisfaction--
(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
(b) that he has paid the full price thereof; and
(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered:
Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.
1. Subs. by Act 19 of 1958, s. 8, for "one anna" (w.e.f. 1-10-1958).
Section 54A.Allowances for stamps in denominations of annas.
1[54A. Allowances for stamps in denominations of annas.-- Notwithstanding anything contained in section 54, when any person is possessed of a stamp or stamps in any denominations, other than in denominations of annas four of multiples thereof and such stamp or stamps has or have not been spoiled, the Collector shall repay to such person the value of such stamp or stamps in money calculated in accordance with the provisions of sub-section (2) of section 14 of the Indian Coinage Act, 1906, (3 of 1906) upon such person delivering up, within six months from the commencement of the Indian Stamp (Amendment) Act,1958 (19 of 1958), such stamp or stamps to the Collector.]
1. Ins. by s. 9, ibid.. (w.e.f. 1-10-1958).
Section 54B.Allowances for Refugee Relief stamps.
1[54B. Allowances for Refugee Relief Stamps.-- Notwithstanding anything contained in section 54, when any person is possessed of stamps bearing the inscription Refugee Relief (being stamps issued in pursuance of section 3A before its omission) and such stamps have not been spoiled, the Collector shall, upon such person delivering up, within six-month, from the commencement of the Refugee Relief Taxes (Abolition) Act, 1973 (13 of 1973), such stamps to the Collector, refund to such person the value of such stamps in money or give in lieu thereof other stamps of the same value:
Provided that the State Government may, with a view to facilitating expeditious disposal of claims for such refunds, specify, in such manner as it deems fit, any other procedure which may also be followed for claiming such refunds.]
1. Ins. by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973).
Section 55.Allowance on renewal of certain debentures.
When any duly stamped debenture is renewed by the issue of a new debenture in the same terms, the Collector shall, upon application made within one month, repay to the person issuing such debenture, the value of the stamp on the original or on the new debenture, whichever shall be less:
Provided that the original debenture is produced before the Collector and cancelled by him in such manner as 1[the State Government] may direct.
Explanation.-- A debenture shall be deemed to be renewed in the same terms within the meaning of this section notwithstanding the following changes:--
(a) the issue of two or more debentures in place of one original debenture, the total amount secured being the same;
(b) the issue of one debenture in place of two or more original debentures, the total amount secured being the same;
(c) the substitution of the name of the holder at the time of renewal for the name of the original holder; and
(d) the alteration of the rate of interest or the dates of payment thereof.
1. Subs. by the A. O. 1937, for "the G.G. in C"..
Section 56.Control of, and statement of case to, Chief Controlling Revenue-authority.
(1) The powers exercisable by a Collector under Chapter IV and Chapter V 1[and under clause (a) of the first proviso to section 26] shall in all cases be subject to the control of the Chief Controlling Revenueauthority.
(2) If any Collector, acting under section 31, section 40 or section 41, feels doubt as to the amount of duty with which any instrument is chargeable, he may draw up a statement of the case, and refer it, with his own opinion thereon, for the decision of the Chief Controlling Revenue-authority.
(3) Such authority shall consider the case and send a copy of its decision to the Collector, who shall proceed to asses and charge the duty (if any) in conformity with such decision.
STATE AMENDMENT
Uttarakhand.--
Amendment of section 56.--In Section 56 of the Principal Act, after sub-section (1) the following sub-section shall be inserted, namely:--
"(1-A) Notwithstanding anything contained in any other provisions of this Act, any person Including the Government aggrieved by any order of the Collector under chapter-IV, chapter-V or under clause (a) of the first proviso to section 26 may, within 60 days from the date receipt of such order, prefer an appeal against such order to the Chairman, Board of Revenue who shall, after giving the parties a reasonable opportunity of being heard consider the case and pass such order thereon as he thinks just and proper and the order so passed shall be final.
Provided that no application for stay of recovery of any disputed amount of stamp duty including interest thereon or penalty shall be entertained unless the applicant has furnished satisfactory proof of the payment of not less than one third of such disputed amount.
Provided further that where the Chairman, Board of Revenue passes an order for the stay of recovery of any stamp duty, interest thereon or penalty or for the stay of the operation of any order appealed against and such order results in the stay of recovery of any stamp duty, interest thereon or penalty, such stay order shall not remain in force for more than 30 days unless the appellant furnishes adequate security to the satisfaction of the Collector concern for the payment of the outstanding amount."
[Vide Uttarakhand Act 1 of 2016, s. 9]
1. Ins. by Act 15 of 1904, s. 7.
Section 57.Statement of case by Chief Controlling Revenue-authority to High Court.
(1) The Chief Controlling Revenue-authority may state any case referred to it under section 56, sub-section (2), or otherwise coming to its notice, and refer such case, with its own opinion thereon,--
1[(a) if it arises in a State, to the High Court for that State;
2[(b) if it arises in the Union territory of the Delhi, to the High Court of Delhi;]
3* * * * *
4[(c) if it arises in the Union territory of the Arunachal Pradesh or Mizoram, to the Gauhati High Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura;)] (d) if it arises in the Union territory of the Andaman and Nicobar Islands, to the High Court at Calcutta ;
(e) if it arises in the Union territory of the 5[Lakshadweep], to the High Court of Kerala;]
6[ (ee) if it arises in the Union territory of the Chandigarh, to the High Court of Punjab and Haryana;]
7[(f) if it arises in the Union territory of Dadra and Nagar Haveli, to the High Court of Bombay.]
(2) Every such case shall be decided by not less than three Judges of the High Court 8*** to which it is referred, and in case of difference the opinion of the majority shall prevail.
1. Subs. by the A.O. (No. 2) 1956, for clauses (a) to (g).
2. Subs. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968,
s. 3 and Sch. for clause (b) (w.e.f. 1-11-1966).
3. Clause (bb) ins. by s. 3 and Sch. ibid. And omitted by the State of Himachal Pradesh (Adaptation of Law on Union Subjects) Order, 1973, s. 3 and Sch. (w.e.f. 25-1-1971).
4. Subs. by the North-Eastern Areas (Reorganisation) (Adaptation of Laws on Union Subjects) Order 1974, s. 3 and Sch. for clause (c) (w.e.f. 21-1-1972).
5. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, s. 3 and Sch. for "the Laccadive, Minicoy and Amindivi Islands" (w.e.f. 1-11-1973).
6. Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968, s. 3 and Sch. (w.e.f. 1-11-1966).
7. Ins. by Reg. 6 of 1963, s. 2 and the First Sch.
8. The words Chief Court or Judicial Commissioners Court omitted by the A.O. 1950.
Section 58.Power of High Court to call for further particulars as to case stated.
If the High Court 1*** is not satisfied that the statements contained in the case are sufficient to enable it to determine the questions raised thereby, the Court may refer the case back to the Revenue-authority by which it was stated, to make such additions thereto or alterations therein as the Court may direct in that behalf.
1. The words Chief Court or Judicial Commissioners Court omitted by the A.O. 1948.
Section 59.Procedure in disposing of case stated.
(1) The High Court, 1*** upon the hearing of any such case, shall decide the questions raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded.
(2) The Court shall send to the Revenue-authority by which the case was stated, a copy of such judgment under the seal of the Court and the signature of the Registrar; and the Revenue-authority shall, on receiving such copy, dispose of the case conformably to such judgment.
1. The words Chief Court or Judicial Commissioners Court omitted by the A.O. 1948.
Section 60.Statement of case by other Courts to High Court.
(1) If any Court, other than a Court mentioned in section 57, feels doubt as to the amount of duty to be paid in respect of any instrument under proviso (a) to section 35, the Judge may draw up a statement of the case and refer it, with his own opinion thereon, for the decision of the High Court 1*** to which, if he were the Chief Controlling Revenue-authority, he would, under section 57, refer the same.
(2) Such Court shall deal with the case as if it had been referred under section 57, and send a copy of its judgment under the seal of the Court and the signature of the Registrar to the Chief Controlling Revenue-authority and another like copy to the Judge making the reference, who shall, on receiving such copy, dispose of the case conformably to such judgment.
(3) Reference made under sub-section (1), when made by a Court subordinate to a District Court, shall be made through the District Court, and, when made by any subordinate Revenue Court, shall be made through the Court immediately superior.
1. The words "Chief Court or Judicial Commissioner's Court" omitted by the A.O. 1948.
Section 61.Revision of certain decisions of Courts regarding the sufficiency of stamps.
(1) When any Court in the exercise of its civil or revenue jurisdiction or any Criminal Court in any proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898), makes any order admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section 35, the Court to which appeals lie from, or references are made by, such first-mentioned Court may, of its own motion or on the application of the Collector, take such order into consideration.
(2) If such Court, after such consideration, is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under section 35, or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amount of duty with which such instrument is chargeable, and may require any person in whose possession or power such instrument then is, to produce the same, and may impound the same when produced.
(3) When any declaration has been recorded under sub-section (2), the Court recording the same shall send a copy thereof to the Collector, and, where the instrument to which it relates has been impounded or is otherwise in the possession of such Court, shall also send him such instrument.
(4) The Collector may thereupon, notwithstanding anything contained in the order admitting such instrument in evidence, or in any certificate granted under section 42, or in section 43, prosecute any person for any offence against the Stamp-law which the Collector considers him to have committed in respect of such instrument:
Provided that.--
(a) no such prosecution shall be instituted where the amount (including duty and penalty) which, according to the determination of such Court, was payable in respect of the instrument under section 35, is paid to the Collector, unless he thinks that the offence was committed with an intention of evading payment of the proper duty;
(b) except for the purposes of such prosecution, no declaration made under this section shall affect the validity of any order admitting any instrument in evidence, or of any certificate granted under section 42. STATE AMENDMENT
Uttar Pradesh
Amendment of section 61. --In section 61 of the principal Act, in sub-section (1), for the words and figures Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898, the worth and figures sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973 shall be substitute.
[Vide Uttar Pradesh Act 6 of 1980, s. 9]
Section 62A. Penalty for failure to comply with provisions of section 9A.
1[62A. Penalty for failure to comply with provisions of section 9A.---(1) Any person who,--
(a) being required under sub-section (1) of section 9A to collect duty, fails to collect the same; or
(b) being required under sub-section (4) of section 9A to transfer the duty to the State Government within fifteen days of the expiry of the time specified therein, fails to transfer within such time,
shall be punishable with fine which shall not be less than one lakh rupees, but which may extend up to one per cent. of the collection or transfer so defaulted.
(2) Any person who,--
(a) being required under sub-section (5) of section 9A to submit details of transactions to the Government, fails to submit the same; or
(b) submits a document or makes a declaration which is false or which such person knows or believes to be false,
shall be punishable with fine of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less.]
1. Ins. by Act 7 of 2019, s. 18 (w.e.f. 1-4-2020).
Section 62.Penalty for executing, etc., instrument not duly stamped.
(1) Any person--
(a) drawing, making, issuing, endorsing or transferring, or signing otherwise than as a witness, or presenting for acceptance or payment, or accepting, paying or receiving payment of, or in any manner negotiating, any bill of exchange 1[payable otherwise than on demand] 2*** or promissory note without the same being duly stamped; or
(b) executing or signing otherwise than as a witness any other instrument chargeable with duty without the same being duly stamped; or
(c) voting or attempting to vote under any proxy not duly stamped;
shall for every such offence be punishable with fine which may extend to five hundred rupees:
Provided that, when any penalty has been paid in respect of any instrument under section 35, section 40 or section 61, the amount of such penalty shall be allowed in reduction of the fine, (if any) subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.
(2) If a share-warrant is issued without being duly stamped, the company issuing the same, and also every person who, at the time when it is issued, is the managing director or secretary or other principal officer of the company, shall be punishable with fine which may extend to five hundred rupees.
STATE AMENDMENTS
Arunachal Pradesh.--
Amendment of sections 62.--In the Indian Stamp act, 1899 (2 of 1899) in its application to the state of Arunachal Pradesh.
(1) (i) in section 62, in clause (c), for the words "five hundred rupees", the words "two thousand rupees" shall be substituted.
(ii) in section 62, in sub-section (2), for the words "five hundred rupees", the words "five thousand rupees" shall be substituted.
[Vide Arunachal Pradesh Act 3 of 2010, s. 2]
Uttarakhand.--
Amendment of section 62.--In sub-section (1) of section 62 of the Principal Act for the words, "shall for every such offence, be punishable with fine which may extend to five hundred rupees", shall be substituted as follows, namely:--
"shall for every such offence, be punishable with fine which may extend to five thousand rupees".
[Vide Uttarakhand Act 1 of 2016, s. 10]
1. Ins by Act 5 of 1927, s. 5.
2. The word "cheque" omitted by s. 5, ibid.
Section 63.Penalty for failure to cancel adhesive stamp.
Any person required by section 12 to cancel an adhesive stamp, and failing to cancel such stamp in manner prescribed by that section, shall, be punishable with fine which may extend to one hundred rupees.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 63,--
(2) in section 63, for the words "one hundred rupees", the words "five hundred rupees" shall be substituted.
[Vide Arunachal Pradesh Act 3 of 2010, s. 2]
Section 64.Penalty for omission to comply with provisions of section 27.
Any person who, with intent to defraud the Government,--
(a) executes any instrument in which all the facts and circumstances required by section 27 to be set forth in such instrument are not fully and truly set forth; or
(b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all such facts and circumstances; or
(c) does any other act calculated to deprive the Government of any duty or penalty under this Act;
shall be punishable with fine which may extend to five thousand rupees.
STATE AMENDMENT
Orissa.--
Amendment of Section 64.--In Section 64 of the Principal Act, the words "and where the person is liable to pay the duty shall also be liable to pay the deficient amount of duty" shall be added at the end.
[Vide Orissa Act 7 of 1987, s. 8]
Arunachal Pradesh.
Amendment of sections 64,--
(3) in section 64, in clause (c), for the words "five thousand rupees", the words "ten thousand rupees" shall be substituted.
[Vide Arunachal Pradesh Act 3 of 2010, s. 2]
Section 65.Penalty for refusal to give receipt, and for devices to evade duty on receipts.
Any person who,--
(a) being required under section 30 to give a receipt, refuses or neglects to give the same; or,
(b) with intent to defraud the Government of any duty, upon a payment of money or delivery of property exceeding twenty rupees in amount or value, gives a receipt for an amount or value not exceeding twenty rupees, or separates or divides the money or property paid or delivered;
shall be punishable with fine which may extend to one hundred rupees.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 65,--
(4) in section 65, in clause (b), for the words "one hundred rupees", the words "five hundred rupees" shall be substituted.
[Vide Arunachal Pradesh 3 of 2010, s. 2]
Section 66.Penalty for not making out policy or making one not duly stamped.
Any person who--
(a) receives, or takes credit for, any premium or consideration for any contract of insurance and does not, within one month after receiving, or taking credit for, such premium or consideration, make out and execute a duly stamped policy of such insurance; or
(b) makes, executes or delivers out any policy which is not duly stamped, or pays or allows in account, or agrees to pay or allow in account, any money upon, or in respect of, any such policy;
shall be punishable with fine which may extend to two hundred rupees.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 66,--
In section 66, in clause (b), for the words"two hundred rupees", the words "five hundred rupees" shall be substituted.
[Vide Arunachal Pradesh 3 of 2010, s. 2]
Section 67.Penalty for not drawing full number of bills or marine policies purporting to be in sets.
Any person drawing or executing a bill of exchange 1[payable otherwise than on demand] or a policy of marine insurance purporting to be drawn or executed in a set of two or more, and not at the same time drawing or executing on paper duly stamped the whole number of bills or policies of which such bill or policy purports the set to consist, shall be punishable with fine which may extend to one thousand rupees.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 67,--
In section 67, for the words dbqrsone thousand rupees" the words "two thousand rupees" shall be substituted.
[Vide Arunachal Pradesh 3 of 2010, s. 2]
1. Ins. by Act, 5 of 1927, s. 5.
Section 68.Penalty for post-dating bills, and for other devices to defraud the revenue.
Any person who,--
(a) with intent to defraud the Government of duty, draws, makes or issues any bill of exchange or promissory note bearing a date subsequent to that on which such bill or note is actually drawn or made; or,
(b) knowing that such bill or note has been so post-dated, endorses, transfers, presents for acceptance or payment, or accepts, pays or receives payment of, such bill or note, or in any manner negotiate the same; or,
(c) with the like intent, practices or is concerned in any act, contrivance or device not specially provided for by this Act or any other law for the time being in force;
shall be punishable with fine which may extend to one thousand rupees.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 68,--
(7) in section 68, in clause (c), for the words "one thousand rupees", the words "two thousand rupees" shall be substituted.
[Vide Arunachal Pradesh Act 3 of 2010, s. 2]
Section 69.Penalty for breach of rule relating to sale of stamps and for unauthorised sale.
(a) Any person appointed to sell stamps who disobeys any rule made under section 74; and
(b) any person not so appointed who sells or offers for sale any stamp (other than a 1ten naye paise or five naye paise] adhesive stamp);
shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.
STATE AMENDMENT
Arunachal Pradesh.--
Amendment of sections 69,--
(8) in section 69, in clause (b), for the words "five hundred rupees", the words "five thousand rupees" shall be substituted.
[Vide Arunachal Pradesh Act 3 of 2010, s. 2]
1. Subs. by Act 19 of 1958, s. 10, for "one anna or half an anna" (w.e.f. 1-10-1958).
Section 70.Institution and conduct of prosecutions.
(1) No prosecution in respect of any offence punishable under this Act or any Act hereby repealed, shall be instituted without the sanction of the Collector or such other officer as 1[the 2[State Government]] generally, or the Collector specially, authorizes in that behalf.
(2) The Chief Controlling Revenue-authority, or any officer generally or specially authorized by it in this behalf, may stay any such prosecution or compound any such offence.
(3) The amount of any such composition shall be recoverable in the manner provided by section 48.
1. Subs. by the A.O. 1937, for "the L.G.".
2. Subs. by the A.O. 1950, for "collecting Government".
Section 71.Jurisdiction of Magistrates.
No Magistrate other than a Presidency Magistrate or a Magistrate whose powers are not less than those of a Magistrate of the second class, shall try any offence under this Act.
Section 72.Place of trial.
Every such offence committed in respect of any instrument may be tried in any district or presidency-town in which such instrument is found, as well as in any district or presidencytown in which such offence might be tried under the Code of Criminal Procedure for the time being in force.
Section 73.Books, etc., to be open to inspection.
Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorized in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as he may deem necessary, without fee or charge.
STATE AMENDMENT
Orissa.--
Amendment of section 73.--For section 73 of the principal Act, the following section shall be substituted, namely:--
(1) Every public officer or any person having in his custody any registers, books, records, papers, documents or proceedings, the inspections whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any officer authorized in writing by the Collector to enter upon any premises and to inspect for such purposes the registers, books, records, papers, documents and proceedings and to take such notes and extracts, as he may deem necessary, without fee or charge and if necessary to seize them and impound the same under proper acknowledgement:
Provided that such seizure of any registers, books, records, papers, documents or proceedings in the custody of any Bank be made only after a notice of thirty days to make good the deficit of stamp duty is given.
Explanation--For the purposes of this proviso "Bank" means a banking company as defined in section 5 of the Banking Regulation Act, 1949 and includes the State Bank of India, constituted by the State Bank of India Act, 1955, a subsidiary bank as defined in the State Bank of India (Subsidiary Bank) Act, 1959 corresponding new Bank as define in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, a Regional Rural Bank established under the Regional Rural Bank Act, 1976, the Industrial Development Bank of India Act, 1964, National Bank of Agriculture and Rural Development Act, 1981, the Life Insurance Corporation Act, 1956, the Industrial Fianc� Corporation of India established under the Industrial Finance Corporation Act, 1948, and as such other financial or banking institution onwned, controlled or managed by a State Government or the Central Government, as may be notified in this behalf by the Government.
(2) Every person having in his custody or maintaining such registers, books, records, papers, documents or proceedings shall, when so required by the officer authorized under sub-section (1), produce them before such officer and at all reasonable times permit such officer to inspect them and take such notes and extracts as he may deem necessary.
(3) if, upon such inspection, the officer so authorized, is of opinion that any instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same form the person liable to pay the stamp duty and in case of default the amount of the duty shall be recovered as an arrear of land revenue.
[Vide Orissa Act 1 of 2003, s. 6]
Orissa.--
Amendment of Section 73. --In Explanation to sub-section (1) of Section 73 of the Indian Stamp Act, 1899, (2 of 1899) for the words and figures "the Industrial Fiance Corporation of India established under the Industrial Finance Corporation Act, 1948", the words and figures "other public financial institutions notified under Section 4-A of the Companies Act, 1956 (1 of 1956)" shall be substituted.
[Vide Orissa Act 5 of 2004, s. 2]
Uttar Pradesh
Inserted of new section 73-A.—After section 73 of the principal Act, the following section shall be inferred, namely :—
“73-A. Collector’s power to authorize officer to enter premises and inspect certain documents.—(1) Where the Collector has reason to believe that all or any of the instruments specified in Articles 5 and 43 of the Schedule 1-B have not been charged at all or have been incorrectly charged with duty leviable under this Act, he may authorize in writing any officer to enter upon any premises where the Collector has reason to believe that any registers, books, records, papers, documents or proceedings relating to or in connection with any such instrument are kept and to inspect them, and to take such notes and extracts as such officer deems necessary.
(2) Every person having in his custody or maintaining such registers, books, records, papers, documents or proceedings shall at all reasonable times, permit such officer to inspect them and to take such notes and extracts as he may deem necessary.
Vide Uttar Pradesh Act 6 of 1980, s. 10
Amendment of section 73--In seetion:73-A of the principal Act –
(a) for sub-section (1) the following sub-section shall be substituted namely :—
(1) 'Where the Collector has reason to believe that any instrument chargeable to duty has not been charged at all or has been incorrectly charged with duty leviable under this Act, he or any other Officer authorized by him writing in This behalf may enter upon any premises where the Collector has reason to believe that any registers, books, records papers, maps, documents or proceedings relating to or in connection with any such instrument are kept and to inspect them and to take such notes, copies and extracts as the Collector or such officer deems necessary.
(b) in sub section (2) after the word ''papers the Word maps and after the word notes the word copies” shall be inserted.
[Vide Uttar Pradesh Act 22 of 1998, s. 8]
Section 73A. Power of Central Government to make rules.
1[73A. Power of Central Government to make rules.--(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of Part AA of Chapter II.
(2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the following matters, namely:--
(a) the manner of collection of stamp-duty on behalf of the State Government by the stock exchange or the clearing corporation authorised by it, from its buyer under clause (a) of sub-section (1) of section 9A;
(b) the manner of collection of stamp-duty on behalf of the State Government by the depository from the transferor under clause (b) of sub-section (1) of section 9A;
(c) the manner of collection of stamp-duty on behalf of the State Government by the depository from the issuer under clause (c) of sub-section (1) of section 9A;
(d) the manner of transfer of stamp-duty to the State Government under sub-section (4) of section 9A;
(e) any other matter which has to be, or may be, provided by rules.]
1. Ins. by Act 7 of 2019, s. 19 (w.e.f. 1-4-2020).
Section 74.Powers to make rules relating to sale of stamps.
The 1[State Government] 2*** may make rules for regulating
(a) the supply and sale of stamps an stamped papers,
(b) the persons by whom alone such sale is to be conducted, and
(c) the duties and remuneration of such persons:
Provided that such rules shall not restrict the sale of 3[ten naye paise or five naya paise] adhesive stamps.
1. Subs. by the A.O. 1950, for "collecting Government."
2. The words Subject to the "Control of the G.G. in C" omitted by the A.O.1937.
3. Subs. by Act 19 of 1958 s. 10, for "one anna or half an anna" (w.e.f. 1-10-1958).
Section 75.Powers to make rules generally to carry out Act.
The 1[State Government] may make rules to carry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in no case exceed five hundred rupees, to be incurred on breach thereof.
1. Subs. by the A.O. 1950, for "collecting Government".
Section 76.Publication of rules.
1[(1) All rules made under this Act shall be published in the Official Gazette.]
(2) All rules published as required by this section shall, upon such publication, have effect as if enacted by this Act.
2[(2A) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]
3[(3) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature..]
1. Subs. by the A.O. 1937, for sub-section (1).
2. Ins. by Act 7 of 2019, s. 20 (w.e.f. 9-1-2020).
3. Ins. by Act 4 of 2005, s. 2 and the Schedule.
Section 76A.Delegation of certain powers.
1[76A. Delegation of certain powers .--2[3*** The State Government may, by notification in the Official Gazette], delegate
(a) all or any of the powers conferred on it by sections 2(9), 33(3), ( b ), 70(1), 74 and 78 to the Chief Controlling Revenue-authority; and
(b) all or any of the powers conferred on the Chief Controlling Revenue-authority by sections 45 (1), (2), 56 (1) and 70 (2) to such subordinate Revenue-authority as may be specified in the notification. ] STATE AMENDMENT
Uttar Pradesh
Amendment of section 76-A to Act no. II of 1899.--In section 76-A of the Indian Stamp Act, 1899, as amended in its application to Uttar Pradesh, in clause (b) for the figures 56 (1) the figures and letter 56 (1) (1-A) shall be substituted.
[Vide Uttar Pradesh Act 1 of 2016, s. 2]
1. Ins. by Act 4 of 1914, s. 2 and the Sch. Pt. I.
2. Subs. by the A.O. 1937, for The Local Government may, by notification in the Local Official Gazette.
3. The words, figures and brackets The Central Government subject to the provision of section 124(1) of the Government of India Act, 1935, and omitted by the A.O. 1950.
Section 77.Saving as to court-fees.
Nothing in this Act contained shall be deemed to affect the duties chargeable under any enactment for the time being in force relating to court-fee.
STATE AMENDMENT
Himachal Pradesh.--
At the beginning of section 77 of the said Act the following words shall be inserted, namely:--
"Except for the provisions as to copies contained in section 6-A".
[Vide Himachal Pradesh Act 4 of 1953, s. 11]
STATE AMENDMENT
Orissa.--
Section 77-A, Act 2 of 1899.–--After section 77 of the principal Act the following new section shall be inserted, namely:--
77-A. Fractions of five naye paise to be rounded off.-- In the determination of the amount of duly payable or of allowance to be made under this Act, any fraction of five naye paise shall be rounded off to the next higher five naye paise.
[Vide Orissa Act 35 of 1962, s. 3]
Section 77A.Saving as to certain stamps.
1[77A. Saving as to certain stamps. ---All stamps in denominations of annas four or multiples thereof shall be deemed to be stamps of the value of twenty-five naye paise or, as the case may be, multiples thereof and shall, accordingly, be valid for all the purposes of this Act.]
STATE AMENDMENT
Orissa.--
Repeal of section 77-A, (Act 2 of 1899).--- Section 77-A of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter referred a to as the principal Act), shall be omitted.
[Vide Orissa Act 9 of 1970, s. 2]
1. Ins. by Act 19 of 1958, s. 11 (w.e.f. 1-10-1958).
Section 78.Act to be translated, and sold cheaply.
Every State Government shall make provision for the sale of translations of this Act in the principal vernacular languages of the territories administered by it at a price not exceeding 1[twenty-five naye paise] per copy.
STATE AMENDMENT
ASSAM--
Substitution of section 78.--In the principal Act, for section 78, the following shall be substituted, namely,--
"78. Duty or allowance to be rounded off to 78 the next rupee.--If the total amount of duty payable, or of allowance to be made under this Act is not a round figure, the total amount shall be rounded off the next rupee."
[Vide Assam Act 22 of 2004, s. 5]
1. Subs. by s. 12, ibid., "four annas" (w.e.f. 1-10-1958).
Section 79.[Repealed.].
[ Repealed.] Rep. by the Repealing and Amending Act, 1914 (10 of 1914) s. 3 and schedule II.