Draft Indian Stamp (A) Bill, 2014

THE INDIAN STAMP (AMENDMENT) BILL, 2014
BILL
further to amend the Indian Stamp Act, 1899.
BE it enacted by Parliament in the Sixty-fifth Year of the

Republic of India as follows:-
1. (1) This Act may be called the Indian Stamp Short title and
(Amendment) Act, 2014. commencement.
(2) It shall come into force on such date as the Central

Government may, by notification in the Official Gazette,
appoint, and different dates may be appointed for different
provisions of this Act.
Substitution of 2. Throughout the Indian Stamp Act, 1899 (hereinafter 2 of 1899.

reference to referred to as the principal Act), for the word and figure
certain
expression by “Schedule I”, wherever they occur, the word “Schedule”
certain other shall be substituted.
expression.
3. In section 2 of the principal Act,- Amendment of

section 2.
(a) for clause (1), the following clauses shall be

substituted, namely:-
(Article 1 of ‘(1) “Acknowledgement of a debt” means any

Schedule 1 - instrument written or signed by or on behalf of a debtor
modified )
in order to supply evidence of such debt in any book
(other than a banker's pass book) or on a separate
piece of paper and left in the creditor's possession;
(Article 2-modified) (1A) “Administration-Bond” includes a bond given

under sections 291, 375 and 376 of the Indian
Succession Act, 1925 and section 6 of the Government 39 of 1925.
5 of 1873.
Saving's Bank Act, 1873;
(Article 3) (1B) “Adoption Deed” means any instrument (other

than a will) recording an adoption or conferring or
purporting to confer an authority to adopt;
(Article 4) (1C) “Affidavit” means a statement in writing,

purporting to be statement of facts, signed by the
person making it and affirmed by him on oath and
SECRET Page 16 of 89
includes affirmation or declaration in the case of
persons by law allowed to affirm or declare instead of
swearing;
(Article 6 modified) (1D) “Agreement”, in relation to the deposit of title

deeds or pawn or pledge or hypothecation, means any
instrument or a written document evidencing
agreement relating to-
(a) the deposit of title deeds or of any other

instrument constituting or being the evidence of title
to any property (other than a marketable security); or
(b) the pawn or pledge or hypothecation of

movable property,
where—
(i) such agreement is made or written either
before, or at the time when, or after, the deposit
of title deeds or pawn or pledge or hypothecation
is effected; and
(ii) such deposit of title deeds or pawn or
pledge or hypothecation has been made by way
of security for repayment of money advanced or
to be advanced by way of loan or an existing or
future debt;
(Clause (a) of (1E) “Association” means a body of individuals, or
section 2 of the exchange or depository or organisation, whether
Bombay Stamp incorporated or not, established for the purpose of
Act, 1958 - regulating and controlling the business of the sale or
modified. purchase of any goods or marketable securities or any
other transaction relating thereto including a contract
for difference ;
(Section 3 of (1F) “Attested" in relation to an instrument, means

Transfer of attested by one or more witnesses each of whom has
Property Act, seen the executant sign or affix his mark to the
1882) instrument, or has seen some other person sign the
instrument in the presence and by the direction of the
executants, or has received from the executant a
personal acknowledgement of his signature or mark, or
of the signature of such other person, and each of
whom has signed the instrument in the presence of the
executant, but it shall not be necessary that more than
one of such witnesses shall have been present at the
same time, and no particular form of attestation shall be
necessary;
(Article 12 (1G) “Award” means any decision in writing by an

modified) arbitrator or umpire on a reference made (otherwise
than by an order of the Court in the course of a suit) on
the basis of a written agreement to submit the present
or future differences to arbitration, but does not include
an award directing a partition;
New (1-H) "Banker" includes-

(a) a banking company as defined in clause (c) of
10 of 1949.
section 5 of the Banking Regulation Act, 1949;
(b) a co-operative bank as defined in clause (cci)
of section 56 of the Banking Regulation Act, 1949;
(c) the State Bank of India constituted under 23 of 1955.
section 3 of the State Bank of India Act, 1955, any of
its subsidiary banks as defined in clause (k) of
section 2 of the State Bank of India (Subsidiary 38 of 1959.
Banks) Act, 1959 and any of the corresponding new
banks constituted under section 3 of the Banking
Companies (Acquisition and Transfer of 5 of 1970.
Undertakings) Act, 1970 and the Banking
Companies (Acquisition and Transfer of
Undertakings) Act, 1980, as the case may be;’; 40 of 1980.
(b) in clause (5), for sub-clause (c), the following shall

be substituted, namely:-
‘(c) any instrument so attested, whereby a person

obliges himself to deliver grain or other agricultural
produce to another,
but does not include “debenture”’;
(c) after clause (5), the following clauses shall be

inserted, namely:-
New ‘(5A) “Certificate of practice” means the certificate

issued to a notary under sub-section (1) of section 5 of
the Notaries Act, 1952 and includes an endorsement of 53 of 1952.
renewal of such certificate made under sub-section (2)
thereof;
(Article 18- (5B) “Certificate of sale” means any instrument granted
modified ) to the purchaser of a property sold by public auction, by
a Civil Court or by the Collector or any officer
authorised so to do under any law for the time being in
force;’;
(d) in clause (6), for the words “in India“, the words “in
the territories to which this Act extends” shall be
substituted;
(e) after clause (7), the following clauses shall be

inserted, namely:-
Section 2, ‘(8) "Chief Controlling Revenue Authority" means
Bombay Court such officer as the State Government or the Central
Fees Act, 1959 Government may, by notification in the Official
Gazette, appoint in this behalf, for the whole or any
part of the State or the Union territory, as the case
may be;
Section 2 (e), (8A) "Clearance List" means a list of transactions,

Bombay Court including both sale and purchase, relating to
Fees Act, 1959 contracts required to be submitted to the clearing
house of an association in accordance with the rules
or bye -laws of that association;’;
(f) for clause (9), the following clause shall be

Section 2(f), ‘(9) "Collector" means the chief officer-in-charge of

Bombay Court revenue administration of a district and includes a
Fees Act, 1959 Deputy Commissioner and any officer specially
appointed by the State Government or the Central
Government, as the case may be, to perform the
functions of a Collector under this Act;’;
(g) after clause (9), the following clause shall be
inserted, namely:-
Article 22 ‘(9A) “Composition deed” means any instrument

Schedule I executed by a debtor whereby –
(a) he conveys his property for the benefit of his

creditors; or
(b) the payment of a composition or dividend is

secured to the creditors on their debts; or
(c) the provision is made for the continuance of the

debtor's business, under the supervision of
inspectors nominated by the creditors or under
letters of licence, for the benefit of his creditors;’;
(h) for clause (10), the following clause shall be

section 2 (10) ‘(10) "Conveyance" includes-

modified on the
line of Section (a) a conveyance on sale;
2(d) of
Karnataka (b) every decree or final order of a civil court;
Stamp Act,
1959 (c) every final order of a revenue authority;
(d) every order made by the High Court under
section 394 of the Companies Act, 1956 in respect 1 of 1956.
of the amalgamation or reconstruction of
companies:
Provided that on or after the constitution of the

National Company Law Tribunal under section
10FB of the said Companies Act, the reference to
‘High Court’ under this clause shall be construed
as reference to such Tribunal; and
(e) every other instrument,
by which property, movable or immovable is

transferred to, or any estate or interest therein is
created or vested in, any other person, and which is not
specifically provided for by Part-B of the Schedule;
Explanation. -For the purposes of this clause, any

instrument, other than an instrument of partition,
whereby, a co-owner of any property transfers his
interest to another co-owner, shall be construed as a
conveyance;’;
(i) after clause (10), the following clauses shall be

inserted, namely:-
Article 26 of ‘(10A) “Customs bond” means a bond given pursuant to

Schedule I an obligation arising under the provisions of any
modified on the Central Act or State Act governing taxation of goods
lines of and services;
Schedule to
Bombay Stamp
Act, 1958.
Section 2 (12) (10B) “Debenture” includes debenture stock and bonds
of Company’s whether constituting a charge on the assets of the
Act, 1956. company or not;
Article 28 (10C) “Delivery order in respect of goods” means any
Schedule I. instrument entitling any person therein named, or his
assigns or the holder thereof, to the delivery of any
goods lying in any dock or port or air cargo complex or
inland container depot or dry port or station or in any
warehouse in which goods are stored or deposited on
rent or hire, or upon any wharf, such instrument being
executed by or on behalf of the owner of such goods,
upon the sale or transfer of the property therein;’;
(j) for clause (11), the following clause shall be

section 2 (11) ‘(11) "duly stamped" as applied to an instrument means
modified that the instrument bears a 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 the territories to which this Act extends;’;
(k) for clause (12), the following clause shall be

S.2 (12) ‘(12) "executed" and "execution", used with reference

modified to instrument, shall respectively mean "signed" and
"signature", and in the case of an illiterate person,
“marked” and “marking”, and includes electronic
execution of instruments in accordance with section
11 of the Information Technology Act, 2000;’; 21 of 2000.
(l) after clause (12), the following clause shall be

inserted, namely:-
Section 2(6) of ‘(12A) "immovable Property" includes—

Registration
Act, 1908. (i) land, buildings, hereditary allowances, rights to
ways, lights, ferries, fisheries or any other benefit to
arise out of land and things attached to the earth or
permanently fastened to anything attached to the
earth but not standing timber, growing crops or
grass;
(ii) a plant and machinery in a factory, whether

fixed or otherwise, when sold with the intention of
running the factory;’;
(m) in clause (13), after sub-clause (b), the following
sub-clauses shall be inserted, namely:-
“(c) impression by a franking machine;
(d) impression or print on a paper by any other

method including electronic method;
(e) such other impressions as the Government may,

by notification in the Official Gazette, specify;”;
(n) for clause (13A), the following clause shall be

Section 124 of ‘(13A) “Indemnity bond” means an instrument by which

Indian Contract one person promises to save the other from loss
Act, 1872. caused to him by the conduct of promisor himself, or by
the conduct of any other person;’;
(o) for clause (14), the following clause shall be
section 2 (14) ‘(14) "Instrument" includes—

modified.
(i) every document, electronic or otherwise, by
which any right or liability is, or purports to be,
created, transferred, limited, extended, extinguished
or recorded; and
(ii) any other document mentioned in the Schedule;’;
(p) for clause (15), the following clause shall be

section 2( 15) ‘(15) "Instrument of partition" means any instrument

modified whereby co-owners of any property divide or agree to
Section 2(k), divide such property in severalty, and includes--
Karnataka
Stamp Act 1957 (a) a final order for effecting partition passed by a
& also in the revenue authority or any Civil Court;
lines of section
2(15) existing. (b) an award by an arbitrator directing partition; and
(c) any instrument signed by co-owners stating or

declaring such partition and the terms for effecting
such partition amongst the co-owners;’;
(q) in clause (16),-
(i) in the opening portion, after the words, “immovable

property”, the words “or movable property or both” shall
be inserted;
(ii) after sub-clause (d), the following clauses shall be

inserted, namely:-
“(e) a decree or final order of any civil court or

revenue court in respect of a lease; and
(f) licence deed or rent agreement;”;
(r) for clause (16A), the following clauses shall be

Article 37 ‘(16A) “Letter of Credit” means any instrument by which

Schedule I. one person authorizes another to give credit to the
person in whose favour it is drawn;
(16B) “Letter of Guarantee” means any instrument by
which a person makes himself liable for the debt or
default of another;
Article 38 (16C) “Letter of Licence” means any agreement
Schedule I. between a debtor and his creditors that the latter shall,
for a specified time, suspend their claims and allow the
debtor to carry on business at his own discretion;
S.2 (16A). (16D) "Marketable security" means a security of such a

description as to be capable of being sold in any
association;
on the lines of (16E) "Market value", in relation to any property which

section 80A (6) is the subject matter of an instrument, means the price
of Income Tax or consideration as stated in that instrument, or the
Act, 1961 as price which such property would fetch or would have
amended by fetched had it been sold in the open market on the date
Finance Act of execution of such instrument, whichever is higher;’;
(No. 2) 2009.
(s) after clause (17), the following clauses shall be
inserted, namely:-
Article 41 ‘(17A) “Mortgage of a crop” includes any instrument

evidencing an agreement to secure the repayment of
a loan made upon any mortgage of a crop, whether
the crop is or is not in existence at the time of such
mortgage;
Section 2 (9) of (17B) "Movable Property" includes standing timber,
Registration growing crops and grass, fruit upon and juice in trees
Act, 1908 and plants and property of every other description,
except immovable property;
Article 42 and (17C) “Notarial act” includes any instrument,
Article 50 endorsement, note, attestation, certificate or entry
made or signed by a Notary Public in the execution of
the duties of his office or any other person lawfully
acting as a Notary Public but does not include
declaration in writing made by such Notary Public or
other person attesting the dishonour of a bill of
exchange or promissory note;’;
(t) in clause (19), after sub-clause (b), the following

sub-clauses shall be inserted, namely:-
S.2 (19A) “(c) policy of group insurance covering not less than
fifty or such smaller number as the Central
Government may approve, either generally or with
reference to any particular case, by which an insurer,
in consideration of a premium paid by an employer or
by an employer and his employees jointly, engages to
cover, with or without medical examination and for the
sole benefit of persons other than the employer, the
lives of all the employees or of any class of them,
determined by conditions pertaining to the
employment, for amounts of insurance based upon a
plan which precludes individual selection;
S.2 (20) (d) policy of sea-insurance or sea-policy 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:
Explanation.—For the purposes of sub-clause (d),-
(i) any insurance of goods, merchandise or

property for any transit which includes not only a
sea risk but also any other risk incidental to the
transit insured from the commencement of the
transit to the ultimate destination covered by the
insurance; or
(ii) any agreement or engagement wherein any

person, in consideration of any sum of money
paid or to be paid for additional freight or
otherwise, agrees to take upon himself any risk
attending goods, merchandise or property of any
description whatever while on board of any ship
or vessel, or engages to indemnify the owner of
any such goods, merchandise or property from
any risk, loss or damage,
shall also be deemed to be a sea-insurance or sea-

policy;
Art.47 B (e) fire-insurance and other classes of insurance

covering goods, merchandise, personal effects, crops
and other property against loss or damage;
Art.47 CC (f) insurance by way of indemnity against liability to

pay damages on account of accident to workmen
employed by or under the insurer or against liability to
pay compensation under the Workmen’s
Compensation Act, 1923; 8 of 1923
Art.47 D (g) any other insurance not specifically provided;
Art.47 E (h) re-insurance by an insurance company which

has granted a policy of the nature specified in clause
(d) and clause (e) with another company by way of
indemnity or guarantee against the payment on the
original insurance of a certain part of the sum insured
thereby;”;
(u) clauses (19A) and (20) shall be omitted;
(v) in clause (21), after the words “of the person
executing it”, the words “or authorising a person, not
being a legal practitioner, to appear in any proceeding
before a court, tribunal or authority on behalf of the
person executing it” shall be inserted;
(w) after clause (21), the following clause shall be

inserted, namely:-
‘(21A) “prescribed” means prescribed by rules made

under this Act by the State Government;’;
(x) after clause (22), the following clause shall be

inserted, namely:-
‘(22A) "public officer" shall have the same meaning as

assigned to it in clause (17) of section 2 of the Code of
Civil Procedure 1908;’; 5 of 1908.
(y) after clause (23), the following clauses shall be

inserted, namely:-
Article 55 ‘(23A) “release” means any instrument (other than the

release or discharge of instruments referred to in sub-
section (2) of section 23A) whereby a person
renounces a claim upon another person or against any
specified property;
section 2(h) of (23B) “securities” shall have the same meaning as

Securities assigned to it in clause (h) of section 2 of the Securities
Contracts Contracts (Regulation) Act, 1956;’; 42 of 1956.
(Regulation)
Act, 1956
(z) clause (25) shall be omitted;
(za) in clause (26), after the word “seal”, the word “,

certificate” shall be inserted;
Amendment of 4. In section 3 of the principal Act,-

section 3.
(a) in the opening portion, for the words and figure
“in Schedule I, the following instruments shall be
chargeable with duty of the amount indicated in that
Schedule as the proper duty therefor”, the words “in the
Schedule, the following instruments shall be
chargeable with duty at the rate or the amount
indicated in that Schedule as the proper duty therefor”
shall be substituted;
(b) in clause (b), for the words “ negotiated, in India”,

the words “negotiated, in the territories to which this Act
extends” shall be substituted;
(c) in clause (c), for the words “in India and is received
in India”, the words “in the territories to which this Act
extends and is received in the territories to which this
Act extends” shall be substituted;
(d) for the “proviso”, the following provisos shall be
“Provided that-
(i) the proper stamp duty as indicated in column (3)

against instruments specified in column (2) under Part-
B of the Schedule shall also be applicable to
instruments executed or drawn in the Union territories
not having legislatures and in such States and Union
territories with legislatures which adopt it; and
on the lines of (ii) where no proper stamp duty has been paid on the
section 3, original of an instrument which is chargeable to duty at
proviso the rate or the amount indicated in the Schedule as
Karnataka proper stamp duty therefor, then, a copy of such
Stamp Act instrument or record relating to the transaction shall be
1957. chargeable with duty at a rate or an amount which is
indicated in the Schedule as the proper duty for the
original of such instrument:
Provided further that no duty shall be chargeable in

respect of -
(i) 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;
(ii) 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 Coasting Vessels Act, 1838 or the Merchant 19 of 1838.
Shipping Act, 1958; 44 of 1958.
(iii) any instrument related to land or building falling

inside the notified area of a Special Economic Zone
executed, by, or, on behalf of, or in favour of, the
Developer, or Unit or in connection with the carrying out
of purposes of the Special Economic Zone.”.
Substitution of 5. For section 4 of the principal Act, the following

new section for section shall be substituted, namely:-
section 4.
Several “4. (1) Where in any transaction, several instruments
instruments used are employed for completing that transaction, the
in a single
transaction. principal instrument shall be chargeable with the duty
specified for it in the Schedule and each of the other
instruments shall be chargeable with a duty of rupees
one hundred instead of the duty specified for it in that
Schedule.
(2) The parties may determine for themselves which of

the instruments so employed shall, for the purpose 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.
(3) Notwithstanding anything contained in sub-sections

(1) and (2), in the case of issue and sale of securities, the
instrument on which the stamp duty is to be collected
under section 10A shall be the principal instrument and no
duty shall be charged on any other instruments related to
such transaction.
Amendment of 6. In section 6 of the principal Act, the proviso shall be

section 6. omitted;
Omission of 7. Section 8 of the principal Act shall be omitted.

section 8.
Substitution 8. For section 8A of the principal Act, the following
of new section shall be substituted, namely:-
section for
section 8A.
Securities “8A. Notwithstanding anything contained in this Act or any
dealt in
depository. 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 security
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 under
this Act or any other law for the time being in force.
Explanation.—For the purposes of this section, the

expressions "beneficial owner", "depository" and "issuer",
shall have the meanings respectively assigned to them in
clauses (a), (e) and (f) of sub-section (1) of section 2 of the
Depositories Act, 1996. 22 of 1996.
Substitution 9. For section 8B of the principal Act, the following

of new
section for section shall be substituted, namely:-
section 8B.
Corporatisation ‘8B. Notwithstanding anything contained in this Act or
and any other law for the time being in force,-
demutualisation
schemes and
related (a) any instrument executed under a scheme for
instruments not corporatisation or demutualisation, or both, of a
liable to duty.
recognized stock exchange and recognised commodity
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 purposes of, or in connection
with, the corporatisation or demutualisation, or both, of
a recognized stock exchange and a recognised
commodity exchange pursuant to a scheme,
as approved by the Forward Market Commission 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) “corporatization” means the succession of a

recognized association, being a body of individuals or
a society registered under the Societies Registration
Act, 1860, by another recognised association, being a 21 of 1860.
company incorporated for the purpose of assisting,
regulating or controlling the business of buying, selling
or dealing in goods or commodity derivatives carried on
by such individuals or society;
(b) “demutualization” means the segregation of

ownership and management from the trading rights of
the members of a recognized association in accordance
with a scheme approved by the Forward Markets
Commission;
(c) “Forward Market Commission” means the Forward

Market Commission established under section 3 of the
Forward Contracts (Regulation) Act, 1952; 74 of 1952.
(d) “recognised association” means any association

recognised under section 6 of the Forward Contracts
(Regulation) Act, 1952.’. 74 of 1952.
Amendment of 10. In section 8C of the Principal Act, for the words “in
section 8C. this Act, negotiable warehouse receipts”, the words “in this
Act, issuance, trading, transfer, discharge and
surrendering of negotiable warehouse receipts, whether
physical or electronic,” shall be substituted.
Insertion of 11. After section 8D of the principal Act, the following

new section section shall be inserted, namely:-
8E.
Assignment “8E. Notwithstanding anything contained in this Act or any
including other law for the time being in force,-
assignment of
loans and
advances,
transfer of
assignment, issue
of security
receipts or asset
backed securities,
not liable to
stamp duty.
(a) any instrument relating to assignment by any bank

or financial institution of its financial assets, with or
without the benefit of underlying securities, to any
securitisation company or reconstruction company
registered with the Reserve Bank of India under section
3 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002; 54 of 2002.
or
(b) any instrument relating to assignment of loans or

advances by the National Bank for Agriculture and
Rural Development in pursuance of the provisions of
section 38B of the National Bank for Agriculture and 61 of 1981.
Rural Development Act, 1981; or
(c) any instrument relating to transfer of rights and
interests in, or assignment of, loans or advances by the
National Housing Bank under section 17 of the National 53 of 1987.
Housing Bank Act,1987; or
(d) any instrument relating to acquisition by the

National Housing Bank of the rights and interests of
any institution in, by transfer or assignment of, loans or
advances recoverable by such institution pursuant to
the provisions contained in section 18 of the National
Housing Bank Act, 1987; or 53 of 1987.
(e) any security receipts issued by a securitization

company or reconstruction company registered with the
Reserve Bank of India pursuant to acquisition of
financial assets under section 7 of the Securitization
and Reconstruction of Financial Assets and
Enforcement of Securities Interest Act, 2002; or 54 of 2002
(f) any security (being property mortgaged or assigned

as security) issued by,-
(i) the National Housing Bank under the provisions
of the National Housing Bank Act, 1987, or 53 of 1987.
(ii) the National Bank for Agriculture and Rural

Development under the provisions of the National
Bank for Agriculture and Rural Development Act, 61 of 1981.
1981,
shall not be liable to any duty under this Act or any

other law for the time being in force.
Explanation— For the purposes of this section, the

expressions “asset reconstruction”, “bank”, “financial
assets”, “financial institution”, “reconstruction
company”, “securitisation”, “securitisation company”
and “security receipt” shall have the meanings
respectively assigned to them in clauses (b), (c), (l),
(m), (v), (z), (za) and (zg) of sub-section (1) of section 2
of the Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002. 54 of 2002.

section 9.
(a) in sub-section (1), after the words “The
Government”, the words “, if satisfied that it is
necessary in the public interest so to do, it ” shall be
inserted;
(b) in sub-section (2), in clause (a), for the word and

figure “entry 96”, the word and figure “entry 91” shall be
substituted.

section 10.
(a) in sub-section (1),-
(i) in the opening portion, for the word, “any

instruments”, the word “the instruments” shall be
substituted;
(ii) in clause (b), for the word “direct”, the word

“prescribe” shall be substituted;
(b) in sub-section (2), after clause (c), the following

clauses shall be inserted, namely :-
“(d) in the case of instruments stamped with

franking machine or such other machine – the type
of ink, the security features and the design which
may be used;
(e) in the case of electronic stamping – the

security features and the design which may be
used.”.
(c) after sub-section (2), the following shall be
inserted, namely :-
“(3) Subject to the rules made under sub-section

(1), the State Government may authorize any person,
body or organisation, including post offices and
banks, to use a franking machine or such other
machine for making impression of stamps indicating
the payment of stamp duty on the instruments.
Section 13 (3) (4) Notwithstanding anything contained in sub-

of Uttar section (1), the stamp duty may be paid in cash or by
Pradesh any other means in any Government Treasury, sub-
Stamp Act, treasury or bank or any other agency authorised in
2008. this behalf by the Government and the payment so
made shall be endorsed on the instrument to that
effect by such officer as may be notified in the Official
Gazette by the Government in this behalf.
(5) Notwithstanding anything contained in this

section, and subject to such rules as may be made by
the State Government in this behalf under sub-section
(1), the duty on an instrument can also be paid
electronically and indicated by means of a certificate
issued under such electronic stamping method as
may be specified by the State Government, by
notification in the Official Gazette.
In the lines of (6) An impression made on any instrument under
section 10 (4) sub-section (3), or an endorsement made on any
of Bombay instrument under sub-section (4), or a certificate
Stamp Act, issued in respect of any instrument under sub-section
1958. (5) shall have the same effect as if the applicable duty
has been paid in respect of such instrument and such
payment has been indicated thereon in accordance
with the provisions of sub-section (1):
Provided that the State Government, having

regard to the circumstances as may exist, is of the
view that it is in the public interest so to do, it may, by
an order published in the Official Gazette, restrict the
mode of indicating the payment of duty on any
instrument or class of instruments”.
Insertion of new 14. After section 10 of the principal Act, the following
section 10A. sections shall be inserted, namely:-
Collection of duty “10A. (1) Notwithstanding anything contained in this Act,

by association, any sale of securities, whether delivery based or
depository, etc.
otherwise, when carried out through an association, the
stamp duty on such sale shall be collected on the
clearance list from the seller of such securities by the
concerned association, at the rate determined by the
State Government, by deducting the same from the
account of the seller at the time of settlement of such
transactions.
(2) Where sale of securities are not done through an

association but records are changed in depository
pursuant to such sale, the stamp duty on such sale of
securities shall be collected on the Delivery Instructions
Slip from the seller of such securities by the concerned
Depository at the rate determined by the State
Government concerned.
(3) The stamp duty collected under sub-sections (1)

and (2) shall be transferred within a week of the end of
the month by the association or the depository, as the
case may be, to the concerned State Government in
such manner as may be prescribed:
Provided that in case such seller is outside India, the

stamp duty shall be collected and transferred in the
manner prescribed by the concerned State Government.
(4) In case of issue of securities leading to creation or

change in records of a depository, depository shall
collect the stamp duty on allotment list from the issuer of
the security and thereafter shall transfer it to the
concerned State.
Provided that in case such purchaser is outside India,

the stamp duty shall be collected and transferred in the
manner prescribed by the concerned State Government.
(5) Notwithstanding anything contained in this Act or

any other law for the time being in force, in case a State
Government prescribes the collection of stamp duty
under sub-sections (1), (2) and (4) at a rate higher than
the rate specified in the schedule to this Act or such
collection of stamp duty to be made from a person other
than the one specified in this section, then, neither the
association nor the depository shall be liable to collect
the stamp duty under sub-sections (1) (2) and (4).
(6) No stamp duty shall be charged and collected by

the State Government on any Note or Memorandum
associated with transactions mentioned in this section if
such State Government has authorised the association
or the depository to collect the stamp duty on such
transactions:
Provided that no stamp duty shall be charged on any

other document, electronic or otherwise, created as a
result of the sale or issue of securities specified in sub-
section (1), sub-section (2) or sub-section (4).
Explanation(1):- For removal of doubts, it is hereby
declared than no stamp duty shall be charged and
collected by the State Governments on any Note or
Memorandum associated with transactions mentioned in
this section if such State Governments have authorised
the association or the depository to collect the stamp
duty on such transactions.
Explanation (2):- Further, no stamp duty shall be
charged on any other document, electronic or otherwise,
created as a result of the sale or issue of securities
specified in sub-section (1), sub-section(2) or sub-
section(4) on which the stamp duty has been already
levied.
(7) Every association shall submit the clearance list to
the State Government in such manner as may be
prescribed.
Explanation.—For the purposes of this section,-
(i) “concerned state” means the State where the

residence of the seller or the purchaser, as the case
may be, or the concerned dealing office of the broker,
is situate and to which the stamp duty collected by the
association or the depository under sub-sections (1),
(2) and (4) is transferred;
(ii) “depository” means the depository as defined in 22 of 1996.

clause (e) of sub-section (1) of section 2 of the
Depositories Act, 1996.
10B. (1) Notwithstanding anything contained in section Payment of duty

10, the State Government may, by order, allow or direct in consolidated
manner by
the Insurance companies, the banking companies or Insurance
such companies or bodies or organisations owned or companies, etc.
controlled by the Government to make consolidated
payment, by way of cash or demand draft or pay order or
electronically, the stamp duties required to be paid by
them, either on every instrument or class of instruments
executed or to be executed by them.
(2) On the payment of duty under sub-section (1),

such officer, as may be notified in the Official Gazette by
the State Government, of the companies or bodies or
organisations referred to in sub-section (1) shall, on
every instrument or class of instruments executed, make
an endorsement stating the amount of duty paid, the
receipt or challan number and date of such payment.”.

new section for
section 11. section shall be substituted, namely :-
Use of adhesive “11. The following instruments of the description
stamps. alongwith its Article number as specified in the Schedule
may be stamped with adhesive stamps, namely:-
(a) Acknowledgement of a debt (Article. No. 1 in Part-B);
(b) Affidavit (Article No. 4 in Part -B);
(c) Articles of Association of a Company (Article No.8 in

Part –B);
(d) Bill of Lading (Article. No. 2 in Part -A);
(e) Certificate (Article. No. 15 in Part -B);
(f) Copy or Extract (Article No. 19 in Part -B);
(g) Counterpart or duplicate (Article No. 20 in Part-B);
(h) Delivery order in respect of goods (Article No. 22 in

Part-B);
(i) Letter of credit (Article No. 4 in Part-A);
(j) Mortgage of a crop (Article No.34 in Part-B);
(k) Notarial act (Article No. 35 in Part-B);
(l) Note or Memorandum (Article No.36 in Part-B);
(m) Policy of Insurance (Article No. 5 in Part-A);
(n) Receipt (Article No. 7 in Part-A).”.
Insertion of new 16. After section 14 of the principle Act, the following
section 14A.
section shall be inserted, namely:-
Section 14A of “14A. Where material alterations are made in any Alterations in
Bombay Stamp instrument by any party, with or without the consent of instruments how
Act, 1958. to be charged.
the other party, thereby substantially or materially
altering the character of such instrument, then, such
instrument shall be subject to the payment of fresh
stamp duty.
Explanation.– For the purposes of this section,

“material alteration” means the alteration which varies
the rights, liabilities or legal position of the parties as
ascertained by the instrument in its original state or
otherwise varies the legal effect of the instrument as
originally executed.”.
new section for
section 15. section 15 shall be substituted, namely:-
Instrument written “15. Every instrument written in contravention of
contrary to section 13 or section 14 or which contravenes the
section 13 or 14
or which provisions of section 14A shall be deemed to be not
contravenes duly stamped.”
section 14A to be
deemed not duly
stamped.
Amendment of 18. In section 17 of the principal Act, -
section 17.
(a) for the words “India shall be stamped before or

at the time of execution.”, the words “the territories to
which this Act extends shall be stamped before or at
the time of execution or on the next working day,
following the day of execution.” shall be substituted;
(b) the following proviso shall be inserted, namely:-
“Provided that a clearance list may be stamped within

two months from the date of its execution.”.

section 18.
(a) for sub-section (1), the following sub-section shall
be substituted, namely:-
“(1) Every instrument chargeable with duty executed

out of India and not being a bill of exchange or
promissory note, may be stamped within three months
after it has been first received in the territories to which
this Act extends.”;
(b) in sub-section (2), for the words “ description of

stamp prescribed therefor”, the words “description of
stamp prescribed under clause (a) of sub-section (2) of
section 10” shall be substituted.
Amendment of 20. In section 19 of the principal Act, -

section 19.
(a) for the words “in India”, wherever they occur, the
words “in the territories to which this Act extends” shall
be substituted;
(b) in the proviso, in clause (a), for the words and

figures “in manner prescribed by section 12”, the words
“in the manner specified in section 12” shall be
substituted.
section 19A. section shall be inserted, namely:-
Payment of duty “19A. (1) Where in respect of a property situate in, or
on certain
instruments or any matter or thing done or to be done in, any State, an [Section 19
copies thereof, instrument mentioned in the Schedule is executed out of Bombay Stamp
liable to increased that State, and subsequently such instrument or a copy Act, 1958.]
duty in the States.
of the instrument is received in that State,-
(a) the amount of duty chargeable on such instrument

or a copy thereof shall be the amount of duty
chargeable on it in that State less the amount of duty, if
any, already paid under any other law for the time
being in force in the territories to which this Act
extends, on such instrument when it was executed;
(b) such instrument or the copy of the instrument, as

the case may be, shall, in addition to the stamps, if any,
already affixed thereto, be affixed with stamps
necessary for the payment of the amount of duty
chargeable on it under clause (a), in the same manner
and by the same person or his successor in interest as
though such instrument or the copy of such instrument,
as the case may be, was an instrument received in that
State for the first time at the time when it became
chargeable with the higher duty.
(2) The provisions of this Act and the rules made

thereunder, in so far as they relate to the recovery of
duties chargeable on instruments under section 3 and
the copies thereof, shall, as far as may be, applicable to
the recovery of duties under this section.”.

section 21.
(a) for the words “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”, the words “the
value of such transaction” shall be substituted;
(b) the following proviso shall be inserted, namely:-
“Provided that in the case of ‘option in goods’ and

‘option in securities’, the premium paid by the seller
shall be taken as the value for calculating the stamp
duty.”
Amendment of 23. In section 23A of the principal Act, in sub-section
section 23A. (1), for the words, figures, brackets and letter “Article No.
5(c) of Schedule I”, the words, brackets, letters and figure
“item (d) of Article No.5 in Part-B of the Schedule” shall be
substituted.”.

section 24.
(a) for the words “due to him, or subject either
certainly or contingently to the payment or transfer of”,
the words “due to him or any other person, or subject
either certainly or contingently to the payment or
transfer to him or any other person of” shall be
substituted;
(b) in the proviso, for the words and figures “Article
No. 18 of Schedule I”, the words, figures and letter
“Article No.14 in Part-B of the Schedule” shall be
substitute;
(c) for the Explanation occurring after the proviso, the

following Explanation shall be substituted, namely:-
“Explanation.— Where the property is sold and sale is

subject to a mortgage or other encumbrance, 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,
whether or not the purchaser expressly undertakes to
pay the same to the seller or to indemnify the seller in
case the seller has to pay the same:”;
(d) after the Explanation, in the proviso, for the words

“where property subject to a mortgage is transferred to
the mortgagee”, the words “where the property subject
to a mortgage is transferred absolutely to the
mortgagee” shall be substituted;
In the lines (e) for Illustration at serial number (2), the following
of section Illustration shall be substituted, namely:-
24, in
illustration,
S. No. 2, “(2) A sells a property to B for Rs.500. The property is
existing. subject to a mortgage to C for Rs.1000 and unpaid
interest of Rs.200. The sale is subject to the
mortgage. Stamp duty is payable on Rs.1700.”.
Amendment 25. In section 26 of the principal Act, -

of section
26.
(a) in the opening portion, the words and brackets “,
or (in the case of instrument executed before the
commencement of this Act) could not have been,”
shall be omitted;
(b) in the first proviso,
(i) in the opening portion, for the words “it shall

be sufficient”, the words, figures and letter “it shall
be, subject to the provisions of section 26A,
sufficient” shall be substituted;
(ii) in clause (b), for the words “twenty thousand

rupees”, the words “two lakh rupees” shall be
substituted;
(c) in the second proviso, for the word “also”, the

word “further” shall be substituted.
Section 26A section shall be inserted, namely:-
“26A. (1) Where any instrument of mining lease is Re-assessment

of stamp duty on
charged with duty in accordance with the provisions of mining leases.
clause (a) of the first proviso to section 26 or on the basis
of dead rent set forth in that instrument at the time of its
execution, the Collector may, suo motu, within the period
of the term of mining lease or within ten years from the
date of execution of such instrument, whichever is less,
call for and examine the instrument for the purpose of
satisfying himself as to the correctness of the amount or
value of royalty or share of produce so estimated and the
duty paid thereon.
(2) After the examination under sub-section (1), if the

Collector finds that the amount or value of the royalty or
share of produce received is more than the amount or
value on the basis of which stamp duty has been paid at
the time of the execution of the instrument, he shall re-
assess the amount or value of such royalty or share and
the duty payable thereon in respect of such instrument.
(3) In making reassessment under sub-section (2), the

Collector shall take into account the amount or value of
royalty or share of produce actually paid during the period
and all other circumstances relating thereto.
(4) The Collector shall, after giving the parties

concerned a reasonable opportunity of being heard, call
upon lessee to pay the difference, if any, in the amount of
duty and thereupon, such person shall be liable to pay
such duty:
Provided that where the determination of stamp duty

has been done on the basis of estimated royalty payable
as per the production details given in the approved Mining
Plan for a lease, then, in respect of all such mining leases
granted, whether by the State Government or by a private
person, the reassessment of stamp duty for such mining
leases shall be made only on the revision of the royalty
payable.”.
section 27A section shall be inserted, namely :-
“27A.(1) The duty payable on any instrument relating to a Fixation of

market value.
transaction in immovable property shall be on the basis of
the market value of such immovable property as fixed
under sub-section (2).
(2) For the purposes of determining the duty chargeable

on any instrument relating to a transaction in immovable
property, the State Government shall, subject to any rules
made in this behalf, fix and periodically revise the market
value of the immovable property in that State.”.

section 28
(a) in sub-section (4), in the proviso, for the words “one
rupee”, the words, “one hundred rupees” shall be
substituted;
(b) in sub-section (5), for the words “exceed five rupees,

with a duty of five rupees”, the words “exceed five hundred
rupees, with a duty of five hundred rupees” shall be
substituted.
(c) the following Explanation shall be inserted, namely:-
“Explanation.- For the purposes of this section, the

expression “consideration”, in relation to a transaction in
immovable property, shall mean the market value of such
immovable property.

section 29.
(i) for clause (a), the following clause shall be substituted,

namely :-
In the lines of “(a) in the case of any instrument described in any of the
section 29 following Articles of the Schedule, namely:-
existing.
(i) Article No.2, Part -B (Administration Bond),

(ii) Article No.6 Part-B (Agreement relating to
deposit of Title deeds, Pawn, Pledge or
Hypothecation),
(iii) Article No.1, Part-A (Bill of Exchange),
(iv) Article No.10, Part-B (Bond),
(v) Article No.21, Part-B (Customs Bond),
(vi) Article No.3, Part-A (Debenture),
(vii) Article No.25, Part-B (Further Charge),
(viii) Article No.27, Part-B (Indemnity-Bond),
(ix) Article No.33, Part-B (Mortgage-deed),
(x) Article No.6, Part-A (Promissory-note),
(xi) Article No.41, Part-B (Release),
(xii) Article No.43, Part-B (Security Bond or
Mortgage-deed),
(xiii) Article No.44, Part-B (Settlement),
(xiv) Article No.8, Part-A (Transfer of shares)
by the person drawing, making or executing such

instrument;”.
(ii) after clause (g), the following clauses shall be inserted,

namely:-
“(h) in the case of sale of a security, by the person

selling the security;
(i) in the case of issue of a security, by the issuer of the

security;
(j) in the case of any instrument not specified in clause

(a) to (i), by the person making, drawing or executing
such instrument.”.

section 30.
(a) for the words “twenty rupees”, wherever they occur, the
words “fifty thousand rupees” shall be substituted;
(b) the portion beginning with the words “Any person

receiving” and ending with the words “receipt for the same”
shall be omitted.

section 31.
(1) in sub-section (1), for the words and brackets “such
amount (not exceeding five rupees and not less than fifty
naye paise) as the Collector may in each case direct”, the
words “one hundred rupees” shall be substituted;
(2) after sub-section (2), the following sub-sections shall
be inserted, namely:-
In the lines
of section 31 “(3) When the instrument referred to in sub-section (1)
(1) Bombay relates to a transaction in immovable property on which
Stamp Act, stamp duty is chargeable on the basis of market value, the
1958.
Collector shall, for the purpose of assessing the proper
stamp duty payable thereon, determine the market value
of such property in accordance with the provisions of sub-
section (2) of section 27A and in the manner prescribed by
the State Government.
In the lines
of section 31
(4) Bombay (4) When the instrument referred to in sub-section (1) is
Stamp Act, brought to the Collector for adjudication within four months
1958. from the date of its execution, or the date of its first receipt
in the State, as the case may be, the Collector shall, after
such adjudication, issue notice to the person liable to pay
stamp duty and call upon such person to pay additional
stamp duty within a period of sixty days from the date of
receipt of the notice and in case such person makes
payment of the additional stamp duty within said period of
sixty days, no penalty shall be levied on such person:
Provided that in case such person fails to pay the stamp

duty so demanded within said period of sixty days, he shall
be liable to pay penalty at the rate of two percent. of the
deficient portion of stamp duty, for every month or part
thereof, from the date of execution of such instrument, or
the date of the first receipt of such instrument in the State,
as the case may be.
(5) When the instrument referred to in sub-section (1) is

brought to Collector after fourth months of its execution,
the Collector shall proceed in accordance with the
provisions of sections 33 and 40.”
Amendment of 32. In section 32 of the principal Act, in sub-section (3),-

section 32
(a) in the opening portion, for the words “Any instrument”,
the words and figures “Subject to the provisions of Chapter
VI, any instrument” shall be substituted.
(b) in the proviso,-
(i) in clause (a), for the words “in India and brought to
him after the expiration of one month”, the words “and
brought to him after the expiration of four months” shall
be substituted;
(ii) in clause (b), for the words “out of India and brought
to him after the expiration of three months after it has
been first received in India”, the words “out of a state
and brought to him after the expiration of three months
after it has been first received in that State” shall be
substituted;
(iii) clause (c) shall be omitted.
Amendment 33. In section 33 of the principal Act,-

of section
33. (a) in sub-section(1), for the words “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”,
the words “except an officer of police or any other officer
investigating a criminal offence, 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, whether or not such
instrument is valid in law” shall be substituted;
(b) in sub-section(2),-
(i) in the opening portion, the words “in India”,
shall be omitted;
(ii) in the proviso, in clause (a), for the words and
figures, “Chapter XII or Chapter XXXVI of the Code of
Criminal Procedure, 1898”, the words and figures V of 1898.
“Chapter IX or part D of Chapter X of the Code of
Section 37
(4) and (5)
Criminal Procedure, 1973” shall be substituted; 2 of 1974.
of Rajasthan (c) after sub-section (3), the following sub-sections shall
Stamp Act,
1998.
be inserted, namely:-
“(4) When the person referred to in sub-section (1)
detects that any instrument or a copy thereof is not duly
stamped, he shall forthwith make a reference of such
matter to the Collector.
(5) The Collector may, either suo motu or on a

reference made to him, call for original instrument for
ascertaining whether it is duly stamped or not and in case
the original instrument is not produced within the period
specified by the Collector, he may require the payment of
the proper duty or the amount required to make up such
duty together with penalty as provided in clause (b) of sub-
section (1) of section 40.”.
Amendment of 34. In section 34 of the principal Act, the words “not
section 34 exceeding ten naye paise” shall be omitted.
Amendment of 35. In section 35 of the principal Act, in the proviso,-

section 35
(i) in clause (a), for the words “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”, the words “a
penalty of two percent. of the deficient portion of stamp
duty for every month or part thereof, from the date of
execution of the instrument or one hundred rupees,
whichever is more” shall be substituted,
(ii) in clause (b), for the words “ of one rupee”, the words
“ at the rate of 2½ percent. of the deficient portion of stamp
duty for every month or part thereof, from the date of
execution of the instrument or five hundred rupees,
whichever is more” shall be substituted; V of 1898.
(iii) in clause (d), for the words and figures “Chapter XII or 2 of 1974.
Chapter XXXVI of the Code of Criminal Procedure, 1898”,
the words and figures “Chapter IX or part D of Chapter X
of the Code of Criminal Procedure, 1973” shall be
substituted;
Amendment of 36. For section 39 of the principal Act, the following

section 39 section shall be substituted, namely:-
Collector’s “39. Where any instrument has been impounded only
power to because it has been written in contravention of section 13
refund penalty.
or section 14, the Collector may refund the whole penalty
paid.”.
section 40
(a) in sub-section(1), -
(i) in the opening portion, for the words, figures and
brackets “under section 38, sub-section (2), not being
an instrument chargeable with a duty not exceeding ten
naye paise only or a bill of exchange or promissory
note”, the words, brackets and figures “under sub-
section (2) of section 38” shall be substituted;
(ii) after clause (a), the following clause shall be
inserted, namely: -
“(aa) if he is of the opinion that such instrument so
impounded or received relates to a transaction of
immovable property on which the stamp duty is
chargeable on the basis of market value, he shall, for
the purpose of assessing the proper stamp duty
payable thereon, determine the market value of such
property in accordance with the provisions of sub-
section (2) of section 27A and sub-section (3) of
section 31;
(iii) in clause (b), for the words “a penalty of five

rupees; or, if he thinks fit, 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:”, the words “a penalty of two
percent. of the deficient portion of stamp duty for every
month or part thereof, from the date of execution of the
instrument.” shall be substituted;
(iv) the proviso shall be omitted;
(b) in sub-section (2), for the words “Every certificate”, the

words and figures “Subject to the provisions of Chapter VI,
every certificate” shall be substituted.
Amendment of 38. In section 41 of the principal Act, for the words

section 41 “proceed as next hereinafter prescribed”, the words and
figures “proceed as provided in section 42” shall be
substituted;
Amendment of 39. In section 42 of the principal Act, in sub-section (2),-
section 42
(a) in the opening portion, for the words “Every

instrument so endorsed”, the words and figures “Subject to
the provisions of Chapter VI, every instrument so
endorsed,” shall be substituted;
(b) in the proviso, in clause (b), for the words and figures
“Code of Civil Procedure, 1882 section 144 clause 3”, the
14 of 1882
words and figures “the provisions of Order XIII Rule 9 of
the First Schedule to the Code of Civil Procedure, 1908”
shall be substituted; 5 of 1908.
Amendment 40. In section 45 of the principal Act, in sub-section (2),

of section 45 for the words and figures “under section 35 or section 40,
such authority may, upon application in writing made within
three months of the order”, the words and figures “under
section 35, section 40 or section 47A, such authority may,
upon application in writing made within one year of the
order” shall be substituted;
Amendment of 41. In section 47 of the principal Act, for the words ‘ten
section 47 naye paise”, the words “ten rupees” shall be substituted.
Insertion of 42. After section 47 of the principal Act, the following

new section shall be inserted, namely:-
section
47A.
Procedure for “47A. (1) While registering any instrument on which stamp
dealing with duty is chargeable on the market value, if the registering
undervalued
instruments.
officer, appointed under section 6 of the Registration Act,
1908, finds that the market value of the property as set- 16 of 1908
forth in such instrument is less than the market value as

determined under section 27A, he shall, before registering
such instrument, refer the same to the Collector for the
determination of market value of such property and the
proper 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, hold enquiry in such manner as
may be prescribed and determine the market value of such
property and the stamp duty payable thereon; and call
upon the person liable to pay such duty to make good the
deficit amount within a period of sixty days therefrom.
(3) The Collector may, either suo motu or otherwise, call

for and examine any instrument, not already referred to
him under sub-section (1), for the purpose of satisfying
himself as to the correctness of the market value of the
property, which is the subject matter of such instrument
and the stamp 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 in accordance with the provisions of section 27A
and in the manner specified in sub-section (3) of section
31 and assess the stamp duty payable thereon and call
upon the person liable to pay such duty to make good the
deficit amount within a period of sixty days therefrom:
.
Provided that the Collector shall, before so determining
the market value, give reasonable opportunity of being
heard to the parties concerned.
(4) For the purposes of discharging his functions under
this section, the Collector shall have the same powers as
are vested in a civil court under the Code of Civil
Procedure, 1908, while trying a suit, in respect of the 5 of 1908
following matters, namely:-
(a) summoning and enforcing the attendance of any

person and examining him on oath;
(b) the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) requisitioning any public record or copies thereof

from any court or office;
(e) issuing of commission for the examination of any

witness;
(f) any other matter which may be prescribed.
(5) Any person aggrieved by an order of the Collector

under sub-section (2) or sub-section (3) may prefer an
appeal in such manner as may be prescribed to the Chief
Controlling Revenue-authority within a period of sixty days
from the date of the communication of said order:
Provided that in computing the period aforesaid, the

time requisite for obtaining a copy of the order appealed
against shall be excluded.
(6) The Chief Controlling Revenue-authority shall

dispose of the appeal within such time and by following
such procedure as may be prescribed:
Provided that no order shall be passed without affording

the appellant an opportunity of being heard.”
Substitution of 43. For section 48 of the principal Act, the following Section 46 of
new section for section shall be substituted, namely :- Karnataka
section 48. Stamp Act,
1957.
Recovery of “48. All duties, penalties, and other sums required to be

duties and paid under this Chapter may be recovered by the
penalties.
Collector,-
(a) in case the value of such duties, penalties, and other

sum is less than five lakh rupees by distress and the sale
of the movable property of the person from whom the
same are due,
(b) in case the value of such duties, penalties, and other
sums is 16 of 1908
(i) five lakhs rupees or more, or

(ii) recoveries cannot be made by distress and the sale of
the movable property as specified in clause (a)
by any other process for the time being in force for the
recovery of arrears of land revenue.”.
section 49
(a) in the opening portion, for the words and figures

“prescribed in section 50”, the words and figures
“specified in section 50” shall be substituted;
(b) in the Explanation, for the words “has been paid

is”, the words, brackets and figures “has been paid, or
the impression made on any instrument under sub-
section (3), or the endorsement made on any
instrument under sub-section (4), or a certificate issued
in respect of any instrument under sub-section (5), of
section 10 relating to payment of stamp duty is” shall
be substituted.
Amendment of 45. In section 50 of the principal Act,--

section 50
(a) for the words “six months”, wherever they occur,

the words “one year” shall be substituted;
S.50(3),proviso
(b) in sub-section (1), for the words “ two months”, the (b)
existing
words “six months” shall be substituted;
(c) in the proviso, clause (a) shall be omitted.

Amendment of 46. In section 52 of the principal Act, for the words “six
section 52 months” at both the places they occur, the words “one
year” shall be substituted.
Omission of 47. Section 54A of the principal Act shall be omitted;

section 54A
Omission of 48. Section 54B of the principal Act shall be omitted;
section 54B
section 55A section shall be inserted, namely:-
Invalidation of “55A. Notwithstanding anything contained in sections 49,
stamp other than 52, 53 and 54, in a case where a stamp other than
adhesive stamp. adhesive stamp has not been used or allowance in respect
thereof has not been claimed within a period of one year
from the date of purchase thereof, such stamp shall be
rendered invalid:
Provided that no such stamp, purchased prior to the

date on which the Indian Stamp (Amendment) Act, 2012
comes into force, shall be rendered invalid until after the
expiry of a period of one year therefrom.”.
Amendment of 50. In section 56, in sub-section (3), for the words “Such
section 56
authority shall consider”, the words “The Chief Controlling
Revenue-authority shall, after giving a reasonable
opportunity of hearing to the parties concerned, consider”
shall be substituted.
Insertion of new 51. After section 56, the following section shall be
section 56A. inserted, namely :-
Revision of “56A. (1) When the Collector, either by mistake or In the lines of
certain decisions section 53A
otherwise, has charged any instrument with less duty than Bombay Stamp
of Collector
regarding
the duty leviable thereon, or has held the duty as not Act, 1958.
sufficiency of chargeable, the Chief Controlling Revenue-authority may,
stamps. within a period of five years from the order of the Collector,
require the concerned party to produce the original
instrument and shall afford a reasonable opportunity of
hearing to the party concerned:
Provided that if the party concerned fails to produce the

original instrument, the Chief Controlling Revenue-
Authority shall proceed on the basis of the true copy of
such instrument or an abstract of such instrument.
(2) The Chief Controlling Revenue-authority shall, on

examination of the instrument received under sub-section
(1), and after being satisfied that the duty has been short
levied, or that the duty was chargeable, make an order for
recovery of the deficit duty, if any, and the penalty thereon,
from the party concerned.
(3) Where the party concerned makes payment of deficit

duty and the penalty thereon, the Chief Controlling
Revenue-authority shall make an endorsement to that
effect on the instrument.”.
Omission of 52. Sections 57, 58, 59 and 60 of the principal Act shall
sections 57, 58, be omitted.
59 and 60.
Section 61
(a) in sub-section (1), for the words and figures

“Chapter XII or Chapter XXXVI of the Code of Criminal
Procedure, 1898”, the words and figures “Chapter IX or V of 1898.
part D of Chapter X of the Code of Criminal Procedure,
2 of 1974.
1973” shall be substituted;
(b) in the proviso, in clause (a), for the word “he”, the
words “the Collector” shall be substituted;

of section 62
(a) for sub-section (1), the following shall be substituted,

namely :-
“ (1) Whoever, executes or signs, otherwise than as a

witness, any instrument chargeable with duty, without it
being duly stamped, shall be punishable, for every such
offence, with fine which may extend to ten thousand
rupees.”;
(b) in sub-section (2), for the words “five hundred

rupees”, the words “one lakh rupees” shall be substituted.
sections 62A and sections shall be inserted, namely :-
62B.
Penalty relating “62A. Where any person or association,- In the lines of

to clearance list. section 59A of
Karnataka
(a) fails to submit the duly stamped clearance list to Stamp Act,
the State Government- 1957.
(i) within a fortnight of the end of the month to

which such list relates;
(ii) in accordance with the provisions of sub-

section (7) of section 10A to the State Government;
(b) makes a declaration which is false or which he or it

knows or believes to be false,
shall for every such offence be punishable with fine which

may extend to one lakh rupees.
Penalty for failure 62B. A person who is required under section 73A to,-
to provide
required (a) produce the information, registers, books, records
information, (electronic or otherwise), papers, documents or
records, etc.
proceedings; or
(b) allow entry of the authorized officer in premises

where such registers, books, records (electronic or
otherwise), papers, documents or proceedings are
kept to inspect or to take notes and extracts thereof,
fails to do so, shall for every such offence, be punishable

with fine which may extend to one lakh rupees.
Amendment of 56. In section 63 of the principal Act, for the words “in
section 63 manner prescribed by that section, shall be punishable
with fine, which may extend to one hundred rupees”, the
words “in the manner specified in that section, shall be
punishable with fine which may extend to five hundred
rupees” shall be substituted.
Amendment 57. In section 64 of the principal Act, for the words “shall
of section 64 be punishable with fine which may extend to five thousand
rupees, the following shall be substituted:-
Shall be punishable with

(i) in case the amount of duty evaded does not exceed
ten lakh rupees, a fine of fifty thousand rupees or
twenty percent of the duty evaded, whichever is
more;
(ii) in case the amount of duty evaded is ten lakh
rupees or more, with an imprisonment for a term
which may extend to one year, or fine which shall
not be less than fifty thousand rupees or both.
of section 65
(a) in clause (b), for the words “twenty rupees”, at both

the places where they occur, the words “fifty thousand
rupees” shall be substituted;
(b) for the words “one hundred rupees”, the words “one
thousand rupees” shall be substituted.
Amendment 59. In section 66 of the principal Act, for the words “two
of section 66 hundred rupees”, the words “ten thousand rupees” shall be
substituted.

section 67
Amendment of 61. In section 68 of the principal Act, for the words “one
section 68 thousand rupees”, the words “ten thousand rupees” shall
be substituted.
Amendment of 62. In section 69 of the principal Act ,-

section 69
(a) in clause (b), the brackets and words “(other than a

ten naye paise or five naye paise adhesive stamp)” shall
be omitted;
(b) for the words “five hundred rupees”, the words “one
lakh rupees” shall be substituted.

section 71
Amendment of 64. In section 72 of the principal Act, for the word
section 72 “presidency-town”, at both places where it occurs, the
words “metropolitan area” shall be substituted.
65. After section 72 of the principal Act, the following

sections shall be inserted, namely:-
72A. Offences by companies. - (1) Where any offence
under this Act has been committed by a company, every
person who, at the time the offence was committed, was
directly in charge of, and was responsible to the company
for the conduct of the business of the company, as well as
the company, shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section

shall render any such person liable to any punishment
provided in this Act, if he proves that the offence was
committed without his knowledge or that he had exercised
all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1),
where an offence under this Act has been committed by
the company and it is proved that the offence has been
committed with the consent or connivance of, or is
attributable to any neglect on the part of, any director,
manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
Explanation.— For the purposes of this section,—

(a) “company” means any body corporate and includes a
firm or other
association of individuals; and
(b) “director” in relation to a firm means a partner in the
firm.
72B. Cognizance of offences. - No court inferior to that of a
Metropolitan Magistrate or, a Judicial Magistrate of the first
class shall try any offence punishable under this Act.
new section for section shall be substituted, namely :-
section 73.
Books, etc. to be “73. Every public officer having in his custody any In the lines of
open to section 73
inspection. registers, books, records (electronic or otherwise), papers, existing.
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 a person who has
been authorised in writing by the Collector to make
inspection of such registers, books, papers, documents,
records (electronic or otherwise) and proceedings or to
take such notes and extracts thereof, as he may deem
necessary, without fee or charge or, where necessary, to
seize and to impound them under section 33.
section 73A section shall be inserted, namely:-
Power to call for “73A. (1) Where the Collector has reasons to believe that
information, enter any of the instruments specified in the Schedule has not
premises, inspect,
seize and
been charged with duty at all, or has been incorrectly
impound charged with duty, and that any information, registers,
documents. books, records including electronic records, papers,
documents or proceedings relating to such instrument are
kept in any premises, he shall record his reasons in
writing, and authorize an officer not below the rank of sub-
5 of 1908
registrar as defined in section 6 of the Registration Act,
1908, to call for necessary information or to enter upon
such premises to inspect them or to take notes and
extracts thereof as such officer deems necessary or to
seize and to impound them under section 33.
(2) Every person, who has been required by the officer
authorized under sub-section (1) to produce the
information, registers, books, records (electronic or
otherwise), papers, documents or proceedings, shall
produce the same and at all reasonable times, permit such
officer to inspect them and to take such notes and extracts
thereof, as he may deem necessary.”.
Amendment of 68. For section 74 of the principal Act, the following

section 74 section shall be substituted, namely :-
Power to make “74. (1) The State Government may, by notification in the
rules.
Official Gazette, make rules to carry out the provisions of
this Act.
(2) In particular, and without prejudice to the generality of

the foregoing power and the power to make rules provided
under sub-section (2) of section 10, section 37 and section
49, such rules may provide for all or any of the following
matters, namely:-
(a) the manner of transfer of stamp duty collected by

an association or depository under sub-sections (1) and
(2) to the State Government, under sub-section (3) of
section 10A;
(b) the manner of collecting and transferring of

stamp duty when the seller is from outside India under
the proviso to sub-section (3) of section 10A;
(c) the manner of collecting and transferring of

stamp duty when the purchaser is from outside India
under the proviso to sub-section (4) of section 10A;
(d) the manner of submitting clearance list to the

State Government under sub-section (7) of section
10A;
(e) the manner of determining the market value of

immovable property by the Collector under sub-section
(3) of section 31;
(f) the manner of holding enquiry under sub-section

(2) of section 47A;
(g) any other matter in respect of which the Collector

shall have the power of civil court under clause (f) of
sub-section (4) of section 47A;
(h) the manner of preferring appeal under sub-

section (5) of section 47A;
(i) the time and the procedure for disposing of

appeals under sub-section (6) of section 47A;
(j) the supply, sale and use of stamps and stamped

papers;
(k) the persons by whom alone the sale of stamps is

to be made;
(l) the duties and remuneration of vendor of stamps;
(3) Every rule made by the State Government under this

section shall be laid, as soon as may be after it is made,
before the State Legislatures where it consists of two
Houses, or where such Legislature consists of one house,
before that House.”.
Omission of 69. Sections 75 and 76 of the principal Act shall be

sections 75 and omitted.
76.
Amendment of 70. In section 76A of the principal Act,-
section 76A
(a) in clause (a), for the figures and words “,74 and
78 to the Chief Controlling Revenue-authority, and”, the
figures, and words “and 74, and”, shall be substituted;
(b) in clause (b), for the figures, brackets and word

“56 (1) and” the figures, brackets and word “56 (1), 56A
and” shall be substituted;
Omission of 71. Sections 77A and 78 of the principal Act shall be

sections 77A and omitted.
78.
Substitution of 72. For Schedule 1 of the principal Act, the following
new Schedule for Schedule shall be substituted, namely:-
Schedule-1.
‘SCHEDULE
STAMP DUTY ON INSTRUMENTS.

(See Section 3)
PART-A
Article Description of Instrument Proper stamp

No. duty
(1) (2) (3)

1. BILL OF EXCHANGE [as defined by section 2 (2)], not being a 0.10% of the
Bond, bank-note or currency note, payable otherwise on amount of bill or
demand. note.
2 BILL OF LADING (including a through bill of lading) Two rupees.

N.B.—If a bill of lading is drawn in parts, the proper stamp
must be borne by each one of the sets.
Exemptions
(a) Bill of lading when the goods therein described are

received at a place within the limits of any port as defined
15 0f 1908 under the “Indian Ports Act, 1908” or any other Act relating to
ports, and are to be delivered at another place within the
limits of the same port;
(b) Bill of lading when executed out of India and relating to

property to be delivered in India.
3. DEBENTURE— 0.005 percent of

the face value of
(i) allotment list in the case of issue of debenture in debenture.
demat form;
(ii) allotment letter in the case of issue of debenture in
non-demat form;
(iii) clearance list in the case of sale of debenture through
association;
(iv) delivery instruction slip in the case of off-market sale
of demated debenture;
(v) transfer deed in the case of sale of non-demated
debenture.
4. LETTER OF CREDIT Five rupees.
5. A. POLICY OF INSURANCE-
(a) “Micro Insurance Policy” as defined by Insurance One rupee.

Regulatory and Development Authority;
(b) Policy other than micro insurance policy-
(i) When sum insured is less than rupees ten crore

and period of insurance is-
(I) upto one month; One rupee.

(II) from one month to one year; Ten rupees.
(III) more than one year Fifty rupees.
(ii) When sum insured is rupees ten crore or more.. 0.00005% of the
amount of sum
insured.
B. RE-INSURANCE BY INSURANCE COMPANY Half of the duty

payable in
respect to
original
insurance,
subject to
minimum of one
rupee.
Explanation.—For the purposes of this Article,-
(1) in case a policy of insurance is modified in such a way

that sum insured exceeds the sum previously insured and
on which stamp duty has been paid, the proper stamp duty
shall be charged on the basis of excess sum so insured;
(2) proper stamp duty for each part of policy of insurance,

if it is drawn in duplicate, shall be half of the duty payable,
if it was drawn singly.
6. PROMISSORY NOTE [as defined by section 2 (22)]
(a) When payable on demand Five rupees.
(b) When payable otherwise than on demand 0.10% of the

amount of
Promissory
Note.
7. RECEIPT [as defined by section 2(23) for any money or other Five rupees.
property the amount or value of which exceeds fifty thousand
rupees.
Exemptions
Receipt-
(a) endorsed on or contained in any instrument duly

stamped or any instrument exempted under the proviso to
section 3 or any cheque or bill of exchange acknowledging
the receipt of the consideration;
(b) for any payment of money without consideration;
(c) for any payment of rent or land revenue or tax by a

cultivator or by a headman or lambardar to Government;
(d) given for money or securities for money deposited in the

hands of any banker to be accounted for:
Provided that the same is not expressed to be received of,

or by the hands of, any person other than the person to whom
the same is to be accounted for.
8. TRANSFER OF SHARES— 0.005 per cent of

the value of the
(a) clearance list in case of sale of share through an transaction.
association;
(b) delivery instruction slip in case of off market sale of
demated share;
(c) transfer deed in case of sale of non-demated share.
PART-B
Article No. Description of Instrument Proper stamp duty
(1) (2) (3)
1. ACKNOWLEDGEMENT of a debt exceeding five thousand One rupee.

rupees in amount or value
2. ADMINISTRATION-BOND One hundred

rupees.
3. ADOPTION DEED Two hundred
rupees.
4. AFFIDAVIT Ten rupees.
5. AGREEMENT OR MEMORANDUM OF AN AGREEMENT
(a) relating to the sale of bill of exchange; 0.01% of the

amount.
(b) relating to the sale of a Government security or 0.02% of the

share in an incorporated company or body corporate; amount.
(c) if relating to the sale of the property; 5% of the market

value of the
property.
(d) if not otherwise provided for One hundred

rupees.
Exemptions
Agreement or memorandum of an agreement -
(a) for or relating to the sale of goods or

merchandise exclusively, not being a Note or
Memorandum chargeable under Article 36 of Part B;
(b) made in the form of tenders to the Central

Government for or relating to any loan.
6. AGREEMENT RELATING TO—
(a) Deposit of title deeds, pawn, pledge or 0.1% of the

hypothecation; amount secured
rounded off to next
ten rupees.
(b) Hire purchase, development of property, 0.01% of the
construction, concession and works contract; amount.
Exemptions
(a) Letter of hypothecation accompanying a bill of

exchange;
(b) Instrument of pawn or pledge of agriculture

produce if unattested.
7. APPOINTMENT IN EXECUTION OF A POWER, whether One hundred

of trustees or of property, movable or immovable, where rupees.
made by any writing not being a will.
8. ARTICLES OF ASSOCIATION OF A COMPANY -
(a) where the company has no share capital; One thousand

rupees.
(b) where the company has nominal share capital or 0.1% of such
increased share capital nominal or
increased share
capital subject to a
minimum of one
thousand rupees.
9. AWARD One hundred

rupees.
10. BOND, not being otherwise provided for by any provision 0.5% of the
of this Act, whether or not relating to particular type of amount secured.
7 of 1870 bonds or by the Court Fees Act, 1870 or any enactment
corresponding to that Act in force in any part of India.
11. CANCELLATION—Instrument of, if attested and not One hundred

otherwise provided for. rupees.
12. CERTIFICATE OF ENROLMENT—issued by the State Five hundred

25 of 1961 Bar Council under section 22 of the Advocates Act, 1961. rupees.
13. CERTIFICATE OF PRACTICE Five hundred

rupees.
14. CERTIFICATE OF SALE The same duty as

a conveyance for a
market value equal
to the amount of
purchase money
only.
15. CERTIFICATE OR OTHER DOCUMENT evidencing the 0.005% of the
right or title of the holder thereof, or of any other person. value.
16. CLEARANCE LIST related to sale of securities through an 0.005% of the

association. value of the
making up price or
contract price.
17. COMPOSITION DEED Two hundred

rupees.
18. CONVEYANCE, not being a transfer charged under Article Five percent of the
No. 8 of Part A. market value of
the property which
is the subject
matter of
conveyance.
Provided that –
(a) when an instrument relates to an assignment of a 0.005 per cent of

debt, the rate of duty applicable shall be the amount of the
debt assigned;
(b) where an agreement to sell an immovable property the duty payable

is stamped with ad valorem duty required for a under this article
conveyance and a sale deed in pursuance of such less the duty
agreement is subsequently executed, the duty on such already paid
sale deed shall be under item (c) of
Article 5 of Part B,
subject to a
minimum of one
hundred rupees;
(c) where a power of attorney authorising the agent to the duty payable
sell immovable property is stamped with ad valorem under this article
duty required for a conveyance and a sale deed is less the duty
executed in pursuance of power of attorney between already paid
the executant of attorney and the person in whose under item (c) or
favour it is executed, the duty on such sale deed shall sub-item (ii) of
be item (d) of Article
39 of Part B,
subject to a
minimum of one
hundred rupees;
(d) where a mortgage deed is stamped with ad the duty payable

valorem duty required for a mortgage under Article 33 under this article
of Part B and a court decree in pursuance of a suit filed less the duty
against the mortgaged property is executed, the duty already paid
payable on the decree shall be- under Article 33 of
Part B on the
mortgage deed,
subject to a
minimum of one
hundred rupees.
Explanation – For the purposes of this Article, where the

possession of any immovable property is transferred or
agreed to be transferred to the purchaser before the
execution, or at the time of execution, or after the
execution, of an agreement to sell immovable property,
then such agreement shall be deemed to be a conveyance
and the stamp duty shall be levied thereon accordingly:
Provided that the provisions of section 47A shall apply

mutatis mutandis to such agreement as they apply to a
conveyance under that section.
19. COPY OR EXTRACT, certified to be a true copy or extract, Ten rupees.

by or by order of any public officer under section 76 of the
1 of 1872 Indian Evidence Act, 1872 and not chargeable under any
other law for the time being in force.
Exemptions
(a) copy of any paper which a public officer is

expressly required by law to make or furnish for record
in any public office or for any public purpose;
(b) copy of, or extract from, any register relating to

births, baptisms, naming, dedications, marriages,
divorces, deaths and burials;
(c) copy of any instrument the original of which is not

chargeable with duty.
20. COUNTERPART OR DUPLICATE, of any instrument Ten rupees.

chargeable with duty and in respect of which the proper
duty has been paid.
Exemption
Counterpart of any lease granted to a cultivator when such

lease is exempted from duty.
21. CUSTOMS BOND One hundred

rupees.
22. DELIVERY ORDER IN RESPECT OF GOODS, when Ten rupees.
value of goods exceeds five thousand rupees.
24. EXCHANGE OF PROPERTY – Instrument of. The same duty as

a conveyance
under Article
No.18 of Part B on
the market value
of the property of
greater value
which is the
subject matter of
exchange.
25. FURTHER CHARGE – Instrument of, that is to say, any

instrument imposing a further charge on mortgaged
property –
(a) when the original mortgage is one of the The same duty as
description referred to in item (a) of Article No. 33 of a conveyance
Part B (that is, with possession); (Article No.18 of
Part B) for a
market value equal
to the amount of
further charge
secured by such
instrument.
(b) when such mortgage is one of the description
referred to in item (b) of Article No.33 of Part B (that is,
without possession)—
(i) if at the time of the execution of the instrument The same duty as
of further charge, the possession of the property is a conveyance
given or agreed to be given under such instrument; (Article No.18 of
Part B) for a
market value equal
to the total amount
of the charge
(including the
original mortgage
and any further
charge already
made) less the
duty already paid
on such original
mortgage and
further charge.
(ii) If possession is not so given The same duty as

a Bond (Article
No.10 of Part B)
for the amount of
the further charge
secured on such
instrument.
26. GIFT- Instrument of, not being a settlement under Article

No.44 of Part B or will or transfer under Article No.8 of
Part A—
(a) when made to member of a family; 2% of the amount

of market value of
the property.
(b) otherwise The same duty as

a conveyance
(Article No.18 of
Part B) on the
market value of
the property.
Explanation.—For the purposes of this Article, a member
of the family shall mean a parent, spouse, son, daughter,
son’s wife, grandson, granddaughter, brother or sister.
27. INDEMNITY BOND The same duty as

a Security Bond
(Article No. 43 of
Part B) for the
same amount.
28. Issue of security other than debenture—allotment list in 0.005% of the
case of demated issue of security and allotment letter in value of the
case of non-demated issue transaction.
29. LEASE, including an under lease or sub-lease and any
agreement to let or sub-let or any renewal of lease—
(a) where, the rent is fixed, no premium is paid or

delivered and such lease purports to be --
(i) for a term less than one year; One percent for
the whole amount
payable or
deliverable under
such lease.
(ii) for a term of one year but not exceeding ten years; Two percent for
the amount of
average annual
rent reserved.
(iii) for a term of ten years but not exceeding thirty The same duty as
years; a conveyance
(Article No.18 of
Part B) for a value
equal to four times
the amount or
value of the
average annual
rent reserved.
(iv) for a period in excess of thirty years or in The same duty as

perpetuity or does not purport to be for a definite a conveyance
period; (Article No.18 of
Part B) for a value
equal to ten times
the amount or
value of the
average annual
rent reserved.
(b) where lease is granted for a fine or premium or The same duty as
money advanced or to be advanced and where no rent is a conveyance
fixed; (Article No.18 of
Part B) for a
value equal to the
amount or value
of such fine or
premium or
advance as set
forth in the lease.
(c) where lease is granted for a fine or premium or The same duty as
money advanced or to be advanced in addition to rent conveyance
fixed. (Article No.18 of
Part B) for a value
equal to the
amount or value of
such fine or
premium or
advance as set
forth in the lease,
in addition to the
duty which would
have been
payable on such
lease, if no fine or
premium or
advance has been
paid or delivered.
Exemption
Lease executed in the case of a cultivator and for the

purposes of cultivation (including a lease of trees for the
production of food or drink) without the payment or delivery
of any fine or premium, when a definite term is expressed
and such term does not exceed one year, or when the
average annual rent reserved does not exceed one
thousand rupees:
Provided that-
(a) when an instrument of agreement to lease is the duty on such

stamped with the ad valorem stamp required for a lease shall not
lease, and a lease in pursuance of such agreement is exceed one
subsequently executed; hundred rupees.
(b) where a decree or final order of any Civil Court in the duty payable
respect of a lease is stamped with ad valorem duty under this article
required for a lease and an instrument of lease is less the duty
subsequently executed; already paid,
subject to a
minimum of
hundred rupees.
(c) an instrument of lease including an under lease one percent on the

or sub-lease and any agreement to let or sub-let or annual average
any renewal of lease in respect of movable property rent plus the
amount of fine or
premium or money
advanced or to be
advanced, if any,
irrespective of the
period for which
the lease is
executed, subject
to a maximum of
fifty thousand
rupees.
30. LETTER OF GUARANTEE One hundred

rupees.
31. LETTER OF LICENCE Two hundred

rupees.
32. MEMORANDUM OF ASSOCIATION OF A COMPANY -
(a) if accompanied by articles of association under One thousand

1 of 1956. section 26 of the Companies Act 1956; rupees.
(b) If not so accompanied The same duty as

is chargeable on
Articles of
Association under
Article 8 of Part B
on the basis of the
share capital of the
company.
33. MORTGAGE-DEED, not being an agreement relating to

the deposit of title deeds, pawn, pledge or hypothecation
(Article No.6 of Part B), Mortgage of a crop (Article No.34
of Part B) or Security Bond (Article No.43 of Part B) –
(a) when possession of the property or any part of the The same duty as
property comprised in such deed is given by mortgagor a conveyance
or agreed to be given; (Article No.18 of
Part B) for a
market value equal
to the amount
secured by such
deed.
(b) when possession is not given or agreed to be given The same duty as
as aforesaid: a Bond (Article
No.10 of Part B)
for the amount
secured by such
deed.
Explanation.— A mortgagor, who gives to the
mortgagee a power of attorney to collect rents or a
lease of the property mortgaged or part thereof, is
deemed to give possession within the meaning of this
article.
(c) when a collateral or auxiliary or additional or Two hundred

substituted security, or by way of further assurance for rupees.
the above mentioned purpose, where the principal or
primary security is duly stamped.
Exemption
Instruments executed by persons taking advances under

1 9 of 1883
1 2 of 1884 the Land Improvement Loans Act, 1883 (19 of 1883) or the
Agriculturist's Loans Act, 1884 (12 of 1884) or by their
sureties as security for the repayment of such advances.
34. MORTGAGE OF A CROP Ten rupees.
35. NOTARIAL ACT Ten rupees.
36. NOTE OR MEMORANDUM, sent by a broker or agent to 0.005% of value of

his principal intimating the transaction of sale of any goods transaction.
having value more than one thousand rupees or any
security as defined under section 2 (23B) of this Act;
Explanation
No duty shall be chargeable on Note or Memorandum sent

by broker or agent to his principal intimating the
transaction on account of such principal or security, if duty
has been collected by an association or depository on
such a transaction.
37. PARTITION - Instrument of [as defined by section 2 (15)]. 2% of the amount
of the market
value of the
separated share or
shares of the
property.
Note- The largest share remaining after the property is
partitioned (or if there are two or more shares of equal
value and not smaller than any of the other share, then,
one of such equal shares) shall be deemed to be that from
which the other shares are separated:
Provided that –
the duty
(a) when an instrument of partition containing an
chargeable upon
agreement to divide property in severalty is executed and
the instrument
a partition is effected in pursuance of such agreement
effecting such a
partition shall be
reduced by the
amount of duty
paid in respect of
the first instrument
but shall not be
less than one
hundred rupees.
the market value

(b) where the instrument relates to partition of for the purpose of
agricultural land duty shall be
calculated at
hundred times the
annual land
revenue.
the duty on such

(c) where a final order for effecting a partition passed by
instrument shall
any revenue authority or a Civil Court or an award by an
not exceed one
arbitrator directing a partition is affixed with the stamp
hundred rupees.
required for an instrument of partition and an instrument of
partition in pursuance of such order or award is
subsequently executed
38. PARTNERSHIP- Instrument of—
A. Contribution in Partnership; One percent of the

value or amount of
shares
contributed.
B. Dissolution of partnership or retirement of a partner -
(a) where on dissolution of partnership or on retirement The same duty as

of a partner, any immovable property is taken as his share a conveyance
by a partner other than a partner who brought in that (Article No. 18 of
property as his share of contribution in the partnership; Part B) on the
market value of
such property.
(b) in any other case. Five hundred

rupees.
39. POWER OF ATTORNEY [as defined by section 2 (21)] -
(a) when authorizing one person or more to act in a One hundred

single transaction, including a power of attorney rupees.
executed for the sole purpose of procuring the
registration of one or more documents in relation to a
single transaction or for admitting execution of one or
more such documents;
(b) when authorizing one person to act in more than One hundred
one transaction or generally, or not more than ten rupees.
persons to act jointly or severally in more than one
transaction or generally;
(c) when given for consideration and authorizing the The same duty as
agent to sell any immovable property; conveyance
(Article No. 18 of
Part B) on the
market value of
the property.
(d) when given without consideration and authorizing
the agent to sell, exchange or permanently alienate any
immovable property -
(i) when the agent is member of a family; Five hundred

rupees.
(ii) when the agent is not a member of a family; The same duty as
conveyance
(Article No. 18 of
Part B) on the
market value of
the property which
is the subject
matter of power of
attorney.
(e) in any other case. One hundred

rupees for each
person authorised.
Explanation.— For the purposes of this Article.—
(i) more persons than one when belonging to the

same firm shall be deemed to be one person;
(ii) the term 'registration' includes every operation

16 of 1908 incidental to registration under the Registration Act,
1908;
(iii) “member of a family” shall mean a parent, spouse,

son, daughter, son’s wife, grandson, granddaughter,
brother or sister.
40. RECONVEYANCE OF MORTGAGED PROPERTY. Two hundred

rupees.
41. RELEASE—
(a) When in favour of any member of a family; Two percent on

the market value
of the share of the
property over
which the claim is
relinquished.
(b) in any other case The same duty as

a Conveyance
(Article No. 18 of
Part B) on the
market value of
the share of the
property over
which claim is
relinquished.
Explanation.— For the purposes of this Article, “member of

a family” shall mean a parent, spouse, son, daughter,
42. SALE OF SECURITIES OTHER THAN THAT OF

DEBENTURE OR SHARE—
(a) delivery instruction slip in the case of off-market 0.0001% of the

transaction of demated security; value of the
transaction for sale
of currency
derivatives.
(b) clearance list in the case of demated security 0.003% of the
through an association; value of the
transaction in the
case of futures
and options.
(c) transfer deed in case of off-market sale of non 0.003% of the

demated security. value of the
transaction in case
of sale of
securities other
than currency
derivatives, futures
and options.
Explanation.—For the purposes of this Article,-
(i) “futures and options” means instruments used in

transactions relating to futures or options in a recognised
Commodity Exchange;
(ii) the value of transaction in the case of options would

be the premium paid by the seller.
43. SECURITY BOND OR MORTGAGE DEED, where such

security bond or mortgage deed is executed –
(a) by way of security for the due execution of an 0.5% of the

office or to account for money or other property amount secured
received by virtue thereof, or is executed by a surety by such bond or
to secure the due performance of a contract; deed.
(b) in pursuance of an order of the Court or public One hundred

officer, not being otherwise provided for by the Court rupees.
7 of 1870 Fees Act, 1870
Exemptions
Bond or other instrument, when executed—
(a) by persons taking advances under the Land

19 of 1883 Improvement Loans Act, 1883 or the Agriculturists Loans
12 of 1884 Act, 1884 or by their sureties as security for the
repayment of such advances;
(b) by officers of the Government or their sureties to
secure the due execution of an office or the due
accounting for money or other property received by
virtue thereof.
44. SETTLEMENT –
A. INSTRUMENT OF--
(i) In case of family members Two percent of the

amount of market
value of the
property settled.
(ii) In case of others The same duty as

a conveyance
(Article No. 18 of
Part B) on the
market value of
the property which
is the subject
matter of the
settlement.
B. REVOCATION OF— Two hundred

rupees.
Explanation.— For the purposes of this Article, “member of

a family” shall mean a parent, spouse, son, daughter,
45. SURRENDER OF LEASE— Two hundred

rupees.
Explanation.—For the purposes of this Article, it is
immaterial that the surrender of the lease is only as
regards the unexpired part of the term, or is with regard to
only a portion of the property.
Exemption
Surrender of lease, when such lease is exempted from

duty.
46. Transfer (whether with or without consideration)-
(a) of any interest secured by a bond, mortgage-deed One Hundred
or policy of insurance; rupees
(b) of any property under section 22 of the One Hundred

45 of 1963 Administrators-General Act, 1963; rupees.
(c) of any trust property without consideration from one One Hundred
trustee to another trustee or from a trustee to a rupees.
beneficiary
47. TRANSFER OF LEASE, by way of assignment and not by

way of under lease—
(a) when such transfer is to a member of a family; 2% of the market

value of the
property which is
the subject matter
of transfer.
(b) in any other case The same duty as

a conveyance
(Article No. 18 of
Part B) on the
market value of
the property which
is the subject
matter of the
transfer.
Exemption
Transfer of any lease exempt from duty.
Explanation 1.— For the purposes of this Article, “member

of a family” shall mean a parent, spouse, son, daughter,
Explanation.2- In case of assignment of a mining lease,

the market value shall be equal to the amount or value
calculated under Article 28 of Part B depending upon the
period of the lease assigned.
48. TRUST -
A. DECLRATION OF - of or concerning any property

when made in writing by any instrument other than a will-
(a) where there is disposition of property; Two percent of the

market value of
the property
settled.
(b) in any other case Two hundred

rupees.
B. REVOCATION OF - of or concerning any property Two hundred

when made by any instrument other than a will. rupees.

Draft Indian Stamp (A) Bill, 2014

Uploaded by

Copyright:

Available Formats

Draft Indian Stamp (A) Bill, 2014

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Draft Indian Stamp (A) Bill, 2014

Uploaded by

Copyright:

Available Formats

THE INDIAN STAMP (AMENDMENT) BILL, 2014

further to amend the Indian Stamp Act, 1899.

BE it enacted by Parliament in the Sixty-fifth Year of the

(2) It shall come into force on such date as the Central

Substitution of 2. Throughout the Indian Stamp Act, 1899 (hereinafter 2 of 1899.

3. In section 2 of the principal Act,- Amendment of

(a) for clause (1), the following clauses shall be

(Article 1 of ‘(1) “Acknowledgement of a debt” means any

(Article 2-modified) (1A) “Administration-Bond” includes a bond given

(Article 3) (1B) “Adoption Deed” means any instrument (other

(Article 4) (1C) “Affidavit” means a statement in writing,

(Article 6 modified) (1D) “Agreement”, in relation to the deposit of title

(a) the deposit of title deeds or of any other

(b) the pawn or pledge or hypothecation of

(Section 3 of (1F) “Attested" in relation to an instrument, means

(Article 12 (1G) “Award” means any decision in writing by an

New (1-H) "Banker" includes-

(b) in clause (5), for sub-clause (c), the following shall

‘(c) any instrument so attested, whereby a person

but does not include “debenture”’;

(c) after clause (5), the following clauses shall be

New ‘(5A) “Certificate of practice” means the certificate

(e) after clause (7), the following clauses shall be

Section 2 (e), (8A) "Clearance List" means a list of transactions,

(f) for clause (9), the following clause shall be

Section 2(f), ‘(9) "Collector" means the chief officer-in-charge of

Article 22 ‘(9A) “Composition deed” means any instrument

(a) he conveys his property for the benefit of his

(b) the payment of a composition or dividend is

(c) the provision is made for the continuance of the

(h) for clause (10), the following clause shall be

section 2 (10) ‘(10) "Conveyance" includes-

(d) every order made by the High Court under

Provided that on or after the constitution of the

(e) every other instrument,

by which property, movable or immovable is

Explanation. -For the purposes of this clause, any

(i) after clause (10), the following clauses shall be

Article 26 of ‘(10A) “Customs bond” means a bond given pursuant to

(j) for clause (11), the following clause shall be

(k) for clause (12), the following clause shall be

S.2 (12) ‘(12) "executed" and "execution", used with reference

(l) after clause (12), the following clause shall be

Section 2(6) of ‘(12A) "immovable Property" includes—

(ii) a plant and machinery in a factory, whether

“(c) impression by a franking machine;

(d) impression or print on a paper by any other

(e) such other impressions as the Government may,

(n) for clause (13A), the following clause shall be

Section 124 of ‘(13A) “Indemnity bond” means an instrument by which

(o) for clause (14), the following clause shall be

section 2 (14) ‘(14) "Instrument" includes—

(ii) any other document mentioned in the Schedule;’;

(p) for clause (15), the following clause shall be

section 2( 15) ‘(15) "Instrument of partition" means any instrument

(c) any instrument signed by co-owners stating or

(q) in clause (16),-

(i) in the opening portion, after the words, “immovable

(ii) after sub-clause (d), the following clauses shall be

“(e) a decree or final order of any civil court or