Indian stamp act,1899

 Whole of India now,

 01-07-1899
 Conveyance -1sale, 2.every instrument 3.decree or final order of any civil court 4. every order under section
232,233 or 234 of companies act 1956 or section 44-a of banking regulation act 1949 5. sale of air rights 6.
sale/consent related to below surface rights .
 By which property whether movable or immovable or any estate or interest in any property is transferred to , or
vested in ,any other person ,intervious ,and which is not otherwise specifically provided for by the schedule .
 Duly stamped :-stamped according to law and not less then the proper amount .
 Executed=signed
 Immovable property -land ,benefits arised from that land ,things attached to the earth except-standing
timber ,growing crops or grass .
 Instrument =every document by which any right or liability is or puports to be created ,transferred ,limited ,
extended, extinguished or recorded.
 Market value- the price fetched or would fetch if sold in open market on the date of execution of such instrument
determined by any specific authority in such manner under this act or consideration whichever is higher.

Other definitions –
 Air Rights -rights to construct upper floors.
 chargeable-as applied to an instrument at the date of execution of instrument .
 instrument of partition, mortgage deed ,lease-patta,kabuliyat/rent,agreement to lease,court order(transfer of
property act 1882
 power of attorney -includes any instrument ,(not chargeable with a fee under the law relating to court fees for the
time being in force ) empowering a specified person to act for and in the name of the person executing it and includes
an instrument by which a person (other then legal practitioner is authorized to appear on behalf of any party in any
proceedig before any court , tribunal or authority .
 1.An instument 2.Must not be chargeable with court fees 3. must empower a person to act for and in the name of
executant .--power of attorney holder is an agent of the principal
 Types of power of attorney -1.general power

2. Special power
Public officer-means a public officer as defined in clause (17) of section 2 of the code of civil procedure ,1908
 Settlement-non-testamentary dispostion , in writing of movable or immovable property -(a) in consideration
of marriage (b) for the purpose of distibuting property of the settler among his family or those for whom he
desires to provided.(c) for any religious or cheritable purpose.
 Stamp-means any mark ,seal, certifiacate or endorsement by any agency or person duly authorised by state
govt. and includes an adhesive or impressed stamp for the purpose of duty chargeable under this act.
 “Impressed stamp”. — ―impressed stamp‖ includes—

(a) labels affixed and impressed by the proper officer, and

(b)stamps embossed or engraved on stamped paper:
 “Promissory note”.— ―promissory note‖ means a promissory note as defined by the
Negotiable Instruments Act, 1881
 “Mortgage-deed”. — ―mortgage-deed‖ includes every instrument whereby, for the
purpose of securing money advanced, or to be advanced, by way of loan, or an existing
or future debt, or the performance of an engagement, one person transfers, or creates,
to, or in favour of, another, a right over or in respect of specified property:
Chapter-II Duties
 3.instrument chargeable with duty –
 Subject to the provisions of this Act and the exemptions contained in Schedule I, the
instruments shall be chargeable with duty of the amount indicated in that Schedule
as the proper SD According to section 3 and schedule .
 Provided that no duty shall be chargeable in respect of— (1) any instrument
executed by, or on behalf of, or in favour of, the Government in cases where, but
for this exemption, the Government would be liable to pay the duty chargeable
in respect of such instrument;
 (2) any instrument for the sale, transfer or other disposition, either absolutely or by
way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or
property of or in any ship or vessel registered under the Merchant Shipping
Act 1894, Act No. 57 & 58 Vict. c. 60 or under Act XIX of 1838 Act No. or the
Indian Registration of Ships Act, 1841, (CX of 1841) as amended by
subsequent Acts.
 4.several instruments used in single transaction of sale ,mortgage or title-only the principal instrument(determined by
parties) shall be charged with the duty (but the highest ).
 5. instrument relating to several distinct matters- shall be chargeable with the aggregate amount of the duties.=multi-
furious instruments depends on intetion of the two parties.
 6.Instruments coming within the several descriptions in the schedule I -be chargeable only with the highest of such
duties.
 7. Policies of sea-insurance( beyond thirty days after the ship shall have arrived at her
destination-dutiable
 8. Bonds, debentures or other securities issued by local authority for loans under Act XI of
1879-duty 1% of total amount
 8A. Securities dealt in depository(electronic form) not liable to stamp duty.

 8B. Corporatisation and demutualization(the process of restructuring stock exchanges) schemes and related
instruments not liable to duty.
 8C. Negotiable warehouse receipts(a document issued by a licensed warehouse, certifying the deposit of
commodities, and allowing the holder to transfer ownership or use it as collateral for financing) not liable to
stamp duty.
 8D. Agreement or document for assignment of receivables(This agreement allows the seller to receive
immediate payment for the receivables instead of waiting for the debtor to pay. ) not liable to stamp duty.
 8E. Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of
a bank to a holding company of bank not liable to duty.
 8F. Agreement or document for transfer or assignment of rights or interest in financial assets(financial assets
are intangible instruments representing ownership or claims to future payments, such as stocks, bonds, and
bank deposits) not liable to stamp duty.
 9.power to reduce ,remit or compound duties -The SG ,if satisfies it is necessary to do so, may by rule or published official gazzette.

 10.Duties how to be paid-

 (1)chargeable duties shall be paid by means of stamps-

(a)according to provsions herein contained

(b) when no provision is applicable thereto , as the state govt. may by rule ,direct
 (2) the rules made under sub-saction (1) may, among other matters ,regulate,-

(a) in the case of each kind of instrument the description of stamps which may be used
(b) in the case of instruments stamped with impressed stamps ,the number of stamps which may be used .
(c) in the case of bills of exchange or promissionary notes the size of the paper on which they are written .
 (3) The IG of Stamps may subject to such conditions as he may deem feet to impose ,authorize use of franking
machine or any other machine specified by the state govt. for making impressions on instruments chargeable with
duties to indicate payment of duties payable on such instruments .
 11. use of adhesive stamps (May)-
 a.duty not exceeding 10 paise
 b.bills of exchange drawn or made out of india
 c.entry as an advocate on the roll of high court
 d.notarial act
 e. transfer by endorsement of shares.-
 12. cancellation of adhesive stamps-who affixes/executes will cancel the same not cancelled deemd to be
unstamped.
 13. instruments stamped with impressed stamps how to be written -written in such a manner so that these cann't be
used again.
 14. only one instrument to be on same stamp.
 15. instrument written contrary to section 13 or 14 deemed unstamped.
 16.where duty with which an instrument is chargeable or its exemption from duty depends in any manner upon the duty
actually paid in respect of another instrument , the payment of such last mentioned duty shall ,if application is made in
writing to the collector for the purpose ,and on production of both the instruments ,be denoted upon such first
mentioned instrument ,by endorsement.
 17. instruments executed in the state -all instruments chargeable with duty and executed in the state will be stamped
before or at the time of execution or immediately there after on the next working day following the day of execution.
 18. instruments other then bills and notes executed out of state -may be stamped within 3 months after it has been
received in the state.--.where cannnot be duly stamp by private person it may be taken within the said period of three
months to the collector.
 19.bills and notes drawn out of india -first holder in the state affix thereto the proper stamp and cancel the same.
 20-Conversion of amount expressed in foreign currencies.
 21. Stock and marketable securities how to be valued. —Where an instrument is
chargeable with ad valorem duty in respect of any stock or of any marketable or other security,
such duty shall be calculated on 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.
 22.Effect of statement of rate of exchange or average price ---be presumed ,untill the contrary is proved , to be duly
stamped.

 23. Instruments reserving interest. —Where interest is expressly made payable by the
terms of an instrument, such instrument shall not be chargeable with duty higher than
that with which it would have been chargeable had not mention of interest been made therein.
 23 A. certain instruments connected with mortageges of marketable securities to be chargeable as
agreements .article 5c
 24.how transfer in consideration of debt, or, subject to future payment ,etc. to be charged .

-such debt,money or stock is to be deemed the whole or part ,as the case may be , of the consideration in respect
where of the transfer is chargeable with ad valorem duty.
 25. valuation in case of annuity .
 (a) where the sum is payable for a definite period so that the total amount to be paid can be
previously ascertained—such total amount;
 (b) where the sum is payable in perpetuity or for an indefinite time not terminable with
any life in being at the date of such instrument or conveyance—the total amount which,
according to the terms of such instrument or conveyance, will or may be payable during the
period of twenty years calculated from the date on which the first payment becomes due;
and
 (c) where the sum is payable for an indefinite time terminable with any life in being at
the date of such instrument or conveyance — the maximum amount which will or may be
payable as aforesaid during the period of twelve years calculated from the date on which
the first payment becomes due.
 26.Stamp duty where value of subject matter is indeterminate highest value stated in the instrument of same
 28..Direction as to duty in case of certain convenyances----any property sold as a whole but conveyed in
seperate parts by different instruments –As parties think fit.
 29. duty by whom payable-

(1) Executor-release deed,settlement,bond,mortgage deed,agreement relating to deposit of title-deeds

(2) Convenyance-by the grantee (lease)
(3) Bank guarantee ,LLP-bY the person in favour of whom instrument is executed.
(4) Exchange-by the parties in equal share
(5) Certifiace of Sale-purchaser
(6) Partition-parties in their respective shares
(7) Works Contract-by contractors
 30. obligation to give receipt in certain cases-duly stamp receipt for amount more then 5000 rs(20 rs).....when
receives .
 REFERENCE AND REVISION
56. Control of, and statement of case to, Chief Controlling
Revenue-authority. — (1) The powers exercisable by a Collector
shall in all cases be subject to the control of the Chief Controlling
Revenue authority.

(2) If any Collector feels doubt as to the amount of duty with

which any instrument is chargeable, he may draw up a statement of
the case, and refer it, with his own opinion thereon, for the decision of
the Chief Controlling Revenue-authority.

(3) Such authority shall consider the case and send a copy of its
decision to the Collector, who shall proceed to asses and charge the
duty (if any) in conformity with such decision.
57. Statement of case by Chief Controlling
Revenue-authority to High Court. —
(1)The Chief Controlling Revenue-authority may state
any case referred to it under section 56, sub-section
(2), or otherwise coming to its notice, and refer such
case TO HIGH COURT, with its own opinion thereon.
(2)(2) Every such case shall be decided by not less
than three Judges of the High Court to which it is
referred, and in case of difference the opinion of the
58. Power of High Court to call for further particulars as to case
stated.
59. Procedure in disposing of case stated. —
(1)The High Court, upon the hearing of any such case, shall
decide the questions raised thereby, and shall deliver its
judgment thereon containing the grounds on which such
decision is founded.
(2) The Court shall send to the Revenue-authority by which the case
was stated, a copy of such judgment under the seal of the Court
and the signature of the Registrar; and the Revenue-authority
60. Statement of case by other Courts to High Court.
(1)If any Court, other than a Court mentioned in section 57, feels doubt as to the amount of duty
to be paid in respect of any instrument under proviso (a) to section 35, the Judge may draw up
a statement of the case and refer it, with his own opinion thereon, for the decision of the
High Court to which, if he were the Chief Controlling Revenue-authority, he would, under section
57, refer the same.
(2)Such Court shall deal with the case as if it had been referred under section 57, and send a
copy of its judgment under the seal of the Court and the signature of the Registrar to the Chief
Controlling Revenue-authority and another like copy to the Judge making the reference, who shall,
on receiving such copy, dispose of the case conformably to such judgment.
(3) Reference made under sub-section (1), when made by a Court subordinate to a District
Court, shall be made through the District Court, and, when made by any subordinate
Revenue Court, shall be made through the Court immediately superior.
61. Revision of certain decisions of Courts regarding the sufficiency of stamps.
(1)When any Court in the exercise makes any order admitting any instrument in evidence as
duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section
35, the Court to which appeals lie form, or references are made by, such first-mentioned Court may,
of its own motion or on the application of the Collector, take such order into consideration.
(2) If such Court, after such consideration, is of opinion that such instrument should not have been
admitted in evidence without the payment of duty and penalty under section 35, or without
the payment of a higher duty and penalty than those paid, it may record a declaration to that
effect, and determine the amount of duty with which such instrument is chargeable, and may require
any person in whose possession or power such instrument then is, to produce the same, and may
impound the same when produced.
(3) When any declaration has been recorded under sub-section (2), the Court recording the same shall
send a copy thereof to the Collector, and, where the instrument to which it relates has been
impounded or is otherwise in the possession of such Court, shall also send him such instrument.
(4) The Collector may thereupon, prosecute any person for any offence against the Stamp-law
which the Collector considers him to have committed in respect of such instrument:
Provided that. ––
(a) no such prosecution shall be instituted where the amount (including duty and
penalty) which, according to the determination of such Court, was payable in
respect of the instrument under section 35, is paid to the Collector, unless he
thinks that the offence was committed with an intention of evading payment
of the proper duty;
(b) except for the purposes of such prosecution, no declaration made under this
section shall affect the validity of any order admitting any instrument in evidence,
or of any certificate granted under section 42