(1) This Act may be called the Indian StampAct, 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 towhich the provisions of this Act relate to rates of stamp-duty in respect of the documents specified inEntry 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".

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 securitiesintimated 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 3India 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

(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 5the 6State 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;

(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 6India;

(12) Executed and execution-- executed and execution used with reference to instruments, mean signed and signature;

7

(13) Impressed stamp-- impressed stamp includes--

(a) labels affixed and impressed by the proper officer; and

(b) stamps embossed or engraved on stamped paper;

8[(13A) India-- India means the territory of India excluding the State of Jammu and Kashmir;]

(14) Instrument-- instrument includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;

(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;

(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;

8[(16A) Marketable security-- "marketable security" means a security of such a description as to be capable of being sold in any stock market in 9[India] or in the United Kingdom;]

(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; 10

11

12[(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; 13

(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 14and, 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; 15

16[(25) Soldier-- "soldier" includes any person below the rank of non-commissioned officer who is enrolled under the 17Indian Army Act, 1911 (8 of 1911).]

18[(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.]

19[(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 theCentral Government, by notification in the Official Gazette, for the purposes of this Act.]

STATE AMENDMENT

Assam--

Amendment of section 2 of Act II of 1892.--In section 2 of the principal Act, after clause (7), thefollowing shall be inserted, namely:--

"(8) "Chief Controlling Revenue Authority" means the Superintendent of Stamps, Assam."

[Vide Assam Act 10 of 1968, s. 2]

1. Subs. by Act 7 of 2019, s. 12, for clause (1) (w.e.f. 9-1-2020).

2. Added by Act 7 of 2019, s. 12 (w.e.f. 1-4-2020).

3. Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).

4. Clause (8) omitted by the A.O. 1937.

5. Subs. by the A.O. 1937, for the L.G..

6. Subs. by the A.O. 1950, for collecting Government.

7. Clause (12A) omitted by the A.O. 1950. Earlier ins. by the A.O. 1937.

8. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956).

9. Ins. by Act 15 of 1904, s. 2.

10. Subs. by Act 43 of 1955, s. 2, for the States (w.e.f. 1-4-1956).

11. The word and omitted by Act 5 of 1906, s. 2.

12. Clause (c) omitted by s. 2, ibid.

13. The word and omitted by Act 18 of 1928, s. 2 and the First Sch.

14. Ins. by Act 15 of 1904, s. 2.

15. The word and omitted by the A.O. 1950. Earlier ins. by Act 18 of 1928, s. 2 and the First Sch.

16. Added by Act 1928 of 18, s. 2 and the First Sch.,

17. See. Now the Army Act 1950 (46 of 1950).

18. Ins. by Act 23 of 2004, s. 117.

19. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-4-2020).

Subject to the provisions of this Act and the exemptionscontained 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, ³or 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.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.

[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).

(1) Where, inthe case of any sale, mortgage or settlement, several instruments are employed for completing thetransaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, forthe conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a dutyof 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 thepurposes 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 whichwould 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 ortransfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be theprincipal instrument for the purpose of this section and no stamp-duty shall be charged on any otherinstruments relating to any such transaction.]

1. Ins. by Act 7 of 2019, s. 13 (w.e.f. 1-4-2020).

Any instrument comprising or relating toseveral distinct matters shall be chargeable with the aggregate amount of the duties with which separateinstruments, each comprising or relating to one of such matters, would be chargeable under this Act.

Subject to the provisions ofthe last preceding section, an instrument so framed as to come within two or more of the descriptions inSchedule I, shall, where the duties chargeable thereunder are different, be chargeable only with thehighest of such duties:

Provided that nothing in this Act contained shall render chargeable with duty exceeding one rupee acounterpart or duplicate of any instrument chargeable with duty and in respect of which the proper dutyhas been paid.

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).

(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of theLocal Authorities Loan Act, 1879 (XI of 1879) or, of any other law for the time being in force, by theissue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of1[one per centum] on the total amount of the bonds, debentures or other securities issued by it, and suchbonds, debentures or other securities need not be stamped and shall not be chargeable with any furtherduty on renewal, consolidation, sub-division or otherwise.

(2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities frombeing stamped and from being chargeable with certain further duty shall apply to the bonds, debentures orother securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures orother 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 ofMarch, 1897, when such duty has not already been paid or remitted by order issued by the CentralGovernment.

(3) In the case of wilful neglect to pay the duty required by this section, the local authority shall beliable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and alike 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".

1[8A. Securities dealt in depository not liable to stamp duty.---Notwithstanding anythingcontained 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 bestamped;

(b) the transfer of registered ownership of securities from a person to a depository or from adepository to a beneficial owner shall not be liable to duty;

Explanation.---For the purposes of this section, the expression "beneficial ownership" shall have thesame 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).

1[8B. Corporatisation and demutualisation schemes and related instruments not liable toduty---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 inconnection with, the corporatisation or demutualisation, or both of a recognised stock exchangepursuant to a scheme,

as approved by the Securities and Exchange Board of India under sub-section (2) of section 4B of theSecurities Contracts (Regulation) Act, 1956 (42 of 1956), shall not be liable to duty under this Act or anyother law for the time being in force.

Explanation.-- For the purposes of this section,--

(a) the expressions "corporatisation", "demutualisation" and "scheme" shall have the meaningsrespectively 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 Indiaestablished 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).

¹[8C. Negotiable warehouse receipts not liable to stamp-duty.--Notwithstanding anythingcontained 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).

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, anyagreement or other document for assignment of receivables as defined in clause (p) of section 2 of theFactoring Regulation Act, 2011 in favour of any factor as defined in clause (i) of section 2 of the saidAct 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).

1[8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer ofshareholding of a bank to a holding company of bank not liable to duty. ---Notwithstanding anythingcontained 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 ofshareholding of a bank to a holding company of the bank in terms of the scheme or guidelines of theReserve Bank of India shall not be liable to duty under this Act or any other law for the time being inforce; 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 inconnection with, the conversion of a branch of a bank into a wholly owned subsidiary of the bank ortransfer of shareholding of a bank to a holding company of the bank in terms of the scheme orguidelines issued by the Reserve Bank of India in this behalf, shall not be liable to duty under this Actor 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 BankingRegulation Act, 1949 (10 of 1949);

(c) "State Bank of India' constituted under section 3 of the State Bank of India Act, 1955 (23of 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 RegulationAct, 1949 (10 of 1949);

(g) "a multi-State co-operative bank" as defined in clause (cciiia) of section 5 of the BankingRegulation Act, 1949 (10 of 1949);

(ii) For the purposes of this section, the expression the Reserve Bank of India means theReserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of1934).]

1. Ins. by Act 4 of 2013, s. 17 and the Schedule (w.e.f. 17-1-2013).

1[8F. Agreement or document for transfer or assignment of rights or interest in financial assetsnot liable to stamp-duty.---Notwithstanding anything contained in this Act or any other law for the timebeing in force, any agreement or other document for transfer or assignment of rights or interest infinancial assets of banks or financial institutions under section 5 of the Securitisation and Reconstructionof Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), in favour of any asset reconstructioncompany, as defined in clause (ba) of sub-section (1) of section 2 of that Act, shall not be liable to dutyunder this Act.]

1. Ins. by Act 44 of 2016, s. 43 and the First Schedule (w.e.f. 1-9-2016).

1[(1)] 2[The 3Government] may, by rule ororder published in the Official Gazette,--

(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of 4[theterritories under its administration, the duties with which any instruments or any particular class ofinstruments, or any of the instruments belonging to such class, or any instruments when executed byor in favour of any particular class of persons, or by or in favour of any members of such class, arechargeable, and

(b) provide for the composition or consolidation of duties 5[of policies of insurance and] in thecase of issues by any incorporated company or other body corporate 6[or of transfers (where there is asingle 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 oflading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, andin relation to any other stamp-duty chargeable under this Act and falling within entry 96 in List I inthe 8[Seventh Schedule to the Constitution, expect the subject matters referred to in clause (b) ofsub-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 tosuch conditions as may be specified, the State Government may, by order, provide for theconsolidation of duties in respect of any receipts or class of receipts given by any person or class ofpersons 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).

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 stockexchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of theState Government by the stock exchange or a clearing corporation authorised by it, from its buyer onthe 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, ismade by a depository otherwise than on the basis of any transaction referred to in clause (a), thestamp-duty on such transfer shall be collected on behalf of the State Government by the depositoryfrom the transferor of such securities on the consideration amount specified therein, in such manneras the Central Government may, by rules, provide;

(c) when pursuant to issue of securities, any creation or change in the records of a depository ismade, the stamp-duty on the allotment list shall be collected on behalf of the State Government by thedepository from the issuer of securities on the total market value of the securities as contained in suchlist, 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) shallbe chargeable with duty as provided therein at the rate specified in Schedule I and such instruments neednot be stamped.

(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by theState 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 maybe, shall, within three weeks of the end of each month and in accordance with the rules made in thisbehalf by the Central Government, in consultation with the State Government, transfer the stamp-dutycollected under this section to the State Government where the residence of the buyer is located and incase the buyer is located outside India, to the State Government having the registered office of the tradingmember or broker of such buyer and in case where there is no such trading member of the buyer, to theState Government having the registered office of the participant:

Provided that before such transfer, the stock exchange or the clearing corporation authorised by it orthe depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges asmay be specified in such rules.

Explanation.--The term "participant" shall have the same meaning as assigned to it in clause (g) ofsection 2 of the Depositories Act, 1996 (22 of 1996).

(5) Every stock exchange or the clearing corporation authorised by it and depository shall submit tothe Government details of the transactions referred to in sub-section (1) in such manner as the CentralGovernment may, by rules, provide.]

1. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-4-2020).

1[9B. Instruments chargeable with duty for transactions otherwise than through stock exchangesand depositories.Notwithstanding anything contained in this Act,--

(a) when any issue of securities is made by an issuer otherwise than through a stock exchange ordepository, the stamp-duty on each such issue shall be payable by the issuer, at the place where itsregistered office is located, on the total market value of the securities so issued at the rate specified inSchedule I;

(b) when any sale or transfer or reissue of securities for consideration is made otherwise thanthrough a stock exchange or depository, the stamp-duty on each such sale or transfer or reissue shallbe payable by the seller or transferor or issuer, as the case may be, on the consideration amountspecified 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).

(1) Except as otherwise expressly provided in this Act, all duties withwhich any instruments are chargeable shall be paid, and such payment shall be indicated on suchinstruments, 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 maybe used;

(c) in the case of bills of exchange or promissory notes 2 the size of the paper on which theyare written.

STATE AMENDMENT

Assam--

Insertion of section 10A.--The principal Act, after the existing section the following shall beinserted as section 10A, namely:--

"10A. For shortage of stamps how duty to be paid--(1) Notwithstanding anything contained inSection 10, where the State Government or the Collector, as the case may be, is satisfied that there isshortage of stamps in the district or stamps of required denominations are not available, the StateGovernment or the Collector may permit payment of the duty to be paid in cash or by way of DemandDraft or by Pay Order and authorize the Treasury Officer or Sub-Treasury Officer or Sub-Registrar orany other authorised officer, as the case may be, on production of a challan evidencing payment ofduty in the Government Treasury or Sub-Treasury of a Demand Draft or by Pay Order drawn on abranch of any Schedule bank, as the case may be, after due verification, to certify in such manner asmay 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 placeas 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 thatthe power exercisable by it or by the Collector under this Section may be exercised by such otherofficers as may be specified in the order.

(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as ifthe duty of an amount equal to the amount stated in the endorsement has been paid in respect thereofand such payment has been indicated on such instrument by means of stamps in accordance with therequirements 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 ofthe Seventh Schedule to the Constitution of India; and

(ii) the instruments presented after six months from the date of their execution or firstexecution."

[Vide Assam Act 22 of 2004, s. 2]

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).

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 ofexchange 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.

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).

(1) (a) Whoever affixes any adhesive stamp to anyinstrument 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 ofexecution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that itcannot be used again.

(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be usedagain, 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 oracross 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.

Every instrument writtenupon paper stamped with an impressed stamp shall be written in such manner that the stamp may appearon the face of the instrument and cannot be used for or applied to any other instrument.

No second instrument chargeable with duty shallbe written upon a piece of stamped paper upon which an instrument chargeable with duty has alreadybeen written:

Provided that nothing in this section shall prevent any endorsement which is duly stamped or is notchargeable with duty being made upon any instrument for the purpose of transferring any right created orevidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery ofwhich is secured thereby.

Every instrumentwritten in contravention of section 13 or section 14 shall be deemed to be unstamped.

Where the duty with which an instrument is chargeable, or its exemption fromduty, depends in any manner upon the duty actually paid in respect of another instrument, the payment ofsuch last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and onproduction of both the instruments, be denoted upon such first-mentioned instrument by endorsementunder the hand of the Collector or in such other manner (if any) as the 1[State Government] may by ruleprescribe.

1. Subs. by the A.O. 1950, for "collecting Government".

All instruments chargeable with duty and executed by anyperson 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, thefollowing proviso shall be inserted namely:--

"Provided that nothing in this Section shall apply to the instrument in respect of which stamp duty hasbeen 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).

(1) Every instrumentchargeable with duty executed only out of ²[India], and not being a bill of exchange ³ or promissorynote, 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 prescribedtherefore, be duly stamped by a private person, it may be taken within the said period of three months tothe Collector, who shall stamp the same, in such manner as the ¹[State Government] may by ruleprescribe, 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.

The first holder in 1[India] of any bill ofexchange 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 otherwisenegotiates 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 holderthereof in 1[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed bysection 12 and such holder has no reason to believe that such stamp was affixed or cancelledotherwise than by the person and at the time required by this Act, such stamp shall, so far as relates tosuch 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 himfor omitting to affix or cancel a stamp.

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.

(1) Where an instrument ischargeable with ad valorem duty in respect of any money expressed in any currency other than that of1[India] such duty shall be calculated on the value of such money in the currency of 1[India] according tothe 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, prescribea rate of exchange for the conversion of British or any foreign currency into the currency of 1[India] forthe purposes of calculating stamp-duty, and such rate shall be deemed to be the current rate for thepurposes of sub-section (1).

1. Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).

Where an instrument is chargeable withad valorem duty in respect of any stock or of any marketable or other security, such duty shall becalculated 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 theday of the date of the instrument." (w.e.f. 1-4-2020).

2. Ins. by s. 16, ibid.,(w.e.f. 1-4-2020).

Where an instrument contains astatement of current rate of exchange, or average price, as the case may require, and is stamped inaccordance with such statement, it shall, so far as regards the subject-matter of such statement, bepresumed, until the contrary is proved, to be duly stamped.

Where interest is expressly made payable by the terms of aninstrument, such instrument shall not be chargeable with duty higher than that with which it would havebeen chargeable had no mention of interest been made therein.

1[23A. Certain instruments connected with mortgages of marketable securities to be chargeableas 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 formoney 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 anymarketable security,

it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeablewith 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.]

1. Ins. by Act 15 of 1904, s. 3.

2. Subs. by Act 1 of 1912, s. 3, for "Article No. 5(b)".

Where any property is transferred to any person in consideration, wholly or in part, of any debt due tohim, or subject either certainly or contingently to the payment or transfer of any money or stock, whetherbeing or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to bedeemed the whole or part, as the case may be, of the consideration in respect whereof the transfer ischargeable with ad valorem duty:

Provided that, nothing in this section shall apply to any such certificate of sale as is mentioned inArticle No. 18 of Schedule I.

Explanation.-- In the case of a sale of property subject to a mortgage or other incumbrance, anyunpaid mortgage-money or money charged, together with the interest (if any) due on the same, shall bedeemed 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 entitledto deduct from the duty payable on the transfer the amount of any duty already paid in respect of themortgage.

Illustrations

(1) A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of theprevious 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 unpaidinterest 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 housefrom A. Stamp-duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for themortgage.

Where an instrument is executed to secure the payment ofan annuity or other sum payable periodically, or where the consideration for a conveyance is an annuityor other sum payable periodically, the amount secured by such instrument or the consideration for suchconveyance, 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 bepreviously ascertained---such total amount;

(b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life inbeing at the date of such instrument or conveyance----the total amount which, according to the termsof such instrument or conveyance, will or may be payable during the period of twenty yearscalculated 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 ofsuch instrument or conveyance---- the maximum amount which will or may be payable as aforesaidduring the period of twelve years calculated from the date on which the first payment becomes due.

Where the amount or value of thesubject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of aninstrument executed before the commencement of this Act) could not have been, ascertained at the date ofits execution or first execution, nothing shall be claimable under such instrument more than the highestamount or value for which, if stated in an instrument of the same description, the stamp actually usedwould, 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 isreceived as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value ofsuch share, for the purpose of stamp-duty,

(a) when the lease has been granted by or on behalf of2[the Government], at such amount orvalue as the Collector may, having regard to all the circumstances of the case, have estimated aslikely 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 or41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date ofexecution.

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".

The consideration (if any) and all otherfacts and circumstances affecting the chargeability of any instrument with duty, or the amount of the dutywith 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, "Theconsideration (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 beinserted namely:--

"27A. Instrument of conveyance etc. under valued how to be dealt with.--(1) If theRegistering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908) whileregistering any instrument of conveyance, exchange or gift has reason to believe that the market valueof the property as fixed by the Government/Collector of the district, which is subject matter ofconveyance, exchange or gift had not been truly set forth in the instrument, he may after registeringsuch instrument, refer the same to the Collector for determination of the market value of such properand the property duty payable thereon.

(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties areasonable opportunity of being heard and after holding an enquiry in such manner as may beprescribed by rules made under this Act, determine the market value of the property which is thesubject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon thedifference, 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 ofregistration of any instrument or conveyance, exchange or gift not already referred to him undersub-section (1) call for and examine the instrument for the purpose of satisfying himself as to thecorrectness of the market value of the property as set forth in such instrument, which is the subjectmatter of conveyance, exchange or gift and the duty payable thereon and if after such examination hehas reason to believe that the market value of such property has not been truly set forth in theinstrument, he may determine the market value of such property and the duty as aforesaid andthereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay theduty:

Provided that nothing in this sub-section shall apply to instrument registered before the date ofcommencement 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 bepreferred 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 bethe 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 executionof the instrument of conveyance, exchange or gift.

[Vide Assam Act 22 of 2004, s. 5]

(1) Where any property has beencontracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separateparts by different instruments, the consideration shall be apportioned in such manner as the parties thinkfit, provided that a distinct consideration for each separate part is set forth in the conveyance relatingthereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinctconsideration.

(2) Where property contracted to be purchased for one consideration for the whole, by two or morepersons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts byseparate instruments to the persons by or for whom the same was purchased, for distinct parts of theconsideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect ofthe distinct part of the consideration therein specified.

(3) Where a person, having contracted for the purchase of any property but not having obtained aconveyance thereof, contracts to sell the same to any other person and the property is in consequenceconveyed immediately to the sub-purchaser the conveyance shall be chargeable with ad valorem duty inrespect 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 aconveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and theproperty is in consequence conveyed by the original seller to different persons in parts, the conveyance ofeach part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of theconsideration paid by such sub-purchaser, without regard to the amount or value of the originalconsideration; and the conveyance of the residue (if any) of such property to the original purchaser shallbe chargeable with ad valorem duty in respect only of the excess of the original consideration over theaggregate 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 immediatelyselling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him andis duly stamped accordingly, any conveyance to be afterwards made to him of the same property by theoriginal seller shall be chargeable with a duty equal to that which would be chargeable on a conveyancefor the consideration obtained by such original seller, or, where such duty would exceed five rupees, witha duty of five rupees.

In the absence of an agreement to the contrary, the expense ofproviding 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 theinsurance;

(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: inthe 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 certificaterelates; 7

(g) in the case of an instrument of partition---by the parties thereto in proportion to their respectiveshares in the whole property partitioned or, when the partition is made in execution of an order passed bya Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitratordirects.

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 suchsecurity;

(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 thetransferor of such security;

(l) in the case of issue of security, whether through a stock exchange or a depository or otherwise, bythe issuer of such security; and

(m) in the case of any other instrument not specified herein, by the person making, drawing orexecuting such instrument.]

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).

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).

4. The words, figures, brackets and letter "No. 62 (b). (Transfer of debentures, being marketable securities, whether the debentureis liable to duty or not, except debentures provided for by section 8)," omitted by s. 17,ibid (w.e.f. 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).

7. The "and" omitted by s. 17, ibid. (w.e.f. 1-4-2020).

8. Ins. by s. 17, ibid. (w.e.f. 1-4-2020).

Any person receiving any money exceedingtwenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceedingtwenty rupees, or receiving in satisfaction or part satisfaction of a debt any moveable property exceedingtwenty 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 anycontract of fire-insurance, shall, within one month after receiving or taking credit for such premium orconsideration, give a duly stamped receipt for the same. ]1. Added by Act 5 of 1906, s. 5.

(1) When any instrument, whether executed or not andwhether previously stamped or not, is brought to the Collector, and the person bringing it applies to havethe opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of suchamount (not exceeding five rupees and not less than 1[fifty naye paise]) as the Collector may in each casedirect, the Collector shall determine the duty (if any) with which, in his judgment, the instrument ischargeable.

(2) For this purpose the Collector may require to be furnished with an abstract of the instrument, andalso with such affidavit or other evidence as he may deem necessary to prove that all the facts andcircumstances affecting the chargeability of the instrument with duty, or the amount of the duty withwhich it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any suchapplication 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 anycivil proceeding, except in an inquiry as to the duty with which the instrument to which it relates ischargeable; and

(b) every person by whom any such evidence is furnished, shall, on payment of the full duty withwhich the instrument to which it relates, is chargeable, be relieved from any penalty which he mayhave incurred under this Act by reason of the omission to state truly in such instrument any of thefacts or circumstances aforesaid.

1. Subs. by Act 19 of 1958, s. 3, for "eight annas" (w.e.f. 1-10-1958).

(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 alreadypaid 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) withwhich it is chargeable has been paid.

(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify inmanner aforesaid that such instrument is not so chargeable.

(3) Any instrument upon which an endorsement has been made under this section, shall be deemed tobe duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall bereceivable in evidence or otherwise, and may be acted upon and registered as if it had been originally dulystamped:

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 ofone 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 theexpiration 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 exchangeor promissory note, when brought to him, after the drawing or execution thereof, on paper not dulystamped.

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).

(1) Every person having by law or consent ofparties authority to receive evidence, and every person in charge of a pubic office, except an officer ofpolice, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in theperformance of his functions, shall, if it appears to him that such instrument is not duly stamped, impoundthe same.

(2) For that purpose every such person shall examine every instrument so chargeable and so producedor coming before him, in order to ascertain whether it is stamped with a stamp of the value anddescription 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 CriminalCourt to examine or impound, if he does not think fit so to do, any instrument coming before him inthe course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of theCode 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 instrumentunder 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 ofpublic offices.

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.".

Where any receipt chargeable 1[with a duty notexceeding ten naye paise] is tendered to or produced before any officer unstamped in the course of theaudit 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).

No instrument chargeablewith duty shall be admitted in evidence for any purpose by any person having by law or consent of partiesauthority to receive evidence, or shall be acted upon, registered or authenticated by any such person or byany 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 thesame is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required tomake up such duty, together with a penalty of five rupees, or, when ten times the amount of theproper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty orportion;

(b) where any person from whom a stamped receipt could have been demanded, has given anunstamped receipt and such receipt, if stamped, would be admissible in evidence against him, thensuch receipt shall be admitted in evidence against him on payment of a penalty of one rupee by theperson tendering it;

(c) where a contract or agreement of any kind is effected by correspondence consisting of two ormore letters and any one of the letters bears the proper stamp, the contract or agreement shall bedeemed to be duly stamped;

(d) nothing herein contained shall prevent the admission of any instrument in evidence in anyproceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of theCode of Criminal Procedure 1898 (V of 1898);

(e) nothing herein contained shall prevent the admission of any instrument in any Court whensuch instrument has been executed by or on behalf of the Government, or where it bears thecertificate of the Collector as provided by section 32 or any other provision of this Act.

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,"

Where an instrument has beenadmitted in evidence, such admission shall not, except as provided in section 61, be called in question atany stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.

1[The 2[State Government]] may make rulesproviding that, where an instrument bears a stamp of sufficient amount but of improper description, itmay, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and anyinstrument 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".

(1) When the person impounding an instrumentunder section 33 has by law or consent of parties authority to receive evidence and admits suchinstrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided bysection 37, he shall send to the Collector an authenticated copy of such instrument, together with acertificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send suchamount 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 theCollector.

(1) When acopy 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 suchinstrument.

(2) When such instrument has been impounded only because it has been written in contravention ofsection 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 chiefControlling Revenue-authority" omitted by Act 4 of 1914, s. 2 and the Sch. Pt I.

(1) When the Collector impounds anyinstrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), notbeing 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 fiverupees:

Provided that, when such instrument has been impounded only because it has been written incontravention 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, beconclusive 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.

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.

If any instrument chargeable with duty and notduly stamped, not being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or abill of exchange or promissory note, is produced by any person of his own motion before the Collectorwithin one year from the date of its execution or first execution, and such person brings to the notice ofthe Collector the fact that such instrument is not duly stamped and offers to pay to the Collector theamount of the proper duty, or the amount required to make up the same, and the Collector is satisfied thatthe 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 hereinafter 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).

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 casemay be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper dutyand penalty (stating the amount of each) have been levied in respect thereof, and the name and residenceof the person paying them.

(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registeredand acted upon and authenticated as if it had been duly stamped, and shall be delivered on his applicationin this behalf to the person from whose possession it came into the hands of the officer impounding it, oras such person may direct:

Provided that--

(a) no instrument which has been admitted in evidence upon payment of duty and a penalty undersection 35, shall be so delivered before the expiration of one month from the date of suchimpounding, or if the Collector has certified that its further detention is necessary and has notcancelled such certificate;

(b) nothing in this section shall affect the1 Code of Civil Procedure (XIV of 1882), section 144,clause 3.

1. See now the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order XIII, Rule 9.

The taking of proceedings or the payment of apenalty under this Chapter in respect of any instrument shall not bar the prosecution of any person whoappears 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 whichsuch a penalty has been paid, unless it appears to the Collector that the offence was committed with anintention of evading payment of the proper duty.

(1) When any duty orpenalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect ofan instrument, and, by agreement or under the provisions of section 29 or any other enactment in force atthe time such instrument was executed, some other person was bound to bear the expense of providing theproper stamp for such instrument, the first-mentioned person shall be entitled to recover from such otherperson 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 orproceeding 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 theamount shall be maintainable.

(1) Whereany penalty is paid under section 35 or section 40, the Chief Controlling Revenue-authority may, uponapplication in writing made within one year from the date of the payment, refund such penalty wholly orin part.

(2) Where, in the opinion of the Chief Controlling Revenue-authority, stamp-duty in excess of thatwhich 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

(1) If any instrument sent to theCollector under section 38, sub-section (2), is lost, destroyed or damaged during transmission, the personsending 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 thehands of the person impounding the same, may require a copy thereof to be made at the expense of suchfirst-mentioned person and authenticated by the person impounding such instrument

When any bill of exchange ¹[or promissory note] chargeable ²[with a duty not exceeding ten naye paise ] is presented for payment unstamped, the person to whom it is so presented, may affix thereto the necessaryadhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sumpayable upon such bill ³[or note], and may charge the duty against the person who ought to have paid thesame, or deduct it from the sum payable as aforesaid, and such bill ³[or note], shall, so far as respects theduty, be deemed good and valid :

Provided that nothing herein contained shall relieve any person from any penalty or proceeding towhich he may be liable in relation to such bill, ³or note. 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".

All duties, penalties and other sums required to be paidunder this Chapter may be recovered by the Collector by distress and sale of the movable property of theperson from whom the same are due, or by any other process for the time being in force for the recoveryof arrears of land-revenue.

Subject to such rules as may be made by ¹[the ²[StateGovernment ]] as to the evidence to be required, or the enquiry to be made, the Collector may, onapplication made within the period prescribed in section 50, and if he is satisfied as to the facts, makeallowance 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 inwriting or any other means rendered unfit for the purpose intended before any instrument writtenthereon is executed by any person:

(b) the stamp on any document which is written out wholly or in part, but which is not signed orexecuted by any party thereto:

(c) in the case of bills of exchange ³[payable otherwise than on demand ] ⁴ or promissorynotes--

(1) the stamp on ⁵[any such bill of exchange] ⁶signed by or on behalf of the drawer which hasnot been accepted or made use of in any manner whatever or delivered out of his hands for anypurpose other than by way of tender for acceptance: provided that the paper on which any such stampis impressed, does not bear any signature intended as or for the acceptance of any bill ofexchange ⁶ to be afterwards written thereon:

(2) the stamp on any promissory note signed by or on behalf of the maker which has not beenmade 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 notesigned by, or on behalf of, the drawer thereof, but which from any omission or error has been spoiledor rendered useless, although the same, being a bill of exchange ⁶ may have been presented foracceptance 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 ⁷or promissory note isproduced 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 purposeoriginally 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 becompleted 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 signthe 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 moneyintended 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 beingeffected 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 bysome 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 madebetween 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 inwhich the instrument could or would have been given or offered in evidence and that the instrument isgiven up to be cancelled.

Explanation.--The certificate of the Collector under section 32 that the full duty with which aninstrument 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.

The application for relief undersection 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 partiesthereto, 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 partiesthereto, within six months after the date of the instrument, or, if it is not dated, within six months afterthe 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], theapplication 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 beensubstituted, cannot be given up to be cancelled within the aforesaid period, the application may bemade 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).

The ChiefControlling 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 printedforms of instruments 2[by any banker] or by any incorporated company or other body corporate, if for anysufficient 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 dulypaid.

1. Ins. by Act 4 of 1914, s. 2 and Sch. pt. 1.

2. Ins. by Act 5 of 1906, s. 6.

(a) When any person has inadvertently used for an instrumentchargeable with duty, a stamp of a description other than that prescribed for such instrument by the rulesmade under this Act, or a stamp of greater value than was necessary, or has inadvertently used any stampfor 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 isnot dated, within six months after the execution thereof by the person by whom it was first or aloneexecuted, and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, canceland allow as spoiled the stamp so misused or rendered useless.

In any case in which allowanceis 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).

When any person is possessed of a stamp orstamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for whichhe has no immediate use, the Collector shall repay to such person the value of such stamp or stamps inmoney, deducting ¹[ten naye paise] for each rupee or portion of a rupee, upon such person delivering upthe 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 usethem; 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 whichthey 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).

1[54A. Allowances for stamps in denominations of annas. Notwithstanding anything containedin section 54, when any person is possessed of a stamp or stamps in any denominations, other than indenominations 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 inaccordance with the provisions of sub-section (2) of section 14 of the Indian CoinageAct, 1906, (3 of 1906) upon such person delivering up, within six months from the commencement of theIndian 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).

¹[54B. Allowances for Refugee Relief Stamps. Notwithstanding anything contained insection 54, when any person is possessed of stamps bearing the inscription Refugee Relief (beingstamps issued in pursuance of section 3A before its omission) and such stamps have not been spoiled, theCollector shall, upon such person delivering up, within six-month, from the commencement of theRefugee Relief Taxes (Abolition) Act, 1973 (13 of 1973), such stamps to the Collector, refund to suchperson 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 forsuch refunds, specify, in such manner as it deems fit, any other procedure which may also be followed forclaiming such refunds.]1. Ins. by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973).

When any duly stamped debenture is renewedby the issue of a new debenture in the same terms, the Collector shall, upon application made within onemonth, repay to the person issuing such debenture, the value of the stamp on the original or on the newdebenture, whichever shall be less:

Provided that the original debenture is produced before the Collector and cancelled by him in suchmanner as 1[the State Government] may direct.

Explanation.-- A debenture shall be deemed to be renewed in the same terms within the meaning ofthis section notwithstanding the following changes:--

(a) the issue of two or more debentures in place of one original debenture, the total amountsecured being the same;

(b) the issue of one debenture in place of two or more original debentures, the total amountsecured being the same;

(c) the substitution of the name of the holder at the time of renewal for the name of the originalholder; 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"..

(1) Thepowers exercisable by a Collector under Chapter IV and Chapter V 1[and under clause (a) of the firstproviso 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 ofduty with which any instrument is chargeable, he may draw up a statement of the case, and refer it, withhis 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 shallproceed to asses and charge the duty (if any) in conformity with such decision.

1. Ins. by Act 15 of 1904, s. 7.

(1) The ChiefControlling Revenue-authority may state any case referred to it under section 56, sub-section (2), orotherwise 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 HighCourt (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 atCalcutta ;

(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 itis 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.

If the High Court1 is not satisfied that the statements contained in the case are sufficient to enable it to determine thequestions raised thereby, the Court may refer the case back to the Revenue-authority by which it wasstated, 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.

(1) The High Court, 1 upon the hearing of any suchcase, shall decide the questions raised thereby, and shall deliver its judgment thereon containing thegrounds on which such decision is founded.

(2) The Court shall send to the Revenue-authority by which the case was stated, a copy of suchjudgment 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.

(1) If any Court, other than a Courtmentioned in section 57, feels doubt as to the amount of duty to be paid in respect of any instrumentunder proviso (a) to section 35, the Judge may draw up a statement of the case and refer it, with his ownopinion thereon, for the decision of the High Court 1 to which, if he were the Chief ControllingRevenue-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 ofits judgment under the seal of the Court and the signature of the Registrar to the Chief ControllingRevenue-authority and another like copy to the Judge making the reference, who shall, on receiving suchcopy, 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 bemade through the Court immediately superior.

1. The words "Chief Court or Judicial Commissioner's Court" omitted by the A.O. 1948.

(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 beenadmitted in evidence without the payment of duty and penalty under section 35, or without the paymentof a higher duty and penalty than those paid, it may record a declaration to that effect, and determine theamount of duty with which such instrument is chargeable, and may require any person in whosepossession or power such instrument then is, to produce the same, and may impound the same whenproduced.

(3) When any declaration has been recorded under sub-section (2), the Court recording the same shallsend a copy thereof to the Collector, and, where the instrument to which it relates has been impounded oris 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 suchinstrument in evidence, or in any certificate granted under section 42, or in section 43, prosecute anyperson for any offence against the Stamp-law which the Collector considers him to have committed inrespect 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 undersection 35, is paid to the Collector, unless he thinks that the offence was committed with an intentionof evading payment of the proper duty;

(b) except for the purposes of such prosecution, no declaration made under this section shallaffect the validity of any order admitting any instrument in evidence, or of any certificate grantedunder section 42.

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 StateGovernment within fifteen days of the expiry of the time specified therein, fails to transfer withinsuch time,

shall be punishable with fine which shall not be less than one lakh rupees, but which may extend up toone 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 theGovernment, fails to submit the same; or

(b) submits a document or makes a declaration which is false or which such person knows orbelieves to be false,

shall be punishable with fine of one lakh rupees for each day during which such failure continues or onecrore rupees, whichever is less.]

1. Ins. by Act 7 of 2019, s. 18 (w.e.f. 1-4-2020).

(1) Any person--

(a) drawing, making, issuing, endorsing or transferring, or signing otherwise than as a witness, orpresenting for acceptance or payment, or accepting, paying or receiving payment of, or in any mannernegotiating, any bill of exchange ¹[payable otherwise than on demand ] ² or promissory notewithout 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.1. Ins by Act 5 of 1927, s. 5.

2. The word "cheque" omitted by s. 5, ibid.

Any person required by section 12 to cancel anadhesive 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.

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 beset 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 omitsfully 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.

Any personwho,--

(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 ofproperty exceeding twenty rupees in amount or value, gives a receipt for an amount or value notexceeding 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.

Any person who--

(a) receives, or takes credit for, any premium or consideration for any contract of insurance anddoes not, within one month after receiving, or taking credit for, such premium or consideration, makeout 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 inaccount, 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.

Any person drawing or executing a bill of exchange 1[payable otherwise than on demand] or a policy ofmarine insurance purporting to be drawn or executed in a set of two or more, and not at the same timedrawing or executing on paper duly stamped the whole number of bills or policies of which such bill orpolicy purports the set to consist, shall be punishable with fine which may extend to one thousand rupees.

1. Ins. by Act, 5 of 1927, s. 5.

Any personwho,--

(a) with intent to defraud the Government of duty, draws, makes or issues any bill of exchange orpromissory note bearing a date subsequent to that on which such bill or note is actually drawn ormade; or,

(b) knowing that such bill or note has been so post-dated, endorses, transfers, presents foracceptance or payment, or accepts, pays or receives payment of, such bill or note, or in any mannernegotiate the same; or,

(c) with the like intent, practices or is concerned in any act, contrivance or device not speciallyprovided 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.

(a) Anyperson 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 paiseor five naye paise] adhesive stamp);

shall be punishable with imprisonment for a term which may extend to six months, or with fine whichmay extend to five hundred rupees, or with both.

1. Subs. by Act 19 of 1958, s. 10, for "one anna or half an anna" (w.e.f. 1-10-1958).

(1) No prosecution in respect of any offencepunishable under this Act or any Act hereby repealed, shall be instituted without the sanction of theCollector 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 inthis 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".

No Magistrate other than a Presidency Magistrate or a Magistratewhose powers are not less than those of a Magistrate of the second class, shall try any offence under thisAct.

Every such offence committed in respect of any instrument may be tried in anydistrict 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 inforce.

Every public officer having in his custody any registers,books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, orto prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonabletimes 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 deemnecessary, without fee or charge.

1[73A. Power of Central Government to make rules.--(1) The Central Government may, bynotification 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 Governmentmay 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 stockexchange 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 depositoryfrom 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 depositoryfrom 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 section9A;

(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).

The ¹[State Government] ² may makerules 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] adhesivestamps.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).

The 1[State Government] may make rules tocarry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in nocase exceed five hundred rupees, to be incurred on breach thereof.

1. Subs. by the A.O. 1950, for "collecting Government".

1[(1) All rules made under this Act shall be published in the OfficialGazette.]

(2) All rules published as required by this section shall, upon such publication, have effect as ifenacted by this Act.

2[(2A) Every rule made by the Central Government under this Act shall be laid, as soon as may beafter it is made, before each House of Parliament, while it is in session, for a total period of thirty dayswhich may be comprised in one session or in two or more successive sessions, and if, before the expiry ofthe session immediately following the session or the successive sessions aforesaid, both Houses agree inmaking any modification in the rule or both Houses agree that the rule should not be made, the rule shallthereafter have effect only in such modified form or be of no effect, as the case may be; so, however, thatany such modification or annulment shall be without prejudice to the validity of anything previously doneunder that rule.]

3[(3) Every rule made by the State Government under this Act shall be laid, as soon as may be after itis 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.

1[76A. Delegation of certain powers .--2[3 The State Government may, by notification in theOfficial 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 theChief 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 thenotification. ]

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 theGovernment of India Act, 1935, and" omitted by the A.O. 1950.

Nothing in this Act contained shall be deemed to affect the dutieschargeable under any enactment for the time being in force relating to court-fee.

1[77A. Saving as to certain stamps. ---All stamps in denominations of annas four or multiplesthereof 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.]

1. Ins. by Act 19 of 1958, s. 11 (w.e.f. 1-10-1958).

Every State Government shall make provision for thesale of translations of this Act in the principal vernacular languages of the territories administered by it ata 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 ofduty payable, or of allowance to be made under this Act is not a round figure, the total amountshall 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).

[ Repealed.] Rep. by the Repealing and Amending Act, 1914 (10 of 1914) s. 3 and schedule II.