Bare Act

THE INDIAN STAMP ACT, 1899 

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ARRANGEMENT OF SECTIONS 

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CHAPTER I 

PRELIMINARY 

SECTIONS 

  1. Short title, extent and commencement. 
  2. Definitions. 

CHAPTER II 

STAMP- DUTIES 

A.—Of the liability of instruments to Duty 

  1. Instruments chargeable with duty. 

3A. [Repealed.]. 

  1. Several instruments used in single transaction of sale, mortgage or settlement. 5. Instruments relating to several distinct matters. 
  2. Instruments coming within several descriptions in Schedule I. 
  3. Policies of sea-insurance. 
  4. Bonds, debentures or other securities issued on loans under Act XI of 1879. 

8A.Securities dealt in depository not liable to stamp-duty. 

8B. Corporatisation and demutualisation schemes and related instruments not liable to duty. 8C. Negotiable warehouse receipts not liable to stamp-duty. 

8D. Agreement or document for assignment of receivables not liable to stamp-duty. 8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of  shareholding of a bank to a holding company of bank not liable to duty. 

8F. Agreement or document for transfer or assignment of rights or interest in financial assets not  liable to stamp-duty. 

8G. Strategic sale, disinvestment, etc., of immovable property by Government company not liable to  stamp duty. 

  1. Power to reduce, remit or compound duties. 

AA.— Of the liability of instruments of transaction in stock exchanges and depositories to duty 9A. Instruments chargeable with duty for transactions in stock exchanges and depositories. 9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges and depositories. B.—Of Stamps and the mode of using them 

  1. Duties how to be paid. 
  2. Use of adhesive stamps. 
  3. Cancellation of adhesive stamps. 
  4. Instruments stamped with impressed stamps how to be written. 
  5. Only one instrument to be on same stamps. 
  6. Instrument written contrary to section 13 or 14 deemed unstamped. 
  7. Denoting duty. 
  8. —Of the time of stamping Instruments 
  9. Instruments executed in India. 
  10. Instruments other than bills and notes executed out of India. 
  11. Bills and notes drawn out of India. 
  12. —Of Valuations for Duty 
  13. Conversion of amount expressed in foreign currencies. 
  14. Stock and marketable securities how to be valued. 
  15. Effect of statement of rate of exchange or average price. 
  16. Instruments reserving interest. 

23A. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements.

SECTIONS 

  1. How transfer in consideration of debt, or subject to future payment, etc., to be charged. 25. Valuation in case of annuity, etc. 
  2. Stamp where value of subject-matter is indeterminate. 
  3. Facts affecting duty to be set forth in instrument. 
  4. Direction as to duty in case of certain conveyances. 
  5. —Duty by whom payable 
  6. Duties by whom payable. 
  7. Obligation to give receipt in certain cases. 

CHAPTER III 

ADJUDICATION AS TO STAMPS 

  1. Adjudication as to proper stamp. 
  2. Certificate by Collector. 

CHAPTER IV 

INSTRUMENTS NOT DULY STAMPED 

  1. Examination and impounding of instruments. 
  2. Special provision as to unstamped receipts. 
  3. Instruments not duly stamped inadmissible in evidence, etc. 
  4. Admission of instrument where not to be questioned. 
  5. Admission of improperly stamped instruments. 
  6. Instruments impounded, how dealt with. 
  7. Collector’s power to refund penalty paid under section 38, sub-section (1). 40. Collector’s power to stamp instruments impounded. 
  8. Instruments unduly stamped by accident. 
  9. Endorsement of instruments on which duty has been paid under section 35, 40 or 41. 43. Prosecution for offence against Stamp-law. 
  10. Persons paying duty or penalty may recover same in certain cases. 45. Power to Revenue-authority to refund penalty or excess duty in certain cases. 46. Non-liability for loss of instruments sent under section 38. 
  11. Power of payer to stamp billsand promissory notes received by him unstamped. 48. Recovery of duties and penalties. 

CHAPTER V 

ALLOWANCES FOR STAMPS IN CERTAIN CASES 

  1. Allowance for spoiled stamps. 
  2. Application for relief under section 49 when to be made. 
  3. Allowance in case of printed forms no longer required by Corporations. 52. Allowance for misused stamps. 
  4. Allowance for spoiled or misused stamps how to be made. 
  5. Allowance for stamps not required for use. 

54A. Allowances for stamps in denominations of annas. 

54B. Allowances for Refugee Relief stamps. 

  1. Allowance on renewal of certain debentures. 

CHAPTER VI 

REFERENCE AND REVISION 

  1. Control of, and statement of case to, Chief Controlling Revenue-authority.

SECTIONS 

  1. Statement of case by Chief-Controlling Revenue-authority to High Court. 58. Power of High Court to call for further particulars as to case stated. 59. Procedure in disposing of case stated. 
  2. Statement of case by other Courts to High Court. 
  3. Revision of certain decisions of Courts regarding the sufficiency of stamps. CHAPTER VII 

CRIMINAL OFFENCES AND PROCEDURE 

  1. Penalty for executing, etc., instrument not duly stamped. 

62A. Penalty for failure to comply with provisions of section 9A. 

  1. Penalty for failure to cancel adhesive stamp. 
  2. Penalty for omission to comply with provisions of section 27. 
  3. Penalty for refusal to give receipt, and for devices to evade duty on receipts. 66. Penalty for not making out policy or making one not duly stamped. 67. Penalty for not drawing full number of bills or marine policies purporting to be in sets. 68. Penalty for post-dating bills, and for other devices to defraud the revenue. 69. Penalty for breach of rule relating to sale of stamps and for unauthorised sale. 70. Institution and conduct of prosecutions. 
  4. Jurisdiction of Magistrates. 
  5. Place of trial. 

CHAPTER VIII 

SUPPLEMENTAL PROVISIONS 

  1. Books, etc., to be open to inspection. 

73A. Power of Central Government to make rules. 

73B. Power to issue directions and to authorise certain authorities to issue instructions, etc. 74. Powers to make rules relating to sale of stamps. 

  1. Powers to make rules generally to carry out Act. 
  2. Publication of rules. 

76A. Delegation of certain powers. 

  1. Saving as to court-fees.  

77A. Saving as to certain stamps. 

  1. Act to be translated, and sold cheaply. 
  2. [Repealed.]. 

SCHEDULE I.––STAMP-DUTY ON INSTRUMENTS

SCHEDULE II. ––[Repealed.].

THE INDIAN STAMP ACT, 1899 

ACT NO. 2 OF 18991 

[27th January, 1899.] 

An Act to Consolidate and amend the law relating to Stamps. 

WHEREAS it is expedient to consolidate and amend the law relating to Stamps. It is hereby enacted as  follows:— 

CHAPTER I 

PRELIMINARY 

  1. Short title, extent and commencement.—(1) This Act may be called the Indian Stamp Act, 1899. 2[(2) It extends to the whole of India 3***: 

Provided that it shall not apply to 4[the territories which, immediately before the 1st November, 1956,  were comprised in Part B States] (excluding the State of Jammu and Kashmir)except to the extent to  which the provisions of this Act relate to rates of stamp-duty in respect of the documents specified in  Entry 91 of List I in the Seventh Schedule to the Constitution]. 

(3) It shall come into force on the first day of July, 1899. 

  1. Definitions.—In this Act, unless there is something repugnant in the subject or context,— 

5[(1) Allotment list.—allotment list” means a list containing details of allotment of the securities  intimated by the issuer to the depository under sub-section (2) of section 8 of the Depositories Act,  1996 (22 of 1996)

(1A) “banker” includes a bank and any person acting as a banker;

(2) Bill of exchange.—“bill of exchange” means a bill of exchange as defined by the Negotiable  Instruments Act, 1881, (26 of 1881), and includes also a hundi, and any other document entitling or  purporting to entitle any person, whether named therein or not, to payment by any other person of, or  to draw upon any other person for, any sum of money; 

(3) Bill of exchange payable on demand. —“bill of exchange payable on demand” includes— 

(a) an order for the payment of any sum of money by a bill of exchange or promissory note, or  for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or  for the payment of any sum of money out of any particular fund which may or may not be  available, or upon any condition or contingency which may or may not be performed or happen; 

(b) an order for the payment of any sum of money weekly, monthly or at any other stated  period; and 

  

  1. 1. For Report of the Select Committee, see Gazette of India, 1898. Pt. -V, p. 231: and for Proceedings in Council, see 1898, Pt. VI, pp. 10 and 278; and Gazette of  India, 1899, Pt. VI, p 5. 

This Act has been partially extended to Berar Laws Act, 1941 (4 of 1941) and has been declared to be in force in the SonthalParganas by the SonthalParganas  Settlement Regulation (3 of 1872), s. 3, as amended by Reg. 3 of 1899, s. 3; in the Angul District by the Angul Laws Regulation, 1936 (5 of 1936), s. 3 and Sch;  and in PanthPiploda by the PanthPiploda Laws Regulation, 1929 (1 of 1929), s. 2. 

Under s. 3(a) of the Scheduled Districts Act, 1874 (14 of 1874) the Act has been declared to be in force in the Schedu led Districts of Ganjam,  Vizagapatam and East Godavary, see Notification No. 121, dated 25th April, 1927, Fort St. George Gazette, 1927, Pt. I, p. 684. It has also been  extended under ss. 5 and 5A of the same Act, with certain modifications to the districts of the Khasi and Jaintia Hills, the Garo Hills, the Lushai  Hills and the Naga Hills and the North Kachar sub-division of the Kachar district, the Mikir Hill Tracts in the Sibsagar and Nowgong districts and  the Lakhimpur Frontier Tract, see Notification No. 1541.- F(a), dated 10th April; 1930. Assam Gazette 1930.Pt. ii, p. 700. 

Extended to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. 1: to Goa, Daman and Diu by Reg. 11 of 1963, s. 3 and to Laccadive, Minicoy and  Amindivi Islands by Reg. 8 of 1965, s. 3 and Schedule. 

  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). 4. Subs. by the A.O. (No. 2) 1956, for “Part B States”. 
  3. Subs. by Act 7 of 2019, s. 12, for clause (1) (w.e.f. 1-7-2020).[Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

(c) a letter of credit, that is to say, any instrument by which one person authorises another to  give credit to the person in whose favour it is drawn; 

(4) Bill of lading.— “bill of lading” includes a “through bill of 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; 

1[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 2[India] when such instrument was executed or, where several  persons executed the instrument at different times, first executed; 

(7) Cheque.—“cheque” means a bill of exchange drawn on a specified banker and not expressed to  be payable otherwise than on demand; 

3[(7A) “clearance list” means a list of transactions of sale and purchase relating to contracts traded  on the stock exchanges submitted to a clearing corporation in accordance with the law for the time  being in force in this behalf; 

(7B) “clearing corporation” means an entity established to undertake the activity of clearing and  settlement of transactions in securities or other instruments and includes a clearing house of a  recognised stock exchange;] 

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 5[the 6[State Government]] may, by  notification in the Official Gazette, appoint in this behalf; 

(10) Conveyance. — “conveyance” includes a conveyance on sale and every instrument by which  property, whether moveable or immovable, is transferred inter vivos and which is not otherwise  specifically provided for by schedule I; 

  

  1. Added by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 2. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956). 
  2. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  3. Clause (8) omitted by the A.O. 1937. 
  4. Subs. by the A.O. 1937, for “the L.G.”. 
  5. Subs. by the A.O. 1950, for “collecting Government”.

1[(10A) debenturte.––debenture” includes–– 

(i) debenture stock, bonds or any other instrument of a company evidencing a debt, whether  constituting a charge on the assets of the company or not; 

(ii) bonds in the nature of debenture issued by any incorporated company or body corporate; 

(iii) certificate of deposit, commercial usance bill, commercial paper and such other debt  instrument of original or initial maturity upto one year as the Reserve Bank of India may specify  from time to time; 

(iv) securitised debt instruments; and 

(v) any other debt instruments specified by the Securities and Exchange Board of India from  time to time; 

(10B) “depository” includes–– 

(a) a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories  Act, 1996 (22 of 1996); and 

(b) any other entity declared by the Central Government, by notification in the Official  Gazette, to be a depository for the purposes of this Act;] 

(11) Duly stamped. —“duly stamped”, as applied to an instrument, means that the instrument  bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been  affixed or used in accordance with the law for the time being in force in 2[India]: 

(12) Executed and execution. — “executed” and “execution” used with reference to instruments, mean “signed” and “signature”1[and includes attribution of electronic record within the meaning of  section 11 of the Information Technology Act, 2000 (21 of 2000);] 

3* * * * * (13) Impressed stamp. — “impressed stamp” includes— 

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

(b) stamps embossed or engraved on stamped paper; 

4[(13A) India. — “India” means the territory of India excluding the State of Jammu and Kashmir;] 5[(14) “instrument” includes— 

(a) every document, by which any right or liability is, or purports to be, created, transferred,  limited, extended, extinguished or recorded; 

(b) a document, electronic or otherwise, created for a transaction in a stock exchange or  depository by which any right or liability is, or purports to be, created, transferred, limited,  extended, extinguished or recorded; and 

(c) any other document mentioned in Schedule I, 

but does not include such instruments as may be specified by the Government, by notification in the  Official Gazette.] 

(15) Instrument of partition.— “instrument of partition” means any instrument where by  co-owners of any property divide or agree to divide such property in severalty, and includes also a  

  

  1. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  2. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956). 
  3. Clause (12A) omitted by the A.O. 1950. Earlier ins. by the A.O. 1937. 
  4. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956). 
  5. Subs. by Act 7 of 2019, s. 12, for clause (14) (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

final order for effecting a partition passed by any Revenue-authority or any Civil Court and an award  by an arbitrator directing a partition; 

1[(15A) Issue. ––“issue” means any person making an issue of securities;] 

(16) Lease. — “lease” means a lease of immovable property, and includes also— (a) a patta; 

(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate,  occupy, or pay or deliver rent for, immovable property; 

(c) any instrument by which tolls of any description are let; 

(d) any writing on an application for a lease intended to signify that the application is granted; 

2[(16A) Marketable security.— “marketable security” means a security capable of being traded in  any stock exchange in India; 

(16B) Market value.—“market value”, in relation to an instrument through which— (a) any security is traded in a stock exchange, means the price at which it is so traded

(b) any security which is transferred through a depository but not traded in the stock exchange,  means the price or the consideration mentioned in such instrument; 

(c) any security is dealt otherwise than in the stock exchange or depository, means the price or  consideration mentioned in such instrument;] 

(17) Mortgage-deed.— “mortgage-deed” includes every instrument whereby, for the purpose of  securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the  performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right  over or in respect of specified property; 

(18) Paper.—“paper” includes vellum, parchment or any other material on which an instrument may be written; 

(19) Policy of insurance.—“policy of insurance” includes— 

(a) any instrument by which one person, in consideration of a premium, engages to indemnify  another against loss, damage or liability arising from an unknown or contingent event; 

(b) a life-policy, and any policy insuring any person against accident or sickness, and any other  personal insurance; 3*** 

4* * * * * 

5[(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  

  

  1. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  2. Subs. by s. 12, ibid., for clause (16A) (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 3. The word “and” omitted by Act 5 of 1906, s. 2.  
  3. Clause (c) omitted by s. 2, ibid
  4. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956).

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) where by any money, or any bill of exchange, cheque or promissory note is acknowledged to  have been received, or 

(b) where by 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; 1*** 

2[(23A) Securities.—“securities” includes— 

(i) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act,  1956 (42 of 1956); 

(ii) a “derivative” as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934  (2 of 1934); 

(iii) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds  and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of  India ma specify from time to time; and 

(iv) any other instrument declared by the Central Government, by notification in the Official  Gazette, to be securities for the purposes of this Act.] 

(24) Settlement.—“settlement” means any non-testamentary disposition, in writing, of moveable  or immovable property made— 

(a) in consideration of marriage, 

  

  1. The word “and” omitted by Act 18 of 1928, s. 2 and the First Schedule.  
  2. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

(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 1[and, 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]; 2*** 

3[(25) Soldier. —“soldier” includes any person below the rank of non-commissioned officer who is  enrolled under the 4Indian Army Act, 1911(8 of 1911).] 

5[(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.] 

6[(27) Stock exchange.—“stock exchange” includes— 

(i) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts  (Regulation) Act, 1956 (42 of 1956); and 

(ii) such other platform for trading or reporting a deal in securities, as may be specified by the  Central Government, by notification in the Official Gazette, for the purposes of this Act.] STATE AMENDMENT 

Assam 

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

“(8) “Chief Controlling Revenue Authority” means the Superintendent of Stamps, Assam.” [Vide Assam Act 10 of 1968, s. 2] 

Himachal Pradesh 

Amendment of section 2.— In clause (10) of section 2 of the Indian Stamp Act, 1899, hereinafter  referred to as the said Act, for the colon shall be substituted a comma, followed by the words “or by  Schedule I-A as the case may be. 

[Vide Himachal Pradesh Act 4 of 1953, s. 2] 

Uttarakhand 

Amendment of section 2.—Indian Stamp (Uttarakhand Amendment) Bill, 2011 (as passed by the  Uttarakhand Legislative Assembly on dated 16 March, 2011) clause 9 shall be substituted as follows;  namely:- 

“Voting or attempting to cote under any proxy not duly stamped shall for every such offence, be  punishable with fine which may extend to ₹ five thousand.” 

[Vide Uttarakhand Act 20 of 2013, s. 2] 

Amendment of section 2.—In section 2 of the Indian Stamp Act, 1899 (hereinafter referred to as the  principal Act),:- 

(a) For clause (14), the following clause shall be substituted; namely:- 

(14) “Instrument” instrument includes every document and record created or maintained in or  by an electronic storage and retrieval device or media by which any right or liability is, or purports  to be, created, transferred, limited, extended, extinguished or recorded; 

(b) After clause (14), the following clause shall be inserted, namely:– 

  

  1. Ins. by Act 15 of 1904, s. 2. 
  2. The word “and”, omitted by the A.O. 1950. Earlier ins. by Act 18 of 1928, s. 2 and the First Schedule. 3. Added by Act 18 of 1928, s. 2 and the First Schedule.,  
  3. See Now the Army Act 1950 (46 of 1950). 
  4. Ins. by Act 23 of 2004, s. 117. 
  5. Ins. by Act 7 of 2019, s. 12 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

(14-A) “Instrument of Gift” Instrument of gift includes an instrument whether by way of  declaration or otherwise, for making or accepting an oral gift; 

(c) After clause (22), the following clause shall be inserted namely:- 

(22-A) “Public Officer” Public Officer means a Public Officer as defined in clause (17) of section 2 of the Code of Civil Procedure, 1908 and includes every officer working in connection  with the affairs of any of the following of the organizations, namely:- 

(a) Any statutory body or authority Constituted under any Uttarakhand State Act; 

(b) A “Financing Bank” or “Central Bank” as defined in clause (L) of section 2 of the  Uttarakhand Cooperative Societies Act, 2003. 

[Vide Uttarakhand Act 1 of 2016, s. 2] 

Uttar Pradesh 

Amendment of Section 2 of Act no. 2 of 1899.—In section 2 of the Indian Stamp Act, 1899,  hereinafter referred to as the principal Act, in clause (16), after sub-clause (d), the following clause shall  be inserted, namely :— 

“(e) any instrument by which mining lease is granted in respect of minor minerals as defined in  clause (e) of section 3 of the Mines and Minerals (Regulation and Development) Act, 1957.” 

[Vide Uttar Pradesh Act 11 of 1992, s. 2] 

Amendment of section 2 of Act II of 1899.—In section 2 of the Indian Stamp Act, 1899 as amended  in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, in clause  (10), the following Explanation shall be inserted in the end, namely :— 

Explanation— An instrument whereby a co-owner of a property having defined share therein,  transfers such share or part thereof to another co-owner of the property, is for the purposes of this clause  an instrument by which property is transferred.” 

[Vide Uttar Pradesh Act 19 of 1981, s. 2] 

Amendment of section 2 of Act II of 1899.— In section 2 of the Indian Stamp Act, 1899, hereinafter  referred to as the principal Act, for clause (15), the following clause shall be substituted, namely :— “(15) “instrument of partition” means any instrument whereby co-owners of any property divide  or agree to divide such property in severalty, and also includes — 

(i) a final order for effecting a partition passed by any revenue authority or any civil court ; (ii) an award by an arbitrator directing a partition ; and 

(iii) when any partition is effected without executing any such instrument, any instrument of  instruments signed by the co-owners and recording, whether by way of declaration of such  partition or otherwise, the terms of such partition amongst the co-owners ;” 

[Vide Uttar Pradesh Act 20 of 1974, s. 2] 

Amendment of section 2 of Act no. 2 of 1899.— In section 2 of the Indian Stamp Act, 1899,  hereinafter referred to as the Amendment of principal Act, — 

(a) for sub-section (14), the following sub-section shall be substituted, namely- 

“(14) Instrument— “Instrument includes every document and record created or maintained in  or by an electronic storage and retrieval device or media by which any right or liability is, or  purports to be, created, transferred, limited, extended, extinguished or recorded;” 

(b) after sub-section (14), the following sub-section shall be inserted, namely:— 

“(14-A) ‘Instrument of Gift’— ‘1nstrument of Gift’ includes an instrument whether by way of  declaration or otherwise, for making or accepting an oral gift;” 

(c) after sub-section (22), the following sub-section shall be inserted, namely :—

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“(22-A) ‘Public Officer’— Public Officer’ means a Public Officer as defined in clause (17) of  section 2 of the Code of Civil procedure, 1908 and includes every officer working in connection  with the affairs of any of the following of organizations, namely :— 

(a) any statutory body or authority constituted under any Uttar Pradesh Act;  

(b) a ‘Financing Bank or ‘Central Bank’ as defined in clause (k) of section 2 of the Uttar  Pradesh Co-operative Societies Act, 1965 ; ” 

[Vide Uttar Pradesh Act 38 of 2001, s. 2] 

Amendment of section 2 of Act II of 1899.— In section 2 of the Indian Stamp Act, 1899, as  amended in its application to Uttar Pradesh (hereinafter referred to as the principal Act), after clause (26- A), the following clause shall be inserted, namely:— 

“27. ‘quarter’ means a quarter of the financial year.” 

[Vide Uttar Pradesh Act 49 of 1975, s. 2] 

CHAPTER II 

STAMP DUTIES 

A.—Of the liability of instruments to Duty 

  1. Instruments chargeable with duty.—Subject to the provisions of this Act and the exemptions  contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated  in that Schedule as the proper duty therefore respectively, that is to say— 

(a) every instrument mentioned in that Schedule which, not having been previously executed by  any person, is executed in 1[India] on or after the first day of July, 1899; 

(b) every bill of exchange 2[payable otherwise than on demand] 3*** or promissory note drawn or  made out of 7[India] on or after that day and accepted or paid, or presented for acceptance or  payment, or endorsed, transferred or otherwise negotiated, in 7[India]; and 

(c) every instrument (other than a bill of exchange,4*** or promissory note) mentioned in that  Schedule, which, not having been previously executed by any person, is executed out of 5[India] on or  after that day, relates to any property situate, or to any matter or thing done or to be done, in 2[India]  and is received in 2[India]: 

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 incases 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 byway of mortgage or  otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel  registered under the Merchant Shipping Act 1894, Act No. 57 & 58 Vict. c. 60 or under Act XIX of 1838  Act No. or the Indian Registration of Ships Act, 1841, (CX of 1841) as amended by subsequent Acts. 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 3.— In section 3 of the said Act- (1) After clause (c), the following proviso  shall be inserted, namely: — “Provided that, notwithstanding anything contained in clauses (a), (b) or (c)  of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following  

  

  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 Act 5 of 1927, s. 5. 
  4. The word “cheque” omitted by Act 5 of 1927, s. 5. 
  5. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).

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instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefor, respectively, that is to say:  

(aa) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule  which, not having been previously executed by any person is executed in the Himachal Pradesh on or  after the date of commencement of this Act; 

(bb) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule,  which, not having been previously executed by any person, is executed out of Himachal Pradesh, on or  after the date of commencement of this Act and relates to any property situated, or to any matter or  thing done or to be done in the Himachal Pradesh, and is received in the Himachal Pradesh”.  

(2) Between the word “Provided” and the words “that no duty” the word “also” shall be inserted. [Vide Himachal Pradesh Act 4 of 1953, s. 3] 

Odisha  

Insertion of new section 3A.—After section 3 of the Indian Stamp Act, 1899, (2 of 1899) the  following section shall be inserted, namely:— 

“3.A Duty chargeable on mining lease. — (1) Notwithstanding anything contained in this Act and  the rules made thereunder, on every instrument of grant or renewal of a mining lease, the stamp duty  chargeable shall be equivalent to fifteen percentum of the amount of average royalty that would accrue  out of the highest annual extraction of minerals permitted under the approved mining plan or mining scheme, as the case may be, for such mining lease under the relevant law in force, multiplied by the  period of such mining lease. 

Explanation.—For the purpose of this sub-section, the average royalty of the highest grade of minerals  based on the date available for past twelve months beginning from the date of commencement of the  Indian Stamp (Odisha Amendment) Act, 2013 shall be taken into consideration: 

Provided that where an application for renewal of mining lease has been made to the State  Government prior to the expiry of the lease, but renewal of lease has not been granted by the State  Government or the mining lease is deemed to have been extended by a further period in accordance with  the provisions contained in the relevant law in force, till the State Government passes an order, prior to  the commencement of the Indian Stamp (Odisha Amendment) Act, 2013, the sum total of the quantity of  mineral permitted for extraction, year wise, in the approved mining plan or mining scheme, as the  case, may be, or the actual quantity raised, whichever is higher, shall be taken into consideration for  calculation of the stamp duty: 

Provided further that in case the production level is enhanced on account of subsequent modification  or review of the mining plan, the stamp lease period and the lessee shall deposit the differential stamp  duty before such enhancement is carried out by him: 

Provided also that in case a lessee is required to surrender the mining lease or, permanently prohibited  from undertaking the extraction of mineral by, or for reasons of any operation of law, court orders passed  or any order issued under any law for the time being in force and the reasons of such prohibition are not  in any manner attributable to such lessee or his agents, servants, employees or persons claiming through  or under such lessee, the lessee shall be entitled for refund of the stamp duty paid by him to the extent of  such balance period of lease outstanding: 

Provided also that where the lessee is prohibited from undertaking the extraction of minerals for a  temporary period for the reasons mentioned in the third proviso and subject to the conditions specified 

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therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that would be payable for the mining lease under the relevant law in force, for the period of such prohibition. 

(2) Where an application for renewal of a mining lease has been made to the State Government prior  to the expiry of the lease but renewal of the lease has not been granted by the State Government or the  mining lease is deemed to have been extended as per the provisions contained in the relevant law in force,  by a further period till the State Government passes an order thereon, the stamp duty payable under  sub-section (1) shall be paid by the applicant on or before the date of expiry of the lease or within sixty  days from the date of commencement of the Indian Stamp (Odisha Amendment ) Act, 2013, whichever is  later, the manner as may be prescribed. 

(3) If the application for grant or renewal of mining lease is rejected by the State Government, the  applicant shall be entitled for refund of full stamp duty by him without any interest. 

(4) In case of a mining lease whose period is deemed to have been extended by a further period till the  State Government passes an order thereon and the State Government, at a later date, passes an order  rejecting the renewal of the lease, the applicant shall be entitled for refund of such amount of stamp duty  paid under sub-section (1), as arrived at by deducting from the total amount of stamp duty paid, the  amount of stamp duty chargeable in respect of such mining lease till the date of such rejection order  without any interest. 

(5) No refund as mentioned in sub-sections (3) and (4) shall be made if the order rejecting the  application is challenged or the time limit for presenting the application for revision of the order of  rejection is not expired”. 

[Vide Odisha Act 16 of 2013, s. 2] 

Meghalaya 

Insertion of a new section in Central Act II of 1899.—After section 3 of the Indian Stamp Act,  1899, the following shall be inserted as section 3A, namely:– 

“3A. Surcharge on Stamp Duty.—(1) There shall be charged, levied and paid to the  Government of Meghalaya, besides payable under any law for the time being in force including  section 3 of this Act, a surcharge, herein after referred to as Stamp Surcharge on the instruments  mention on the following items of Schedule I of the principal Act, namely:– 

Item Nos. 1-10, 12,15-20, 22-26, 28, 29,31,38-46,48,50, 51, 54-61 and 63-65. 

Provided that the surcharge shall not be payable in respect of instruments exempted by section 3. (2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument. 

(3) The Stamp Surcharge shall be payable as if it were a duty under section 3 and the provisions  of this Act including the rules thereunder shall according apply; and the authorities for the time  being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for  by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly  collect and enforce payment of stamp Surcharge. 

Provide that the Government of Meghalaya may, for facilitating implementation, by  notification, direct that in any case or class the provisions of this act including the rules thereunder  shall apply subject to such indications not inconsistent with the provisions of this section and as  may be specified in such notification. 

(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may  make rule generally for securing the payment of the Stamp Surcharge and carrying into effect the 

13 

provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and  rendering or accounts of the Stamp Surcharge.” 

[Vide Meghalaya Act 13 of 1972, s. 2] 

Meghalaya 

Insertion of a new section in Central Act II of 1899.—After section 3 of the Indian Stamp Act, 1899  the following shall be inserted as section 3A, namely:– 

3A. Surcharge on Stamp Duty.—(1) There shall be charged, levied and paid to the Government of  Meghalaya, besides payable under any law for the time being in force including section 3 of this Act,  a surcharge, hereinafter referred to as Stamp Surcharge on the instruments mentioned in the following  items of Schedule I to the principal Act, namely:- 

Item Nos. 1-10, 12, 15-20, 22-26, 28, 29, 31, 36, 38-46, 48, 50, 51, 54-61 and 63-65. Provided that the surcharge shall not be payable in respect of instruments exempted by section 3. (2) The rate of Stamp Surcharge shall be twenty. Five paise per instrument. 

(3) The Stamp Surcharge shall by payable as if it were a duty under section 3 and the provisions  of this Act including the rules thereunder shall according apply; and the authorities for the time being  empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or  under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and  enforce payment of Stamp Surcharge. 

Provided that the Government of Meghalaya may, for facilitating implementation, by notification,  direct that in any case or class the provisions of this Act including the rules thereunder shall apply  subject to such indications not inconsistent with the provisions of this section and as may be specified  in such notification. 

(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may  make rules generally for securing the payment of the Stamp Surcharge and carrying into effect the  provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and  rendering or accounts of the Stamp Surcharge.” 

[Vide Meghalaya Act 15 of 1973, s. 2] 

3A. [Instruments chargeable with additional duty.] Omitted by the Refugee Relief Taxes (Abolition)  Act, 1973 (13 of 1973), s. 2 (w.e.f. 1-4-1973)

Tripura  

Substitution of section 3B.— For section 3B of the principal Act, as inserted by the Union  Territories Taxation Laws (Amendment) Act, 1971, the following shall be substituted, namely: — 

3B. Instrument Chargeable with additional duty.—(1) Every instrument chargeable with duty  under section 3, read with Schedule 1, not being an instrument mentioned articles Nos. 13, 14, 27, 37, 47,  49, 52, 53 or 62(a), shall, in addition to such duty, be chargeable with a duty of ten paise. 

(2) The additional duty with which any instrument is chargeable under sub-section (1) shall be paid  and such payment shall be indicated on such instrument by means of adhesive stamp.”. 

[Vide Tripura Act 5 of 1973, s. 3]  

  1. Several instruments used in single transaction of sale, mortgage or settlement.—(1) Where, in  the case of any sale, mortgage or settlement, several instruments are employed for completing the  transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, for  the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty  of one rupee instead of the duty (if any) prescribed for it in that Schedule. 

(2) The parties may determine for themselves which of the instrument so employed shall, for the  purposes of sub-section (1), be deemed to be the principal instrument: 

Provided that the duty chargeable on the instrument so determined shall be the highest duty which  would be chargeable in respect of any of the said instruments employed.

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1[(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or  transfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be the  principal instrument for the purpose of this section and no stamp-duty shall be charged on any other  instruments relating to any such transaction.] 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 4.- In sub-section (1) of section 4 of the said Act- 

(a) for the word and figure “Schedule I” the word, figure and letter “Schedule I-A” shall be substituted, and 

(b) for the words “one rupee”, the words “two rupees” shall be substituted. 

[Vide Himachal Pradesh Act 4 of 1953, s. 4] 

Orissa 

Amendment of section 4. –in section 4 of the Indian Act, 1899 (2 of 1899) (hereinafter referred to as  the principal Act) in sub-section (1), for the words, “one rupee and eight annas” the words “ten rupees”  shall be substituted. 

[Vide Orissa Act 1 of 2003, s. 2] 

Manipur  

Amendment of sections 4 and 6.-In sub-section (1) of section 4 and in the proviso to section 6 of the  Indian Stamp Act, 1899 s application to the State of Manipur hereinafter referred to as the Principal Act  the words “two rupees” wherever they occur, the words “two rupees and paise fifty” shall be substituted. 

[Vide Manipur Act 4 of 1989, s. 2] 

Uttar Pradesh 

Amendment of section 4.—In section 4 of the principal Act, for the existing sub-section (1), the  following sub-section shall be substituted, namely :— 

“(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for  completing the transaction, the principal instrument only shall be chargeable with the duty prescribed  in Schedule 1-B for the conveyance, mortgage or settlement, and each of the other instruments shall  be chargeable with a duty of five rupees instead of the duty (if any) prescribed for it in that  Schedule.” 

[Vide Uttar Pradesh Act 20 of 1974, s. 3] 

  1. Instruments relating to several distinct matters.—Any instrument comprising or relating to  several distinct matters shall be chargeable with the aggregate amount of the duties with which separate  instruments, each comprising or relating to one of such matters, would be chargeable under this Act. 
  2. Instruments coming within several descriptions in Schedule I.—Subject to the provisions of the  last preceding section, an instrument so framed as to come within two or more of the descriptions in  Schedule I, shall, where the duties chargeable thereunder are different, be chargeable only with the  highest of such duties: 

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

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 6.— In section 6 of the said Act- (1) After the word and figure “Schedule I”  the words, figure and letter “or Schedule I-A” shall be inserted.  

  

  1. Ins. by Act 7 of 2019, s. 13 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

15 

(2) In the proviso, for the words “one rupee” the words “two rupees” shall be substituted and after the  words “has been paid” the following shall be added, namely;- 

“unless it falls within the provisions of section 6-A”. 

[Vide Himachal Pradesh Act 4 of 1953, s. 5] 

Orissa  

Amendment of section 6.In the proviso the section 6 of the principal Act, for the words “one rupees  and eight annas”, the words “ten rupees” shall be substituted. 

[Vide Orissa Act 1 of 2003, s. 3] 

Himachal Pradesh 

Addition of a new section 6-A.—After section 6 of the said Act, the following new section shall be  inserted: — 

6-A. Payment of Himachal Pradesh stamp duty on copies, counter-parts or duplicates when that duty has not been paid on the principal or original instrument.- (1) Notwithstanding anything contained  in sections 4 or 6 or in any other law, unless it is proved that the duty chargeable under the Indian Stamp  (Himachal Pradesh Amendment) Act, 1952 has been paid:- 

(a) on the principal or original instrument as the case may be; or 

(b) in accordance with the provisions of this section, the duty chargeable on an instrument of sale,  mortgage or settlement other than a principal instrument or on a counterpart, duplicate or copy of any  instrument shall, if the principal or original instrument would, when received in Himachal Pradesh, have  been chargeable, under the Indian Stamp (Himachal Pradesh Amendment) Act, 1952, with a higher rate  of duty with which the principal or original instrument would have been chargeable under section 19-A.  

(2) Notwithstanding anything contained in section 35 or in any other law, no instrument, counterpart,  duplicate or copy chargeable with duty under this section shall be received in evidence as properly  stamped unless the duty chargeable under this section has been paid thereon:  

Provided that a court before which any such instrument, counterpart, duplicate or copy is produced,  shall permit the duty chargeable under this section, to be paid thereon and shall then receive it in  evidence. 

[Vide Himachal Pradesh Act 4 of 1953, s. 6] 

Uttar Pradesh 

Amendment of section 6-A.— In section 6-A of the principal Act, after sub-section (1), the following  sub-section shall be inserted, namely :— 

“ Where, any instrument is registered in any part of India other than Uttar Pradesh and instrument  relates, wholly or partly to any property situate in Uttar Pradesh, the copy of such instrument shall,  when received in Uttar Pradesh, be liable to be charged with the difference of stamp duty as or  original under section 19-A to the extent of and in proportion to the consideration or value of property  situated in Uttar Pradesh, and the party liable to pay stamp duty on the original instrument shall upon  receipt of notice from registering officer pay the difference in the duty within the time allowed.” 

[Vide Uttar Pradesh Act 49 of 1975, s. 3] 

  1. Policies of sea-insurance.1 * * * * * (4) Where any sea-insurance is made for or upon a voyage and also for time, or to extend to or cover  any time beyond thirty days after the ship shall have arrived at her destination and been there moored at  anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a  policy for time. 
  2. Bonds, debentures or other securities issued on loans under Act XI of 1879.—(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local  Authorities Loan Act, 1879 (XI of 1879) or, of any other law for the time being in force, by the issue of  bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of 2[one per  centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds,  

  

  1. Sub-sections (1), (2) and (3) rep. by Act 11 of 1963, s. 92 (w.e.f. 1-8-1963). 
  2. Subs. by Act 6 of 1910, s. 2, for “eight annas per centum”.

16 

debentures or other securities need not be stamped and shall not be chargeable with any further duty on  renewal, consolidation, sub-division or otherwise. 

(2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities from  being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or  other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or  other securities shall be valid, whether the same are stamped or not: 

Provided that nothing herein contained shall exempt the local authority which has issued such bonds,  debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of  March, 1897, when such duty has not already been paid or remitted by order issued by the Central  Government. 

(3) In the case of wilful neglect to pay the duty required by this section, the local authority shall be  liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a  like penalty for every month after the first month during which the neglect continues. 

1[8A. Securities dealt in depository not liable to stamp duty.—Notwithstanding anything  contained in this Act or any other law for the time being in force,— 

(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue,  be chargeable with duty on the total amount of securities issued by it and such securities need not be  stamped; 

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

Explanation.—For the purposes of this section, the expression “beneficial ownership” shall have the  same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Depositories Act, 1996  (22 of 1996)

2[8B. Corporatisation and demutualisation schemes and related instruments not liable to  duty.—Notwithstanding anything contained in this Act or any other law for the time being in force,— (a) a scheme for corporatisation or demutualisation, or both of a recognised stock exchange; or (b) any instrument, including an instrument of, or relating to, transfer of any property, business,  asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in  connection with, the corporatisation or demutualisation, or both of a recognised stock exchange  pursuant to a scheme, 

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

Explanation. —For the purposes of this section,— 

(a) the expressions “corporatisation”, “demutualisation” and “scheme” shall have the meanings  respectively assigned to them in clauses (aa), (ab) and (ga) of section 2 of the Securities Contracts  (Regulation) Act, 1956 (42 of 1956); 

(b) “Securities and Exchange Board of India” means the Securities and Exchange Board of India  established under section 3 of the Securities and Exchange Board of India Act, 1992(15 of 1992).] 3[8C. Negotiable warehouse receipts not liable to stamp-duty.—Notwithstanding anything  

contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.] 4[8D. Agreement or document for assignment of receivables not liable to stamp-duty.— Notwithstanding anything contained in this Act or any other law for the time being in force, any  agreement or other document for assignment of “receivables” as defined in clause (p) of section 2 of the  Factoring Regulation Act, 2011 in favour of any “factor” as defined in clause (i) of section 2 of the said  Act shall not be liable to duty under this Act or any other law for the time being in force.] 5[8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of  shareholding of a bank to a holding company of bank not liable to duty. — Notwithstanding anything  contained in this Act or any other law for the time being in force, — 

  

  1. Subs. by Act 7 of 2019, s. 14, for section 8A (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 2. Ins. by Act 18 of 2005, s.114 (w.e.f. 13-5-2005).  
  2. Ins. by Act 37 of 2007, s. 55 (w.e.f. 25-10-2010). 
  3. Ins. by Act 12 of 2012, s. 35 and the Schedule (w.e.f. 1-2-2012).  
  4. Ins. by Act 4 of 2013, s. 17 and the Schedule (w.e.f. 17-1-2013). 

17 

(a) conversion of a branch of a bank into a wholly owned subsidiary of the bank or transfer of  shareholding of a bank to a holding company of the bank in terms of the scheme or guidelines of the  Reserve Bank of India shall not be liable to duty under this Act or any other law for the time being in  force; or 

(b) any instrument, including an instrument of, or relating to, transfer of any property, business,  asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in  connection with, the conversion of a branch of a bank into a wholly owned subsidiary of the bank or  transfer of shareholding of a bank to a holding company of the bank in terms of the scheme or  guidelines issued by the Reserve Bank of India in this behalf, shall not be liable to duty under this Act  or any other law for the time being in force. 

Explanation.— 

(i) For the purposes of this section, the expression “bank” means— 

(a) “a banking company” as defined in clause (c) of section 5 of the Banking Regulation Act,  1949(10 of 1949); 

(b) “a corresponding new bank” as defined in clause (da) of section 5 of the Banking  Regulation Act, 1949 (10 of 1949); 

(c) “State Bank of India” constituted under section 3 of the State Bank of India Act, 1955  (23 of 1955); 

(d) “a subsidiary bank” as defined in clause (k) of section 2 of the State Bank of India  (Subsidiary Banks) Act, 1959 (38 of 1959); 

(e) “a Regional Rural Bank” established under section 3 of the Regional Rural Banks Act,  1976 (21 of 1976); 

(f) “a Co-operative Bank” as defined in clause (cci) of section 5 of the Banking Regulation  Act, 1949 (10 of 1949); 

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

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

1[8F. Agreement or document for transfer or assignment of rights or interest in financial assets  not liable to stamp-duty.—Notwithstanding anything contained in this Act or any other law for the time  being in force, any agreement or other document for transfer or assignment of rights or interest in  financial assets of banks or financial institutions under section5 of the Securitisation and Reconstruction  of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002) in favour of any asset  reconstruction company, as defined in clause (ba) of sub-section (1) of section 2 of that Act, shall not be  liable to duty under this Act.] 

2[8G. Strategic sale, disinvestment, etc., of immovable property by Government company not  liable to stamp duty.—Notwithstanding anything contained in this Act or any other law for the time  being in force, any instrument for conveyance or transfer of a business or asset or right in any immovable  property from a Government company, its subsidiary, unit or joint venture, 

(i) by way of strategic sale or disinvestment or demerger or any other scheme of arrangements or  through any law, to another Government company or to the Central Government or any State  Government or to the development financial institution established by any law made by Parliament;  or 

(ii) which is to be wound up, closed, struck-off, liquidated or otherwise shut down, to another  Government company or to the Central Government or any State Government, 

after approval of the Central Government or the State Government, as the case may be, shall not be liable  to duty under this Act. 

  

  1. Ins. by Act 44 of 2016, s. 43 and the First Schedule (w.e.f. 1-9-2016). 
  2. Ins. by Act 13 of 2021, s. 126 (w.e.f. 28-3-2021).

18 

Explanation.—For the purposes of this section, “Government company” shall have the same meaning  as assigned to it in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).] 

  1. Power to reduce, remit or compound duties. 1[(1)] 2[The 3*** Government] may, by rule or  order published in the Official Gazette, — 

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

(b) provide for the composition or consolidation of duties 5[of policies of insurance and] in the  case of issues by any incorporated company or other body corporate 6[or of transfers (where there is a  single transferee, whether incorporated or not)] of debentures, bonds or other marketable securities. 

7[(2) In this section the expression “the Government” means, — 

(a) in relation to stamp-duty in respect of bills of exchange, cheques, promissory notes, bills of lading,  letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, and in relation to any  other stamp-duty chargeable under this Act and falling within entry 96 in List I in the 8[Seventh Schedule to the  Constitution, expect the subject matters referred to in clause (b) of sub-section (1)]; the Central Government; 

(b) Save as aforesaid, the State Government.] 

STATE AMENDMENT 

Karnataka 

Insertion of new section 9A.—The following section shall be inserted, namely:— 9A. Power of State Government to consolidate duties in respect of receipts.—Subject to such  conditions as may be specified, the State Government may, by order, provide for the consolidation of  duties in respect of any receipts or class of receipts given by any person or class of persons including  any Government. 

[Vide Karnataka Act 29 of 1978, s. 2] 

9[AA.— Of the liability of instruments of transaction in 

stock exchanges and depositories to duty 

9A. Instruments chargeable with duty for transactions in stock exchanges and  depositories.—(1) Notwithstanding anything contained in this Act,— 

(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock  exchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of the  State Government by the stock exchange or a clearing corporation authorised by it, from its buyer on  the market value of such securities at the time of settlement of transactions in securities of such buyer,  in such manner as the Central Government may, by rules, provide; 

(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is  made by a depository otherwise than on the basis of any transaction referred to in clause (a), the  stamp-duty on such transfer shall be collected on behalf of the State Government by the depository  from the transferor of such securities on the consideration amount specified therein, in such manner  as the Central Government may, by rules, provide; 

(c) when pursuant to issue of securities, any creation or change in the records of a depository is  made, the stamp-duty on the allotment list shall be collected on behalf of the State Government by the    

  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).  
  9. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020.]

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depository from the issuer of securities on the total market value of the securities as contained in such  list, in such manner as the Central Government may, by rules, provide. 

(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section (1) shall  be chargeable with duty as provided therein at the rate specified in Schedule I and such instruments need  not be stamped. 

1[Provided that no such duty shall be chargeable in respect of the instruments of transaction in stock  exchanges and depositories established in any International Financial Services Centre set up under  section 18 of the Special Economic Zones Act, 2005 (28 of 2005).] 

(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the  State Government on any note or memorandum or any other document, electronic or otherwise,  associated with the transactions mentioned in sub-section (1). 

(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may  be, shall, within three weeks of the end of each month and in accordance with the rules made in this  behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty  collected under this section to the State Government where the residence of the buyer is located and in  case the buyer is located outside India, to the State Government having the registered office of the trading  member or broker of such buyer and in case where there is no such trading member of the buyer, to the  State Government having the registered office of the participant: 

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

Explanation.—The term “participant” shall have the same meaning as assigned to it in clause (g) of  section 2 of the Depositories Act, 1996 (22 of 1996). 

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

9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges  and depositories.—Notwithstanding anything contained in this Act,— 

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

(b) when any sale or transfer or reissue of securities for consideration is made otherwise than  through a stock exchange or depository, the stamp-duty on each such sale or transfer or reissue shall  be payable by the seller or transferor or issuer, as the case may be, on the consideration amount  specified in such instrument at the rate specified in Schedule I.] 

B.—Of Stamps and the mode of using them 

  1. Duties how to be paid.—(1) Except as otherwise expressly provided in this Act, all duties with  which any instruments are chargeable shall be paid, and such payment shall be indicated on such  instruments, by means of stamps — 

(a) according to the provisions herein contained; or 

(b) when no such provision is applicable thereto—as the 2[State Government] may be rule direct. (2) The rules made under sub-section (1) may, among other matters, regulate,— 

(a) in the case of each kind of instrument—the description of stamps which may be used; (b) in the case of instruments stamped with impressed stamps—the number of stamps which may  be used; 

(c) in the case of bills of exchange or promissory notes 3*** the size of the paper on which they  are written. 

  

  1. Ins. by Act 12 of 2020, s. 143 (w.e.f. 1-4-2020). 
  2. Subs. by the A.O. 1950, for “collecting Government”. 
  3. The words “written in any oriental language” omitted by Act 43 of 1955, s. 5 (w.e.f. 1-4-1956).

20 

STATE AMENDMENT 

Assam 

Insertion of section 10A.—The principal Act, after the existing section the following shall be  inserted as section 10A, namely:— 

10A. For shortage of stamps how duty to be paid—(1) Notwithstanding anything contained in  Section 10, where the State Government or the Collector, as the case may be, is satisfied that there is  shortage of stamps in the district or stamps of required denominations are not available, the State  Government or the Collector may permit payment of the duty to be paid in cash or by way of Demand  Draft or by Pay Order and authorize the Treasury Officer or Sub-Treasury Officer or Sub-Registrar or  any other authorised officer, as the case may be, on production of a challan evidencing payment of  duty in the Government Treasury or Sub-Treasury of a Demand Draft or by Pay Order drawn on a  branch of any Schedule bank, as the case may be, after due verification, to certify in such manner as  may be prescribed, by endorsement on the instrument of the amount of duty so paid in cash. 

Explanation.—Government Treasury includes a Government Sub-Treasury and any other place  as the State Government may, by notification in the Assam Gazette, appoint in this behalf: Provided that the State Government may, be order published in the Official Gazette, direct that  the power exercisable by it or by the Collector under this Section may be exercised by such other  officers as may be specified in the order. 

(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if  the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof  and such payment has been indicated on such instrument by means of stamps in accordance with the  requirements of section 10. 

(3) Nothing in this section shall apply to,— 

(i) the payment of stamp duty chargeable on the instruments specified in Entry 91 of List I of  the Seventh Schedule to the Constitution of India; and 

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

[Vide Assam Act 22 of 2004, s. 2] 

Meghalaya 

Amendment of section 10 of Central act 2 of 1899.—In the Indian Stamp Act, 1899 after section 10  the following new section shall be inserted as section 10A, namely:– 

“10A. Notwithstanding anything contained in section 10 where, 

(a) (i) The State Government, in relation to any area in the State; or 

(ii) the Deputy Commissioner, in relation to any area in District under his charge, is satisfied  that on account of temporary, shortage of stamps in any area, duty cannot be paid, and payment  of duty cannot be indicated on instruments, by means of Stamps, the State Government, or as the  case may be, the Deputy Commissioner may, by notification, in the Official Gazette, direct that in  such area and for such period as maybe specified in such notification, the duty may be paid in  cash in any Treasury or Sub-Treasury and shall on production of a challan evidencing payments  of stamp duty in the Government treasury certify endorsement on the instrument in respect of  which the stamp duty is paid, that the duty has been paid, and state in the said endorsement the  amount of the duty so paid. 

(b) An endorsement made on any instrument under clause (a) shall have the same effect as if  the duty of an amount equal to the amount stated in the endorsement had been paid in respect of,  and such payment has been indicated on, such instrument by means of stamps, under section 10.” [Vide Meghalaya Act 6 of 1973, s.2] 

Uttarakhand  

Amendment of section 10.—After section 10(A) the following section shall be inserted, namely:-

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10(B) “Various modes of payment of duty” Notwithstanding anything contained in section 10 &  10(A) all duties with which any instruments are chargeable shall be paid,- 

(1) by way of cash; or 

(2) by demand draft; or 

(3) by pay order; or 

(4) by e-payment; 

in Government Treasury or Sub-Treasury or General Stamp Office [or, as the case may be,  Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury)] and such payment shall be  indicated by endorsement on such instruments by an officer authorised by the State Government. 

[Vide Uttarakhand Act 1 of 2016, s. 3] 

Uttar Pradesh  

Amendment of section 10-A.— In section 10-A of the Principal Act, for sub-section (1) the following  sub-section shall be substituted namely :— 

“(1) Notwithstanding anything contained in section 10— 

(a) where the Collector is satisfied that there is temporary shortage of stamps in the district or that  stamps of required denominations are not available, he may permit duty to be paid in cash and  authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty  in the Government treasury or sub-treasury, to certify by endorsement on the instrument or  instruments the amount of duty so paid in cash ; 

(b) where the State Government considers it expedient so to do, it may, in any district, permit  duty to be paid in cash and authorize any officer, to receive payment of duty in cash and to certify by  endorsement by means of a Franking machine on the instrument or instruments the amount of duty so  paid in cash. 

[Vide Uttar Pradesh Act 11 of 1992, s. 3] 

Uttar Pradesh  

Insertion of new section 10-A.— After section 10 of the principal Act, the following section shall be  inserted, namely :— 

“10-A. Payment of duty in cash.—(1) Notwithstanding anything contained in section 10, where  the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of  required denominations are not available, he may permit duty to be paid in cash and authorize the  officer-in-charge of the treasury on production of a challan evidencing payment of duty in the  Government treasury or sub-treasury, to certify by endorsement on the instruments or instruments the  amount of duty so paid in cash. 

(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if  the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof  and such payment has been indicated on such instrument by means of stamps in accordance with the  requirement of section 10.” 

[Vide Uttar Pradesh Act 20 of 1974, s. 4] 

  1. Use of adhesive stamps.—The following instruments may be stamped with adhesive stamps,  namely: — 

(a) instruments chargeable 1[with a duty not exceeding ten naye paise], except parts of bills of  exchange payable otherwise than on demand and drawn in sets; 

  

  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).

22 

(b) bills of exchange,1*** and promissory notes drawn or made out of 2[India]; 

(c) entry as an advocate, vakil or attorney on the roll of a High Court; 

(d) notarial acts; and 

(e) transfers by endorsement of shares in any incorporated company or other body corporate. STATE AMENDMENT 

Uttar Pradesh 

Amendment of section 11.—In section 11 of the principal Act, in clause (c), after the words “State Bar  Council of Uttar Pradesh” the words “and certificates of enrolment issued to Revenue Agents or  Mukhtars” shall be inserted

[Vide Uttar Pradesh Act 19 of 1982, s. 3] 

Insertion of section 11-A.— After section 11 of the principal Act, the following section shall be  inserted, namely :— 

11A. Payment of duty in cash on such memos.— (1) Notwithstanding anything contained in  section 11, the stamp duty due under Article 25-A of Schedule I-B on a counterpart or duplicate  (including counterfoil or carbon copy) of a bill or cash memo may be paid either by means of stamps  on the date of issue of such instruments, or in cash once in every quarter, for all such instruments  issued in the previous quarter, into the treasury or sub-treasury under such head as the State  Government may by general or special order direct. 

(2) The treasury challan prepared for deposit of duty in cash shall be accompanied by such  statement and shall be preserved for the purpose of verification for such period and proper account  thereof shall be maintained in such form as the State Government may by general or special order  direct.” 

[Vide Uttar Pradesh Act 49 of 1975, s. 4] 

Amendment of section 11.—In section 11 of the principal Act, in clause (c), after the words “State Bar  Council of Uttar Pradesh” the words “and certificate of enrolment issued to Revenue Agents or  Mukhtars” shall be inserted. 

[Vide Uttar Pradesh Act 19 of 1981, s. 3] 

  1. Cancellation of adhesive stamps.—(1) (a) Whoever affixes any adhesive stamp to any  instrument chargeable with duty which has been executed by any person shall, when affixing such stamp,  cancel the same so that it cannot be used again; and 

(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of  execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that  it cannot be used again. 

(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used  again, shall, so far as such stamp is concerned, be deemed to be unstamped. 

(3)The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or  across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner. 

  1. Instruments stamped with impressed stamps how to be written.—Every instrument written  upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear  on the face of the instrument and cannot be used for or applied to any other instrument. 

  

  1. The word “cheques” omitted by Act 5 of 1927, s. 5. 
  2. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).

23 

  1. Only one instrument to be on same stamp.—No second instrument chargeable with duty shall  be written upon a piece of stamped paper upon which an instrument chargeable with duty has already  been written: 

Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not  chargeable with duty being made upon any instrument for the purpose of transferring any right created or  evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of  which is secured thereby. 

  1. Instrument written contrary to section 13 or 14 deemed unstamped.—Every instrument  written in contravention of section 13 or section 14 shall be deemed to be unstamped. 16. Denoting duty.—Where the duty with which an instrument is chargeable, or its exemption from  duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of  such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on  production of both the instruments, be denoted upon such first-mentioned instrument by endorsement  under the hand of the Collector or in such other manner (if any) as the 1[State Government] may by rule  prescribe. 

C.—Of the time of stamping instruments 

  1. Instruments executed in India.—All instruments chargeable with duty and executed by any  person in 2[India] shall be stamped before or at the time of execution. 

STATE AMENDMENT 

Assam 

Amendment of section 17.—In the principal Act, in Section 17, after the existing provision, the  following proviso shall be inserted namely:— 

“Provided that nothing in this Section shall apply to the instrument in respect of which stamp duty has  been paid under section 10-A.” 

[Vide Assam Act 22 of 2004, s. 3] 

  1. Instruments other than bills and notes executed out of India.—(1) Every instrument  chargeable with duty executed only out of 2[India], and not being a bill of exchange 3*** or promissory  note, may be stamped within three months after it has been first received in 2[India]. 

(2) Where any such instrument cannot, with reference to the description of stamp prescribed  therefore, be duly stamped by a private person, it may be taken within the said period of three months to  the Collector, who shall stamp the same, in such manner as the 1[State Government] may by rule  prescribe, with a stamp of such value as the person so taking such instrument may require and pay for. 

  1. Bills and notes drawn out of India.—The first holder in 2[India] of any bill of  exchange 4[payable otherwise than on demand], 3*** or promissory note drawn or made out of 2[India]  shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise  negotiates the same in 2[India], affix thereto the proper stamp and cancel the same: 

Provided that,— 

(a) if, at the time any such bill of exchange, 3*** or note comes into the hands of any holder  thereof in 2[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by  section 12 and such holder has no reason to believe that such stamp was affixed or cancelled  otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to  such holder, be deemed to have been duly affixed and cancelled; 

(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him  for omitting to affix or cancel a stamp. 

STATE AMENDMENT 

Himachal Pradesh 

Addition of a new section 19-A.—After section 19 of the said Act the following new section shall be  inserted, namely:- 

19-A. Payment of duty on certain instruments liable to increased duty in Himachal Pradesh  under clause (bb) of section 3.- Where any instrument has become chargeable in any part of India and  thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of    

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

24 

the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment)  Act, 1952- 

(i) notwithstanding anything contained in the said proviso, the amount of duty chargeable on such  instrument shall be the amount chargeable on it under Schedule- I-A less the amount of duty, if any  already paid on it in India, 

(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with  the stamps necessary for the payment of the amount of duty chargeable on it under clause (i) in the  same manner and at the same time and by the same person as though such instrument were an  instrument received in India for the first time at the time when it became chargeable with the higher  duty. 

[Vide Himachal Pradesh Act 4 of 1953, s. 7] 

D.—Of valuations for Duty 

  1. Conversion of amount expressed in foreign currencies.—(1) Where an instrument is  chargeable with ad valorem duty in respect of any money expressed in any currency other than that of 1[India] such duty shall be calculated on the value of such money in the currency of 1[India] according to  the current rate of exchange on the day of the date of the instrument. 

(2) The Central Government may, from time to time, by notification in the Official Gazette, prescribe  a rate of exchange for the conversion of British or any foreign currency into the currency of 1[India] for  the purposes of calculating stamp-duty, and such rate shall be deemed to be the current rate for the  purposes of sub-section (1). 

  1. Stock and marketable securities how to be valued. —Where an instrument is chargeable with  ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be  calculated on 2[the market value of such stock or security.] 

3[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. Effect of statement of rate of exchange or average price.—Where an instrument contains a  statement of current rate of exchange, or average price, as the case may require, and is stamped in  accordance with such statement, it shall, so far as regards the subject-matter of such statement, be  presumed, until the contrary is proved, to be duly stamped. 
  2. Instruments reserving interest.—Where interest is expressly made payable by the terms of an  instrument, such instrument shall not be chargeable with duty higher than that with which it would have  been chargeable had no mention of interest been made therein. 

4[23A. Certain instruments connected with mortgages of marketable securities to be chargeable  as agreements. — (1) Where an instrument (not being a promissory note or bill of exchange)— 

(a) is given upon the occasion of the deposit of any marketable security by way of security for  money advanced or to be advanced by way of loan, or for an existing or future debt, or 

(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any  marketable security,  

it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable  with duty under 5[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. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956). 
  2. Subs. by Act 7 of 2019, s. 16, for “the value of such stock or security according to the average price or the value thereof on the day of the date  of the instrument.” (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  3. Ins. by s. 16, ibid. (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  4. Ins. by Act 15 of 1904, s. 3. 
  5. Subs. by Act 1 of 1912, s. 3, for “Article No. 5(b)”.

25 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 23-A.— In sub-section (1) of section 23-A of the said Act, for the word and  figure ‘Schedule-I’ the word, figure and letter “Schedule I-A” shall be substituted. 

[Vide Himachal Pradesh Act 4 of 1953, s. 8] 

  1. How transfer in consideration of debt, or subject to future payment, etc., to be charged. — Where any property is transferred to any person in consideration, wholly or in part, of any debt due to  him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether  being or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to be  deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is  chargeable with ad valorem duty: 

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

Explanation.—In the case of a sale of property subject to a mortgage or other incumbrance, any  unpaid mortgage money or money charged, together with the interest (if any) due on the same, shall be  deemed to be part of the consideration for the sale: 

Provided that, where property subject to a mortgage is transferred to the mortgagee, he shall be  entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of  the mortgage. 

Illustrations 

(1) A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp-duty is payable on Rs. 1,500. 

(2) A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 1,000 and unpaid  interest Rs 200. Stamp-duty is payable on Rs. 1,700. 

(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. B afterwards buys the house  from A. Stamp-duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the  mortgage. 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 24.— In the proviso to section 24, of the said Act, for the full stop shall be  substituted a comma followed by the words “or Schedule I -A, as the case may be. 

[Vide Himachal Pradesh Act 4 of 1953, s. 9] 

Orissa  

Amendment of section 24.— In Section 24 of the Indian Stamp Act, 1899 (2 of 1899) (herein after  referred to as the principal Act), for the words “in respect whereof the transfer is chargeable with ad  valorem duty” the words “and the transfer is chargeable with ad valorem duty in respect of the  consideration or the market value of the property so transferred, whichever is higher,” shall be  substituted. 

[Vide Orissa Act 7 of 1987, s. 2] 

  1. Valuation in case of annuity, etc.—Where an instrument is executed to secure the payment of an  annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or  other sum payable periodically, the amount secured by such instrument or the consideration for such  conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,— 

(a) where the sum is payable for a definite period so that the total amount to be paid can be  previously ascertained—such total amount; 

(b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life in  being at the date of such instrument or conveyance—the total amount which, according to the terms 

26 

of such instrument or conveyance, will or may be payable during the period of twenty years  calculated from the date on which the first payment becomes due; and 

(c) where the sum is payable for an indefinite time terminable with any life in being at the date of  such instrument or conveyance— the maximum amount which will or may be payable as aforesaid  during the period of twelve years calculated from the date on which the first payment becomes due. 

  1. Stamp where value of subject-matter is indeterminate.—Where the amount or value of the  subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an  instrument executed before the commencement of this Act) could not have been, ascertained at the date of  its execution or first execution, nothing shall be claimable under such instrument more than the highest  amount or value for which, if stated in an instrument of the same description, the stamp actually used  would, at the date of such execution, have been sufficient: 

1[Provided that, in the case of the lease of a mine in which royalty or a share of the produce is  received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of  such share, for the purpose of stamp-duty,— 

(a) when the lease has been granted by or on behalf of 2[the Government], at such amount or  value as the Collector may, having regard to all the circumstances of the case, have estimated as  likely to be payable by way of royalty or share to 3[the Government] under the lease, or 

(b) when the lease has been granted by any other person, at twenty thousand rupees a year, and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:] 

Provided also that where proceedings have been taken in respect of an instrument under section 31 or  41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of  execution. 

  1. Facts affecting duty to be set forth in instrument. —The consideration (if any) and all other  facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty  with which it its chargeable, shall be fully and truly set forth therein. 

STATE AMENDMENT 

Assam 

Amendment of section 27.—In the principal Act, in section 27, for the words and brackets, “The  consideration (if any)”, the words “the market value of the property” shall be substituted.” 

[Vide Assam Act 22 of 2004, s. 4] 

Amendment of section 27.—In the principal Act, after section 27, the following new section shall be  inserted namely:— 

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

(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a  reasonable opportunity of being heard and after holding an enquiry in such manner as may be  prescribed by rules made under this Act, determine the market value of the property which is the  subject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon the  difference, if any, in the amount of duty, shall be payable by the persons liable to pay the duty. 

  

  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”.

27 

(3) The Collector may, on his own motion or otherwise, within two years from the date of  registration of any instrument or conveyance, exchange or gift not already referred to him under sub section (1) call for and examine the instrument for the purpose of satisfying himself as to the  correctness of the market value of the property as set forth in such instrument, which is the subject  matter of conveyance, exchange or gift and the duty payable thereon and if after such examination he  has reason to believe that the market value of such property has not been truly set forth in the  instrument, he may determine the market value of such property and the duty as aforesaid and  thereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay the  duty: 

Provided that nothing in this sub-section shall apply to instrument registered before the date of  commencement of the Indian Stamp (Assam Amendment) Act, 2004. 

(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3)  may prefer an appeal to the Civil Judge of appropriate jurisdiction and all such appeals shall be  preferred within such time and shall be heard and disposed of in such manner as may be prescribed. 

Explanation—For the purpose of this Act, market value of any property shall be estimated to be  the price which in the opinion of the Collector or the Civil Judge Senior Division, as the case may be,  such property would have fetched or would fetch, if sold in the open market on the date of execution  of the instrument of conveyance, exchange or gift. 

[Vide Assam Act 22 of 2004, s. 5] 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 27.—For the words and brackets “The consideration (if any)” occurring in  section 27 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter called as the principal Act), the words  and signs “The consideration, if any, the market value of the property” shall be substituted. 

[Vide Himachal Pradesh Act 7 of 1989, s. 2] 

Orissa 

Amendment of section 27.In Section 27 of the principal Act, for the words and brackets  “the consideration if any”, the words and commas “the consideration, if any, the market value of  the property” shall be substituted. 

[Vide Orissa Act 7 of 1987, s. 3

  1. Direction as to duty in case of certain conveyances.—(1) Where any property has been  contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate  parts by different instruments, the consideration shall be apportioned in such manner as the parties think  fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating  thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct  consideration. 

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

(3) Where a person, having contracted for the purchase of any property but not having obtained a  conveyance thereof, contracts to sell the same to any other person and the property is in consequence 

28 

conveyed immediately to the sub-purchaser the conveyance shall be chargeable with ad valorem duty in  respect of the consideration for the sale by the original purchaser to the sub-purchaser. 

(4) Where a person, having contracted for the purchase of any property but not having obtained a  conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the  property is in consequence conveyed by the original seller to different persons in parts, the conveyance of  each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the  consideration paid by such sub-purchaser, without regard to the amount or value of the original  consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall  be chargeable with ad valorem duty in respect only of the excess of the original consideration over the  aggregate of the considerations paid by the sub-purchasers: 

Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee. 

(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately  selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and  is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the  original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance  for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with  a duty of five rupees. 

STATE AMENDMENT 

Orissa  

 Amendment of section 28.— In Section 28 of the principal Act,— 

 (i) for sub-section (1), the following sub-section shall be substituted, namely:— “(1) where any property has been contracted to be sold for one consideration for the whole, and is  conveyed to the purchaser in separate parts by different instruments, the consideration shall be  apportioned in such manner as the parties think fit: 

Provided that a distinct consideration for each separate part is set forth in the conveyance relating  thereto and such conveyance shall be chargeable with ad valorem duty in respect of such distinct  consideration: 

Provided further that the market value of the separate part shall be set forth along with the  consideration for each part and the conveyance shall be chargeable with ad valorem. [duty in respect of such distinct consideration or the market value, whichever is higher.”.  (ii) to sub-section (2) the following words and comma shall be added at the end, namely:— “or the market value of each such separate part whichever is higher.”; 

(iii) to sub-section (3) the following words and comma shall be added at the end, namely:—  “or the market value of the property, whichever is higher.”. 

(iv) for sub-section (4), the following sub-section shall be substituted, namely:- 

“(4) where a person, having contracted for the purchase of any property but not having obtained a  conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and  the property is in consequence conveyed by the original seller to different persons in part, the  conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect  of the consideration paid by such sub-purchaser or the market value of each part whichever is higher  without regard to the amount or value of the original consideration; and the conveyance of the residue,  if any , of such property to the original purchaser shall be chargeable with ad valorem duty in respect  only of the excess of the original consideration over the aggregate of the considerations paid by the  sub-purchasers or the market value of the residue of such property whichever is higher: 

Provided that the duty on such last mentioned conveyance shall in no case be less than one rupee.”. (v) for sub-section (5), the following sub-section shall be substituted, namely:— 

“(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately  selling to him, which is chargeable with ad valorem duty in respect of consideration paid by him or the  market value of the property whichever is higher and is duly stamped accordingly, any conveyance to be 

29 

afterwards made to him of the same property by the original seller shall be chargeable with a duty  equal to that which would be chargeable on a conveyance for the consideration obtained by such  original seller or the market value of such property whichever is higher, or, where such duty would  exceed five rupees with a duty of five rupees”,] 

[Vide Orissa Act 7 of 1987, s. 4] 

E.—Duty by whom payable 

  1. Duties by whom payable.—In the absence of an agreement to the contrary, the expense of  providing the proper stamp shall be borne — 

(a) in the case of any instrument described in any of the following Articles of Schedule I, namely:No. 2. (Administration Bond), 

1[No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),] 

No. 13 (Bill of exchange), 

No. 15 (Bond), 

No. 16 (Bottomry Bond), 

No. 26 (Customs Bond), 

2* * * * * No. 32 (Further charge), 

No. 34 (Indemnity-Bond), 

No. 40 (Mortgage-deed), 

No. 49 (Promissory-note), 

No. 55 (Release), 

No. 56 (Respondentia Bond), 

No. 57 (Security-bond or Mortgage-deed), 

No. 58 (Settlement), 

3* * * * * 4* * * * * No. 62 (c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),— by the person drawing, making or executing such instrument: 

5[(b) in the case of a policy of insurance other than fire-insurance—by the person effecting the  insurance; 

(bb) in the case of a policy of fire-insurance— by the person issuing the policy;] 

(c) in the case of a conveyance (including re-conveyance of mortgaged property) by the grantee: in  the case of a lease or agreement to lease—by the lessee or intended lessee: 

(d) in the case of a counterpart of a lease—by the lessor; 

(e) in the case of an instrument of exchange 6[including swap]—by the parties in equal shares, (f) in the case of a certificate of sale—by the purchaser of the property to which such certificate  relates;7*** 

  

  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. 1-7-2020). [Earlier notified w.e.f. 9- 1-2020 followed by 1-4-2020] 
  3. The words, figures, brackets and letter “No. 62 (a) (Transfer of shares in an incorporated Company or other body corporate)”  omitted by s. 17, ibid. (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  4. The words, figures, brackets and letter “No. 62 (b). (Transfer of debentures, being marketable securities, whether the debenture  is liable to duty or not, except debentures provided for by section 8),” omitted by s. 17, ibid. (w.e.f. 1-7-2020). [Earlier notified  w.e.f. 9-1-2020 followed by 1-4-2020] 
  5. Subs. by Act 5 of 1906, s. 4, for clause (b).  
  6. Ins. by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  7. The “and” omitted by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

30 

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

1[(h) in the case of sale of security through stock exchange, by the buyer of such security; 

(i) in the case of sale of security otherwise than through a stock exchange, by the seller of such  security; 

(j) in the case of transfer of security through a depository, by the transferor of such security; 

(k) in the case of transfer of security otherwise than through a stock exchange or depository, by the  transferor of such security; 

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

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

STATE AMENDMENT 

Uttarakhand  

Amendment of section 29.—In Section 29 of the Principal Act,– 

(a) In clause (a), after the words (and figures, “No. 40 (Mortgage deed)),” the words (and figures  “No. 43 (Note or memorandum)),” shall be inserted; 

(b) after clause (f), the following clause shall be inserted, namely,- 

”(f-f) in the case of an Instrument of Gift by the donee;” 

[Vide Uttarakhand Act 1 of 2016, s. 4] 

Uttar Pradesh 

Amendment of section 29.— In section 29 of the principal Act,— 

(a) in clause (a), after the words and figures, “No. 40 (Mortgage deed),” the words and figure,  “No. 43 (Note or Memorandum)” shall be inserted

(b) after the clause (f) the following clause shall be inserted, namely:— 

“(ff) in the case of an Instrument of Gift, by the donee” 

[Vide Uttar Pradesh Act 38 of 2001, s. 3] 

  1. Obligation to give receipt in certain cases.—Any person receiving any money exceeding  twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding  twenty rupees, or receiving in satisfaction or part satisfaction of a debt any movable property exceeding  twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque,  note or property, give a duly stamped receipt for the same. 

2[Any person receiving or taking credit for any premium or consideration for any renewal of any  contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or  consideration, give a duly stamped receipt for the same.] 

  

  1. Ins. by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  2. Added by Act 5 of 1906, s. 5.

31 

CHAPTER III 

ADJUDICATION AS TO STAMPS 

  1. Adjudication as to proper stamp.—(1) When any instrument, whether executed or not and  whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have  the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such  amount (not exceeding five rupees and not less than 1[fifty naye paise]) as the Collector may in each case  direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is  chargeable. 

(2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and  also with such affidavit or other evidence as he may deem necessary to prove that all the facts and  circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with  which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such  application until such abstract and evidence have been furnished accordingly: 

Provided that— 

(a) no evidence furnished in pursuance of this section shall be used against any person in any  civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is  chargeable; and 

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

STATE AMENDMENT 

Orissa 

Amendment of Section 31.—In section 31 of the principal Act, in sub-section (1), for the words “not  exceeding five rupees” and “not less than fifty naye paise”, the words “not exceeding twenty rupees” and  “not less than five rupees”, shall respectively be substituted 

[Vide Orissa Act 1 of 2003, s. 4] 

Uttarakhand  

Amendment of section 31.—In sub-section (1), for the words, “Pays a fee of such amount not  exceeding five rupees and not less than fifty paisa as the collector may in Each case direct,” the words,  “Pays a fee such amount as may be fixed by State Government By notification in the Official Gazette”,  shall be substituted

[Vide Uttarakhand Act 1 of 2016, s. 5] 

Uttar Pradesh 

Amendment of section 31.— In section 31 of the principal Act, in sub-section (1), for the words, “such  amount not exceeding five rupees and not less than fifty paise as the collector may in each case direct”,  the words, “such amount as may be fixed by the State Government by notification in the Official  Gazette”, shall be substituted. 

[Vide Uttar Pradesh Act 38 of 2001, s. 4] 

  1. Certificate by Collector.—(1) When an instrument brought to the Collector under section 31 is, in his opinion, one of a description chargeable with duty, and 

(a) the Collector determines that it is already fully stamped, or 

(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already  paid in respect of the instrument, is equal to the duty so determined, has been paid, 

  

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

32 

the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with  which it is chargeable has been paid. 

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

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

Provided that nothing in this section shall authorize the Collector to endorse— 

(a) any instrument executed or first executed in 1[India] and brought to him after the expiration of  one month from the date of its execution or first execution, as the case may be; 

(b) any instrument executed or first executed out of 1[India] and brought to him after the  expiration of three months after it has been first received in 1[India]; or 

(c) any instrument chargeable 2[with a duty not exceeding ten nayepaise], or any bill of exchange  or promissory note, when brought to him, after the drawing or execution thereof, on paper not duly  stamped. 

STATE AMENDMENT 

Himachal Pradesh 

Amendment of section 32.— In section 32 of the said Act.— 

(1) in clause (a) of the proviso, after the words “any instrument” the words “other than an instrument  chargeable with a duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp  (Himachal Pradesh Amendment) Act, 1952” shall be inserted. 

(2) the word “or” at the end of clause (b) of the proviso shall be omitted, 

(3) after clause (c) of the proviso the word “or” shall be inserted, and the following new clause shall be  added:- 

(d) any instrument chargeable with duty under clause (bb) of the first proviso to section 3 as  amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952, and brought to him after  the expiration of three months from the date on which it is first received in Himachal Pradesh. 

[Vide Himachal Pradesh Act 4 of 1953, s. 10] 

CHAPTER IV 

INSTRUMENTS NOT DULY STAMPED 

  1. Examination and impounding of instruments. —(1) Every person having by law or consent of  parties authority to receive evidence, and every person in charge of a public office, except an officer of  police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the  performance of his functions, shall, if it appears to him that such instrument is not duly stamped, impound  the same. 

(2) For that purpose every such person shall examine every instrument so chargeable and so produced  or coming before him, in order to ascertain whether it is stamped with a stamp of the value and  description required by the law in force in 3[India] when such instrument was executed or first executed: 

Provided that— 

(a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal  Court to examine or impound, if he does not think fit so to do, any instrument coming before him in  the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the  Code of Criminal Procedure, 1898 (V of 1898); 

  

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

33 

(b) in the case of a Judge of a High Court, the duty of examining and impounding any instrument  under this section may be delegated to such officer as the Court appoints in this behalf. 

(3) For the purposes of this section, in cases of doubt, — 

(a)1[the 2[State Government]] may determine what offices shall be deemed to be public offices;  and 

(b)3[the 4[State Government]] may determine who shall be deemed to be persons in charge of  public offices. 

STATE AMENDMENT 

Orissa  

Amendment of Section 33.—In section 33 of the principal Act after sub-section (1), the  following sub-sections shall be inserted, namely:— 

“(1-a) If it appears to such person from the copy of an instrument produced or coming in  performance of his functions, within three years from the date of registration of the instrument, that  such instrument is not duly stamped, he shall call for the original instrument and if he is satisfied on  production of the instrument that it has not been duly stamped, impound the same and the deficient  amount of duty shall be payable by the person liable to pay the duty. 

(1-b) Where the original instrument is not produced such person shall refer the copy of the  instrument to the Collector for determination of the market value of the property and the duty payable  thereon and the Collector may determine the market value of the property and the duty as aforesaid in  accordance with the procedure provided for in sub-section (2) of section 47-A.”. 

[Vide Orissa Act 7 of 1987, s. 5] 

Uttar Pradesh 

Amendment of section 33 of Act no. 11 of 1899.—In section 33 of the Indian Stamp Act, 1899, as  amended in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, — 

(i) in sub-section (2), in the proviso, in clause (a), for the words and figures  Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898”, the words and figures  “sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall be substituted. 

(ii) after sub-section (2), for the existing sub-sections, the following sub-sections shall be  substituted, namely:– 

“(3) For the purpose of this section the State Government may in cases of doubt, determine  what offices shall be deemed to be public offices and who shall be deemed to be persons in  charge of public offices. 

(4) Where deficiency in stamp duty paid is noticed from the any court or from the  Commissioner of Stamps or an, Additional Commissioner of Stamp or a Deputy Commissioner  of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board of  Revenue in that behalf, call for the original instrument so purpose, and the instrument so  produced before the Collector shall be deemed to have been produced or come before him in the  performance of his functions. 

(5) In case the instrument is not produced within the period specified by the Collector, he  may require payment of deficit stamp duty, if any, together with penalty under section 40 on the  copy of the instrument: 

Provided that no action under sub-section (4) or sub-section (5) shall be taken after a period  of four years from the date of execution of the instrument.” 

[Vide Uttar Pradesh Act 6 of 1980, s. 6] 

  

  1. Subs. by the A.O. 1937, for “the G.G. in C.”. 
  2. Subs. by the A.O. 1950, for “collecting Government”. 
  3. Subs. by the A.O. 1937, for “the L.G.”.

34 

Amendment of section 33 of Act no. 11 of 1899.— In section 33 of the Indian Stamp Act, 1899  hereinafter referred to as the Principal Act, in sub-section (5), after the existing proviso the following  Proviso shall be inserted. namely :— 

“Provided further that with the prior permission of the State Government an action under sub section (4) or sub-section (5) may be taken after a period of four years but before a period of eight  years from the date of execution of the instrument.” 

[Vide Uttar Pradesh Act 22 of 1998, s. 2] 

Amendment of section 33.—In section 33 of the principal Act, after sub-section (2), the following  Sub-sections shall be inserted, namely :— 

(3) Where deficiency in stamp duty paid is noticed from the copy of any instruments, the Collector  may suo motu or on a reference from any court or from the Chief Inspector of Stamps, Uttar Pradesh or  any Officer of the Stamp Department, Board of Revenue, call for the original instrument for the purpose  of satisfying himself as to the adequacy of the duty paid thereon and the instrument so produced before  the Collector shall be deemed to have been produced or come in the performance of his functions. 

(4) In case the instrument is not produced within the period specified by tile Collector, he may require  payment of deficit stamp duty, if any, together with penalty under section 40 on the copy of the  instrument ; 

Provided that no action under sub-section (3) or sub-section (4) shall be taken after a period of four  years from the date of execution of the instrument” 

[Vide Uttar Pradesh Act 49 of 1975, s. 5] 

  1. Special provision as to unstamped receipts.—Where any receipt chargeable 1[with a duty not  exceeding ten nayepaise] is tendered to or produced before any officer unstamped in the course of the  audit of any public account, such officer may in his discretion, instead of impounding the instrument,  require a duly stamped receipt to be substituted therefore. 
  2. Instruments not duly stamped inadmissible in evidence, etc.—No instrument chargeable with  duty shall be admitted in evidence for any purpose by any person having by law or consent of parties  authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by  any public officer, unless such instrument is duly stamped: 

Provided that— 

(a) any such instrument 2[shall] be admitted in evidence on payment of the duty with which the  same is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required to  make up such duty, together with a penalty of five rupees, or, when ten times the amount of the  proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or  portion; 

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

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

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

  

  1. Subs. by Act 19 of 1958, s. 5, for “with a duty of one anna” (w.e.f. 1-10-1958). 
  2. Subs. by Act 21 of 2006, s. 69, for “not being an instrument chargeable with a duty not exceeding ten nayepaise only, or a bill  of exchange or promissory note, shall, subject to all just exceptions,” 

35 

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

STATE AMENDMENT 

Uttar Pradesh 

Amendment of section 35.—In section 35 of the principal Act, in the proviso in clause (d), for the  words and figures “Chapter XII or Chapter XXXVI of the Code of criminal Procedure, 1898”, the words  and figures “sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall  be substituted. 

[Vide Uttar Pradesh Act 6 of 1980, s. 7] 

Amendment of section 35.— In section 35 of the principal Act, in clause (a) of the proviso for the  words “five rupees. or, when ten times the amount of the proper duty of deficient portion thereof exceeds  five rupees, of a sum equal to ten times such duty or portion:” the following words shall be substituted,  namely :— 

“a sum equal to ten times the amount of the proper duty or deficient portion thereof ; [Vide Uttar Pradesh Act 22 of 1998, s. 3] 

  1. Admission of instrument where not to be questioned.—Where an instrument has been admitted  in evidence, such admission shall not, except as provided in section 61, be called in question at any stage  of the same suit or proceeding on the ground that the instrument has not been duly stamped. 
  2. Admission of improperly stamped instruments.—1[The 2[State Government]] may make rules  providing that, where an instrument bears a stamp of sufficient amount but of improper description, it  may, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any  instrument so certified shall then be deemed to have been duly stamped as from the date of its execution. 
  3. Instruments impounded, how dealt with.—(1) When the person impounding an instrument  under section 33 has by law or consent of parties authority to receive evidence and admits such  instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by  section 37, he shall send to the Collector an authenticated copy of such instrument, together with a  certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such  amount to the Collector, or to such person as he may appoint in this behalf. 

(2) In every other case, the person so impounding an instrument shall send it in original to the  Collector. 

  1. Collector’s power to refund penalty paid under section 38, sub-section (1).—(1) When a copy  of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit,3***  refund any portion of the penalty in excess of five rupees which has been paid in respect of such  instrument. 

(2) When such instrument has been impounded only because it has been written in contravention of  section 13 or section 14, the Collector may refund the whole penalty so paid. 

STATE AMENDMENT 

Uttar Pradesh 

Omission of section 39.— Section 39 of the principal Act shall be omitted

[Vide Uttar Pradesh Act 22 of 1998, s. 4] 

  

  1. Subs. by the A.O. 1937, for “the G.G. in C.”. 
  2. Subs. by the A. O. 1950, for “collecting Government”.  
  3. The words “upon application made to him in this behalf or, if no application is made, with the consent of the chief Controlling  Revenue-authority” omitted by Act 4 of 1914, s. 2 and the Schedule Pt I. 

36 

  1. Collectors power to stamp instruments impounded.—(1) When the Collector impounds any  instrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), not  being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or a bill of exchange or  promissory note, he shall adopt the following procedure:— 

(a) if he is of opinion that such instrument is duly stamped, or is not chargeable with duty, he  shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case  may be; 

(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he  shall require the payment of the proper duty or the amount required to make up the same, together  with a penalty of five rupees; or, if he thinks fit, 2[an amount not exceeding] ten times the amount of  the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five  rupees: 

Provided that, when such instrument has been impounded only because it has been written in  contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty  prescribed by this section. 

(2) Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be  conclusive evidence of the matters stated therein. 

(3) Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector  shall, when he has dealt with it as provided by this section, return it to the impounding officer. 

STATE AMENDMENT 

Uttarakhand 

Amendment of section 40.—After sub-section (1), the following sub-sections shall be inserted,  namely:- 

“(1-A) The Collector shall also require, alongwith the amount of deficit Stamp Duty of penalty  required to be paid under clause (b) of sub-section (1), the payment of a simple interest at the rate of one  and half percent per mensem on the amount of deficit stamp duty calculated from the date of the  execution of the instrument till the date of actual payment; 

Provided that the amount of interest under this sub-section shall be recalculated if the amount of  deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority. 

(1-B) The amount of interest payable under sub-section (1-A) shall be added to the amount due and  be also deemed for all purposes to part of the amount required to be paid. 

(1-C) Where realization of the deficit stamp duty reminded stayed by any order of any court or  authority and such order of stay is subsequently vacated, the interest referred to in sub-section (1-A) shall  be payable also for any period during which such order of stay remain in operation. 

(1-D) Any amount paid or deposited by, or removed, or refundable to a person under the provisions  of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and  the excess, if any, shall then be adjusted towards the interest, in any, due from him.” 

[Vide Uttarakhand Act 1 of 2016, s. 6] 

Uttar Pradesh 

Amendment-of section 40.— In section 40 of the principal Act in sub-section (1), (a) for clause (b) the following clause shall be substituted, namely :— 

“(b) if he is of opinion that such instrument is chargeable with duty and is not duty stamped, he  shall require the payment of the proper duty or the amount required to make up the deficiency  

  

  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. 

37 

together with a penalty of an amount not exceeding ten times the amount of the proper duty or of the  deficient portion thereof ; ” 

(b) after the existing proviso the following proviso shall be inserted, namely :– 

“Provided further that no penalty shall be levied unless the party concerned has been given a  reasonable opportunity of being heard.” 

[Vide Uttarakhand Act 22 of 1998, s. 5] 

Amendment of section 40.— in section 40 of the principal Act, after sub-section (1), the following  subsections shall be inserted, namely:— 

“(1-A) The Collector shall also require, along with the amount of deficit stamp duty or penalty  required to be paid under clause (b) of sub-section (1), the payment of a simple interest at the rate of  one and half per cent per mensem on the amount of deficit stamp duty calculated from the date of the  execution of the instrument till the date of actual payment: 

Provided that the amount of interest under this sub-section shall be recalculated if the amount of  deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority. 

(1-B) The amount of interest payable under sub-section ( I-A) shall be added to the amount due  and be also deemed for all purposes to be part of the amount required to be paid. 

(1 -C) Where realization of the deficit stamp duty remained stayed by any order of any Court or  authority and such order of stay is subsequently vacated, the interest referred to in sub-section (1-A)  shall be payable also for any period, during which such order of stay remained in operation. 

(1-D) Any amount paid or deposited by, or recovered from, or refundable to a person under the  provisions of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding  against him and the excess, if any, shall then be adjusted towards the interest, if any, due from him.” 

[Vide Uttar Pradesh Act 38 of 2001, s. 5] 

  1. Instruments unduly stamped by accident.— If any instrument chargeable with duty and not  duly stamped, not being an instrument chargeable 1[with a duty not exceeding ten nayepaise] only or a  bill of exchange or promissory note, is produced by any person of his own motion before the Collector  within one year from the date of its execution or first execution, and such person brings to the notice of  the Collector the fact that such instrument is not duly stamped and offers to pay to the Collector the  amount of the proper duty, or the amount required to make up the same, and the Collector is satisfied that  the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity,  he may, instead of proceeding under sections 33 and 40, receive such amount and proceed as next herein after prescribed. 
  2. Endorsement of instruments on which duty has been paid under section 35, 40 or 41.— (1)  When the duty and penalty (if any), leviable in respect of any instrument have been paid under section 35,  section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case  may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty  and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence  of the person paying them. 

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

Provided that— 

(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under  section 35, shall be so delivered before the expiration of one month from the date of such  impounding, or if the Collector has certified that its further detention is necessary and has not  cancelled such certificate;

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

STATE AMENDMENT 

Uttarakhand 

Amendment of section 42.—In section 42 of the Principal Act, — 

(a) in the heading, of the words and figures “Sections 35, 40 or 41”, the words and figures,  “sections 35, 40, 41 or 47-A” shall be substituted. 

(b) in sub-section (1), for the words and figures “section 40 or section 41”, the words and figures,  “section 40, section 41 or section 47-A” shall be substituted. 

[Vide Uttarakhand Act 1 of 2016, s. 7] 

Uttar Pradesh 

Amendment of section 42.— In section 42 of the principal Act,— 

(a) in the heading for the words and figures “sections 35, 40 or 41”, the words and figures,  “sections 35, 40, 41 or 47-A” shall be substituted

(b) in sub-section (1) for the words and figures “section. 40 or section 41,” the words and figures,  “section 40, section 41 or section 47-A” shall substituted

[Vide Uttar Pradesh Act 38 of 2001, s. 5] 

  1. Prosecution for offence against Stamp-law.—The taking of proceedings or the payment of a  penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person who  appears to have committed an offence against the Stamp-law in respect of such instrument: 

Provided that no such prosecution shall be instituted in the case of any instrument in respect of which  such a penalty has been paid, unless it appears to the Collector that the offence was committed with an  intention of evading payment of the proper duty. 

  1. Persons paying duty or penalty may recover same in certain cases.—(1) When any duty or  penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of  an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at  the time such instrument was executed, some other person was bound to bear the expense of providing the  proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other  person the amount of the duty or penalty so paid. 

(2) For the purpose of such recovery, any certificate granted in respect of such instrument under this  Act shall be conclusive evidence of the matters therein certified. 

(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or  proceeding to which such persons are parties and in which such instrument has been tendered in evidence.  If the Court does not include the amount in such order, no further proceedings for the recovery of the  amount shall be maintainable. 

  1. Power to Revenue-authority to refund penalty or excess duty in certain cases.—(1) Where  any penalty is paid under section 35 or section 40, the Chief Controlling Revenue-authority may, upon  application in writing made within one year from the date of the payment, refund such penalty wholly or  in part. 

(2) Where, in the opinion of the Chief Controlling Revenue-authority, stamp-duty in excess of that  which is legally chargeable has been charged and paid under section 35 or section 40, such authority may,  upon application in writing made within three months of the order charging the same, refund the excess. 

  1. Non-liability for loss of instruments sent under section 38.—(1) If any instrument sent to the  Collector under section 38, sub-section (2), is lost, destroyed or damaged during transmission, the person  sending the same shall not be liable for such loss, destruction or damage. 

  

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

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(2) When any instrument is about to be so sent, the person from whose possession it came into the  hands of the person impounding the same, may require a copy thereof to be made at the expense of such  first-mentioned person and authenticated by the person impounding such instrument. 

  1. Power of payer to stamp bills, and promissory notes received by him unstamped.—When  any bill of exchange 1[or promissory note] chargeable 2[with a duty not exceeding ten nayepaise] is  presented for payment unstamped, the person to whom it is so presented, may affix thereto the necessary  adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum  payable upon such bill 3[or note], and may charge the duty against the person who ought to have paid the  same, or deduct it from the sum payable as aforesaid, and such bill 3[or note], shall, so far as respects the  duty, be deemed good and valid: 

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

STATE AMENDMENT 

Himachal Pradesh 

Insertion of section 47-A. —After section 47 of the principal Act, the following new section shall be  added, namely:- 

47-A. Instruments under-valued, how to be dealt with.-(1) If the Registering Officer, appointed  under the Registration Act, 1908 (16 of 1908) while registering any instrument relating to the transfer of  any property, has reason to believe that the market value of the property or the consideration, as the case  may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the  same to the Collector for determination of the market value or consideration, as the case may be, and the  proper duty payable thereon. 

(2) On receipt of reference under sub-section (1), the Collector shall, after giving the parties a  reasonable opportunity of being heard and after holding an enquiry in such manner, as may be prescribed  by rules, made under this Act, determine the market value or consideration and the duty, as aforesaid, and  the deficient amount of duty, if any, shall be payable by the person liable to pay the duty. 

(3) The Collector may, suo moto or on receipt of reference from the Inspector General of Registration  or the Registrar of a District, in whose jurisdiction the property, or any portion thereof, which is the  subject-matter of the instrument, is situated, appointed under the Registration Act, 1908 (16 of 1908)  shall, within three years from the date of registration of any instrument, not already referred to him under  sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the  correctness of its market value or consideration, as the case may be, and the duty payable thereon and if,  after such examination, he has reason to believe that the market value or consideration has not been truely  set forth in the instrument, he may determine the market value or consideration and the duty, as aforesaid,  in accordance with procedure provided for in sub-section (2), and the deficient amount of duty, if any,  shall be payable by the person liable to pay the duty: 

Provided that nothing in this sub-section shall apply to any instrument registered before the date of the  commencement of the Indian Stamp (Himachal Pradesh Amendment) Act, 1988.  

(4) Where for any reason the original document called for by the Collector under sub-section (3) is not  produced or cannot be produced, the Collector may, after recording the reasons for its nonproduction, call  for a certified copy of the entries of the document from the registering officer concerned and exercise the  powers conferred on him under sub-section (3). 

(5) Any person, aggrieved by an order of the Collector, under subsection (2) or sub-section (3), may,  within thirty days from the date of the order, prefer an appeal before the District Judge and all such  appeals shall be heard and disposed off in such manner as may be prescribed by rules made under this  Act. 

(6) For the purpose of this section “market value” of any property shall be estimated to be the price  which, in the opinion of the Collector or the appellate authority, as the case may be, such property would 

  

  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”.

40 

have fetched, if sold in the open market on the date of execution of the instrument relating to the transfer  of such property.  

[Vide Himachal Pradesh Act 7 of 1989, s. 3] 

Orissa 

Amendment of section 47-A, (Act 2 of 1899). —In section 47-A of the Indian Stamp Act, 1899  (Act 2 of 1899)— 

(a) after sub-section (2), the following new sub-section shall be inserted, namely:— “(2-a) The Collector may sou motu, within two years from the date of registration of any  instrument not already referred to him under sub-section (1), call for purpose of satisfying himself as  to the correctness of its value or consideration, as the case may be, and the duty payable thereon and if  after such examination, he has reasons to believe that the value or consideration has not been truly set  forth in the instrument, he may determine the value or consideration and the duty as aforesaid in  accordance with the procedure provided for in sub-section (2); and the deficient amount of duty, if  any, shall be payable by the person liable to pay the duty.”; 

(b) in sub-section (3), after the word, brackets and figure “sub-section (2)” the words, brackets,  figure and letter “or sub-section (2-a)” shall be inserted. 

[Vide Orissa Act 11 of 1965, s. 2] 

Orissa 

Amendment of section 47-A.—In section 47-A of the principal Act, in sub-section (2-a), for the  words “two years”, the words “three years” shall be substituted. 

[Vide Orissa Act 1 of 2003, s. 5] 

Orissa  

(a) Amendment of section 47-A.—for sub-section (1) the following sub-section shall be  substituted, namely:— 

(1) where the registering officer under the Registration Act, 1908, (16 of 1908) while registering  any instrument of conveyance, exchange, gift, partition or settlement has reasons to believe that the  market value of the property which is the subject matter of such instrument has not been rightly set  forth in the instrument or is less than the minimum value determined in accordance with the rules  made under this Act, he shall, before registering such instrument, refer the matter to the Collector,  with an intimation in writing to the person concerned, for determination of the market value of such  property and the proper duty payable thereon.; and 

(b) in sub-section (2-a) for the words “truly set forth in the instrument”, the words “rightly set  forth in the instrument or is less than the minimum value determined in accordance with the rules  made under this Act” shall be substituted. 

[Vide Orissa Act 8 of 2009, s. 2] 

Orissa  

Insertion of new section 47-A, Act 2 of 1899. —After section 47 of the Indian Stamp Act, 1899 (2 of  1899) (hereinafter referred to as the Principal Act), the following new section shall be inserted, namely:— 

47-A. Instruments under-valued how to be dealt with.— (1) If the registering officer appointed  under the Indian Registration Act, 1908, while registering any instrument transferring any property, has  reasons to believe that the value of the property or the consideration, as the case may be, has not been  truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector  for determination of the value or consideration, as the case may be, and the proper duty payable thereon.

41 

(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties a  reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed  by rules made under this Act, determine the value or consideration and the duty as aforesaid and the  deficient amount of duty, if any, shall be payable by the person liable to pay the duty. 

(3) Any person aggrieved by an order of the Collector under sub-section (2) may, within thirty days  from the date of the order, prefer an appeal before the District judge and all such appeals shall be heard  and disposed of in such manner as may be prescribed by rules made under this Act. 

[Vide Orissa Act 35 of 1962, s. 2] 

Orissa  

Amendment of Section 47-A.— In section 47-A of the Principal Act, for sub-sections (1), (2) and  (2-a), the following sub-sections shall be substituted, namely:  

“(1) Where the registering officer under the Registration Act, 1908 (16 of 1908), while registering any  instrument of conveyance, exchange, gift, partition or settlement has reason to believe that the market  value of the property which is the subject matter of such instrument has not been truly set forth in the  instrument, he may, after registering such instrument, refer the matter to the Collector for determination  of the market value of such property and the proper duty payable thereon. 

(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties an  opportunity of making their representations and after holding an enquiry in such manner as may be  prescribed by rules made under this Act, determine the market value of the property which is the subject  matter of such instrument, and the duty as aforesaid and the deficient amount, if any, shall be payable by  the person liable to pay the duty.  

(2-a) The Collector may suo motu within two years from the date of registration of such instrument,  not already referred to him under sub-section (1), call for and examine the instrument for the purpose of  satisfying himself as to the correctness of the market value of the property which is the subject matter of  such instrument and the duty payable thereon and if after such examination, he has reason to believe that  the market value of such property has not been truly set forth in the instrument, he may determine the  market value of such property and the duty as aforesaid in accordance with the procedure provided for in  sub-section (2) and the deficient amount of duty , if any, shall be payable by the person liable to pay the  duty”. 

[Vide Orissa Act 7 of 1987, s. 6]  

Tripura 

In the Indian Stamp Act, 1899 as in force in the State of Tripura, after section 47, the following new  section shall be inserted namely: — 

47A” Instruments of conveyance etc. undervalued, how to be, dealt with :—(1) If the  Registering Officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908), while  registering any instrument of conveyance, exchange, gift or partition, has reason to believe that the value  of the property which is the subject matter of the instrument, as has been set forth therein is lower than the  market value thereof and proper duty has not been paid he may, after registering such instrument, refer  the same to the Collector for determination of the market value of such property and the proper duty  payable thereon. 

(2) On receipt of a reference under Sub-Section (1), the Collector shall, after giving the parties a  reasonable opportunity of being heard and after holding an enquiry in such manner as may be  prescribed by rules made under this Act, determine the market value of such property and the proper  duty payable thereon and then return the instrument to the Registering Officer after making and  endorsement over his signature thereon indicating the market value of the property so determined and  deficient amount of duty, if any, that shall be payable by the person liable to pay the duty. 

(3) The Collector may, within a period of two year from the date of registration of any instrument  of conveyance, exchange, gift or partition, not already sent to him under sub-section (I), call for as  examine the instrument for the purpose of satisfying himself as to the correctness of the market value 

42 

of the property which is the subject matter of such instrument and the duty paid thereon and if after  such examination, he has reasons to believe that the market value of such property has not been truly  set forth in the instrument and the proper duty has not been truly set forth in the instrument and the  proper duty has not been paid, he may determine the market value thereof and the proper duty payable  thereon in accordance with the provision of sub-section (2). The difference, if any between the duty  determined by the Collector and the duty already paid shall be payable by the person liable to pay the  duty on the instrument: 

Provided that nothing in this sub-section shall apply to any instrument registered before the date of  the commencement of the Indian Stamp (Tripura Third Amendment) Act, 1984. 

(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may  appeal to the appellate authority specified in sub-section (5), All such appeals shall be preferred within  such time, and shall be heard and disposed of in such manner, as may be prescribed by rules made  under this Act. 

(5) The State Government shall, by a Notification in the Official Gazette, appoint a person not  below the rank of a Secretary of any Department to be the appellate authority referred to in  sub-section (4). 

(6) The amount of deficient duty, if any, shall be paid by deposit into Government Treasury by the  person, liable to pay the duty, within a period of thirty days from the date of Notice in this behalf from  the Registering Officer and in case of default in payment, such amount shall be recovered as arrears of  land revenue. 

Explanation: For the purpose of the section the market value of any property shall be estimated to  be the price which in the opinion of the Collector or the appellate authority, as the case may be, such  property would have fetched, if sold in the open market on the date of execution of the instrument of  conveyance, exchange gift or portion. 

[Vide Tripura Act 2 of 1986, s. 2] 

Meghalaya 

Insertion of new Section 47A in Act 11 of 1899.—In the Indian Stamp Act,1899 after the  existing Section 47, the following new Section as Section 47A, shall be inserted, namely:– “47A. Instruments under-valued how to be dealt with.—(1) If registering officer appointed  under the Indian Registration Act, 1908, while registering any instrument transferring any property,  has reason to believe that the value of the property or the consideration, as the case may be has not  been truly set forth in the instrument, he may, after registering such instrument, refer the same to the  Deputy Commissioner, for determination of the value or consideration, as the case may be, and the  proper duty payable thereon. 

(2) On receipt of the reference under sub-section (1), the Deputy Commissioner shall, after giving  the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as  may be prescribed by rules made under this Act, by order, determine the value of the property or the  consideration and the duty aforesaid; and the deficient amount of duty, if any, shall be payable by the  person liable to pay the duty and, on payment of such duty, the Deputy Commissioner shall endorse a  certificate of such payment on the instrument under his seal and signature. 

(3) The Deputy Commissioner may, suo motu, within six months from the date of registration of  any instrument not already referred to him under sub-section (1), call for and examine the instrument  for the purpose of satisfying himself as to the correctness of its value or consideration, as the case  may be, and the duty payable thereon, and if after such examination, he has reason to believe that the  value of consideration has not been truly set forth in the instrument, she may determine the value or  consideration and the duty aforesaid in accordance with procedure provided for in sub-section (2);  and the deficient amount of duty if any, shall be payable by the person liable to pay the duty and, on  the payment of such duty the Deputy Commissioner shall endorse a certificate of such payment on the  instrument under his seal and signature.

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(4) Any person aggrieved by an order of the Deputy Commissioner under sub-section (2) or sub section (3) may appeal to the Meghalaya Board of Revenue. 

(5) An appeal under sub-section (4) shall be filed within 90 (ninety) days of the date of the order  sought to be appealed against.” 

[Vide Meghalaya Act 8 of 1983, s. 2] 

Uttarakhand 

Amendment of section 47-A.—In section 47-A of the Principal Act, :- 

(a) For sub-section (1), the following sub-sections shall be substituted, namely- 

“(1) (a) If the market value of any property which is the subject of any instrument, on which  duty is chargeable on the market value of the property as set forth in such instrument, is less than  even the minimum value determined in accordance with the rules made under this Act, the registering  officer appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the  said Act, immediately after presentation of such instrument and before accepting it for registration  and taking any action under section 52 of the said Act, require the person liable to pay stamp duty  under section 29, to pay the deficit stamp duty as computed on the basis of the minimum value  determined in accordance with the said rules and return the instruments for presenting again in  accordance with section 23 of the Registration Act, 1908; 

(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any  instrument and the instrument is presented again for registration, the registering officer shall certify  by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and  the residence of the person paying them and register the same; 

(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty  may be paid under clause (a) in the form of impressed stamps containing such declaration as may be  prescribed; 

(d) If any person does not make the payment of the deficit stamp duty after receiving the order  referred to in clause (a) and presents the instrument again for registration, the registering officer shall, before registering the instrument, refer the same to the Collector, for determination of the market  value of the property and the proper duty payable thereon. 

(b) in sub-section (3) of section 47-A the following explanation shall be inserted, namely:- 

“Explanation-The payment of deficit stamp duty by any person under any order of registering  officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any  instrument under sub section (3).” 

(c) after sub-section (4), the following sub-section shall be inserted namely:- 

“(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be  paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and a half  per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of  the instrument till the date of actual payment; 

Provided that the amount of interest under this sub-Section shall be recalculated if the amount of  deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority. 

(4-B) The amount of interest payable under sub section (4-A) shall be added to the amount due  and be also deemed for all purposes to be part of the amount required to be paid. 

(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or  authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A)  shall be payable also for any period during which such order of stay remained in operation. 

(4-D) Any amount paid or deposited by or recovered from, or refundable to, a person under the  provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding  against him and the excess if any, shall then be adjusted towards the interest, if any, due from him.” 

[Vide Uttarakhand Act 1 of 2016, s. 8]

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Uttar Pradesh 

Amendment of section 47.—In section 47-A of the principal Act, in sub-section (4), for the words,  “Chief Inspector of Stamp, Uttar Pradesh or any officer of the Stamp Department of the Board of  Revenue”, the words “Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy  Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board  of Revenue in that behalf” shall be substituted. 

[Vide Uttar Pradesh Act 6 of 1980, s. 8] 

Amendment of section 47-A.— In section 47-A of the principal Act— 

(a) in sub-section (1) for the words, “of conveyance, exchange, gift, settlement, award or trust”  the words “on which duty is chargeable on the market value of the property” shall be substituted

(b) in sub-section (2) for the words “of conveyance, exchange, gift, settlement, award or trust”  where they occur for the first time, the words “on which duty is chargeable on the market value of the  property” and for the said words where they occur for the second time, the words “of such  instrument” shall be substituted

(c) in sub-section (3), for the words “of conveyance, exchange, gift, settlement, award or trust,”  the words “of the instrument” shall be substituted

(d) in sub-section (4) for the words, “of conveyance, exchange, gift, settlement, award or trust,”  where they occur for the first time, the words “on which duty is chargeable on the market value of the  property” and for the said words, where they occur for the second time, the words “of such  instrument” shall be substituted

[Vide Uttar Pradesh Act 11 of 1992, s. 4] 

Amendment of section 47-A.—In section 47-A, in sub-section (4), for the words “two years”, the  words “four- years” shall be substituted and be deemed always to have been substituted :— 

[Vide Uttar Pradesh Act 20 of 1974, s. 5] 

Substitution of section 47-A—For section 47-A of the principal Act. the following section shall be  substituted, namely :— 

“47-A (1) If the market value of any property which is the subject of any instrument, on which  duty is chargeable on market value of such property, as set forth in such instrument, is less than even  the minimum value determined in accordance with the rules made under this Act, the registering  officer appointed under the Registration Act, 1908 shall, before registering the instrument, refer the  same to the Collector for determination of the market value of such property and the proper duty  payable thereon. 

(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties  a reasonable opportunity of being heard and after holding an inquiry in such manner as many be  prescribed by rules made under this Act, determine the market value of the property which is the  subject of such instrument and the proper duty payable thereon. 

(3) The Collector may, suo motu, or on a reference from any court or from the Commissioner  of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the State Government in that  behalf, within four years from the date of registration of any instrument on which duty is  chargeable on the market value of the property not already referred to him under sub-section (1)  call for and examine the instrument for the purpose of satisfying himself as to the correctness of  the market value of the property which is the subject for of such instrument, and the duty payable  thereon and if after such examination he has reason to believe that market value of such property  has not been truly set forth in such instrument he may determine the market value of such  property and the duty paable thereon : 

Provided that, with the prior permission of the State Government, an action under this sub-section  may be taken after a period of four years but before a period of eight years from the date of registration of the instrument on which duty is chargeable on the market value of the properly.

45 

(4) If on enquiry under sub-section (2) and examination under sub-section (3) the Collector finds  the market value of the property :— 

(i) truly set forth and the instrument duly Stamped, he shall certify by endorsement that it is  duly stamped and return it to the person who made the reference ; 

(ii) not truly set forth and the instrument not duly stamped he shall require the payment of  proper duty or the amount required to make up the deficiency in the same together with a penalty  of an amount not exceeding four time the amount of the proper duty or the deficient portion  thereof. 

(5) The instrument produced before the Collector under sub-section (2) or under sub-section (3)  shall be deemed to have come before him in the performance of his functions. 

(6) In case the instrument is not produced within the period specified by the Collector, he may  require payment of deficit stamp duty, if any, together with penalty on the copy of the instrument in accordance with the procedure laid down in sub-sections (2) and (4).” 

[Vide Uttar Pradesh Act 22 of 1998, s. 6] 

Amendment of section 47-A.— in section 47-A of the principal Act,— 

(a) for sub-section (1), the following sub-section shall be substituted, namely:— 

“(1) (a) If the market value of any property which is the subject of any instrument, on which duty  is chargeable on the market value of the property as set forth in such instrument, is less than even the  minimum value determined in accordance with the rules made under this Act, the registering officer  appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the said Act,  immediately after presentation of such instrument and before accepting it for registration and taking  any action under section 52 of the said Act, require the person liable to pay stamp duty under section  29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in  accordance with the said rules and return the instrument for presenting again in accordance with  section 23 of the Registration Act, 1908. 

(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any  instrument and the instrument is presented again for registration, the registering officer shall certify  by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and  the residence of the person paying them and register the same. 

(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty  may be paid under clause (a) in the form of impressed stamps containing such declaration as may be  prescribed. 

(d) If any person does not make the payment of deficit stamp duty after receiving the order  referred to in clause (a) and presents the instrument again for registration, the registering officer shall,  before registering the instrument, refer the same to the Collector, for determination of the market value of  the property and the proper duty payable thereon.” 

(b) in sub-section (3), the following explanation shall be inserted, namely : — 

Explanation :— The payment of deficit stamp duty by any person under any order of registering  officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any  instrument under sub-section (3).” 

(c) after sub-section (4), the following sub-sections shall be inserted, namely :— 

(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be  paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and half  per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of  the instrument till the date of actual payment : 

Provided that the amount of interest under this sub-section shall be recalculated if the amount of  deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.

46 

(4-B) The amount of interest payable under sub-section (4-A) shall be added to the amount due  and be also deemed for all purposes to be part of the amount required to be paid. 

(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or  authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A)  shall be payable also for any period during which such order of stay remained in operation. 

(4-D) Any amount paid or deposited by, or recovered from, or refundable to, a person under the  provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding  against him and the excess, if any, shall then be adjusted towards the interest, if any, due front him.” 

[Vide Uttar Pradesh Act 38 of 2001, s. 7] 

Amendment of section 47-A.— In section 47-A of the principal, Act— 

(a) in sub-section (1) for the words. “is less than that determined in accordance with any rules  made under this Act”, the words, “is less than even the minimum value determined in accordance  with any rules made under this Act shall be substituted

(b) in sub-section (4), for the words, “or on a reference from Chief Inspector of Stamps, Uttar  Pradesh” the words, “or on a reference from any court or from the Chief Inspector of Stamps, Uttar  Pradesh or any officer of the Stamp Department of the Board of Revenue.” shall be substituted

[Vide Uttar Pradesh Act 49 of 1975, s. 6] 

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

STATE AMENDMENT 

Orissa 

Amendment of Section 48-A.—For Section 48-A of the Principal Act, the following section shall be  substituted, namely:— 

48-A. Notwithstanding anything contained in this Act, no certificate or endorsement under this Act ,  in respect of any instrument chargeable in the State of Orissa with a higher rate of duty under this Act,  for the time being in force as amended from time to time by the Orissa Acts shall be received in  evidence or be in any way valid in respect of the payment of duty on such instrument or in respect of the  chargeability of such instrument with duty unless the duty chargeable under the Orissa Act, has been  paid on such instrument.”. 

[Vide Orissa Act 7 of 1987, s. 7] 

Uttar Pradesh 

Amendment of section 48.— For section 48 of the principal Act, the following section shall be  substituted, namely :— 

“48. All duties penalties and other sums required to be paid under this Act may be recovered by the  Collector by distress and sale of the movable property of the person from whom the same are due or by  any other process for the time being in force for the recovery of arrears of land revenue.” 

[Vide Uttar Pradesh Act 49 of 1975, s. 7]

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CHAPTER V 

ALLOWANCES FOR STAMPS IN CERTAIN CASES 

  1. Allowance for spoiled stamps.—Subject to such rules as may be made by 1[the 2[State  Government]] as to the evidence to be required, or the enquiry to be made, the Collector may, on  application made within the period prescribed in section 50, and if he is satisfied as to the facts, make  allowance for impressed stamps spoiled in the cases herein after mentioned, namely:— 

(a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in  writing or any other means rendered unfit for the purpose intended before any instrument written  thereon is executed by any person: 

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

(c) in the case of bills of exchange 3[payable otherwise than on demand] 4*** or promissory  notes— 

(1) the stamp on 5[any such bill of exchange] 6*** signed by or on behalf of the drawer which  has not been accepted or made use of in any manner whatever or delivered out of his hands for any  purpose other than by way of tender for acceptance: 

provided that the paper on which any such stamp is impressed, does not bear any signature  intended as or for the acceptance of any bill of exchange 7*** to be afterwards written thereon: 

(2) the stamp on any promissory note signed by or on behalf of the maker which has not  been made use of in any manner whatever or delivered out of his hands: 

(3) the stamp used or intended to be used for 8[any such bill of exchange] 9*** or promissory  note signed by, or on behalf of, the drawer thereof, but which from any omission or error has  been spoiled or rendered useless, although the same, being a bill of exchange 1*** may have  been presented for acceptance or accepted or endorsed, or, being a promissory note, may have  been delivered to the payee: provided that another completed and duly stamped bill of exchange 

3*** or promissory note is produced identical in every particular, except in the correction of  such omission or error as aforesaid, with the spoiled bill,3*** or note; 

(d) the stamp used for an instrument executed by any party thereto which— 

(1) has been afterwards found to be absolutely void in law from the beginning: 

(2) has been afterwards found unfit, by reason of any error or mistake therein, for the  purpose originally intended: 

(3) by reason of the death of any person by whom it is necessary that it should be executed,  without having executed the same, or of the refusal of any such person to execute the same,  cannot be completed so as to effect the intended transaction in the form proposed: 

(4) for want of the execution thereof by some material party, and his inability or refusal to  sign the same, is in fact incomplete and insufficient for the purpose for which it was intended: 

(5) by reason of the refusal of any person to act under the same, or to advance any money  intended to be thereby secured, or by the refusal or non-acceptance of any office thereby  granted, totally fails of the intended purpose: 

  

  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, s. 5, ibid, for “any bill of exchange”. 
  6. The words “or cheque” omitted by s. 5, ibid
  7. The words “or cheque” omitted by Act 5 of 1927 s. 5. 
  8. Subs. by s. 5, ibid, for “any bill of exchange”. 
  9. The word “cheque” omitted by s. 5, ibid.

48 

(6) becomes useless in consequence of the transaction intended to be thereby effected being  effected by some other instrument between the same parties and bearing a stamp of not less  value: 

(7) is deficient in value and the transaction intended to be thereby effected has been effected  by some other instrument between the same parties and bearing a stamp of not less value: 

(8) is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made  between the same parties and for the same purpose is executed and duly stamped: 

Provided that, in the case of an executed instrument, no legal proceeding has been commenced  in which the instrument could or would have been given or offered in evidence and that the  instrument is given up to be cancelled. 

Explanation.—The certificate of the Collector under section 32 that the full duty with which an  instrument is chargeable, has been paid is an impressed stamp within the meaning of this section. 

  1. Application for relief under section 49 when to be made.—The application for relief under  section 49 shall be made within the following periods, that is to say,— 

(1) in the cases mentioned in clause (d) (5), within two months of the date of the instrument: 

(2) in the case of a stamped paper on which no instrument has been executed by any of the parties  thereto, within six months after the stamp has been spoiled: 

(3) in the case of a stamped paper in which an instrument has been executed by any of the parties  thereto, within six months after the date of the instrument, or, if it is not dated, within six months after  the execution thereof by the person by whom it was first or alone executed: 

Provided that,— 

(a) when the spoiled instrument has been for sufficient reasons sent out of 1[India], the  application may be made within six months after it has been received back in 1[India] ; 

(b) when, from unavoidable circumstances, any instrument for which another instrument has been  substituted, cannot be given up to be cancelled within the aforesaid period, the application may be  made within six months after the date of execution of the substituted instrument. 

  1. Allowance in case of printed forms no longer required by Corporations.—The Chief  Controlling Revenue-authority 2[or the Collector if empowered by the Chief Controlling Revenue authority in this behalf] may, without limit of time, make allowance for stamped papers used for printed  forms of instruments 3[by any banker or] by any incorporated company or other body corporate, if for any  sufficient reason such forms have ceased to be required by the said 3[banker], company or body corporate:  provided that such authority is satisfied that the duty in respect of such stamped papers has been duly  paid. 
  2. Allowance for misused stamps.—(a) When any person has inadvertently used for an instrument  chargeable with duty, a stamp of a description other than that prescribed for such instrument by the rules  made under this Act, or a stamp of greater value than was necessary, or has inadvertently used any stamp  for an instrument not chargeable with any duty; or 

(b) when any stamp used for an instrument has been inadvertently rendered useless under section 15,  owing to such instrument having been written in contravention of the provisions of section 13; 

the Collector may, on application made within six months after the date of the instrument, or, if it is not  dated, within six months after the execution thereof by the person by whom it was first or alone executed,  and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, cancel and allow  as spoiled the stamp so misused or rendered useless. 

  

  1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956). 
  2. Ins. by Act 4 of 1914, s. 2 and the Schedule Pt. 1. 
  3. Ins. by Act 5 of 1906, s. 6.

49 

  1. Allowance for spoiled or misused stamps how to be made.—In any case in which allowance is  made for spoiled or misused stamps, the Collector may give in lieu thereof — 

(a) other stamps of the same description and value; or 

(b) if required and he thinks fit, stamps of any other description to the same amount in value; or 

(c) at his discretion, the same value in money, deducting 1[ten nayepaise] for each rupee or  fraction of a rupee. 

  1. Allowance for stamps not required for use.—When any person is possessed of a stamp or  stamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for which  he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in  money, deducting 4[ten nayepaise] for each rupee or portion of a rupee, upon such person delivering up  the same to be cancelled, and proving to the Collector’s satisfaction— 

(a) that such stamp or stamps were purchased by such person with a bona fide intention to use  them; and 

(b) that he has paid the full price thereof; and 

(c) that they were so purchased within the period of six months next preceding the date on which  they were so delivered: 

Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit,  make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid. 

2[54A. Allowances for stamps in denominations of annas.—Notwithstanding anything contained in  section 54, when any person is possessed of a stamp or stamps in any denominations, other than in  denominations of annas four of multiples thereof and such stamp or stamps has or have not been spoiled,  the Collector shall repay to such person the value of such stamp or stamps in money calculated in  accordance with the provisions of sub-section (2) of section 14 of the Indian Coinage Act, 1906, (3 of  1906) upon such person delivering up, within six months from the commencement of the Indian Stamp  (Amendment) Act,1958 (19 of 1958), such stamp or stamps to the Collector.] 

3[54B. Allowances for Refugee Relief Stamps.—Notwithstanding anything contained in section 54,  when any person is possessed of stamps bearing the inscription “Refugee Relief” (being stamps issued in  pursuance of section 3A before its omission) and such stamps have not been spoiled, the Collector shall,  upon such person delivering up, within six-month, from the commencement of the Refugee Relief Taxes  (Abolition) Act, 1973 (13 of 1973), such stamps to the Collector, refund to such person the value of such  stamps in money or give in lieu thereof other stamps of the same value: 

Provided that the State Government may, with a view to facilitating expeditious disposal of claims for  such refunds, specify, in such manner as it deems fit, any other procedure which may also be followed for  claiming such refunds.] 

  1. Allowance on renewal of certain debentures.—When any duly stamped debenture is renewed  by the issue of a new debenture in the same terms, the Collector shall, upon application made within one  month, repay to the person issuing such debenture, the value of the stamp on the original or on the new  debenture, whichever shall be less: 

Provided that the original debenture is produced before the Collector and cancelled by him in such  manner as 4[the State Government] may direct. 

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

  

  1. Subs. by Act 19 of 1958, s. 8, for “one anna” (w.e.f. 1-10-1958).  
  2. Ins. by Act 19 of 1958, s. 9, (w.e.f. 1-10-1958). 
  3. Ins. by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973). 
  4. Subs. by the A. O. 1937, for “the G.G. in C.”.

50 

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

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

(c) the substitution of the name of the holder at the time of renewal for the name of the original  holder; and 

(d) the alteration of the rate of interest or the dates of payment thereof. 

CHAPTER VI 

REFERENCE AND REVISION 

  1. Control of, and statement of case to, Chief Controlling Revenue-authority.—(1) The powers  exercisable by a Collector under Chapter IV and Chapter V 1[and under clause (a) of the first proviso to  section 26] shall in all cases be subject to the control of the Chief Controlling Revenue-authority. 

(2) If any Collector, acting under section 31, section 40 or section 41, feels doubt as to the amount of  duty with which any instrument is chargeable, he may draw up a statement of the case, and refer it, with  his own opinion thereon, for the decision of the Chief Controlling Revenue-authority. 

(3) Such authority shall consider the case and send a copy of its decision to the Collector, who shall  proceed to asses and charge the duty (if any) in conformity with such decision. 

STATE AMENDMENT 

Uttarakhand 

Amendment of section 56.—In Section 56 of the Principal Act, after sub-section (1) the following  sub-section shall be inserted, namely:- 

“(1-A) Notwithstanding anything contained in any other provisions of this Act, any person Including  the Government aggrieved by any order of the Collector under chapter-IV, chapter-V or under clause (a)  of the first proviso to section 26 may, within 60 days from the date receipt of such order, prefer an appeal  against such order to the Chairman, Board of Revenue who shall, after giving the parties a reasonable  opportunity of being heard consider the case and pass such order thereon as he thinks just and proper and  the order so passed shall be final. 

Provided that no application for stay of recovery of any disputed amount of stamp duty including  interest thereon or penalty shall be entertained unless the applicant has furnished satisfactory proof of the  payment of not less than one third of such disputed amount. 

Provided further that where the Chairman, Board of Revenue passes an order for the stay of recovery  of any stamp duty, interest thereon or penalty or for the stay of the operation of any order appealed  against and such order results in the stay of recovery of any stamp duty, interest thereon or penalty, such  stay order shall not remain in force for more than 30 days unless the appellant furnishes adequate security  to the satisfaction of the Collector concern for the payment of the outstanding amount.” 

[Vide Uttarakhand Act 1 of 2016, s. 9] 

Uttar Pradesh  

Amendment of section 56.— In section 56 of the principal Act, after sub-section (1), the following  sub-section shall be inserted, namely :-— 

“(1-A) Notwithstanding anything contained in any other provisions of this Act, any person including  the Government aggrieved by an order of the Collector under Chapter-IV, Chapter-V or under clause (a)  of the first proviso to section 26 may, within sixty days from the date receipt of such order, prefer an  appeal against such order to the Chief Controlling Revenue Authority, who shall, after giving the parties a  reasonable opportunity of being heard consider the case and pass such order thereon as he thinks just and  proper and the order so passed shall be final : 

  

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

51 

Provided that no application for stay of recovery of any disputed amount of stamp duty including  interest thereon or penalty shall be entertained unless the applicant has furnished satisfactory proof of the  payment of not less than one third of such disputed amount ;  

Provided further that where the Chief Controlling Revenue Authority passes an order for the stay of  recovery of any stamp duty, interest thereon or penalty or for the stay of the operation of any order  appealed against and such order results in the stay of recovery of any stamp duty, interest thereon or  penalty, such stay order shall not remain in force for more than thirty days unless the appellant furnishes  adequate security to the satisfaction of the Collector concerned for the payment of the outstanding  amount.” 

[Vide Uttar Pradesh Act 38 of 2001, s. 8] 

  1. Statement of case by Chief-Controlling Revenue-authority to High Court.—(1) The Chief  Controlling Revenue-authority may state any case referred to it under section 56, sub-section (2), or  otherwise coming to its notice, and refer such case, with its own opinion thereon,— 

1[(a) if it arises in a State, to the High Court for that State; 

2[(b) if it arises in the Union territory of the Delhi, to the High Court of Delhi;] 

3* * * * * 

4[(c) if it arises in the Union territory of the Arunachal Pradesh or Mizoram, to the Gauhati High  Court (the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura;)] 

(d) if it arises in the Union territory of the Andaman and Nicobar Islands, to the High Court at  Calcutta; 

(e) if it arises in the Union territory of the 5[Lakshadweep], to the High Court of Kerala;] 

6[(ee) if it arises in the Union territory of the Chandigarh, to the High Court of Punjab and  Haryana;] 

7[(f) if it arises in the Union territory of Dadra and Nagar Haveli, to the High Court of Bombay.] 

(2) Every such case shall be decided by not less than three Judges of the High Court 8*** to which it  is referred, and in case of difference the opinion of the majority shall prevail. 

  1. Power of High Court to call for further particulars as to case stated.—If the High Court 9***  is not satisfied that the statements contained in the case are sufficient to enable it to determine the  questions raised thereby, the Court may refer the case back to the Revenue-authority by which it was  stated, to make such additions thereto or alterations therein as the Court may direct in that behalf. 
  2. Procedure in disposing of case stated.—(1) The High Court, 9*** upon the hearing of any such  case, shall decide the questions raised thereby, and shall deliver its judgment thereon containing the  grounds on which such decision is founded. 

  

  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 the Schedule ibid. And omitted by the State of Himachal Pradesh (Adaptation of Laws 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 the Schedule  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 the  Schedule 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 Commissioner’s Court” omitted by the A.O. 1950. 
  9. The words “Chief Court or Judicial Commissioner’s Court” omitted by the A.O. 1948.

52 

(2) The Court shall send to the Revenue-authority by which the case was stated, a copy of such  judgment under the seal of the Court and the signature of the Registrar; and the Revenue-authority shall,  on receiving such copy, dispose of the case conformably to such judgment. 

  1. Statement of case by other Courts to High Court.—(1) If any Court, other than a Court  mentioned in section 57, feels doubt as to the amount of duty to be paid in respect of any instrument  under proviso (a) to section 35, the Judge may draw up a statement of the case and refer it, with his own  opinion thereon, for the decision of the High Court 9*** to which, if he were the Chief Controlling  Revenue-authority, he would, under section 57, refer the same. 

(2) Such Court shall deal with the case as if it had been referred under section 57, and send a copy of  its judgment under the seal of the Court and the signature of the Registrar to the Chief Controlling  Revenue-authority and another like copy to the Judge making the reference, who shall, on receiving such  copy, dispose of the case conformably to such judgment. 

(3) References made under sub-section (1), when made by a Court subordinate to a District Court,  shall be made through the District Court, and, when made by any subordinate Revenue Court, shall be  made through the Court immediately superior. 

  1. Revision of certain decisions of Courts regarding the sufficiency of stamps. —(1) When any  Court in the exercise of its civil or revenue jurisdiction or any Criminal Court in any proceeding under  Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898), makes any order  admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of  duty and a penalty under section 35, the Court to which appeals lie from, or references are made by, such  first-mentioned Court may, of its own motion or on the application of the Collector, take such order into  consideration. 

(2) If such Court, after such consideration, is of opinion that such instrument should not have been  admitted in evidence without the payment of duty and penalty under section 35, or without the payment  of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the  amount of duty with which such instrument is chargeable, and may require any person in whose  possession or power such instrument then is, to produce the same, and may impound the same when  produced. 

(3) When any declaration has been recorded under sub-section (2), the Court recording the same shall  send a copy thereof to the Collector, and, where the instrument to which it relates has been impounded or  is otherwise in the possession of such Court, shall also send him such instrument. 

(4) The Collector may thereupon, notwithstanding anything contained in the order admitting such  instrument in evidence, or in any certificate granted under section 42, or in section 43, prosecute any  person for any offence against the Stamp-law which the Collector considers him to have committed in  respect of such instrument: 

Provided that, –– 

(a) no such prosecution shall be instituted where the amount (including duty and penalty) which,  according to the determination of such Court, was payable in respect of the instrument under section  35, is paid to the Collector, unless he thinks that the offence was committed with an intention of  evading payment of the proper duty; 

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

STATE AMENDMENT 

Uttar Pradesh 

Amendment of section 61. –In section 61 of the principal Act, in sub-section (1), for the words and  figures “Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898,” the worth and figures 

53 

“sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall be  substitute. 

[Vide Uttar Pradesh Act 6 of 1980, s. 9] 

CHAPTER VII 

CRIMINAL OFFENCES AND PROCEDURE 

  1. Penalty for executing, etc., instrument not duly stamped. ––(1) Any person–– 

(a) drawing, making, issuing, endorsing or transferring, or signing otherwise than as a witness, or  presenting for acceptance or payment, or accepting, paying or receiving payment of, or in any manner  negotiating, any bill of exchange 1[payable otherwise than on demand] 2*** or promissory note  without the same being duly stamped; or 

(b) executing or signing otherwise than as a witness any other instrument chargeable with duty  without the same being duly stamped; or 

(c) voting or attempting to vote under any proxy not duly stamped, 

shall for every such offence be punishable with fine which may extend to five hundred rupees: 

Provided that, when any penalty has been paid in respect of any instrument under section 35, section  40 or section 61, the amount of such penalty shall be allowed in reduction of the fine, (if any)  subsequently imposed under this section in respect of the same instrument upon the person who paid such  penalty. 

(2) If a share-warrant is issued without being duly stamped, the company issuing the same, and also  every person who, at the time when it is issued, is the managing director or secretary or other principal  officer of the company, shall be punishable with fine which may extend to five hundred rupees. 

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 62.—In the Indian Stamp act, 1899 (2 of 1899) in its application to the state  of Arunachal Pradesh. 

(1) (i) in section 62, in clause (c), for the words “five hundred rupees”, the words “two thousand  rupees” shall be substituted. 

(ii) in section 62, in sub-section (2), for the words “five hundred rupees”, the words “five  thousand rupees” shall be substituted. 

[Vide Arunachal Pradesh Act 3 of 2010, s. 2] 

Uttarakhand 

Amendment of section 62.—In sub-section (1) of section 62 of the Principal Act for the words,  “shall for every such offence, be punishable with fine which may extend to five hundred rupees”, shall be  substituted as follows, namely:– 

“shall for every such offence, be punishable with fine which may extend to five thousand rupees”. [Vide Uttarakhand Act 1 of 2016, s. 10] 

3[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 

  

  1. Ins. by Act 5 of 1927, s. 5. 
  2. The word “cheque” omitted by s. 5, ibid
  3. Ins. by Act 7 of 2019, s. 18 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

54 

(b) being required under sub-section (4) of section 9A to transfer the duty to the State  Government within fifteen days of the expiry of the time specified therein, fails to transfer within  such time, 

shall be punishable with fine which shall not be less than one lakh rupees, but which may extend up to  one per cent. of the collection or transfer so defaulted. 

(2) Any person who,— 

(a) being required under sub-section (5) of section 9A to submit details of transactions to the  Government, fails to submit the same; or 

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

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

Uttar Pradesh 

Amendment of section 62.— In section 62 of the principal Act, in sub-section (1), for the words, “shall,  for every such offence, be punishable with fine which may extend to five hundred rupees”, the words,  “shall, for every such offence, be punishable with imprisonment for a term which shall not be less than  one month but which may extend to six months and with fine which may extend to five thousand rupees”  shall be substituted

[Vide Uttar Pradesh Act 38 of 2001, s. 9] 

  1. Penalty for failure to cancel adhesive stamp.––Any person required by section 12 to cancel an  adhesive stamp, and failing to cancel such stamp in manner prescribed by that section, shall be punishable  with fine which may extend to one hundred rupees. 

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 63,– 

(2) in section 63, for the words “one hundred rupees”, the words “five hundred rupees” shall be  substituted. 

[Vide Arunachal Pradesh Act 3 of 2010, s. 2] 

  1. Penalty for omission to comply with provisions of section 27.––Any person who, with intent to  defraud the Government,–– 

(a) executes any instrument in which all the facts and circumstances required by section 27 to be  set forth in such instrument are not fully and truly set forth; or 

(b) being employed or concerned in or about the preparation of any instrument, neglects or omits  fully and truly to set forth therein all such facts and circumstances; or 

(c) does any other act calculated to deprive the Government of any duty or penalty under this Act; shall be punishable with fine which may extend to five thousand rupees. 

STATE AMENDMENT 

Orissa 

Amendment of Section 64.––In section 64 of the Principal Act, the words “and where the person is  liable to pay the duty shall also be liable to pay the deficient amount of duty” shall be added at the end. [Vide Orissa Act 7 of 1987, s. 8]

55 

Arunachal Pradesh 

Amendment of sections 64,- 

(3) in section 64, in clause (c), for the words “five thousand rupees”, the words “ten thousand rupees”  shall be substituted. 

[Vide Arunachal Pradesh Act 3 of 2010, s. 2] 

Uttar Pradesh 

Amendment of section 64.— In. section 64 of the principal Act, for the words, “with fine which may  extend to five thousand rupees,” the words “imprisonment for a term which may extend to three months  or with fine which may extend to ten thousand rupees or with both” shall be substituted. 

[Vide Uttar Pradesh Act 22 of 1998, s. 7] 

Insertion of new sections 64-A and 64-B. After section 64 of the principal Act, the following  sections shall be inserted, namely :— 

“64-A.Penalty for omission to comply with sections II-A and article 25-A of Schedule I-B.—Any  person who either refuses or neglects to stamp a counter-part or-duplicate (including counterfoil or carbon  as-copy) of any bill or cash memo on the date of its issue in accordance with Article 25-A of Schedule I B or fails to pay the duty in cash in accordance with section II-A or where the same is paid in cash, fails  to maintain a proper account thereof in accordance with sub-section (2) of section 11-A, shall for every  such offence be punishable with fine which may extend to five hundred rupees

64-B. Recovery of amount of deficit stamp duty.—(1) Where any person liable to pay duty under  this Act is convicted of an offence under section 62 or 64, in respect of any instrument (not being an  instrument specified in Entry 91 of List I in the Seventh Schedule to the Constitution), the Magistrate  shall in addition to any punishment which may be imposed for such offence, direct recovery of the  amount of duty .and penalty, if any, due under this Act from such person in respect of that instrument, and  such amount shall also be recoverable as if it were a fine imposed by the Magistrate. 

(2) Upon such recovery the Collector shall thereupon certify by endorsement on the instrument that  proper duty or penalty, as the case may be, has been levied in respect thereof.” 

[Vide Uttar Pradesh Act 49 of 1975, s. 8] 

  1. Penalty for refusal to give receipt, and for devices to evade duty on receipts.––Any person  who,–– 

(a) being required under section 30 to give a receipt, refuses or neglects to give the same; or, 

(b) with intent to defraud the Government of any duty, upon a payment of money or delivery of  property exceeding twenty rupees in amount or value, gives a receipt for an amount or value not  exceeding twenty rupees, or separates or divides the money or property paid or delivered; 

shall be punishable with fine which may extend to one hundred rupees. 

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 65,- 

(4) in section 65, in clause (b), for the words “one hundred rupees”, the words “five hundred  rupees” shall be substituted. 

[Vide Arunachal Pradesh 3 of 2010, s. 2] 

  1. Penalty for not making out policy or making one not duly stamped.––Any person who–– 

(a) receives, or takes credit for, any premium or consideration for any contract of insurance and  does not, within one month after receiving, or taking credit for, such premium or consideration, make  out and execute a duly stamped policy of such insurance; or 

(b) makes, executes or delivers out any policy which is not duly stamped, or pays or allows in  account, or agrees to pay or allow in account, any money upon, or in respect of, any such policy;

56 

shall be punishable with fine which may extend to two hundred rupees. 

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 66,-In section 66, in clause (b), for the words “two hundred rupees”, the words  “five hundred rupees” shall be substituted. 

[Vide Arunachal Pradesh 3 of 2010, s. 2] 

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

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 67,- 

In section 67, for the words “one thousand rupees” the words “two thousand rupees” shall be substituted. [Vide Arunachal Pradesh 3 of 2010, s. 2] 

  1. Penalty for post-dating bills, and for other devices to defraud the revenue.––Any person  who, –– 

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

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

(c) with the like intent, practices or is concerned in any act, contrivance or device not specially  provided for by this Act or any other law for the time being in force; 

shall be punishable with fine which may extend to one thousand rupees. 

STATE AMENDMENT 

Arunachal Pradesh 

Amendment of sections 68,- 

(7) in section 68, in clause (c), for the words “one thousand rupees” , the words “two thousand  rupees” shall be substituted. 

[Vide Arunachal Pradesh Act 3 of 2010, s. 2] 

  1. Penalty for breach of rule relating to sale of stamps and for unauthorised sale.––(a) Any  person appointed to sell stamps who disobeys any rule made under section 74; and 

(b) any person not so appointed who sells or offers for sale any stamp (other than a 2[ten naye paise or  five nayepaise] adhesive stamp); 

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

  

  1. Ins. by Act 5 of 1927, s. 5.  
  2. Subs. by Act 19 of 1958, s. 10, for “one anna or half an anna” (w.e.f. 1-10-1958).

57 

STATE AMENDMENT 

Arunachal Pradesh  

Amendment of sections 69,- 

(8) in section 69, in clause (b), for the words “five hundred rupees”, the words “five thousand  rupees” shall be substituted. 

[Vide Arunachal Pradesh Act 3 of 2010, s. 2] 

  1. Institution and conduct of prosecutions.––(1) No prosecution in respect of any offence  punishable under this Act or any Act hereby repealed, shall be instituted without the sanction of the  Collector or such other officer as 1[the 2[State Government]] generally, or the Collector specially,  authorizes in that behalf. 

(2) The Chief Controlling Revenue-authority, or any officer generally or specially authorized by it in  this behalf, may stay any such prosecution or compound any such offence. 

(3) The amount of any such composition shall be recoverable in the manner provided by section 48. 71. Jurisdiction of Magistrate.––No Magistrate other than a Presidency Magistrate or a Magistrate  whose powers are not less than those of a Magistrate of the second class, shall try any offence under this  Act. 

  1. Place of trial.––Every such offence committed in respect of any instrument may be tried in any  district or presidency-town in which such instrument is found, as well as in any district or presidency town in which such offence might be tried under the Code of Criminal Procedure for the time being in  force. 

CHAPTER VIII 

SUPPLEMENTAL PROVISIONS 

  1. Books, etc., to be open to inspection.–– Every public officer having in his custody any registers,  books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or  to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable  times permit any person authorized in writing by the Collector to inspect for such purpose the registers,  books, papers, documents and proceedings, and to take such notes and extracts as he may deem  necessary, without fee or charge. 

STATE AMENDMENT 

Orissa  

Amendment of section 73.––For section 73 of the principal Act, the following section shall be  substituted, namely:— 

(1) Every public officer or any person having in his custody any registers, books, records, papers,  documents or proceedings, the inspections whereof may tend to secure any duty, or to prove or lead to  the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any  officer authorized in writing by the Collector to enter upon any premises and to inspect for such purposes  the registers, books, records, papers, documents and proceedings and to take such notes and extracts, as  he may deem necessary, without fee or charge and if necessary to seize them and impound the same under  proper acknowledgement: 

Provided that such seizure of any registers, books, records, papers, documents or proceedings in the  custody of any Bank be made only after a notice of thirty days to make good the deficit of stamp duty is  given. 

Explanation—For the purposes of this proviso ‘Bank’ means a banking company as defined in  section 5 of the Banking Regulation Act, 1949 and includes the State Bank of India, constituted by the  State Bank of India Act, 1955, a subsidiary bank as defined in the State Bank of India (Subsidiary Bank)  Act, 1959 corresponding new Bank as define in the Banking Companies (Acquisition and Transfer of  Undertakings) Act, 1980, a Regional Rural Bank established under the Regional Rural Bank Act, 1976,  the Industrial Development Bank of India Act, 1964, National Bank of Agriculture and Rural  Development Act, 1981, the Life Insurance Corporation Act, 1956, the Industrial Fiancé Corporation of  India established under the Industrial Finance Corporation Act, 1948, and as such other financial or  

  

  1. Subs. by the A.O. 1937, for “the L.G.”. 
  2. Subs. by the A.O. 1950, for “collecting Government”. 

58 

banking institution onwned, controlled or managed by a State Government or the Central Government, as  may be notified in this behalf by the Government. 

(2) Every person having in his custody or maintaining such registers, books, records, papers,  documents or proceedings shall, when so required by the officer authorized under sub-section (1),  produce them before such officer and at all reasonable times permit such officer to inspect them and take  such notes and extracts as he may deem necessary. 

(3) if, upon such inspection, the officer so authorized, is of opinion that any instrument is chargeable  with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required  to make up the same form the person liable to pay the stamp duty and in case of default the amount of the  duty shall be recovered as an arrear of land revenue. 

[Vide Orissa Act 1 of 2003, s. 6] 

Orissa  

Amendment of Section 73. —In Explanation to sub-section (1) of Section 73 of the Indian Stamp  Act, 1899, (2 of 1899) for the words and figures “the Industrial Finance Corporation of India established  under the Industrial Finance Corporation Act, 1948”, the words and figures “other public financial  institutions notified under Section 4-A of the Companies Act, 1956 (1 of 1956)” shall be substituted. 

[Vide Orissa Act 5 of 2004, s. 2] 

Uttar Pradesh 

Inserted of new section 73-AAfter section 73 of the principal Act, the following section shall be inferred,  namely :— 

73-A. Collector’s power to authorize officer to enter premises and inspect certain  documents”.—(1) Where the Collector has reason to believe that all or any of the instruments specified  in Articles 5 and 43 of the Schedule 1-B have not been charged at all or have been incorrectly charged  with duty leviable under this Act, he may authorize in writing any officer to enter upon any premises  where the Collector has reason to believe that any registers, books, records, papers, documents or  proceedings relating to or in connection with any such instrument are kept and to inspect them, and to  take such notes and extracts as such officer deems necessary. 

(2) Every person having in his custody or maintaining such registers, books, records, papers,  documents or proceedings shall at all reasonable times, permit such officer to inspect them and to take  such notes and extracts as he may deem necessary.”] 

[Vide Uttar Pradesh Act 6 of 1980, s. 10] 

Amendment of section 73–In seetion:73-A of the principal Act – 

(a) for sub-section (1) the following sub-section shall be substituted namely :— 

“(1) ‘Where the Collector has reason to believe that any instrument chargeable to duty has not  been charged at all or has been incorrectly charged with duty leviable under this Act, he or any  other Officer authorized by him writing in This behalf may enter upon any premises where the  Collector has reason to believe that any registers, books, records papers, maps, documents or  proceedings relating to or in connection with any such instrument are kept and to inspect them and to take such notes, copies and extracts as the Collector or such officer deems necessary.” 

(b) in sub section (2) after the word ”papers” the Word “maps” and after the word “notes” the  word “copies” shall be inserted. 

[Vide Uttar Pradesh Act 22 of 1998, s. 8] 

1[73-A. Power of Central Government to make rules.—(1) The Central Government may, by  notification in the Official Gazette, make rules for carrying out the provisions of Part AA of Chapter II. (2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may  make rules for all or any of the following matters, namely:–– 

  

  1. Ins. by Act 7 of 2019, s. 19 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

59 

(a) the manner of collection of stamp-duty on behalf of the State Government by the stock exchange  or the clearing corporation authorised by it, from its buyer under clause (a) of sub-section (1) of section  9A; 

(b) the manner of collection of stamp-duty on behalf of the State Government by the depository from  the transferor under clause (b) of sub-section (1) of section 9A; 

(c) the manner of collection of stamp-duty on behalf of the State Government by the depository from  the issuer under clause (c) of sub-section (1) of section 9A; 

(d) the manner of transfer of stamp-duty to the State Government under sub-section (4) of section 9A; (e) any other matter which has to be, or may be, provided by rules.] 

1[73B. Power to issue directions and to authorise certain authorities to issue instructions, etc. The Central Government may, 

(a) issue directions relating to such matters and subject to such conditions, as it deems necessary; 

(b) in writing, authorise the Securities and Exchange Board of India established under section 3 of  the Securities and Exchange Board of India Act, 1992 (15 of 1992) or the Reserve Bank of India  constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) to issue instructions,  circulars or guidelines, 

for carrying out the provisions of Part AA of Chapter II and the rules made there under.] 

  1. Powers to make rules relating to sale of stamps.––The 2[State Government] 3*** may make  rules for regulating–– 

(a) the supply and sale of stamps an stamped papers, 

(b) the persons by whom alone such sale is to be conducted, and 

(c) the duties and remuneration of such persons: 

Provided that such rules shall not restrict the sale of 4[ten nayepaise or five nayapaise] adhesive  stamps. 

STATE AMENDMENT 

Uttar Pradesh 

Amendment of section 74.— In section 74 of the principal Act, for clause (c), the following clause shall  be substituted, namely :— 

“(c) the duties and remuneration of and the fees chargeable from such person.” 

[Vide Uttar Pradesh Act 22 of 1998, s. 9] 

  1. Power to make rules generally to carry out Act. ––The 3[State Government] may make rules to  carry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in no  case exceed five hundred rupees, to be incurred on breach thereof. 
  2. Publication of rules. ––5[(1) All rules made under this Act shall be published in the Official  Gazette.] 

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

6[(2A) Every rule made by the Central Government under this Act shall be laid, as soon as may be  after it is made, before each House of Parliament, while it is in session, for a total period of thirty days  which may be comprised in one session or in two or more successive sessions, and if, before the expiry of  the session immediately following the session or the successive sessions aforesaid, both Houses agree in  making any modification in the rule or both Houses agree that the rule should not be made, the rule shall  

  

  1. Ins. by Act 12 of 2020, s. 144 (w.e.f. 1-4-2020). 
  2. Subs. by the A.O. 1950, for “collecting Government”. 
  3. The words “Subject to the Control of the G.G. in C” omitted by the A.O.1937. 
  4. Subs. by Act 19 of 1958 s. 10, for “one anna or half an anna” (w.e.f. 1-10-1958). 
  5. Subs. by the A.O. 1937, for sub-section (1). 
  6. Ins. by Act 7 of 2019, s. 20 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

60 

thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done  under that rule.] 

1[(3) Every rule made by the State Government under this Act shall be laid, as soon as may be after it  is made, before the State Legislature.] 

2[76A.Delegation of certain powers .––3[4*** The State Government may, by notification in the  Official Gazette], delegate–– 

(a) all or any of the powers conferred on it by sections 2(9), 33(3), (b), 70(1), 74 and 78 to the  Chief Controlling Revenue-authority; and 

(b) all or any of the powers conferred on the Chief Controlling Revenue-authority by sections 45  (1), (2), 56 (1) and 70 (2) to such subordinate Revenue-authority as may be specified in the  notification.] 

STATE AMENDMENT 

Uttar Pradesh 

Amendment of section 76-A to Act no. II of 1899.—In section 76-A of the Indian Stamp Act, 1899, as  amended in its application to Uttar Pradesh, in clause (b) for the figures “56 (1)” the figures and letter “56  (1) (1-A)” shall be substituted. 

[Vide Uttar Pradesh Act 1 of 2016, s. 2] 

  1. Saving as to court-fees.––Nothing in this Act contained shall be deemed to affect the duties  chargeable under any enactment for the time being in force relating to court-fee. 

STATE AMENDMENT 

Himachal Pradesh 

 Amendment of Section 77. ––At the beginning of section 77 of the said Act the following words  shall be inserted, namely:- 

“Except for the provisions as to copies contained in section 6-A”. 

[Vide Himachal Pradesh Act 4 of 1953, s. 11] 

Orissa  

Section 77-A, Act 2 of 1899.––After section 77 of the principal Act the following new section shall  be inserted, namely:–– 

77-A. Fractions of five naye paise to be rounded off.–– In the determination of the amount of duly  payable or of allowance to be made under this Act, any fraction of five naye paise shall be rounded off to  the next higher five naye paise. 

[Vide Orissa Act 35 of 1962, s. 3] 

5[77A. Saving as to certain stamps.––All stamps in denominations of annas four or multiples thereof  shall be deemed to be stamps of the value of twenty-five nayepaise or, as the case may be, multiples  thereof and shall, accordingly, be valid for all the purposes of this Act.] 

  

  1. Ins. by Act 4 of 2005, s. 2 and the Schedule. 
  2. Ins. by Act 4 of 1914, s. 2 and the Schedule Pt. I.  
  3. Subs. by the A.O. 1937, for “The Local Government may, by notification in the Local Official Gazette”. 4. The words, figures and brackets “The Central Government subject to the provision of section 124(1) of the Government of  India Act, 1935, and” omitted by the A.O. 1950.  
  4. Ins. by Act 19 of 1958, s. 11 (w.e.f. 1-10-1958).

61 

STATE AMENDMENT 

Orissa  

Repeal of section 77-A, (Act 2 of 1899). –– Section 77-A of the Indian Stamp Act, 1899 (2 of 1899)  (hereinafter referred a to as the principal Act), shall be omitted. 

[Vide Orissa Act 9 of 1970, s. 2] 

  1. Act to be translated, and sold cheaply. –– Every State Government shall make provision for the  sale of translations of this Act in the principal vernacular languages of the territories administered by it at  a price not exceeding 1[twenty-five nayepaise] per copy. 

STATE AMENDMENT 

Assam 

Substitution of section 78.—In the principal Act, for section 78, the following shall be substituted,  namely,— 

“78. Duty or allowance to be rounded off to 78 the next rupee.—If the total amount of duty  payable, or of allowance to be made under this Act is not a round figure, the total amount shall be  rounded off the next rupee.” 

[Vide Assam Act 22 of 2004, s. 5] 

Uttar Pradesh 

Omission of section 78.— Section 78 of the principal Act shall be omitted. 

[Vide Uttar Pradesh Act 22 of 1998, s. 10] 

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

  

  1. Subs. by Act 19 of 1958, s. 12, “four annas” (w.e.f. 1-10-1958).

62 

SCHEDULE 1 

STAMP-DUTYON INSTRUMENTS 

(See section 3) 

Description of Instrument Proper Stamp-duty 

1[5. AGREEMENT OR MEMORANDUM OFAN  

AGREEMENT— 

(a) if relating to the sale of a bill of exchange; Two annas. 

(b) if relating to the sale of a Government security  or share in an incorporated company or other body  corporate; 

Subject to a maximum of ten rupees, one anna for every Rs. 10,000 or part thereof of the value  of the security or share. 

(c) if not otherwise provided for Eight annas. 

Exemptions 

Agreement or memorandum of agreement— 

(a) for or relating to the sale of goods or merchandise  exclusively, not being a NOTEOR MEMORANDUM chargeable under No. 43; 

(b) made in the form of tenders to the Central  Government for or relating to any loan; 

2* * * * 

AGREEMENT TO LEASE. See LEASE (No. 35). 

3[6.AGREEMENT RELATING TO DEPO- SIT  

OF TITLE-DEEDS, PAWN OR PLEDGE, that is  to say, any instrument evidencing an agreement  

relating to — 

(1) the deposit of title-deeds or instruments  constituting or being evidence of the title to any  property whatever (other than a marketable security);  or 

(2) the pawn or pledge of movable property, 

where such deposit, pawn or pledge has been made  by way of security for the repayment of money  advanced or to be advanced by way of loan or an  existing or future debt— 

The same duty as a Bill of Exchange [No. 13 (b)] 

for the amount secured.  

Half the duty payable on a Bill of Exchange [No.  

13 (b)] for the amount secured. 

Fifteen rupees. 

  

(a) if such loan or debt is repayable on demand or  more than three months from the date of the  instrument evidencing the agreement; 

(b) if such loan or debt is repayable not more than  three months from the date of such instruments. 

Exemption 

Instrument of pawn or pledge of goods if unattested.] 

  1. APPOINTMENT IN EXECUTION OF A  POWER, whether of trustees or of property, movable  or immovable, where made by any writing not being  a will.
  2. Subs. by Act 6 of 1910, s.3, for article 5. 2. Clause (c) omitted by the A.O. 1950. 3. Subs. by Act 15 of 1904, s. 8, for article. 6.

63 

Description of Instrument Proper Stamp-duty 

  1. APPRAISEMENT OR VALUATION made  

otherwise than under an order of the Court in the  

course of a suit— 

(a) where the amount does not exceed Rs. 1,000; The same duty as a Bond (No. 15) for such  amount. 

Five rupees. 

Five rupees. 

Twenty-five rupees.  

Two hundred and fifty rupees. 

  

(b)inan other case……………………………. 

Exemptions 

 (a) Appraisement or valuation made for the  information of one party only, and not being in any  manner obligatory between parties either by agreement or  operation of law. 

 (b) Appraisement of crops for the purpose of  ascertaining the amount to be given to a landlord as rent. 

  1. APPRENTICESHIP-DEED, including every  writing relating to the service or tuition of any apprentice,  clerk or servant, placed with any master to learn any  profession, trade or employment, not being ARTICLES  OF CLERKSHIP, (No. 11). 

Exemption 

Instruments of apprenticeship executed by a Magistrate  under the 1Apprentices Act, 1850 (XIX of 1850), or by  which a person is apprenticed by or at the charge of any  public charity. 

  1. ARTICLES OF ASSOCIATION OF A  COMPANY. 

Exemption  

 Articles of any Association not formed for profit  and registered under section 26 of the 2Indian  Companies Act, 1882 (VI of 1882). 

See also MEMORANDUM OF ASSOCIATION OF A  COMPANY (No.39). 

  1. ARTICLES OF CLERKSHIP or contract  whereby any person first becomes bound to serve as  a clerk in order to his admission as an attorney in any  High Court. 

ASSIGNMENT. See CONVEYANCE (No. 23), TRANSFER (No. 62), and TRANSFEROF LEASE (No.  63), as the case may be. 

ATTORNEY. See ENTRYAS AN ATTORNEY (No.  30) and POWEROF ATTORNEY (No. 48). 

AUTHORITY TO ADOPT. See ADOPTION-DEED (No. 3). 

  1. See now the Apprentices Act, 1961 (52 of 1961).  2. See now the Companies Act, 1956 (1 of 1956).

64 

Description of Instrument Proper Stamp-duty 

  1. AWARD, that is to say, any decision in  

writing by an arbitrator or umpire, not being an  

award directing a partition, on a reference made  

otherwise than by an order of the Court in the  

course of a suit— 

(a) where the amount or value of the property to  which the award relates as set forth in such award  does not exceed Rs. 1,000; 

(b) in any other case…………………………  Exemption 

Award under the 1Bombay District Municipal  Act, 1873 (Bom. Act 6 of 1873), section 81, or the  Bombay Hereditary Offices Act, 1874 (Bom. Act (3of  1874), section 18. 

2[13. BILL OF EXCHANGE as defined by  s.2(2), not being a Bond, bank-note or currency note— 

(b)where payable otherwise than on demand— 

(i) where payable not more than three months  after date or sight— 

if the amount of the bill or note does not  

The same duty as a Bond (No. 15) for such amount. 

Five rupees. 

exceed Rs. 500;Thirty paise. if it exceeds Rs. 500 but does not exceed  

Rs. 1,000;Sixty paise. 

and for every additional Rs. 1,000 or part thereof  

in excess of Rs. 1,000;Sixty paise. 

(ii)where payable more than three months but  

not more than six months after date or sight— 

if the amount of the bill or note does not  

exceed Rs. 500;Sixty paise. 

if it exceeds Rs. 500 but does not exceed  Rs. 1,000; 

and for every additional Rs. 1,000 or part  thereof in excess of Rs. 1,000; 

(iii) where payable more than six months but not more than nine months after date or sight— 

if the amount of the bill or note does not  exceed Rs. 500; 

  

One rupee twenty paise. One rupee twenty paise. 

Ninety paise.

  1. See now the Bombay District Municipal Act, 1901 (Bom. Act 3 of 1901). 2. Subs. by notification No. S.O. 130(E), dated 28-1-2004, for articles 13 and 14. 

65 

Description of Instrument Proper Stamp duty 

if it exceeds Rs. 500 but does not exceed Rs. 1,000; One rupee eighty paise. 

and for every additional Rs. 1,000 or part thereof in  

excess of Rs. 1,000;One rupee eighty paise. 

(iv)where payable more than nine months but not  

more than one year after date or sight— 

if the amount of the bill or note does not exceed  

Rs. 500;One rupee twenty five paise. if it exceeds Rs. 500 but does not exceed Rs.  

1,000;Two rupees fifty paise. and for every additional Rs. 1,000 or part thereof in  

excess of Rs. 1,000;Two rupees fifty paise. 

(c)where payable at more than one year after date or  

sight— 

if the amount of the bill or note does not exceed Rs. 500; Two rupees fifty paise. if it exceeds Rs. 500 but does not exceed Rs. 1,000; Five rupees. 

and for every additional Rs. 1,000 or part thereof in  

excess of Rs. 1,000;Five rupees. 

  1. BILL OF LADING (including a through bill of  

lading).One rupee. 

N.B.—If a bill of lading is drawn  

in parts, the proper stamp  

therefore must be borne by  

each one of the set.] 

Exemptions 

(a) Bill of lading when the goods therein described  

are received at a place within the limits of any port as  

defined under the Indian Ports Act, 1889 (10 of1889), and  

are to be delivered at another place within the limits of the  

same port. 

(b) Billof lading when executed out of India and  

relating to property to be delivered in India. 

  1. BOND [as defined by section 2(5)] not being a  

DEBENTURE (No. 27) and not being otherwise provided for  

by this Act, or by the Court-fees Act, 1870 (7 of 1870),— 

where the amount or value secured does not exceed Rs. 10; Two annas. 

where it exceeds Rs. 10 and does not exceed Rs. 50; Four annas.

66 

Description of Instrument Proper Stamp duty 

where it exceeds Rs. 50 and does not exceed Rs. 100 Eight annas. where it exceeds Rs. 100 and does not exceed Rs. 200 One rupee. where it exceeds Rs. 200 and does not exceed Rs. 300 One rupee eight annas. where it exceeds Rs. 300 and does not exceed Rs. 400 Two rupees. where it exceeds Rs. 400 and does not exceed Rs. 500 Two rupees eight annas. where it exceeds Rs. 500 and does not exceed Rs. 600 Three rupees. where it exceeds Rs. 600 and does not exceed Rs. 700 Three rupees eight annas. where it exceeds Rs. 700 and does not exceed Rs. 800 Four rupees. where it exceeds Rs. 800 and does not exceed Rs. 900 Four rupees eight annas. where it exceeds Rs. 900 and does not exceed Rs. 1,100 Five rupees. and for every Rs. 500 or part thereof in excess of Rs. 1,000 Two rupees eight annas. See ADMINISTRATION BOND (No. 2), BOTTOMRY BOND (No.  

16), CUSTOMS BOND (No. 26), INDEMNITY BOND (No. 34),  

RESPONDENTIA BOND (No. 56), SECURITY BOND (No. 57). 

Exemptions 

Bond, when executed by— 

(a) headmen nominated under rules framed in  

accordance with the Bengal Irrigation Act, 1876 (Ben. Act 3 

of 1876), section 99, for the due performance of their duties  

under that Act; 

(b) any person for the purpose of guaranteeing that  

the local income derived from private subscriptions to a  

charitable dispensary or hospital or any other object of  

public utility shall not be less than a specifed sum per  

mensem. 

  1. BOTTOMRY BOND, that is to say, any instrument  where by the master of a sea-going ship borrows money on the  security of the ship to enable him to preserve the ship or  prosecute her voyage. 
  2. CANCELLATION—Instrument of (including any  instrument by which any instrument previously executed is  cancelled), if attested and not otherwise provided for. See also Release (No. 55), Revocation of Settlement (No. 58-B),  Surrender of Lease (No. 61), Revocation of Trust (No. 64-B). 
  3. CERTIFICATE OF SALE (in respect of each property  put up as a separate lot and sold) granted to the purchaser of any  property sold by public auction by a Civil or Revenue Court, or  Collector or other Revenue-officer— 

The same duty as a Bond  (No. 15) for the same amount. 

Five rupees. 

(a) where the purchase-money does not exceed Rs. 10; Two annas. (b) where the purchase-money exceeds Rs. 10 but  

does not exceed Rs. 25;Four annas. (c) in any other case ………………….. The same duty as a conveyance (No. 23) for a  

consideration equal to the  

amount of the purchase 

money only.

67 

Description of Instrument Proper Stamp-duty 

  1. CERTIFICATE OR OTHER DOCUMENT 1[(except the  certificate or other document covered under Articles 27 and  56A)”evidencing the right or title of the holder thereof, or any other person,  either to any shares, scrip or stock in or of any incorporated company or other  body corporate, or to become proprietor of shares, scrip or stock in or of any  such company or body. 

2* * * *

  1. CHARTER-PARTY, that is to say, any instrument (except  agreement for the hire of a tug-steamer) whereby a vessel or some specified  principal part thereof is let for the specified purposes of the charterer, whether  it includes a penalty clause or not. 

3[Two anna]. One rupee. 

4* * * *

Ten rupees. 

Eight annas. 

One rupees. 

Five rupees. 

Ninety per cent. of the duty as a  

Conveyance (No. 23).] 

  

  1. COMPOSITION-DEED, that is to say, any instrument executed by  a debtor whereby he conveys his property for the benefit of his creditors, or  whereby payment of a composition or dividend on their debts is secured to  the creditors, or whereby provision is made for the continuance of the debtor’s  business, under the supervision of inspectors or under letters of licence, for  the benefit of his creditors. 
  2. CONVEYANCE [as defined by section 2 (10)] not being a  Transfer charged or exempted under No. 62,— 

where the amount or value of the consideration for such  conveyance as set forth therein does not exceed Rs. 50: 

where it exceeds Rs. 50 but does not exceed Rs. 100. 

Ditto 100 ditto 200 Two rupees. Ditto 200 ditto 300 Three rupees. Ditto 300 ditto 400 Four rupees. Ditto 400 ditto 500 Five rupees. Ditto 500 ditto 600 Six rupees. Ditto 600 ditto 700 Seven rupees. Ditto 700 ditto 800 Eight rupees. Ditto 800 ditto 900 Nine rupees. Ditto 900 ditto 1,000 Ten rupees. 

and for every Rs. 500 or part thereof in excess of Rs. 1,000 Exemption 

5[(a)Assignment of copyright by entry made under the6Indian Copyright  Act, 1847 (20 of 1847) section 5.] 

7[(b) for the purpose of this article, the portion of duty paid in respect of  a document falling under article No. 23A shall be excluded while computing  the duty payable in respect of a corresponding document relating to the  completion of the transaction in any Union territory under this article.] 

CO-PARTNERSHIP-DEED. See Partnership (No. 46.) 

5[23A. CONVEYANCE IN THE NATURE OF PART  PERFORMANCE—Contracts for the transfer of immovable property in the  nature of part performance in any Union territory under section 53A of the  Transfer of Property Act, 1882 (4 of 1882). 

  1. Ins. by Act 7 of 2019, s. 21 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 2. The words, brackets and figures “See also LETTER OF ALLOTMENT OF SHARES (No. 36)” omitted by s. 21, ibid. (w.e.f.  1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 
  2. Subs. by Act 43 of 1923 s. 2, for “One anna”. 
  3. Art. 21 omitted by Act 5 of 1927, s. 5. 
  4. Certain words and figure numbered as clause (a) thereof by Act 48 of 2001, s. 11 (w.e.f. 24-9-2001). 6. See now the Copyright Act, 1957 (14 of 1957).  
  5. Ins. by Act 48 of 2001, s. 11 (w.e.f. 24-9-2001).

68 

Description of Instrument Proper Stamp-duty 

  1. COPY OR EXTRACT certified to be a true copy or  

extract, by or by order of any public officer and not chargeable  under the law for the time being in force relating to court-fees— 

(i)if the original was not chargeable with duty or if the duty  with which it was chargeable does not exceed one rupee; 

(ii) in any other case………………… 

Exemptions 

(a)Copy of any paper which a public officer is expressly  required by law to make or furnish for record in any public office  or for any public purpose. 

1[(b) Copy of, or extract from, any register relating to births,  baptisms, namings, dedications, marriages, 2[divorces,] deaths or  burials]. 

  1. COUNTERPART OR DUPLICATE of any instrument  chargeable with duty and in respect of which the proper duty has  been paid,— 

(a) if the duty with which the original instrument is  chargeable does not exceed one rupee; 

(b) in any other case ……………… 

Exemption 

Counterpart of any lease granted to a cultivator, when  such lease is exempted from duty. 

  1. CUSTOMS BOND— 

(a) where the amount does not exceed Rs. 1,000; 

(b)in any other case …………………….. 

3[27. DEBENTURE—[as defined by section 2(10A)]  (see section 9A and 9B) 

Eight annas. 

One rupee. 

The same duty as is payable on the  original. 

One rupee. 

The same duty as a Bond (No. 15)  for such amount. 

Five rupees. 

(a)in case of issue of debenture; 0.005% (b) in case of transfer and re-issue of debenture. 0.0001%] 

  

  1. Subs. by Act 5 of 1906, s. 7, for clauses (b) and (c). 
  2. Ins. by Act 10 of 1914, s. 2 and the First Schedule.  
  3. Subs. by Act 7 of 2019, s. 21, for article 27 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]

69 

Description of Instrument Proper Stamp-duty 

Explanation.—The term “Debenture” includes any interest  

coupons attached thereto but the amount of such coupons shall not  

be included in estimating the duty.  

Exemption 

A debenture issued by an incorporated company or other body  

corporate in terms of a registered mortgage-deed, duly stamped in  

respect of the full amount of debentures to be issued thereunder,  

whereby the company or body borrowing makes over, in whole or  

in part, their property to trustees for the benefit of the debenture  

holders: 

Provided that the debentures so issued are expressed to be  

issued in terms of the said mortgage-deed. 

See also BOND (NO. 15): and sections 8 and 55. 

  1. DELIVERY ORDER IN RESPECT OF

GOODS,1[(excluding delivery order in respect of settlement of  

transactions in securities in stock exchange)] that is to say, any  

instrument entitling any person therein named, or his assigns, or  

the holder thereof, to the delivery of any goods lying in any dock  

or port, or in any warehouse in which goods are stored or  

deposited on rent or hire, or upon any wharf, such instrument  

being signed by or on behalf of the owner of such goods, upon the  

sale or transfer of the property therein, when such goods exceed in  

value twenty rupees. 

DEPOSITOFTITLE-DEEDS 2[SEE AGREEMENT RELATINGTO 

DEPOSITOFTITLE-DEEDS PAWN OR PLEDGE (NO. 6)]. 

DISSOLUTION OF PARTNERSHIPSee PARTNERSHIP (No. 46). 

  1. DIVORCE.—Instrument of, that is to say, any instrument by  

which any person effects the dissolution of his marriage.  

DOWER—Instrument of See SETTLEMENT (No. 58).  

DUPLICATE. See COUNTERPART (No. 25). 

  1. ENTRY AS AN ADVOCATE, VAKIL OR  

ATTORNEY ON THE ROLL OF ANY HIGH COURT3[under  

the Indian Bar Councils Act, 1926 (38 of 1926) or] in exercise of  

powers conferred on such court by Letters patent or by the 4Legal  

Practitioners Act, 1884 (9 of 1884)— 

(a) in the case of an Advocate or Vakil……….  

(b) in the case of an Attorney…….. 

Exemption 

entry of an advocate, vakil or attornery on the roll of any High  

court when he has previously been enrolled in a High Court. 

* * 

5 * * *  

  

  1. Ins. by Act 7 of 2019, s. 21 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 2. Subs. by Act 15 of 1904, s. 8, for “See Agreement by way of Equitable Mortgage (No. 6)”. 3. Ins. by Act 38 of 1926, s. 19 and theSch. 
  2. Since repealed. 
  3. The entry “EQUITABLE MORTGAGE” omitted by Act 15 of 1904, s. 8.

70 

  1. EXCHANGE OF PROPERTY.—Instrument of. EXTRACT. See Copy (No. 24). 
  2. FURTHER CHARGE.—Instrument of, that is to say, any  instrument imposing a further charge on mortgaged property— 

(a) when the original mortgage is one of the description referred  to in clause (a) of Article No. 40 (that is, with possession); 

(b) when such mortgage is one of the description referred to in  clause (b)of Article No. 40 (that is, without possession)— (i) if at the time of execution of the instrument of further  charge possession of the property is given or agreed to be  given under such instrument; 

(ii) if possession is not so given……… 

  1. GIFT.—Instrument of, not being a SETTLEMENT (No.  58) or will or TRANSFER (No. 62). 

HIRING AGREEMENT or agreement for service. SEE  AGREEMENT No.5). 

  1. INDEMNITY-BOND………….. 

INSPECTORSHIP-DEED See COMPOSITION-DEED (No.  22) INSURANCE. See POLICY OF INSURANCE (No.  47). 

  1. LEASE, including an under-lease or sub-lease and any  agreement to let or sub-let— 

(a) whereby such lease the rent is fixed and no premium is  paid or delivered— 

(i) where the lease purports to be for a term of less than  one year; 

(ii) where the lease purports to be for a term of not less  than one year but not more than three years; 

(iii) where the lease purports to be for a term in excess of  three years; 

(iv) where the lease does not purport to be for any definite  term; 

(v) where the lease purports to be in perpetuity; 

The same duty as a Conveyance  (No. 23) for a consideration equal to  the value of the property of greatest  value as set forth in such  instrument. 

The same duty as a Conveyance  (No. 23) for a consideration equal to  the amount of the further charge  secured by such instrument. 

The same duty as a Conveyance  (No. 23) for a consideration equal to  the total amount of the charge  (including the original mortgage  and any further chage already made)  less the duty already paid on such  original mortgage and further  charge.  

The same duty as a Bond (No. 15)  for the amount of the further charge  secured by such instrument. 

The same duty as a Conveyance  (No. 23) for a consideration equal  to the value of the property, as set  forth in such instrument. 

The same duty as a Security Bond  (No. 57) for the same amount. The same duty as a Bond (No.15)  for the whole amount payable or  deliverable under such lease. The same duty as Bond (No. 15) for  the amount or value of the average  annual rent reserved. 

The same duty as a Conveyance  (No. 23) for a consideration equal  to the amount or value of the  average annual rent reserved. 

The same duty as a Conveyance (No.  23) for a consideration equal to the amount or value of the average  annual rent which would be paid or  delivered for the first ten years if the  lease continued so long. 

The same duty as a Conveyance (No.  23) for a consideration equal to one fifth of the whole amount of rents  which would be paid or delivered in  respect of the first fifty years of the  lease.

71 

Description of Instrument Proper Stamp-duty 

(b) where the lease is granted for a fine or premium  

or for money advanced and where no rent is reserved;The same duty as a Conveyance (No. 23)  

for a consideration equal to the amount or  

value of such fine or premium or advance  

as set forth in the lease. 

(c) where the lease is granted for a fine or premium  

or for money advanced in addition to rent reserved;The same duty as a Conveyance (No. 23)  

for a consideration equal to the amount or  

value of such fine or premium or advance  

as set forth in the lease, in addition to the  

duty which would have been payable on  

such lease if no fine or premium or advance  

had been paid or delivered: 

Provided that, in any case when an  

agreement to lease is stamped with the ad  

valorem stamp required for a lease, and a  

lease in pursuance of such agreement is  

subsequently executed, the duty on such  

lease shall not exceed eight annas. 

Exemptions 

(a)Lease, executed in the case of a cultivator and  

for the purposes of cultivation (including a lease of trees  

for the production of food or drink) without the payment  

or delivery of any fine or premium, when a definite term  

is expressed and such term does not exceed one year, or  

when the average annual rent reserved does not exceed  

one hundred rupees. 

1* * * * *  

2[36. LETTER OF ALLOTMENT in respect of  any loan to be raised by any company or proposed  company.] 

4[37. 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. 

LETTER OF GUARANTEE, See AGREEMENT (No. 5). 

  1. LETTER OF LICENCE, that is to say,  any agreement between a debtor and his creditors that  the letter shall, for a specified time, suspend their claims  and allow the debtor to carry on business at his own  discretion. 
  2. MEMORANDUM OFASSOCIATION OFA  COMPANY— 

(a) if accompanied by articles of association under  section 37 of the 6Indian Companies Act, 1882 (6 of  1882);  

3[Two annas.], 5[Two rupees.] 

Ten rupees. Fifteen rupees. 

(b) if not so accompanied Forty rupees. 

  

  1. Exemption (b) omitted by the A.O. 1937. 
  2. Subs. by Act 7 of 2019, s. 21, for Article 36 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020] 3. Subs. by Act 43 of 1923, s. 2, for “one anna”. 
  3. Subs. by notification No. S.O. 130 (E), dated 28-1-2004, for article 37. 
  4. Subs. by Act 32 of 1985, s. 50 (w.e.f. 1-7-1985). 
  5. See now the Companies Act, 1956 (1 of 1956).

72 

Description of Instrument Proper Stamp-duty Exemption 

Memorandum of any association not formed for profit  

and registered under section 26 of the 1Indian Com 

panies Act, 1882 (6 of 1882). 

  1. MORTGAGE-DEED, not being 2[an AGREEMENT 

RELATINGTO DEPOSITOF TITLE-DEEDS, PAWN OR  

PLEDGE (NO. 6)], BOTTOMRY BOND (NO. 16),  

MORTGAGE OF A CROP (NO. 41), RESPONDENTIA BOND 

(No. 56), OR SECURITY BOND (NO. 57)— 

The same duty as a Conveyance (No. 23)  

for a consideration equal to the amount  

secured by such deed. 

The same duty as a Bond (No. 15) for  

the amount secured by such deed. 

Eight annas. 

Eight annas. 

 * * 

One anna. 

One anna. 

  

(a) when possession of the property or any part  of the property comprised in such deed is given by  the mortgagor or agreed to be given; 

(b) when 3***possession is not given or agreed  to be given as aforesaid; 

Explanation.—A mortgagor who gives to the  mortgagee a power-of-attorney to collect rents or a  lease of the property mortgaged or part thereof, is  deemed to give possession within the meaning of this  Article. 

(c) when a collateral or auxiliary or additional  or substituted security, or by way of further  assurance for the abovementioned purpose where  the principal or primary security is duly stamped— 

for every sum secured not exceeding Rs. 1,000  and for every Rs. 1,000 or part thereof secured  in excess of Rs. 1,000. 

Exemptions 

(1) Instruments, executed by person taking  advances under the Land Improvement Loans Act, 1883  (19 of 1883), or the Agriculturists’ Loan Act, 1884 (12 of 1884), or by their sureties as security for the  repayment of such advances. 

(2) Letter of hypothecation accompanying a bill of exchange. 4 * * * 

  1. MORTGAGE OF A CROP, including any  instrument evidencing an agreement to secure the  repayment of a loan made upon any mortgage of a crop,  whether the crop is or is not in existence at the time of the  mortgage— 

(a)when the loan is repayable not more than three  months from the date of the instrument— 

for every sum secured not exceeding Rs. 200  and for every Rs. 200 or part thereof secured in  excess of Rs. 200; 

  1. See now the Companies Act, 1956 (1 of 1956).  
  2. Subs. by Act 15 of 1904, s. 8, for “AN AGREEMENTTO MORTGAGE (NO. 6)”. 3. The words “At the time of execution” omitted by s. 8, ibid.  4. Exemption (3) omitted by s. 8, ibid.

73 

Description of Instrument Proper Stamp-duty (b) when the loan is repayable more than three months, but  

not more than 1[eighteen months], from the date of the  

instrument— 

for every sum secured not exceeding Rs. 100 and for 2[Two annas.] every Rs. 100 or part thereof secured in excess of Rs. 100. 2[Two annas.] 

  1. NOTARIAL ACT, that is to say, any instrument,  endorsement, note, attestation, certificate or entry not being a  PROTEST (No. 50) made or signed by a Notary Public in the  execution of the duties of his office, or by any other person  lawfully acting as a Notary Public.  

See also PROTEST OF BILL OR NOTE (No. 50). 

3[43. NOTE OR MEMORANDUM, sent by a Broker or  agent to his principal intimating the purchase or sale on  account of such principal— 

One rupee. 

(a) of any goods exceeding in value twenty rupees; Two annas. 

(b) of any stock or marketable security exceeding in  value twenty rupees; 

  1. NOTE OF PROTEST BY THE MASTER OF  A SHIP.  

See also PROTESTBY THE MASTER OF A SHIP(No. 51).  ORDER FOR THE PAYMENT OF MONEY.  See BILL OF EXCHANGE (No. 13). 

  1. PARTITION— Instrument of [as defined by  s. 2 (15)] 

  

  1. Subs. by Act 5 of 1906, s. 7, for “one year” 
  2. Subs. by Act 15 of 1904, s. 8, for “Four annas”. 3. Subs. by Act 6 of 1910, s. 3, for article 43.  

Subject to a maximum of ten rupees, one  anna for every Rs. 10,000 or part thereof  the value of the stock or security.] 

Eight annas. 

The same duty as a Bond 

(No. 15) for the amount of the value of  the separated share or shares of the  property. 

N.B.—The largest share remaining after  the property is partitioned (or, if there  are two or more shares of equal value  and not smaller than any of the other  shares, then one of such equal shares)  shall be deemed to be that from which  the other shares are separated: 

Provided always that— 

(a) when an instrument of partition  containing an agreement to divide  property in severalty is executed and a  partition is effected in pursuance of  such agreement, the duty chargeable  upon the instrument effecting such  partition shall be reduced by the  amount of duty paid in respect of the  first instrument, but shall not be less  than eight annas;

74 

Description of Instrument Proper Stamp-duty 

(b) where land is held on  

revenue settlement for a period  

not exceeding thirty years and  

paying the full assessment, the  

value for the purpose of duty  

shall be calculated at not more  

than five times the annual  

revenue; 

(c) where a final order for  

effecting a partition passed by  

any Revenue-authority or any  

Civil-Court, or an award by an  

arbitrator directing a partition, is  

stamped with the stamp required  

for an instrument of partition,  

and an instrument of partition in  

pursuance of such order or  

award is subsequently executed,  

the duty on such instrument  

shall not exceed eight annas.  

  1. PARTNERSHIP— 

A—INSTRUMENT OF— 

(a) where the capital of the partnership does not Two rupees eight annas.  exceed Rs. 500;  

(b ) in any other case…………………… Ten rupees. 

If drawn in duplicate,  

for each part 

5[Fivenayapaise.] 

5[Five nayapaise.] 

  

B.—DISSOLUTION OF………………………… 

1[PAWN OR PLEDGE. See AGREEMENT RELATING TO  DEPOSIT OF TITLE-DEEDS. PAWN OR PLEDGE (NO. 6).] 

  1. POLICY OF INSURANCE— 

2[A.—SEA INSURANCE [see section 7] of Indian Stamp Act, 1899  (2 of 1899)] 

(1) for or upon any voyage— 

(i) where the premium or consideration does not  exceed the rate of 3*** one-eighth per centum of the  amount insured by the policy; 

(ii) in any other case, in respect of every full sum of  6[one thousand five hundred rupees] and also any  fractional part of 6[one thousand five hundred rupees] insured by the policy; 

Five rupees. 

If drawn  

singly 

4[Ten  

nayepaise.] 

4[Ten  

nayapaise.] 

  1. Ins. by Act 15 of 1904, s. 8. 
  2. Subs. by Act 5 of 1906, s. 7, for Division A and B. 
  3. The words “Fifteen nayepaise or” omitted by Act 14 of 1961, Section 16, the words in italics were subs. by Act 19 of 1958, s. 13, for “two annas” (w.e.f.1-10-1958). 
  4. Subs. by Act 19 of 1958, s. 13, for “one anna” (w.e.f. 1-10-1958). 
  5. Subs. s. 13, ibid., for “half an anna” (w.e.f. 1-10-1958). 
  6. Subs. Act 18 of 1928, s. 2 and the First Schedule, for “one thousand rupees”.

75 

Description of Instrument Proper Stamp-duty (2) for time— 

(iii) in respect of every full sum of one thousand  

rupees and also any fractional part of one thousand  

rupees insured by the policy— 

where the insurance shall be made for any time  not exceeding six months; 

where the insurance shall be made for any time  exceeding six months and not exceeding twelve  months. 

B.4[FIRE-INSURANCE AND OTHER CLASSES OF  INSURANCE, NOT ELSEWHERE INCLUDED IN THIS  ARTICLE, COVERING GOODS, MERCHANDISE,  PERSONAL EFFECTS, CROPS AND OTHER  PROPERTY AGAINST LOSS OR DAMAGE — 

(1) in respect of an original policy— 

(i) when the sum insured does not exceed  

Rs. 5,000; 

1[Fifteen  

nayepaise.] 

3[Twenty 

fivenayepaise.] 5[Fifty nayepaise.] 

2[Ten nayepaise.] 

1[Fifteen  

nayepaise.] 

(ii) in any other case; and One rupees. 

One-half of duty payable in respect of  

the original policy in addition to the  

amount if any, chargeable under No.  

2[Ten nayepaise.] 

1[Fifteen nayepaise]: 

6[Provided that, in case of a policy of  

insurance against death by accident  

when the annual premium payable  

does not exceed 7[Rs. 2.50] per Rs.  

1,000, the duty on such instrument  

shall be 2[Ten nayepaise] for every Rs.  

1,000 or part thereof of the maximum  

amount which may become payable  

under it.] 

  

(2)in respect of each receipt for any payment of a  premium on any renewal of an original policy. 

C.—ACCIDENT AND SICKNESS INSURANCE— (a) against railway accident, valid for a single  journey only.  

Exemption 

When issued to a passenger travelling by the  intermediate or the third class in any railway; 

(b) in any other case—for the maximum amount  which may become payable in the case of any single  accident or sickness where such amount does not exceed  Rs. 1,000, and also where such amount exceeds Rs.  1,000, for every Rs. 1,000 or part thereof. 

  1. Subs. by Act 19 of 1958, s. 13, for “Two annas” (w.e.f. 1-10-1958). 2. Subs. by s. 13, ibid., for “One anna” (w.e.f. 1-10-1958). 3. Subs. by s. 13, ibid., for “Four annas” (w.e.f. 1-10-1958). 4. Subs. by Act 43 of 1923, s. 2, for “FIRE-INSURANCE.” 5. Subs. by Act 19 of 1958, s. 13, for “Eight annas” (w.e.f. 1-10-1958). 6. Added by Act 18 of 1928, s. 2 and Schedule. 
  2. Subs. by Act 19 of 1958, s. 13, for “2.8-0” (w.e.f. 1-10-1958).

76 

Description of Instrument Proper Stamp-duty 

1[CC.—INSURANCE BY WAY OF INDEMENITYagainst  liability to pay damages on account of accidents to workmen  employed by or under the insurer or against liability to pay  compensation under the Workmen’s Compensation Act, 1923 (8 of  1923), for every Rs. 100 or part thereof payable as premium. 

3[D.—LIFE INSURANCE 4[OR GROUP INSURANCE  OR OTHER INSURANCE] NOT SPECIFICALLY  PROVIDED FOR, except such a RE-INSURANCE, as is  described in Division E of this article— 

2[Ten nayepaise.] 

If drawn singly If drawn in duplicate for  each part. 

(i) for every sum insured not exceeding Rs. 250; 5[Fifteen  nayepaise.] 

2[Ten nayepaise.] 

(ii) for every sum insured exceeding Rs. 250 but not  exceeding Rs. 500; 

6[Twenty five  nayepaise.] 

5[Fifteen nayepaise.] 

7[Forty nayepaise.]8[Twenty nayepaise.] 

9[N.B.—If a policy of group insurance is  

renewed or otherwise modified whereby the  

sum insured exceeds the sum previously  

insured on which stamp-duty has been paid, the  

proper stamp must be borne on the excess sum  

so insured.] 

One-quarter of the duty payable inrespect  

of the original insurance but not less than  

2[ten nayepaise] or more than onerupee: 

11[Provided that if the total amount of duty  

payable is not a multiple of fivenayepaise,  

the total amount shall be rounded off to the  

next higher multiple of fivenayepaise]. 

  

(iii) for every sum insured exceeding Rs. 500 but not exceeding  Rs. 1,000 and also for every Rs. 1,000 or part thereof in excess of Rs.  1,000. 

Exemption 

Polices of life-insurance granted by the Director General of PostOffices in accordance with rules for Postal  Life-Insurance issued under the authority of the Central  Government.] 

E.—RE-INSURANCE BY AN INSURANCE COMPANY,  which has granted a POLICY of the nature specified in  Division A or Division B of this Article, 10 with another  company by way of indemnity or guarantee against the  payment on the original insurance of a certain part of the sum  insured thereby. 

  1. Ins. by Act 15 of 1925, s. 2. 
  2. Subs. by Act 19 of 1958, s. 13, for “One anna” (w.e.f. 1-10-1958). 3.Subs. by Act 18 of 1928, s. 2, and the First Schedule for Division D. 4. Subs. by Act 43 of 1955, s. 7, for “or other insurance” (w.e.f. 1-4-1956). 5. Subs. by Act 19 of 1958, s. 13, for “Two annas” (w.e.f. 1-10-1958). 6. Subs. by s. 13, ibid., for Four annas” (w.e.f. 1-10-1958). 
  3. Subs. by s. 13, ibid., for “Six annas” (w.e.f. 1-10-1958).  
  4. Subs. by s. 13, ibid., for “Three annas” (w.e.f. 1-10-1958). 
  5. Ins. by Act 43 of 1955, s. 7 (w.e.f. 1-4-1956). 
  6. Subs. by Act 43 of 1923, s. 2, for “of Sea-Insurance or a policy of Fire Insurance”. 11. Ins. by Act 14 of 1961, s. 16.

77 

Description of Instrument Proper Stamp-duty General Exemption 

Letter of cover or engagement to issue a policy of  

insurance: 

Provided that, unless such letter or  

engagement bears the stamp prescribed by this Act  

for such policy, nothing shall be claimable  

thereunder, nor shall it be available for any  

purpose, except, to compel the delivery of the  

policy therein mentioned.] 

  1. POWER-OF-ATTORNEY [as defined by  

section 2(21)],not being a PROXY (No. 52),— 

(a) when executed for the sole purpose of  procuring the registration of one or more  documents in relation to a single transaction or for  admitting execution of one or more such  documents; 

(b) when required in suits or proceedings under  the Presidency Small Cause Courts Act, 1882 (15 of 1882); 

(c) when authorizing one person or more to act  in a single transaction other than the case  mentioned in clause (a); 

(d) when authorizing not more than five persons  to act jointly and severally in more than one  transaction or generally; 

(e) when authorizing more than five but not  more than ten persons to act jointly and severally in  more than one transaction or generally; 

(f)when given for consideration and authorizing  the attorney to sell any immovable property; 

Eight annas. 

Eight annas. 

One rupee. 

Five rupees. 

Ten rupees. 

The same duty as a Conveyance  (No. 23) for the amount of the  consideration. 

(g) in any other case…………………… One rupee for each person  authorized. 

N.B.—The term “registration” 

includes every operation incidental  

to registration under the 1Indian  

Registeration Act, 1877 (III of  

1877). 

Explanation.—For the purposes of this article more  

persons than one when belonging to the same firm shall  

be deemed to be one person. 

2[49. PROMISSORY NOTE [as defined by  

section 2(22)]  

(a) when payable on demand— 

(i)when the amount or value does not exceed  Rs. 250; 

  

3[Ten nayepaise.]

  1. See now the Indian Registration Act, 1908 (16 of 1908). 2. Subs. by Act 43 of 1923, s. 2, for Article 49. 
  2. Subs. by Act 19 of 1958, s. 13, for “One anna” (w.e.f. 1-10-1958). 

78 

Description of Instrument Proper Stamp-duty 

(ii) when the amount or value exceeds Rs. 250  but does not exceed Rs. 1,000; 

1[Fifteen nayepaise]. 

(iii) in any other case 2[Twenty-fivenayepaise.] 

(b) when payable otherwise than on demand— 

  1. PROTEST OF BILL OR NOTE, that is to say,  any declaration in writing made by a Notary Public, or other  person lawfully acting as such, attesting the dishonour of a  bill of exchange or promissory note. 
  2. PROTEST BY THE MASTER OF A SHIP,  that is to say, any declaration of the particulars of her  voyage drawn up by him with a view to the adjustment of  losses or the calculation of averages, and every  declaration in writing made by him against the  characterers or the consignees for not loading or  unloading the ship, when such declaration is attested or  certified by a Notary Publicor other person lawfully  acting as such, 

See also NOTE OF PROTEST BY THE MASTER OF A SHIP (No. 44). 52. PROXY, empowering any person to vote at any  one election of the members of a district or local board or  of a body of municipal commissioners, or at any one  meeting of (a) members of an incorporated company or  other body corporate whose stock or funds is or are divided  into shares and transferable, (b)a local authority, or  (c)proprietors, members or contributors to the funds of any  institution. 

  1. RECEIPT [as defined by section 2(23)] for any  money or other property the amount or value of which  exceeds 4[five thousand rupees.] 

Exemptions 

Receipt— 

(a) endorsed on or contained in any instrument  duly stamped 5[or any instrument exempted] under  the proviso to section 3 (instruments executed on  behalf of the Government) 6[or any cheque or bill of  exchange payable on demand] acknowledging the  receipt of the consideration-money therein expressed,  or the receipt of any principal-money, interest or  annuity, or other periodical payment thereby secured; 

(b)for any payment of money without  consideration;

  

  1. Subs. by Act 19 of 1958, s. 13, for “Two annas” (w.e.f. 1-10-1958). 2. Subs. by S. 13, ibid., for “Four annas” (w.e.f. 1-10-1958). 

The same duty as a Bill of Exchange  (No. 13) for the same amount  payable otherwise than on demand.] 

One rupee. 

One rupee. 

3[Thirtypaise.] 

3[One rupee] 

  1. Subs. by Act 32 of 1994, s. 99, for “Twenty paise” (w.e.f. 13-5-1994). 4. Subs. by Act 23 of 2004, s. 117, for “five hundred rupees”.  5. Subs. by Act 18 of 1928, s. 2 and the First Schedule, for “or exempted”.  6. Ins. by s. 2 and the First Schedule, ibid. 

79 

Description of Instrument Proper Stamp-duty 

(c) for any payment of rent by a cultivator on  

account of land assessed to Government revenue,  

or1[in the States of Madras, Bombay and Andhra] 2[as  

they existed immediately before the 1st November,  

1956] of inam lands; 

(d) for pay or allowances by non-commissioned 3[or petty],  

officers, 4[soldiers, 3[sailors] or airmen] of 5[6[the Indian]  

military, 3[naval] or air forces], when serving in such capacity,  

or by mounted police-constables; 

(e) given by holders of family-certificates in cases where  

the person from whose pay or allowances the sum comprised  

in the receipt has been assigned is a non-commissioned 3[or  

petty] officers 4[soldier, 3[sailor] or airmen] of 7[any of the  

said forces], and serving in such capacity; 

(f) for pensions or allowances by persons receiving  

such pensions or allowances in respect of their service as  

such non-commissioned 3[or petty] officer, 4[soldiers,  

3[sailors] or airmen] and not serving the Government in  

any other capacity; 

(g) given by a headman or lambardar for land 

revenue or taxes collected by him; 

(h) given for money or securities for money  

deposited in the hands of any banker, to be accounted  

for: 

Provided that the same is not expressed to be  

receivedof, or by the hands of, any other than the person  

to whom the same is to be accounted for: 

Provided also that this exemption shall not extend to a  

receipt or acknowledgment for any sum paid or deposited  

for or upon a letter of allotment of a share, or in respect of  

a call upon any scrip or share of, or in, any incorporated  

company or other body corporate or such proposed or  

intended company or body or in respect of a debenture  

being a marketable security.

  

  1. Subs. by the Andhra (Adaptation of Law on Union Subjects) Order, 1954, for “In the Presidencies of Fort St.  George and Bombay” (w.e.f. 1-10-1953). 
  2. Ins. by the Adaptation of Laws (No. 2) Order, 1956. 
  3. Ins. by Act 35 of 1934, s. 2 and the Schedule. 
  4. Subs. by Act 10 of 1927, s. 2 and the First Schedule, for “or soldiers”. 
  5. Subs. by s. 2 and the First Schedule ibid., for “Her Majesty’s Army or Her Majesty’s Indian Army”. 6. Subs. by the A.O. 1950, for “His Majesty’s”. 
  6. Subs. by Act 10 of 1927, s. 2, and the First Schedule for “either of the said Armies”. 

80