Sec 3 to 30 Chapter II (Stamp Duties) The Indian Stamp Act, 1899

A.—Of the liability of instruments to Duty

3. Instruments chargeable with duty.—

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

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

(b) every bill of exchange ²[payable otherwise than on demand] ³*** or promissory note drawn or made out of 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.

(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).

STATE AMENDMENT

Himachal Pradesh

Amendment of section 3.—

In section 3 of the said Act- (1) After clause (c), the following proviso shall be inserted, namely: — “Provided that, notwithstanding anything contained in clauses (a), (b) or (c) of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefor, respectively, that is to say:

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

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

(2) Between the word “Provided” and the words “that no duty” the word “also” shall be inserted.

[Vide Himachal Pradesh Act 4 of 1953, s. 3]

Odisha

Insertion of new section 3A.—

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

“3.A Duty chargeable on mining lease. —

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

Explanation.—

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

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

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

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

Provided also that where the lessee is prohibited from undertaking the extraction of minerals for a temporary period for the reasons mentioned in the third proviso and subject to the conditions specified therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that would be payable for the mining lease under the relevant law in force, for the period of such prohibition.

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

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

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

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

[Vide Odisha Act 16 of 2013, s. 2]

Meghalaya

Insertion of a new section in Central Act II of 1899.—

After section 3 of the Indian Stamp Act, 1899, the following shall be inserted as section 3A, namely:--

“3A. Surcharge on Stamp Duty.—

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

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

Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.

(2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument.

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

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

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

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

Haryana

Omission of section 3B of Central Act 2 of 1899.—]

Section 3B of the Indian Stamp Act, 1899 (hereinafter referred to as the principal Act), shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1973.

[Vide Haryana Act 37 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]

4. Several instruments used in single transaction of sale, mortgage or settlement.—

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

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

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

(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])

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]

5. Instruments relating to several distinct matters.—

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

6. Instruments coming within several descriptions in Schedule I.—

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

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

STATE AMENDMENT

Himachal Pradesh

Amendment of section 6.—

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

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

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

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

Orissa

Amendment of section 6.—

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

[Vide Orissa Act 1 of 2003, s. 3]

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]

7. Policies of sea-insurance.—¹ * * * * *

(4) Where any sea-insurance is made for or upon a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a policy for time.

8. Bonds, debentures or other securities issued on loans under Act XI of 1879.—

(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local Authorities Loan Act, 1879 (XI of 1879) or, of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of ²[one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

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

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

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

³[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)]

⁴[8B. Corporatisation and demutualisation schemes and related instruments not liable to duty.—

Notwithstanding anything contained in this Act or any other law for the time being in force,—

(a) a scheme for corporatisation or demutualisation, or both of a recognised stock exchange; or

(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in connection with, the corporatisation or demutualisation, or both of a recognised stock exchange pursuant to a scheme,

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

Explanation. —

For the purposes of this section,—

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

(b) “Securities and Exchange Board of India” means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992(15 of 1992).]

(1. 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”.)

(3. 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])

(4. Ins. by Act 18 of 2005, s.114 (w.e.f. 13-5-2005).

 ¹[8C. Negotiable warehouse receipts not liable to stamp-duty.—

Notwithstanding anything contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.]

²[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.]

³[8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of a bank to a holding company of bank not liable to duty. —

Notwithstanding anything contained in this Act or any other law for the time being in force, —

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

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

(1. Ins. by Act 37 of 2007, s. 55 (w.e.f. 25-10-2010).

(2. Ins. by Act 12 of 2012, s. 35 and the Schedule (w.e.f. 1-2-2012).

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

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.

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).]

9. Power to reduce, remit or compound duties. —

³[(1)] ⁴[The ⁵*** 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 ⁶[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 ⁷[of policies of insurance and] in the case of issues by any incorporated company or other body corporate ⁸[or of transfers (where there is a single transferee, whether incorporated or not)] of debentures, bonds or other marketable securities.

⁹[(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 ¹⁰[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.]

(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).

(3. S. 9 re-numbered as sub-section (1) of that section by the A.O. 1950.)

(4. Subs. by the A.O. 1937, for “the G.G. in C”.)

(5. The word “collecting” omitted by the A.O. 1950.)

(6. Subs. by the A.O. 1937, for “British India”.)

(7. Ins. by Act 23 of 2004, s. 117.)

(8. Ins. by Act 32 of 1994, s. 99 (w.e.f. 13-9-1994).

(9. Added by the A.O. 1950.)

(10. Subs by Act 21 of 2006 s. 69, for “Seventh Schedule to the Constitution” (w.e.f. 18-4-2006).

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]

¹[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 depository from the issuer of securities on the total market value of the securities as contained in such list, in such manner as the Central Government may, by rules, provide.

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

²[Provided that no such duty shall be chargeable in respect of the instruments of transaction in stock exchanges and depositories established in any International Financial Services Centre set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).]

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

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

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

Explanation.—

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

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

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

(2. Ins. by Act 12 of 2020, s. 143 (w.e.f. 1-4-2020).

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

10. Duties how to be paid.—

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

(a) according to the provisions herein contained; or

(b) when no such provision is applicable thereto—as the ¹[State Government] may be rule direct.

(2) The rules made under sub-section (1) may, among other matters, regulate,—

(a) in the case of each kind of instrument—the description of stamps which may be used;

(b) in the case of instruments stamped with impressed stamps—the number of stamps which may be used;

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

(1. Subs. by the A.O. 1950, for “collecting Government”.)

(2. The words “written in any oriental language” omitted by Act 43 of 1955, s. 5 (w.e.f. 1-4-1956).

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:-

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]

Haryana

Amendment of section 10 of Central Act 2 of 1899.—

To sub-section (1) of section 10 of the Indian Stamp Act, 1899 the following proviso shall be added, namely: —

"Provided that whenever stamp paper of smaller value and denomination ranging from rupee one to rupees ten is in short supply or is not available, the duty payable under this Act, on any instrument, shall be paid in such manner as the State Government may by rules direct.",

[Vide Haryana Act 1 of 1987, s. 2]

11. Use of adhesive stamps.—

The following instruments may be stamped with adhesive stamps, namely: —

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

(b) bills of exchange, ²*** and promissory notes drawn or made out of ³[India];

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

(d) notarial acts; and

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

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

(2. The word “cheques” omitted by Act 5 of 1927, s. 5.)

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

STATE AMENDMENT

Uttar Pradesh

Amendment of section 11.—

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

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

Insertion of section 11-A.—

After section 11 of the principal Act, the following section shall be inserted, namely :—

 “11-A. Payment of duty in cash on such memos.—

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

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

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

Amendment of section 11.—

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

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

12. Cancellation of adhesive stamps.—

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

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

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

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

13. Instruments stamped with impressed stamps how to be written.—

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

14. 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.

15. Instrument written contrary to section 13 or 14 deemed unstamped.—

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

16. Denoting duty.—

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

(1. Subs. by the A.O. 1950, for “collecting Government”.)

C.—Of the time of stamping instruments

17. Instruments executed in India.—

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

STATE AMENDMENT

Assam

Amendment of section 17.—

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

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

[Vide Assam Act 22 of 2004, s. 3]

18. Instruments other than bills and notes executed out of India.—

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

19. Bills and notes drawn out of India.—

The first holder in ¹[India] of any bill of exchange ³[payable otherwise than on demand], 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 1[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 1[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;

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

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

(2. The word “cheque” omitted by Act 5 of 1927, s. 5.)

(3. Ins. by Act 5 of 1927, s. 5.)

STATE AMENDMENT

Himachal Pradesh

Addition of a new section 19-A.—

After section 19 of the said Act the following new section shall be inserted, namely:-

19-A. Payment of duty on certain instruments liable to increased duty in Himachal Pradesh under clause (bb) of section 3.-

Where any instrument has become chargeable in any part of India and thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952-

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

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

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

D.—Of valuations for Duty

20. Conversion of amount expressed in foreign currencies.—

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

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

21. Stock and marketable securities how to be valued. —

Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on 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.]

22. Effect of statement of rate of exchange or average price.—

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

23. Instruments reserving interest.—

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

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)”.)

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]

24. How transfer in consideration of debt, or subject to future payment, etc., to be charged.—

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

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

Explanation.—

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

Provided that, where property subject to a mortgage is transferred to the 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]

25. Valuation in case of annuity, etc.—

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

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

(b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance—the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

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

26. Stamp where value of subject-matter is indeterminate.—

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

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

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

(b) when the lease has been granted by any other person, at twenty thousand rupees a year,

and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:]

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

27. Facts affecting duty to be set forth in instrument. —

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

(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”.)

STATE AMENDMENT

Assam

Amendment of section 27.—

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

[Vide Assam Act 22 of 2004, s. 4]

Amendment of section 27.—

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

“27A. Instrument of conveyance etc. under valued how to be dealt with.—

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

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

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

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

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

Explanation—

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

 

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

STATE AMENDMENT

Himachal Pradesh

Amendment of section 27.—

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

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

Orissa

Amendment of section 27.—

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

[Vide Orissa Act 7 of 1987, s. 3]

28. Direction as to duty in case of certain conveyances.—

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

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

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

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

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

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

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

STATE AMENDMENT

Orissa

Amendment of section 28.—

In Section 28 of the principal Act,—

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

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

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

Provided further that the market value of the separate part shall be set forth along with the consideration for each part and the conveyance shall be chargeable with ad valorem.

[duty in respect of such distinct consideration or the market value, whichever is higher.”.

(ii) to sub-section (2) the following words and comma shall be added at the end, namely:—

“or the market value of each such separate part whichever is higher.”;

(iii) to sub-section (3) the following words and comma shall be added at the end, namely:—

“or the market value of the property, whichever is higher.”.

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

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

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

(v) for sub-section (5), the following sub-section shall be substituted, namely:—

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

[Vide Orissa Act 7 of 1987, s. 4]

E.—Duty by whom payable

29. Duties by whom payable.—

In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne —

(a) in the case of any instrument described in any of the following Articles of Schedule I, namely:—

No. 2. (Administration Bond),

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

No. 13 (Bill of exchange),

No. 15 (Bond),

No. 16 (Bottomry Bond),

No. 26 (Customs Bond),

²* * * * *

No. 32 (Further charge),

No. 34 (Indemnity-Bond),

No. 40 (Mortgage-deed),

No. 49 (Promissory-note),

No. 55 (Release),

No. 56 (Respondentia Bond),

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

No. 58 (Settlement),

³* * * * *

⁴* * * * *

No. 62 (c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),—

by the person drawing, making or executing such instrument:

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

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

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

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

(e) in the case of an instrument of exchange 6[including swap]—by the parties in equal shares,

(f) in the case of a certificate of sale—by the purchaser of the property to which such certificate relates; ⁷***

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

⁸[(h) in the case of sale of security through stock exchange, by the buyer of such security; (i) in the case of sale of security otherwise than through a stock exchange, by the seller of such security; (j) in the case of transfer of security through a depository, by the transferor of such security; (k) in the case of transfer of security otherwise than through a stock exchange or depository, by the transferor of such security;

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

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

(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])

(8. 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])

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]

30. Obligation to give receipt in certain cases.—

Any person receiving any money exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees, or receiving in satisfaction or part satisfaction of a debt any 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.

¹[Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.]

(1. Added by Act 5 of 1906, s. 5.)