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”.
24
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.
STATE AMENDMENT
Himachal Pradesh
Addition of a new section 19-A.—After section 19 of the said Act the following new section shall be
inserted, namely:-
19-A. Payment of duty on certain instruments liable to increased duty in Himachal Pradesh
under clause (bb) of section 3.- Where any instrument has become chargeable in any part of India and
thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of
the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment)
Act, 1952-
(i) notwithstanding anything contained in the said proviso, the amount of duty chargeable on such
instrument shall be the amount chargeable on it under Schedule- I-A less the amount of duty, if any
already paid on it in India,
(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with
the stamps necessary for the payment of the amount of duty chargeable on it under clause
(i) in the
same manner and at the same time and by the same person as though such instrument were an
instrument received in India for the first time at the time when it became chargeable with the higher
duty.
[Vide Himachal Pradesh Act 4 of 1953, s. 7]
1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
2. The word “cheque” omitted by Act 5 of 1927, s. 5.
3. Ins. by Act 5 of 1927, s. 5.
25
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. ]
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
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)”.
26
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:
27
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.
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:
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”.
28
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.
29
(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),
30
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;
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]
31
(l) in the case of issue of security, whether through a stock exchange or a depository or otherwise, by
the issuer of such security; and
(m) in the case of any other instrument not specified herein, by the person making, drawing or
executing such instrument.]
STATE AMENDMENT
Uttarakhand
Amendment of section 29.—In Section 29 of the Principal Act,--
(a) In clause
(a), after the words (and figures, "No. 40 (Mortgage deed))," the words (and figures
"No. 43 (Note or memorandum))," shall be inserted;
(b) after clause
(f), the following clause shall be inserted, namely,-
''(f-f) in the case of an Instrument of Gift by the donee;"
[Vide Uttarakhand Act 1 of 2016, s. 4]
Uttar Pradesh
Amendment of section 29.— In section 29 of the principal Act,—
(a) in clause
(a), after the words and figures, "No. 40 (Mortgage deed)," the words and figure,
"No. 43 (Note or Memorandum)" shall be inserted ;
(b) after the clause
(f) the following clause shall be inserted, namely:—
“(ff) in the case of an Instrument of Gift, by the donee"
[Vide Uttar Pradesh Act 38 of 2001, s. 3]
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 satisfact
