[8F. Agreement or document for transfer or assignment of rights or interest in financial assets
not liable to stamp-duty.—Notwithstanding anything contained in this Act or any other law for the time
being in force, any agreement or other document for transfer or assignment of rights or interest in
financial assets of banks or financial institutions under section5 of the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002, (54 of 2002) in favour of any asset
reconstruction company, as defined in clause (ba) of sub-section
(1) of section 2 of that Act, shall not be
liable to duty under this Act.]
2
[8G. Strategic sale, disinvestment, etc., of immovable property by Government company not
liable to stamp duty.—Notwithstanding anything contained in this Act or any other law for the time
being in force, any instrument for conveyance or transfer of a business or asset or right in any immovable
property from a Government company, its subsidiary, unit or joint venture,
(i) by way of strategic sale or disinvestment or demerger or any other scheme of arrangements or
through any law, to another Government company or to the Central Government or any State
Government or to the development financial institution established by any law made by Parliament;
or
(ii) which is to be wound up, closed, struck-off, liquidated or otherwise shut down, to another
Government company or to the Central Government or any State Government,
after approval of the Central Government or the State Government, as the case may be, shall not be liable
to duty under this Act.
Explanation.—For the purposes of this section, “Government company” shall have the same meaning
as assigned to it in clause
(45) of section 2 of the Companies Act, 2013 (18 of 2013).]
9. Power to reduce, remit or compound duties. — 3[
(1)] 4[The 5*** Government] may, by rule or
order published in the Official Gazette, —
(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of 6[the
territories under its administration], the duties with which any instruments or any particular class of
instruments, or any of the instruments belonging to such class, or any instruments when executed by
or in favour of any particular class of persons, or by or in favour of any members of such class, are
chargeable, and
(b) provide for the composition or consolidation of duties 7[of policies of insurance and] in the
case of issues by any incorporated company or other body corporate 8[or of transfers (where there is a
single transferee, whether incorporated or not)] of debentures, bonds or other marketable securities.
9
[
(2) In this section the expression “the Government” means, —
(a) in relation to stamp-duty in respect of bills of exchange, cheques, promissory notes, bills of lading,
letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, and in relation to any
other stamp-duty chargeable under this Act and falling within entry 96 in List I in the 10[Seventh Schedule to
the Constitution, expect the subject matters referred to in clause
(b) of sub-section
(1)]; the Central
Government;
(b) Save as aforesaid, the State Government.]
1. Ins. by Act 44 of 2016, s. 43 and the First Schedule (w.e.f. 1-9-2016).
2. Ins. by Act 13 of 2021, s. 126 (w.e.f. 28-3-2021).
2. S. 9 re-numbered as sub-section
(1) of that section by the A.O. 1950.
3. Subs. by the A.O. 1937, for “the G.G. in C”.
4. The word “collecting” omitted by the A.O. 1950.
5. Subs. by the A.O. 1937, for “British India”.
6. Ins. by Act 23 of 2004, s. 117.
7. Ins. by Act 32 of 1994, s. 99 (w.e.f. 13-9-1994).
8. Added by the A.O. 1950.
9. Subs by Act 21 of 2006 s. 69, for “Seventh Schedule to the Constitution” (w.e.f. 18-4-2006).
19
STATE AMENDMENT
Karnataka
Insertion of new section 9A.—The following section shall be inserted, namely:—
9A. Power of State Government to consolidate duties in respect of receipts.—Subject to such
conditions as may be specified, the State Government may, by order, provide for the consolidation of
duties in respect of any receipts or class of receipts given by any person or class of persons including
any Government.
[Vide Karnataka Act 29 of 1978, s. 2]
1
[AA.— Of the liability of instruments of transaction in
stock exchanges and depositories to duty
9A. Instruments chargeable with duty for transactions in stock exchanges and
depositories.—
(1) Notwithstanding anything contained in this Act,—
(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock
exchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of the
State Government by the stock exchange or a clearing corporation authorised by it, from its buyer on
the market value of such securities at the time of settlement of transactions in securities of such buyer,
in such manner as the Central Government may, by rules, provide;
(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is
made by a depository otherwise than on the basis of any transaction referred to in clause
(a), the
stamp-duty on such transfer shall be collected on behalf of the State Government by the depository
from the transferor of such securities on the consideration amount specified therein, in such manner
as the Central Government may, by rules, provide;
(c) when pursuant to issue of securities, any creation or change in the records of a depository is
made, the stamp-duty on the allotment list shall be collected on behalf of the State Government by the
depository from the issuer of securities on the total market value of the securities as contained in such
list, in such manner as the Central Government may, by rules, provide.
(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section
(1) shall
be chargeable with duty as provided therein at the rate specified in Schedule I and such instruments need
not be stamped.
2
[
Provided that no such duty shall be chargeable in respect of the instruments of transaction in stock
exchanges and depositories established in any International Financial Services Centre set up under
section 18 of the Special Economic Zones Act, 2005 (28 of 2005).]
(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the
State Government on any note or memorandum or any other document, electronic or otherwise,
associated with the transactions mentioned in sub-section
(1).
(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may
be, shall, within three weeks of the end of each month and in accordance with the rules made in this
behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty
collected under this section to the State Government where the residence of the buyer is located and in
case the buyer is located outside India, to the State Government having the registered office of the trading
member or broker of such buyer and in case where there is no such trading member of the buyer, to the
State Government having the registered office of the participant:
Provided that before such transfer, the stock exchange or the clearing corporation authorised by it or
the depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as
may be specified in such rules.
Explanation.—The term “participant” shall have the same meaning as assigned to it in clause
(g) of
section 2 of the Depositories Act, 1996 (22 of 1996).
1. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020.]
2. Ins. by Act 12 of 2020, s. 143 (w.e.f. 1-4-2020).
20
(5) Every stock exchange or the clearing corporation authorised by it and depository shall submit to
the Government details of the transactions referred to in sub-section
(1) in such manner as the Central
Government may, by rules, provide.
9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges
and depositories.—Notwithstanding anything contained in this Act,—
(a) when any issue of securities is made by an issuer otherwise than through a stock exchange or
depository, the stamp-duty on each such issue shall be payable by the issuer, at the place where its
registered office is located, on the total market value of the securities so issued at the rate specified in
Schedule I;
(b) when any sale or transfer or reissue of securities for consideration is made otherwise than
through a stock exchange or depository, the stamp-duty on each such sale or transfer or reissue shall
be payable by the seller or transferor or issuer, as the case may be, on the consideration amount
specified in such instrument at the rate specified in Schedule I.]
B.—Of Stamps and the mode of using them
10. Duties how to be paid.—
(1) Except as otherwise expressly provided in this Act, all duties with
which any instruments are chargeable shall be paid, and such payment shall be indicated on such
instruments, by means of stamps —
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto—as the 1[State Government] may be rule direct.
(2) The rules made under sub-section
(1) may, among other matters, regulate,—
(a) in the case of each kind of instrument—the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps—the number of stamps which may
be used;
(c) in the case of bills of exchange or promissory notes 2*** the size of the paper on which they
are written.
STATE AMENDMENT
Assam
Insertion of section 10A.—The principal Act, after the existing section the following shall be
inserted as section 10A, namely:—
“10A. For shortage of stamps how duty to be paid—
(1) Notwithstanding anything contained in
Section 10, where the State Government or the Collector, as the case may be, is satisfied that there is
shortage of stamps in the district or stamps of required denominations are not available, the State
Government or the Collector may permit payment of the duty to be paid in cash or by way of Demand
Draft or by Pay Order and authorize the Treasury Officer or Sub-Treasury Officer or Sub-Registrar or
any other authorised officer, as the case may be, on production of a challan evidencing payment of
duty in the Government Treasury or Sub-Treasury of a Demand Draft or by Pay Order drawn on a
branch of any Schedule bank, as the case may be, after due verification, to certify in such manner as
may be prescribed, by endorsement on the instrument of the amount of duty so paid in cash.
Explanation.—Government Treasury includes a Government Sub-Treasury and any other place
as the State Government may, by notification in the Assam Gazette, appoint in this behalf:
Provided that the State Government may, be order published in the Official Gazette, direct that
the power exercisable by it or by the Collector under this Section may be exercised by such other
officers as may be specified in the order.
(2) An endorsement made on any instrument under sub-section
(1) shall have the same effect as if
the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof
1. Subs. by the A.O. 1950, for “collecting Government”.
2. The words “written in any oriental language” omitted by Act 43 of 1955, s. 5 (w.e.f. 1-4-1956).
21
and such payment has been indicated on such instrument by means of stamps in accordance with the
requirements of section 10.
(3) Nothing in this section shall apply to,—
(i) the payment of stamp duty chargeable on the instruments specified in Entry 91 of List I of
the Seventh Schedule to the Constitution of India; and
(ii) the instruments presented after six months from the date of their execution or first
execution.”
[Vide Assam Act 22 of 2004, s. 2]
Meghalaya
Amendment of section 10 of Central act 2 of 1899.—In the Indian Stamp Act, 1899 after section 10
the following new section shall be inserted as section 10A, namely:--
"10A. Notwithstanding anything contained in section 10 where,
(a)
(i) The State Government, in relation to any area in the State; or
(ii) the Deputy Commissioner, in relation to any area in District under his charge, is satisfied
that on account of temporary, shortage of stamps in any area, duty cannot be paid, and payment
of duty cannot be indicated on instruments, by means of Stamps, the State Government, or as the
case may be, the Deputy Commissioner may, by notification, in the Official Gazette, direct that in
such area and for such period as maybe specified in such notification, the duty may be paid in
cash in any Treasury or Sub-Treasury and shall on production of a challan evidencing payments
of stamp duty in the Government treasury certify endorsement on the instrument in respect of
which the stamp duty is paid, that the duty has been paid, and state in the said endorsement the
amount of the duty so paid.
(b) An endorsement made on any instrument under clause
(a) shall have the same effect as if
the duty of an amount equal to the amount stated in the endorsement had been paid in respect of,
and such payment has been indicated on, such instrument by means of stamps, under section 10.”
[Vide Meghalaya Act 6 of 1973, s.2]
Uttarakhand
Amendment of section 10.—After section 10(A) the following section shall be inserted, namely:-
10(B) "Various modes of payment of duty" Notwithstanding anything contained in section 10 &
10(A) all duties with which any instruments are chargeable shall be paid,-
(1) by way of cash; or
(2) by demand draft; or
(3) by pay order; or
(4) by e-payment;
in Government Treasury or Sub-Treasury or General Stamp Office [or, as the case may be,
Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury)] and such payment shall be
indicated by endorsement on such instruments by an officer authorised by the State Government.
[Vide Uttarakhand Act 1 of 2016, s. 3]
Uttar Pradesh
Amendment of section 10-A.— In section 10-A of the Principal Act, for sub-section
(1) the following
sub-section shall be substituted namely :—
"
(1) Notwithstanding anything contained in section 10—
(a) where the Collector is satisfied that there is temporary shortage of stamps in the district or that
stamps of required denominations are not available, he may permit duty to be paid in cash and
authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty
22
in the Government treasury or sub-treasury, to certify by endorsement on the instrument or
instruments the amount of duty so paid in cash ;
(b) where the State Government considers it expedient so to do, it may, in any district, permit
duty to be paid in cash and authorize any officer, to receive payment of duty in cash and to certify by
endorsement by means of a Franking machine on the instrument or instruments the amount of duty so
paid in cash.
[Vide Uttar Pradesh Act 11 of 1992, s. 3]
Uttar Pradesh
Insertion of new section 10-A.— After section 10 of the principal Act, the following section shall be
inserted, namely :—
“10-A. Payment of duty in cash.—
(1) Notwithstanding anything contained in section 10, where
the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of
required denominations are not available, he may permit duty to be paid in cash and authorize the
officer-in-charge of the treasury on production of a challan evidencing payment of duty in the
Government treasury or sub-treasury, to certify by endorsement on the instruments or instruments the
amount of duty so paid in cash.
(2) An endorsement made on any instrument under sub-section
(1) shall have the same effect as if
the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof
and such payment has been indicated on such instrument by means of stamps in accordance with the
requirement of section 10.”
[Vide Uttar Pradesh Act 20 of 1974, s. 4]
Haryana
Amendment of section 10 of Central Act 2 of 1899.—To sub-section
(1) of section 10 of the Indian
Stamp Act, 1899 the following proviso shall be added, namely: —
"
Provided that whenever stamp paper of smaller value and denomination ranging from rupee one to
rupees ten is in short supply or is not available, the duty payable under this Act, on any instrument,
shall be paid in such manner as the State Government may by rules direct.",
[Vide Haryana Act 1 of 1987, s. 2]
11. Use of adhesive stamps.—The following instruments may be stamped with adhesive stamps,
namely: —
(a) instruments chargeable 1[with a duty not exceeding ten naye paise], except parts of bills of
exchange payable otherwise than on demand and drawn in sets;
(b) bills of exchange, 2*** and promissory notes drawn or made out of 3[India];
(c) entry as an advocate, vakil or attorney on the roll of a High Court;
(d) notarial acts; and
(e) transfers by endorsement of shares in any incorporated company or other body corporate.
STATE AMENDMENT
Uttar Pradesh
Amendment of section 11.—In section 11 of the principal Act, in clause
(c), after the words “State Bar
Council of Uttar Pradesh” the words “and certificates of enrolment issued to Revenue Agents or
Mukhtars” shall be inserted.
1. Subs. by Act 19 of 1958, s. 2, for “with the duty of one anna or half an anna” (w.e.f. 1-10-1958).
2. The word “cheques” omitted by Act 5 of 1927, s. 5.
3. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
23
[Vide Uttar Pradesh Act 19 of 1982, s. 3]
Insertion of section 11-A.— After section 11 of the principal Act, the following section shall be
inserted, namely :—
“11-A. Payment of duty in cash on such memos.—
(1) Notwithstanding anything contained in
section 11, the stamp duty due under Article 25-A of Schedule I-B on a counterpart or duplicate
(including counterfoil or carbon copy) of a bill or cash memo may be paid either by means of stamps
on the date of issue of such instruments, or in cash once in every quarter, for all such instruments
issued in the previous quarter, into the treasury or sub-treasury under such head as the State
Government may by general or special order direct.
(2) The treasury challan prepared for deposit of duty in cash shall be accompanied by such
statement and shall be preserved for the purpose of verification for such period and proper account
thereof shall be maintained in such form as the State Government may by general or special order
direct.”
[Vide Uttar Pradesh Act 49 of 1975, s. 4]
Amendment of section 11.—In section 11 of the principal Act, in clause
(c), after the words “State Bar
Council of Uttar Pradesh” the words “and certificate of enrolment issued to Revenue Agents or
Mukhtars” shall be inserted.
[Vide Uttar Pradesh Act 19 of 1981, s. 3]
12. Cancellation of adhesive stamps.—
(1)
(a) Whoever affixes any adhesive stamp to any
instrument chargeable with duty which has been executed by any person shall, when affixing such stamp,
cancel the same so that it cannot be used again; and
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of
execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that
it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used
again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3)The person required by sub-section
(1) to cancel an adhesive stamp may cancel it by writing on or
across the stamp his name or initials or the name or initials of his firm with the true date of his so writing,
or in any other effectual manner.
13. Instruments stamped with impressed stamps how to be written.—Every instrument written
upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear
on the face of the instrument and cannot be used for or applied to any other instrument.
14. Only one instrument to be on same stamp.—No second instrument chargeable with duty shall
be written upon a piece of stamped paper upon which an instrument chargeable with duty has already
been written:
Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not
chargeable with duty being made upon any instrument for the purpose of transferring any right created or
evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of
which is secured thereby.
15. Instrument written contrary to section 13 or 14 deemed unstamped.—Every instrument
written in contravention of section 13 or section 14 shall be deemed to be unstamped.
16. Denoting duty.—Where the duty with which an instrument is chargeable, or its exemption from
duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of
such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on
production of both the instruments, be denoted upon such first-mentioned instrument by endorsement
under the hand of the Collector or in such other manner (if any) as the 1[State Government] may by rule
prescribe.
1. Subs. by the A.O. 1950, for “collecting Government”.
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’
