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.
STATE AMENDMENT
Himachal Pradesh
Amendment of section 3.— In section 3 of the said Act-
(1) After clause
(c), the following proviso
shall be inserted, namely: — “Provided that, notwithstanding anything contained in clauses
(a),
(b) or
(c)
of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following
1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
2. Ins. by Act 5 of 1927, s. 5.
3. The word “cheque” omitted by Act 5 of 1927, s. 5.
4. The word “cheque” omitted by Act 5 of 1927, s. 5.
5. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
11
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
12
therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that
would be payable for the mining lease under the relevant law in force, for the period of such prohibition.
(2) Where an application for renewal of a mining lease has been made to the State Government prior
to the expiry of the lease but renewal of the lease has not been granted by the State Government or the
mining lease is deemed to have been extended as per the provisions contained in the relevant law in force,
by a further period till the State Government passes an order thereon, the stamp duty payable under
sub-section
(1) shall be paid by the applicant on or before the date of expiry of the lease or within sixty
days from the date of commencement of the Indian Stamp (Odisha Amendment ) Act, 2013, whichever is
later, the manner as may be prescribed.
(3) If the application for grant or renewal of mining lease is rejected by the State Government, the
applicant shall be entitled for refund of full stamp duty by him without any interest.
(4) In case of a mining lease whose period is deemed to have been extended by a further period till the
State Government passes an order thereon and the State Government, at a later date, passes an order
rejecting the renewal of the lease, the applicant shall be entitled for refund of such amount of stamp duty
paid under sub-section
(1), as arrived at by deducting from the total amount of stamp duty paid, the
amount of stamp duty chargeable in respect of such mining lease till the date of such rejection order
without any interest.
(5) No refund as mentioned in sub-sections
(3) and
(4) shall be made if the order rejecting the
application is challenged or the time limit for presenting the application for revision of the order of
rejection is not expired”.
[Vide Odisha Act 16 of 2013, s. 2]
Meghalaya
Insertion of a new section in Central Act II of 1899.—After section 3 of the Indian Stamp Act,
1899, the following shall be inserted as section 3A, namely:--
“3A. Surcharge on Stamp Duty.—
(1) There shall be charged, levied and paid to the
Government of Meghalaya, besides payable under any law for the time being in force including
section 3 of this Act, a surcharge, herein after referred to as Stamp Surcharge on the instruments
mention on the following items of Schedule I of the principal Act, namely:--
Item Nos. 1-10, 12,15-20, 22-26, 28, 29,31,38-46,48,50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument.
(3) The Stamp Surcharge shall be payable as if it were a duty under section 3 and the provisions
of this Act including the rules thereunder shall according apply; and the authorities for the time
being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for
by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly
collect and enforce payment of stamp Surcharge.
Provide that the Government of Meghalaya may, for facilitating implementation, by
notification, direct that in any case or class the provisions of this act including the rules thereunder
shall apply subject to such indications not inconsistent with the provisions of this section and as
may be specified in such notification.
(4) Notwithstanding anything contained in sub-section
(3), the Government of Meghalaya may
make rule generally for securing the payment of the Stamp Surcharge and carrying into effect the
13
provisions the sub-sections
(1) and
(2) and in particular for ensuring the proper maintenance and
rendering or accounts of the Stamp Surcharge.”
[Vide Meghalaya Act 13 of 1972, s. 2]
Meghalaya
Insertion of a new section in Central Act II of 1899.—After section 3 of the Indian Stamp Act, 1899
the following shall be inserted as section 3A, namely:--
“3A. Surcharge on Stamp Duty.—
(1) There shall be charged, levied and paid to the Government of
Meghalaya, besides payable under any law for the time being in force including section 3 of this Act,
a surcharge, hereinafter referred to as Stamp Surcharge on the instruments mentioned in the following
items of Schedule I to the principal Act, namely:-
Item Nos. 1-10, 12, 15-20, 22-26, 28, 29, 31, 36, 38-46, 48, 50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty. Five paise per instrument.
(3) The Stamp Surcharge shall by payable as if it were a duty under section 3 and the provisions
of this Act including the rules thereunder shall according apply; and the authorities for the time being
empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or
under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and
enforce payment of Stamp Surcharge.
Provided that the Government of Meghalaya may, for facilitating implementation, by notification,
direct that in any case or class the provisions of this Act including the rules thereunder shall apply
subject to such indications not inconsistent with the provisions of this section and as may be specified
in such notification.
(4) Notwithstanding anything contained in sub-section
(3), the Government of Meghalaya may
make rules generally for securing the payment of the Stamp Surcharge and carrying into effect the
provisions the sub-sections
(1) and
(2) and in particular for ensuring the proper maintenance and
rendering or accounts of the Stamp Surcharge.”
[Vide Meghalaya Act 15 of 1973, s. 2]
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
14
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.]
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:
1. Ins. by Act 7 of 2019, s. 13 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
15
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]
16
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);
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”.
4. 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]
5. Ins. by Act 18 of 2005, s.114 (w.e.f. 13-5-2005).
17
(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
[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.
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. 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).
18
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
