THE INDIAN STAMP ACT, 1899

 

 

Contents

 

SN

                                Subject

CHAPTER  I

PRELIMINARY

1.       

Short title, extent and commencement

2.       

Definitions

CHAPTER II

STAMP  DUTIES

3.       

Instruments chargeable with duty.

4.       

Several instruments used in single transaction of sale, mortgage or settlement

5.       

Instruments relating to several distinct matters.

6.       

Instruments coming within several descriptions in Schedule I and Schedule IA.

6A

Payment of Punjab Stamp Duty on copies, counter-parts or duplicates when that duty has not been paid on the principal or original instrument

7.       

Policies of sea-insurance

8.       

Bonds, debentures or other securities issued on loans under Act 11 of 1879

9.       

Power to reduce, remit or compound duties

10.   

Duties how to be paid

11.   

Use of adhesive stamps

12.   

Cancellation of adhesive stamps

13.   

Instruments stamped with impressed stamps how to be written

14.   

Only one instrument to be on same stamp

15.   

Instrument written contrary to section 13 or 14 deemed unstamped

16.   

Denoting duty

17.   

Instruments executed in the States

18.   

Instruments other than bills, cheques and notes executed out of the States

19.   

Bills, cheques and notes drawn out of the States

19A

Payment of duty on certain instruments liable to increased duty in Punjab under clause (bb) of section 3

20.   

Conversion of amount expressed in foreign currencies

21.   

Stock and marketable securities, how to be valued

22.   

Effect of statement of rate of exchange or average price

23.   

Instruments reserving interest

23A

Certain instruments connected with mortgages of marketable securities to be chargeable as agreements

24.   

How transfer in consideration of debt, or subject to future payment, etc., to be  charged

25.   

Valuation in case of annuity, etc.

26.   

Stamp where value of subject-matter is indeterminate

27.   

Facts affecting duty to be set forth in instrument

28.   

Direction as to duty in case of certain conveyances

29.   

Duties by whom payable.

30.   

Obligation to give receipt in certain cases

CHAPTER III

ADJUDICATION AS TO STAMPS

31.   

Adjudication as to proper stamp

32.   

Certificate by Collector

CHAPTER IV

INSTRUMENTS NOT DULY STAMPED

33.   

Examination and impounding of instruments

34.   

Special provision as to unstamped receipts

35.   

Instruments not duly stamped inadmissible in evidence, etc.

36.   

Admission of instrument where not to be questioned.

37.   

Admission of improperly stamped instruments

38.   

Instruments impounded, how dealt with

39.   

Collector’s power to refund penalty paid under section 38, sub-section (1).

40.   

Collector’s power to stamp instruments impounded

41.   

Instruments unduly stamped by accident

42.   

Endorsement of instruments on which duty has been paid under section 35, 40 or 41

43.   

Prosecution for offence against Stamp-Law

44.   

Persons paying duty or penalty may recover same in certain cases

45.   

Power to revenue-authority to refund penalty or excess duty in certain cases

46.   

Non-liability for loss of instruments sent under section 38

47.   

Power of payer to stamp bills and promissory notes received by him unstamped

48.   

Recovery of duties and penalties

CHAPTER V

ALLOWANCES FOR STAMPS IN CERTAIN CASES

49.   

Allowance for spoiled stamps

50.   

Application for relief under section 49 when to be made

51.   

Allowance in case of printed forms no longer required by corporations

52.   

Allowance for misused stamps

53.   

Allowance for spoiled or misused stamps how to be made

54.   

Allowance for stamps not required for use

54A

Allowances for stamps in denominations of annas

55.   

Allowance on renewal of certain debentures

CHAPTER VI

REFERENCE AND REVISION

56.   

Control of, and statement of case to, Chief Controlling Revenue-authority

57.   

Statement of case by Chief Controlling Revenue-authority to High Court

58.   

Power of High Court to call for further particulars as to case stated

59.   

Procedure in disposing of case stated

60.   

Statement of case by other Courts to High Court

61.   

Revision of certain decisions of Courts regarding the sufficiency of stamps

CHAPTER VII

CRIMINAL OFFENCES AND PROCEDURE

62.   

Penalty for executing etc., instrument not duly stamped

63.   

Penalty for failure to cancel adhesive stamp

64.   

Penalty for omission to comply with provisions of section 27

65.   

Penalty for refusal to give receipt, and for devices to evade duty on receipts

66.   

Penalty for not making out policy, or making one not duly stamped

67.   

Penalty for not drawing full number of bills or marine policies purporting to be in sets

68.   

Penalty for post-dating bills, and for other devices to defraud the revenue

69.   

Penalty for breach of rule relating to sale of stamps, and for unauthorized sale

70.   

Institution and conduct of prosecutions

71.   

Jurisdiction of Magistrates

72.   

Place of trial

CHAPTER VIII

SUPPLEMENTAL PROVISIONS

73.   

Books, etc. to be open to inspection

74.   

Powers to make rules relating to sale of stamps

75.   

Power to make rules generally to carry out Act

76.   

Publication of rules

76A

Delegation of certain powers

77.   

Saving as to court-fees

77A

Saving as to certain stamps

78.   

Act to be translated and sold cheaply

79.   

Repealed

 

 

THE INDIAN STAMP ACT, 1899.

(ACT NO. 2 OF 1899)

 

[27th January, 1899.].

1

2

3

4

Year

No

Short title

Whether repealed or otherwise affected by legislation

1899

2

The Indian Stamp Act, 18991

Repealed in part and amended Act 5 of 1906

 

Repealed in part and amended, Act 4 of 1914

Repealed in part and amended, Act 10 of 1914

Amended, Act 15 of 194

Amended, Act 6 of 1910

Amended, Act I of 1912

Amended, Act 13 of 1916

Amended, Act 18 of 1919

Amended, Act 11 of 1923

Amended, Act 43 of 1923

Amended, Act 13 of 1924

Amended, Act 15 of 1925

Amended, Act 32 of 1925

Amended, Act 38 of 1927

Amended, Act 5 of 1927

Amended, Act 10 of 1927

Amended, Act 18 of 1928

Amended, Act 8 of 1930

Amended, Act 14 of 1932

Amended, Act 35 of 1934

Amended Act 8 of 1935

Amended, Punjab Act 8 of 1929

Amended, Punjab Act I of 1924

Amended, Punjab Act I of 1933

Amended, Punjab Act I of 1935

Amended Government of India

(Adaptation of Indian Laws Order 1937)

Repealed in part by Act I of 1938

 

1For Statement of Objects and Reasons, see Gazette of India, 1897, Pt. V, p. 175; for Report of the Select Committee, see ibid.; 1898, Pt. V, page 231; and for Proceedings in Council, see ibid., 1899, Pt. VI, p. 231; and ibid, 1898, Pt. VI, pp. 10 and 278; and ibid., 1899, Pt. VI, p. 5.

 

2For Statement of Objects and Reasons, see Punjab Gazette, 1922, Pt. V, p. 166, for report of the Select Committee, see ibid, 1922, Pt. V, pp. 182-96,and for Proceedings in Council, see Punjab Legislative Council Debates, Volume IV, pp. 429-34, 526, 671-707, 734-35. This Act came into force on 15th January, 1923, see Punjab Gazette, Extraordinary, 1922, dated 23rd December, 1922.

 

3For Statement of Objects and Reasons, see Punjab Gazette, 1923, Pt. I, p. 656, for report of the Select Committee, see ibid, 1924, Extraordinary, pp. 21-22 for Proceedings in Council, see Punjab Legislative Council Debates, Volume VI, pp. 362-72, 519. This Act came into force on 1st of March, 1925,-vide Punjab Government notification no. 1765-Bud., dated 21st January, 1925.

 

4For Statement of Objects and Reasons, see Punjab Gazette, 1933, Extraordinary, p. 45. For Proceedings in Council, see the Punjab Legislative Council Debates, Volume XXIII, p. 757.

 

5For Statement of Objects and Reasons, see Punjab Gazette, 1935, Extraordinary, page 11 and for Proceedings in Council, see the Punjab Legislative Council Debates, Volume XXVII, pages 986-88. It came into force on 6th May, 1935,-vide Punjab Government notification No. 183, dated 27th April, 1935.

 

1

2

3

4

Year

 

No.

Short title

Whether repealed or otherwise affected by legislation

1899-concld

II-concld

The Indian Stamp Act, 1899-concld

Amended in part by the Indian Independence Adaptation of Central Acts and Ordinances) Order, 1948

 

Amended in part by East Punjab Act 27 of 19491

Amended in part by the Adaptation of Laws Order, 1950 and First Schedule

Amended in part by Parliament Act No, 43 of 19552

Amended in part by Parliament Act 76 of 19563

 

Adapted by Adaptation Law (No, 2) Order 1956

Affected by Punjab Act No, 5 of 19574

 

 

           1For Statement of Objects and Reasons, see East Punjab Gazette (Extraordinary), 1949, page 698 for Proceedings in the Assembly, see East Punjab Legislative Assembly Debates, 1949, Volume IV, pages 5 (43)-5(47).

 

           This Act came into force on 1st April, 1950.

 

           2For Statement of Objects and Reasons, see Gazette of India, Extra-ordinary, Part II, section 2 of 1955, page 514.

 

           Section 8 of this Act provides that :-

 

(1)   If, immediately before the commencement of this Act, there is in force in any State any law fixing rates of stamp-duty in respect of the documents specified in entry 91 of List I in the Seventh Schedule to the Constitution such law, to the extent to which it is inconsistent with the principal Act as amended by this Act shall on such commencement stand repealed.

 

(2)   For the removal of doubts it is hereby declared that section 6 of the General Clause Act, 1897, shall apply upon such appeal as if such law had been an enactment.

 

This Act came into force on the 1st day of April, 1956,-vide S.R.O. No. 637, dated 17th March, 1956.

 

3For Statement of Objects and Reasons, see Gazette of India, Extra-ordinary, Part II, section 2 of 1956, page 1044.

4For Statement of Objects and Reasons, see Punjab Government Gazette, 1957, at page 339. This Act was extended to the territories which immediately before the 1st November, 1956, were comprised in the State of Patiala and East Punjab States Union by Punjab Laws (Extension No. 7) Act, 1957; (Punjab Act No. 5 of 1957).

 

          

1

2

3

4

Year

No.

Short title

Whether repealed or otherwise affected by legislation

 

Amended by Punjab Act No. 13 of 19581

Amended by Punjab Act No. 26 of 19592

Amended by Act 19 of 1958

Amended by Punjab Act 34 of 19603

Amended by Act 14 of 1961

Amended by Act 11 of 1963

Amended by Punjab Act 24 of 19644

Amended by Punjab Act 6 of 19655

Amended by the Punjab Re-organization and Delhi High Court Adaptation of Laws on Union Subjects) Order 1968

 

An Act to consolidate and amend the law relating to Stamps.

 

           WHEREAS it is expedient to consolidate and amend the law relating to Stamp. It is hereby enacted as follows: -

 

 

CHAPTER I.

PRELIMINARY

 

 

1.        Short title, extent and commencement. – This Act my be called the Indian Stamp Act.

 

1For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1958.

 

2For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1959, page 1006. This Act deemed to have come into force on the twenty-fifth day of April, 1953.

 

 3For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1960, page 2078.

 

 4For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1964, page 893.

 

5For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1965, page 48.

          

           1 [(2) It extends to the whole of India except the State of Jammu and Kashmir :

 

           Provided that it shall not apply to 1[the territories which, immediately before the 1st November, 1956, were comprised in Part B States] (excluding the State of Jammu and Kashmir) except to the extent to which the provisions of this Act relate to rates of stamp duty in respect of the documents specified in entry 91 of list I in the seventh Schedule to the Constitutions.]

 

(3)   It shall come into force on the first day of July, 1899.

 

 

2.        Definitions. - In this Act, unless there is something repugnant in the subject of context-

 

Banker.”

 

(1) “banker” includes a bank and any person acting as a banker ;

 

“Bill of exchange.”

 

           (2) “bill of exchange” means a bill of exchange as defined by the Negotiable Instruments Act, 1881, and includes also a hundi and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money;

 

Bill of exchange payable on demand.”

 

           (3) “bill of exchange payable on demand” includes-

 

           (a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money, or for the payment of any sum of money out of any particular fund which may or maynot be available, or upon any condition or contingency which may or may not be performed or happen :

 

           1Substituted for the old sub-section by Parliament Act 43 of 1955, section  3.

           2Substituted by Adaptation of Laws (No. 2), Order, 1956, for the words “Part B States”.

 

           (b) an order for the payment of any sum of money weekly, monthly or at any other stated periods; and

 

           (c ) a letter of credit, that is to say, any instrument by which one person authorizes another to give credit to the person in whose favour it is drawn ;

 

Bill of lading.”

 

           (4) “bill of lading” includes a “through bill of lading,” but does not include a mate’s receipt ;

 

Bond.”

 

(5) “bond” includes”

 

(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case many be ;

 

(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and

 

(c ) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;

 

Chargeable.”

 

(6) “chargeable” means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and as applied to any other instrument, chnargeable under the aw in force in [India] when such instrument was executed or, where several persons executed the instrument at different times, first executed;

 

“Cheque”

(7)       Cheque means a bill of exchange, drawn on a specified banker and not expressed to be payable otherwise than on demand;

           (8) 1*             *         *         *   2    *         *         *

 

Collector.”

 

(9) “Collector”-

 

(a) means, within the limits of the towns of Calcutta, Madras and Bombay, the Collector of Calcutta, Madras and Bombay, respectively, and, without those limits, the Collector of a district; and

 

(b) includes a Deputy Commissioner and any officer whom 3[the 4[State Government]] may, by notification in the Official Gazette, appoint in this behalf ;

 

Conveyance.”

 

           (10) “conveyance” includes a conveyance on sale and every instrument by which property, whether moveable or immoveable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I 5[or by Schedule I-A, as the case may be;]

 

Duly stamped.”

 

           (11) “duly stamped”, as applied to an instrument, means that the instrument bears an adhesive or impressed 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 1India] ;

 

Executed” and “execution.”

 

           (12) “executed,” and “execution,” used with reference to instruments, mean “signed” and “signature;”

 

           1Substituted by Parliament Act No. 43 of 1955, section 2, for the words “the States” which were substituted for the words “the provinces” by the Adaptation of Laws Order, 1950. The words “the Provinces” had been substituted for the words “British India” by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948, section 3 (2).

 

           2This sub-section was omitted by the Government of India (Adaptation of Indian Laws) Order, 1937. For the definition of Chief Controlling Revenue authority, see section 4 (a) of the General Clauses Act, 1897, inserted by the Government of India (Adaptation of Indian Laws) Order, 1937.

 

          

3Substituted for the words “the Local Government” by ibid.

 

           4Substituted for the words “Collecting Government” by the Adaptation of Laws Order, 1950, First Schedule.

 

           5Added by Punjab Act, 8 of 1922, section 4.

 

Extracts from General Clauses Act, 1897 Section 3

 

(10) “Chief Controlling Revenue Authority”, or “Chief Revenue Authority” shall mean-

 

(a)       in a State where there is a Board of Revenue, the Board;

 

(b)       in a State where there is Revenue Commissioner, that Commissioner ;

 

(c )      in Punjab, the Financial Commissioner; and

 

(d)       elsewhere, such authority as in relation to matters enumerated in List I in the Seventh Schedule to the Constitution, the Central Government, Jand in relation to other matters, the State Government, may, by notification in the Official Gazette, appoint ;

 

           (12-A) *         *         *        1           *         *.

 

“Impressed Stamps.”

 

           (13) “impressed stamp” includes-

 

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

                     

(b) stamps embossed or engraved on stamped paper ;

          

           [(13-A)] ‘India’ means the territories, of India excluding the State of Jammu and Kashmir;]

 

*         *         *

 

“Instrument.”

 

           (14) “instrument” includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;

 

“Instrument of partition.”

 

           (15)     “instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue-authority or any Civil Court and award by an arbitrator directing a partition ;

 

“Lease.”

 

           (16)     “lease” means a lease of immoveable property, and includes also-

 

(a)       a patta ;

 

(b)       a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy or pay or deliver rent for immoveable property ;

 

1Sub-section (12-A), inserted by the Government of India (Adaptation of Indian Laws) Order, 1937, was omitted by the Adaptation of Laws Order, 1950, First Schedule.

 

           2Inserted by Parliament Act 43 of 1955, section 4, clause (a), (w.e.f. 1st April, 1956).

 

           (c )      any instrument by which tolls of any description are let ;

 

(d)       any writing on an application for a lease intended to signify that the application is granted :

 

“Marketable security.”

 

           1[(16-A) “marketable security” means a security of such a description as to be capable of being sold in any stock market in 2[India], or in the United Kingdom;]

 

“Mortgage-deed.”

 

           (17) “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 ;

 

“Paper.”

 

           (18) “paper includes vellum, parchment or any other material on which an instrument may be written ;

 

“Policy of Insurance.”

 

           (19) “policy of insurance” includes-

 

(a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event ;

 

(b) a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance ;

 

*         *    3    *         *         *         *

 

1Added by the Indian Stamp (Amendment) Act, 1904 (15 of 1904), section 2.

 

2See foot-note under clause (6) or (11) ante.

 

3Sub-clause (c ) and the word “and” prefixed thereto, were repealed by the Indian Stamp (Amendment) Act, 1906 (5 of 1906), section 2

 

           1[(19-A) ‘policy of group insurance’ means any instrument 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] :

 

“Policy of sea-insurance” or “sea-policy.”

 

           (20) “policy of sea-insurance” or “sea-policy”-

 

           (a) means any insurance 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; and

 

           (b) includes any insurance of goods, merchandise or property for any transit which includes not only a sea risk within the meaning of clause (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance ;

 

           Where 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, such agreement or engagement shall be deemed to be a contract for sea-insurance ;

 

           New clause (19-A), inserted by Parliament Act, 43 of 1955, section 4, clause (b) , (w.e.f. 1st April, 1956).

 

“Power of Attorney.”

 

           (21) “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 ;

 

“Promissory note.”

 

           (22) “promissory note” means a promissory note as defined by the Negotiable Instruments Act, 1881;

           It also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen.

 

 

Contents        Next