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IndianStampAct 1899
IndianStampAct 1899
Contents
Act Objective: An Act to consolidate and amend the law relating to Stamps.
(1) This Act may be called the Indian Stamp Act, 1899.
2*[(2) It extends to the whole of India except the State of Jammu and Kashmir:
Provided that it shall not apply to 3*[the territories which, immediately before
the 1st November, 1956, were comprised in Part B
Banker -
Bill of exchange -
(2) "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;
(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
Bill of lading -
(4) "Bill of lading" includes a "through bill of lading", but does not include
a mate's receipt;
Bond -
Chargeable -
Cheque -
(7) "Cheque" means a bill of exchange drawn on a specified banker and not
expressed to be payable otherwise than on demand;
Collector -
(9) "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 [the [State
Government]] may, by notification in the Official Gazette, appoint in this
behalf;
Conveyance -
(10) "Conveyance” includes a conveyance on sale and every instrument by which
property, whether moveable or immoveable is transferred inter vivos and which is
not otherwise specifically provided for by Schedule I;
Duly stamped -
(11) "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 1*[India];
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1 Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4-1956).
2 Cl. (8) omitted by the A. O. 1937.
3 Subs., ibid., for "the Local Government".
4 Subs. by the A. O. 1950, for "collecting Government".
5 Cl. (12A), ins. by the A. O. 1937, omitted, ibid.
Impressed stamp -
India -
[(13A) "India” means the territory of India excluding the State of Jammu and
Kashmir;]
Instruments -
(14) "Instrument" includes every document by which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished or recorded;
Instrument of partition -
Lease -
(a) a patta;
Mortgage deed -
Paper -
Policy of insurance -
(b) a life-policy, and any policy insuring any person against accident or
sickness, and any other personal insurance;
(a) means any insurance made upon any ship or vessel (whether for
marine or inland navigation), or upon the machinery, tackle or furniture of
any ship or vessel, or upon any goods, merchandise or property of any
description whatever on board of any ship or vessel, or upon the freight
of, or any other interest which may be lawfully insured in, or relating to,
any ship or vessel; and
(21) "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;
Promissory note -
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;
Receipt -
Settlement -
Soldier -
[(25) "Soldier” includes any person below the rankof non commissioned officer
who is enrolled under the Indian Army Act, 1911 (8 of 1911.);]
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 therefor, respectively, that is to say—
(a) every instrument mentioned in that Schedule which, not having been previously
executed by any person, is executed in 6*[India] on or after the first day of July,
1899;
(1) any instrument executed by, or on behalf of, or in favour of, the Government in
cases where, but for this exemption, the Government would be liable to pay the
duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely or by
way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or
property of or in any ship or vessel registered under the Merchant Shipping Act,
1894, (57 and 58), or under Act 19 of 1838, or the Indian Registration of Ships
Act, 1841 (Vict., c. 60. 10 of 1841.) as amended by subsequent Acts.
(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.
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1 Ins. by Act 44 of 1971, s. 2 (w.e.f. 15-11-1971).
2 Omitted by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973). 158A
(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:
CHAPTER II - STAMP-DUTIES
7. Policies of sea-insurance -
Where any sea-insurance is made for or upon a voyage and also for time, or to
extend to or cover any time beyond thirty days after the ship shall have arrived at
her destination and been there moored at anchor, the policy shall be charged with
duty as a policy for or upon a voyage, and also with duty as a policy for time.
(1) Notwithstanding anything in this Act, any local authority raising a loan under
the provisions of the Local Authorities Loan Act, 1879 (11 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*[(1)] 4*[The 5*** Government] may, by rule or order published in the Official
Gazette,--
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1 Sub-sections (1), (2) and (3) omitted 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 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." 160 administration],
(b) provide for the composition or consolidation of duties in the case of issues by
any incorporated company or other body corporate 3*["or of transfers (where there
is a single transferee, whether incorporated or not)] of debentures, bonds or other
marketable securities. 1*[(2)
(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--
(2) The rules made under sub-section (1) may, among other matters, regulate, --
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1 Added by the A. O. 1950.
2 Subs. ibid., for "collecting Government".
3 Ins. by Act 32 of 1994, s. 99. 161
(a) instruments chargeable 2*[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 3*** and promissory notes drawn or made out of
4*[India];
(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
(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.
Every instrument written upon paper stamped with an impressed stamp shall be
written in such manner that the stamp may appear
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1 The words "written in any Oriental language" omitted by Act 43 of 1955, s. 5
(w.e.f. 1-4-1956).
2 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).
3 The word "cheques" omitted by Act 5 of 1927, s. 5.
4 Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4- 1956). 162 on the face
of the instrument and cannot be used for or applied to any other instrument.
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 -
All instruments chargeable with duty and executed by any person in 2*[India] shall
be stamped before or at the time of execution.
18. Instruments other than bills and notes executed out of India -
(1) Every instrument chargeable with duty executed only out of 2*[India], and not
being a bill of exchange 3*** or promissory note, may be stamped within three
months after it has been first received in 2*[India].
(2) Where any such instrument cannot, with reference to the description of stamp
prescribed therefor, 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.
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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.
19. Bills and notes drawn out of India -
The first holder in 1*[India] of any bill of exchange 2*[payable otherwise than on
demand], 3*** or promissory note drawn or made out of 1*[India] shall, before he
presents the same for acceptance or payment, or endorses, transfers or otherwise
negotiates the same in 1*[India], affix thereto the proper stamp and cancel the
same:
Provided that—
(a) if, at the time any such bill of exchange 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.
(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).
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1 Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4- 1956).
2 Ins. by Act 5 of 1927, s. 5.
3 The word "cheque" omitted by s. 5, ibid. 164
(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
Provided that nothing in this section shall apply to any such certificate of
sale as is mentioned in Article No. 18 of Schedule I.
(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.
(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 convenyance, 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.
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, --
(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:]
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
is chargeable, shall be fully and truly set forth therein.
(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.
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1 Subs. by Act 15 of 1904, s. 4, for the original proviso. 167
(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-purchaser: 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.
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), 168 No. 16 (Bottomry Bond), No. 26 (Customs
Bond), No. 27 (Debenture), 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), No. 62 (a) (Transfer of shares, in an incorporated
Company or other body corporate), 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), 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;
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1 Subs. by Act 15 of 1904, s. 5, for "No. 6 (Agreement to mortgage)".
[(b) in the case of a policy of insurance other than fire- insurance--by the
person effecting the insurance;
Any person receiving any money exceeding twenty rupees in amount, or any bill of
exchange, cheque or promissory note for an amount exceeding twenty rupees, or
receiving in satisfaction or part satisfaction of a debt any moveable property
exceeding twenty rupees in value, shall, on demand by the person paying or
delivering such money, bill, cheque, note or property, give a duly stamped receipt
for the same.
(1) 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 2*[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
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1 Added by Act 5 of 1906, s. 5.
2 Subs. by Act 19 of 1958, s. 3, for "eight annas" (w.e.f. 1-10- 1958). 170 (
(1) When an instrument brought to the Collector under section 31, is, in his
opinion, one of a description chargeable with duty, and--
(b) the duty determined by the Collector under section 31, or such a sum as,
with the duty already paid in respect of the instrument, is equal to the duty
so determined, has been paid, the Collector shall certify by endorsement on
such instrument that the full duty (stating the amount) with which it is
chargeable has been paid.
(2) When such instrument is, in his opinion, not chargeable with duty, the
Collector shall certify in manner aforesaid that such instrument is not so
chargeable.
(3) Any instrument upon which an endorsement has been made under this section,
shall be deemed to be duly stamped or not chargeable with duty, as the case may
be; and, if chargeable with duty, shall be receivable in evidence or otherwise, and
may be acted upon and registered as if it had been originally duly stamped:
Provided that nothing in this section shall authorise the Collector to endorse—
(a) any instrument executed or first executed in 1*[India] and brought to him
after the expiration of one month from the date of its execution or first
execution, as the case may be;
(b) any instrument executed or first executed out of 1*[India] and brought to
him after the expiration of three months after it has been first received in
1*[India]; or
(c) any instrument chargeable 2*[with a duty not exceeding ten naye paise]
or any bill of exchange or promissory note, when brought to him, after the
drawing or execution thereof, on paper not duly stamped.
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1 Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4- 1956).
2 Subs. by Act 19 of 1958, s. 4, for "with the duty of one anna or half an anna"
(w.e.f. 1-10-1958).
(1) Every person having by law or consent 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
1*[India] when such instrument was executed or first executed:
Provided that—
(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) the 2*[State
Government] may determine what offices shall be deemed to be public offices; and
(b) the 2*[State Government] may determine who shall be deemed to be persons in
charge of public offices.
34. Special provision as to unstamped receipts –
Where any receipt chargeable 3*[with a duty not exceeding ten naye paise] is
tendered to or produced before any officer unstamped in the course of the audit of
any public account, such officer may in his discretion, instead of impounding the
instrument, require a duly stamped receipt to be substituted therefor.
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1 Subs. by Act 43 of 1955, s. 2, for "the States" (w.e.f. 1-4- 1956).
2 Subs. by the A. O. 1950 for "collecting Government".
3 Subs. by Act 19 of 1958, s. 5, for "with a duty of one anna" (w.e.f. 1-10-1958).
Provided that—
(a) any such instrument not being an instrument chargeable 1*[with a duty
not exceeding ten naye paise] only, or a bill of exchange or promissory note,
shall, subject to all just exceptions, be admitted in evidence on payment of
the duty with which the same is chargeable, or, in the case of an 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;
(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.
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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).
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.
The 1*[State Government] may make rules providing that, where an instrument
bears a stamp of sufficient amount but of improper description, it may, on payment
of the duty with which the same is chargeable, be certified to be duly stamped, and
any instrument so certified shall then be deemed to have been duly stamped as
from the date of its execution.
(1) 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 sent 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.
39. Collector's power to refund penalty paid under section 38, sub-section (1)
–
(1) When a copy of an instrument is sent to the Collector under section 38, sub-
section (1), he may, if he thinks fit, 2*** refund any portion of the penalty in
excess of five rupees which has been paid in respect of such instrument.
(2) When such instrument has been impounded only because it has been written in
contravention of section 13 or section 14, the Collector may refund the whole
penalty so paid.
(1) 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 3*[with a duty not 174 exceeding ten naye paise] only or a bill of
exchange or promissory note, he shall adopt the following procedure:--
(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, 1*[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 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.
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1 Subs. by the A. O. 1950 for "collecting Government".
2 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 Sch., Pt. I.
3 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).
If any instrument chargeable with duty and not duly stamped, not being an
instrument chargeable 2*[with a duty not exceeding the naye paise] only or a bill
or 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 hereinafter
prescribed.
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-----------------
1 Ins. by Act 15 of 1904, s. 6.
2 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).
42. 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.
Provided that—
(a) no instrument which has been admitted in evidence upon payment of duty and a
penalty under section 35, shall be so delivered before the expiration of one month
from the date of such impounding, or if the Collector has certified that its further
detention is necessary and has not cancelled such certificate;
(b) nothing in this section shall affect the 1*Code of Civil Procedure, section 144,
clause 3.
44. Persons paying duty or penalty may recover same in certain cases –
(1) When any duty or penalty has been paid under section 35, section 37, section
40 or section 41, by any person in respect of an instrument, and, by agreement or
under the provisions of section 29 or any other enactment in force at the time such
instrument was executed, some other person was bound to bear the expense of
providing the proper stamp for such instrument, the first-mentioned person shall be
entitled to recover from such other person the amount of the duty or penalty so
paid.
----------------------------------------------------------------------
----------------------------------------------
1 See now the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order XIII, rule
9. 176
(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) 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) If any instrument sent to the Collector under section 38, sub-section (2), is lost,
destroyed or damaged during transmission, the person sending the same shall
not be liable for such loss, destruction or damage.
(2) When any instrument is about to be so sent, the person from whose possession
it came into the hands of the person impounding the same may require a copy
thereof to be made at the expense of such first-mentioned person and
authenticated by the person impounding such instrument.
47. Power of payer to stamp bills and promissory notes received by him
unstamped –
When any bill of exchange 1*[or promissory note] chargeable 2*[with a duty not
exceeding ten naye paise] 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
1*[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 1*[or note].
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-----------------
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". 176A
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.
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----------------
1 Subs. by Act 5 of 1927, s. 5, for "note or cheque".
(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;
----------------------------------------------------------------------
1 Subs. by the A. O. 1950, for "collecting Government".
2 Ins. by Act 5 of 1927, s. 5.
3 The word "cheques" omitted by s. 5, ibid.
4 Subs. by s. 5, ibid, for "any bill of exchange".
5 The words "or cheque" omitted by s. 5, ibid.
6 The word "cheque" omitted by s. 5, ibid. 178 1***
(3) the stamp used or intended to be used for 4*[any such bill of
exchange] 6*** 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 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 2*** or
promissory note is produced identical in every particular, except in the correction
of such omission or error as aforesaid, with the spoiled bill, 2*** 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;
(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;
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.
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.
(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.
(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 2*[ten naye
paise] for each rupee or fraction of a rupee.
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 2*[ten naye paise] for each rupee or portion of a
rupee, upon such person delivering up the same to be cancelled, and proving to the
Collector's satisfaction—
(a) that such stamp or stamps were purchased by such person with a bona fide
intention to use them; and
(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.
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-----------------
1 Ins. by Act 5 of 1906, s. 6. 2 Subs. by Act 19 of 1958, s. 8, for "one anna" (w.e.f.
1-10-1958). 181
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:
(c) the substitution of thename 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.
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-----------------
1 Ins. by Act 19 of 1958, s. 9 (w.e.f. 1-10-1958).
2 Ins. by Act 13 of 1973, s. 2 (w.e.f. 1-4-1973).
56. Control of, and statement of case to, Chief Controlling Revenue-authority
–
(1) The powers exercisable by a Collector under Chapter IV and Chapter V 1*[and
under clause (a) of the first proviso to section 26] shall in all cases be subject to the
control of the Chief Controlling 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 assess and charge the duty (if any) in conformity
with such decision.
3*[(b) if it arises in the Union territory of Delhi, to the High Court of Delhi;
4* * * * *
(d) if it arises in the Union territory of the Andaman and Nicobar Islands, to
the High Court at Calcutta; and
58. Power of High Court to call for further particulars as to case stated –
If the High Court 3*** is not satisfied that the statements contained in the case are
sufficient to enable it to determine the questions raised thereby, the Court may
refer the case back to the Revenue-authority by which it was stated, to make such
additions thereto or alterations therein as the Court may direct in that behalf.
(1) The High Court 3*, upon the hearing of any such case, shall decide the
questions raised thereby, and shall deliver its judgment thereon containing the
grounds on which such decision is founded.
(2) The Court shall send to the Revenue-authority by which the case was stated, a
copy of such judgment under the seal of the Court and the signature of the
Registrar; and the Revenue-authority shall, on receiving such copy, dispose of the
case conformably to such judgment.
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-----------------
1 Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on
Union Subjects) Order, 1968 (w.e.f. 1-11-1966).
2 The words "Chief Court or Judicial Commissioner's Court" omitted by the A. O.
1950.
3 The words "Chief Court or Judicial Commissioner's Court" omitted, by the A. O.
1948.
(1) If any Court, other than a Court mentioned in section 57, feels doubt as to the
amount of duty to be paid in respect of any instrument under proviso (a) to section
35, the Judge may draw up a statement of the case and refer it, with his own
opinion thereon, for the decision of the High Court 1*** to which, if he were the
Chief Controlling Revenue- authority, he would, under section 57, refer the same.
(2) Such Court shall deal with the case as if it had been referred under section 57,
and send a copy of its judgment under the seal of the Court and the signature of the
Registrar to the Chief Controlling Revenue-authority and another like copy to the
Judge making the reference, who shall, on receiving such copy, dispose of the case
conformably to such judgment.
(3) 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) 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, (5 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.
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-----------------
1 The words "Chief Court of Judicial Commissioner's Court" omitted by the A. O.
1948. 184
(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.
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-----------------
1 Ins. by Act 5 of 1927, s. 5.
2 The word "cheque" omitted by s. 5, ibid. 185
(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.
(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
(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.
65. Penalty for refusal to give receipt, and for devices to evade duty on
receipts -
(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.
66. Penalty for not making out policy, or making one not duly stamped –
(a) receives, or takes credit for, any premium or consideration for any contract of
insurance and does not, within one 186 month after receiving, or taking credit for,
such premium or consideration, make out and execute a duly stamped policy of
such insurance; or
(b) makes, executes or delivers out any policy which is not duly stamped, or pays
or allows in account, or agrees to pay or allow in account, any money upon, or in
respect of, any such policy; shall be punishable with fine which may extend to two
hundred rupees.
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
–
(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 negotiates the same; or
(c) with the like intent, practises 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.
69. Penalty for breach of rule relating to sale of stamps and for unauthorised sale –
(a) Any person appointed to sell stamps who disobeys any rule made under section
74; and
(b) any person not so appointed who sells or offers for sale any stamp (other than a
1*[ten naye paise or five naye paise] adhesive stamp); shall be punishable with
imprisonment for a term which may extend to six months, or with fine which may
extend to five hundred rupees, or with both.
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----------------
1 Ins. by Act 5 of 1927, s. 5. 187
(1) No prosecution in respect of any offence punishable under this Act or any
Act hereby repealed shallbe instituted without the sanction of the Collector or such
other officer as the *[State Government] generally, or the Collector specially,
authorises in that behalf.
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 authorised 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.
----------------------------------------------------------------------
1 Subs. by Act 19 of 1958, s. 10, for "one anna or half an anna" (w.e.f. 1-
10-1958).
2 Subs. by the A. O. 1950, for "collecting Government".
The 1*[State Government] may make rules to carry out generally the purposes of
this Act, and may by such rules prescribe the fines, which shall in no case exceed
five hundred rupees, to be incurred on breach thereof.
[(1) 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.
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-----------------
1 Subs. by the A. O. 1950 for "collecting Government".
2 The words "subject to the control of the G. G. in C." omitted by the A.O. 1937.
3 Subs. by Act 19 of 1958, s. 10, for "one anna or half an anna" (w.e.f. 1-10-1958).
4 Subs. by the A. O. 1937 for the original sub-section.
5 Ins. by Act 4 of 1914, s. 2 and Sch., Pt. I. 6 Subs. by the A. O. 1937
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 2*[twenty-five naye paise] per copy.
79. [Repeal.] Rep. by the Repealing and Amending Act, 1914 (10 of 1914), s. 3
and Sch. II.
---------------------------------------------------------------------
1 Ins. by Act 19 of 1958, s. 11 (w.e.f. 1-10-1958).
2 Subs. by s. 12, ibid., for "four annas" (w.e.f. 1-10-1958).
SCHEDULE I
STAMP-DUTY ON INSTRUMENTS
(See section 3.)
Description of Instrument.
---------------------------------------------------------------------
(a) where the amount does not exceed The same duty as a Bond Rs. 1,000:
(No. 15) for such amount.
(a) for or relating to the sale of goods or merchandise exclusively, not being a
NOTE OR 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).
(2) the pawn or pledge of moveable 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--
(a) if such loan or debt is repayable on The same duty as a Bill demand or
more than three months from of Exchange [No. the date of the instrument
evidencing 13 (b)] for the agreement; amount secured.
(b) if such loan or debt is repayable Half the duty payable not more than three
months from the on a Bill of Exchange date of such instrument. [No. 13(b)] for the
amount secured. Exemption Instrument of pawn or pledge of goods if unattested.]
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-----------------
1 Subs. by Act 6 of 1910, s. 3, for the original article.
2 Cl. (c) omitted by the A. O. 1950.
3 Subs. by Act 15 of 1904, s. 8, for the original article. 191
SCHEDULE II —
[Enactments repealed] Rep. by the Repealing and Amending Act, 1914 (10 of
1914), s. 3 and Sch. II.
*****************