Tue Jun 20 1899 | Procedural and Administration | Comments (0)
Year : 1899
Insertion of new section 9A .—The following section shall be inserted, namely:—
9A. Power of State Government to consolidate duties in respect of receipts .—Subject to such conditions as may be specified, the State Government may, by order, provide for the consolidation of duties in respect of any receipts or class of receipts given by any person or class of persons including any Government.
[Vide Karnataka Act 29 of 1978, s. 2]
9 [AA.— Of the liability of instruments of transaction in
stock exchanges and depositories to duty
9A. Instruments chargeable with duty for transactions in stock exchanges and depositories.— (1) Notwithstanding anything contained in this Act,—
(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock exchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of the State Government by the stock exchange or a clearing corporation authorised by it, from its buyer on the market value of such securities at the time of settlement of transactions in securities of such buyer, in such manner as the Central Government may, by rules, provide;
(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is made by a depository otherwise than on the basis of any transaction referred to in clause (a), the stamp-duty on such transfer shall be collected on behalf of the State Government by the depository from the transferor of such securities on the consideration amount specified therein, in such manner as the Central Government may, by rules, provide;
(c) when pursuant to issue of securities, any creation or change in the records of a depository is made, the stamp-duty on the allotment list shall be collected on behalf of the State Government by the
1. S. 9 re-numbered as sub-section (1) of that section by the A.O. 1950.
2. Subs. by the A.O. 1937, for “the G.G. in C”.
3. The word “collecting” omitted by the A.O. 1950.
4. Subs. by the A.O. 1937, for “British India”.
5. Ins. by Act 23 of 2004, s. 117.
6. Ins. by Act 32 of 1994, s. 99 (w.e.f. 13-9-1994).
7. Added by the A.O. 1950.
8. Subs by Act 21 of 2006 s. 69, for “Seventh Schedule to the Constitution” (w.e.f. 18-4-2006).
9. Ins. by Act 7 of 2019, s. 15 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020.]
depository from the issuer of securities on the total market value of the securities as contained in such list, in such manner as the Central Government may, by rules, provide.
(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section (1) shall be chargeable with duty as provided therein at the rate specified in Schedule I and such instruments need not be stamped.
1 [Provided that no such duty shall be chargeable in respect of the instruments of transaction in stock exchanges and depositories established in any International Financial Services Centre set up under section 18 of the Special Economic Zones Act, 2005 (28 of 2005).]
(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the State Government on any note or memorandum or any other document, electronic or otherwise, associated with the transactions mentioned in sub-section (1).
(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may be, shall, within three weeks of the end of each month and in accordance with the rules made in this behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty collected under this section to the State Government where the residence of the buyer is located and in case the buyer is located outside India, to the State Government having the registered office of the trading member or broker of such buyer and in case where there is no such trading member of the buyer, to the State Government having the registered office of the participant:
Provided that before such transfer, the stock exchange or the clearing corporation authorised by it or the depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as may be specified in such rules.
Explanation .—The term “participant” shall have the same meaning as assigned to it in clause (g) of section 2 of the Depositories Act, 1996 (22 of 1996).
(5) Every stock exchange or the clearing corporation authorised by it and depository shall submit to the Government details of the transactions referred to in sub-section (1) in such manner as the Central Government may, by rules, provide.
9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges and depositories. —Notwithstanding anything contained in this Act,—
(a) when any issue of securities is made by an issuer otherwise than through a stock exchange or depository, the stamp-duty on each such issue shall be payable by the issuer, at the place where its registered office is located, on the total market value of the securities so issued at the rate specified in Schedule I;
(b) when any sale or transfer or reissue of securities for consideration is made otherwise than through a stock exchange or depository, the stamp-duty on each such sale or transfer or reissue shall be payable by the seller or transferor or issuer, as the case may be, on the consideration amount specified in such instrument at the rate specified in Schedule I.]
A. —Of Stamps and the mode of using them
10. Duties how to be paid. —(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps —
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto—as the 2 [State Government] may be rule direct.
(2) The rules made under sub-section (1) may, among other matters, regulate,—
(a) in the case of each kind of instrument—the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps—the number of stamps which may be used;
(c) in the case of bills of exchange or promissory notes 3 *** the size of the paper on which they are written.
1. Ins. by Act 12 of 2020, s. 143 (w.e.f. 1-4-2020).
2. Subs. by the A.O. 1950, for “collecting Government”.
3. The words “written in any oriental language” omitted by Act 43 of 1955, s. 5 (w.e.f. 1-4-1956).
Insertion of section 10A .—The principal Act, after the existing section the following shall be inserted as section 10A, namely:—
“10A. For shortage of stamps how duty to be paid—( 1) Notwithstanding anything contained in Section 10, where the State Government or the Collector, as the case may be, is satisfied that there is shortage of stamps in the district or stamps of required denominations are not available, the State Government or the Collector may permit payment of the duty to be paid in cash or by way of Demand Draft or by Pay Order and authorize the Treasury Officer or Sub-Treasury Officer or Sub-Registrar or any other authorised officer, as the case may be, on production of a challan evidencing payment of duty in the Government Treasury or Sub-Treasury of a Demand Draft or by Pay Order drawn on a branch of any Schedule bank, as the case may be, after due verification, to certify in such manner as may be prescribed, by endorsement on the instrument of the amount of duty so paid in cash.
Explanation. —Government Treasury includes a Government Sub-Treasury and any other place as the State Government may, by notification in the Assam Gazette, appoint in this behalf:
Provided that the State Government may, be order published in the Official Gazette, direct that the power exercisable by it or by the Collector under this Section may be exercised by such other officers as may be specified in the order.
(2) An endorsement made on any instrument under sub-section (1 ) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps in accordance with the requirements of section 10.
(3) Nothing in this section shall apply to,—
(i) the payment of stamp duty chargeable on the instruments specified in Entry 91 of List I of the Seventh Schedule to the Constitution of India; and
(ii) the instruments presented after six months from the date of their execution or first execution.”
[Vide Assam Act 22 of 2004, s. 2]
Amendment of section 10 of Central act 2 of 1899 .—In the Indian Stamp Act, 1899 after section 10 the following new section shall be inserted as section 10A, namely:--
"10A. Notwithstanding anything contained in section 10 where,
(a) (i) The State Government, in relation to any area in the State; or
(ii) the Deputy Commissioner, in relation to any area in District under his charge, is satisfied that on account of temporary, shortage of stamps in any area, duty cannot be paid, and payment of duty cannot be indicated on instruments, by means of Stamps, the State Government, or as the case may be, the Deputy Commissioner may, by notification, in the Official Gazette, direct that in such area and for such period as maybe specified in such notification, the duty may be paid in cash in any Treasury or Sub-Treasury and shall on production of a challan evidencing payments of stamp duty in the Government treasury certify endorsement on the instrument in respect of which the stamp duty is paid, that the duty has been paid, and state in the said endorsement the amount of the duty so paid.
(b) An endorsement made on any instrument under clause (a) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement had been paid in respect of, and such payment has been indicated on, such instrument by means of stamps, under section 10.”
[Vide Meghalaya Act 6 of 1973, s.2]
Amendment of section 10.— After section 10(A) the following section shall be inserted, namely:-
10(B) "Various modes of payment of duty" Notwithstanding anything contained in section 10 & 10(A) all duties with which any instruments are chargeable shall be paid,-
(1) by way of cash; or
(2) by demand draft; or
(3) by pay order; or
(4) by e-payment;
in Government Treasury or Sub-Treasury or General Stamp Office [or, as the case may be, Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury)] and such payment shall be indicated by endorsement on such instruments by an officer authorised by the State Government.
[Vide Uttarakhand Act 1 of 2016, s. 3]
Amendment of section 10-A .— In section 10-A of the Principal Act, for sub-section (1) the following sub-section shall be substituted namely :—
"(1) Notwithstanding anything contained in section 10—
(a) where the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of required denominations are not available, he may permit duty to be paid in cash and authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty in the Government treasury or sub-treasury, to certify by endorsement on the instrument or instruments the amount of duty so paid in cash ;
(b) where the State Government considers it expedient so to do, it may, in any district, permit duty to be paid in cash and authorize any officer, to receive payment of duty in cash and to certify by endorsement by means of a Franking machine on the instrument or instruments the amount of duty so paid in cash.
[Vide Uttar Pradesh Act 11 of 1992, s. 3]
Insertion of new section 10-A.— After section 10 of the principal Act, the following section shall be
inserted , namely :—
“10-A. Payment of duty in cash.— (1) Notwithstanding anything contained in section 10, where the Collector is satisfied that there is temporary shortage of stamps in the district or that stamps of required denominations are not available, he may permit duty to be paid in cash and authorize the officer-in-charge of the treasury on production of a challan evidencing payment of duty in the Government treasury or sub-treasury, to certify by endorsement on the instruments or instruments the amount of duty so paid in cash.
(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps in accordance with the requirement of section 10.”
[Vide Uttar Pradesh Act 20 of 1974, s. 4]
11. Use of adhesive stamps. —The following instruments may be stamped with adhesive stamps, namely: —
(a) instruments chargeable 1[with a duty not exceeding ten naye paise], except parts of bills of exchange payable otherwise than on demand and drawn in sets;
1. Subs. by Act 19 of 1958, s. 2, for “with the duty of one anna or half an anna” (w.e.f. 1-10-1958).
(b) bills of exchange, 1*** and promissory notes drawn or made out of 2[India];
(c) entry as an advocate, vakil or attorney on the roll of a High Court;
(d) notarial acts; and
transfers by endorsement of shares in any incorporated company or other body corporate.
(e)
Amendment of section 11.— In section 11 of the principal Act, in clause (c), after the words “State Bar Council of Uttar Pradesh” the words “and certificates of enrolment issued to Revenue Agents or Mukhtars” shall be inserted.
[Vide Uttar Pradesh Act 19 of 1982, s. 3]
Insertion of section 11-A.— After section 11 of the principal Act, the following section shall be inserted, namely :—
“11-A. Payment of duty in cash on such memos.— (1) Notwithstanding anything contained in section 11, the stamp duty due under Article 25-A of Schedule I-B on a counterpart or duplicate (including counterfoil or carbon copy) of a bill or cash memo may be paid either by means of stamps on the date of issue of such instruments, or in cash once in every quarter, for all such instruments issued in the previous quarter, into the treasury or sub-treasury under such head as the State Government may by general or special order direct.
(2) The treasury challan prepared for deposit of duty in cash shall be accompanied by such statement and shall be preserved for the purpose of verification for such period and proper account thereof shall be maintained in such form as the State Government may by general or special order direct.”
[Vide Uttar Pradesh Act 49 of 1975, s. 4]
Amendment of section 11.— In section 11 of the principal Act, in clause (c), after the words “State Bar Council of Uttar Pradesh” the words “and certificate of enrolment issued to Revenue Agents or Mukhtars” shall be inserted.
[Vide Uttar Pradesh Act 19 of 1981, s. 3]
12. Cancellation of adhesive stamps. —(1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.
13. Instruments stamped with impressed stamps how to be written. —Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.
1. The word “cheques” omitted by Act 5 of 1927, s. 5.
2. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
14. Only one instrument to be on same stamp. —No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:
Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.
15. Instrument written contrary to section 13 or 14 deemed unstamped. —Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.
16. Denoting duty. —Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of the Collector or in such other manner (if any) as the 1[State Government] may by rule prescribe.
B. —Of the time of stamping instruments
17. Instruments executed in India. —All instruments chargeable with duty and executed by any person in 2[India] shall be stamped before or at the time of execution.
Amendment of section 17 .—In the principal Act, in Section 17, after the existing provision, the following proviso shall be inserted namely:—
“Provided that nothing in this Section shall apply to the instrument in respect of which stamp duty has been paid under section 10-A.”
[Vide Assam Act 22 of 2004, s. 3]
18. Instruments other than bills and notes executed out of India. —(1) Every instrument chargeable with duty executed only out of 2[India], and not being a bill of exchange 3 *** or promissory note, may be stamped within three months after it has been first received in 2[India].
(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefore, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the 1 [State Government] may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.
19. Bills and notes drawn out of India. —The first holder in 2[India] of any bill of exchange 4[payable otherwise than on demand], 3*** or promissory note drawn or made out of 2[India] shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in 2[India], affix thereto the proper stamp and cancel the same:
Provided that,—
(a) if, at the time any such bill of exchange, 3*** or note comes into the hands of any holder thereof in 2[India], the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12 and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;
(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.
Addition of a new section 19-A. —After section 19 of the said Act the following new section shall be inserted, namely:-
19-A. Payment of duty on certain instruments liable to increased duty in Himachal Pradesh under clause (bb) of section 3.- Where any instrument has become chargeable in any part of India and thereafter becomes chargeable with higher rate of duty in the Himachal Pradesh under clause (bb) of
1. Subs. by the A.O. 1950, for “collecting Government”.
2. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
3. The word “cheque” omitted by Act 5 of 1927, s. 5.
4. Ins. by Act 5 of 1927, s. 5.
the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952-
(i) notwithstanding anything contained in the said proviso, the amount of duty chargeable on such instrument shall be the amount chargeable on it under Schedule- I-A less the amount of duty, if any already paid on it in India,
(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for the payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same person as though such instrument were an instrument received in India for the first time at the time when it became chargeable with the higher duty.
[Vide Himachal Pradesh Act 4 of 1953, s. 7]
C. —Of valuations for Duty
20. Conversion of amount expressed in foreign currencies.— (1) Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of 1[India] such duty shall be calculated on the value of such money in the currency of 1 [India] according to the current rate of exchange on the day of the date of the instrument.
(2) The Central Government may, from time to time, by notification in the Official Gazette, prescribe a rate of exchange for the conversion of British or any foreign currency into the currency of 1[India] for the purposes of calculating stamp-duty, and such rate shall be deemed to be the current rate for the purposes of sub-section (1).
21. Stock and marketable securities how to be valued. — Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on 2[the market value of such stock or security.]
3 [Provided that the market value for calculating the stamp-duty shall be, in the case of—
(i) options in any securities, the premium paid by the buyer;
(ii) repo on corporate bonds, interest paid by the borrower; and
(iii) swap, only the first leg of the cash flow.]
22. Effect of statement of rate of exchange or average price.— Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject-matter of such statement, be presumed, until the contrary is proved, to be duly stamped.
23. Instruments reserving interest.— Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
4 [23A. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements. — (1) Where an instrument (not being a promissory note or bill of exchange)—
(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or
(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security,
it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under 5 [Article No. 5 (c)] of Schedule I.
(2) A release or discharge of any such instrument shall only be chargeable with the like duty. ]
1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
2. Subs. by Act 7 of 2019, s. 16, for “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.” (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
3. Ins. by s. 16, ibid. (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
4. Ins. by Act 15 of 1904, s. 3.
5. Subs. by Act 1 of 1912, s. 3, for “Article No. 5(b) ”.
Amendment of section 23-A. — In sub-section (1) of section 23-A of the said Act, for the word and figure ‘Schedule-I’ the word, figure and letter “Schedule I-A” shall be substituted.
[Vide Himachal Pradesh Act 4 of 1953, s. 8]
24. How transfer in consideration of debt, or subject to future payment, etc., to be charged. — Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
Provided that, nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule I.
Explanation .—In the case of a sale of property subject to a mortgage or other incumbrance, 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:
Provided that, where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.
Illustrations
(1) A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp-duty is payable on Rs. 1,500.
(2) A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 1,000 and unpaid interest Rs 200. Stamp-duty is payable on Rs. 1,700.
(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. B afterwards buys the house from A. Stamp-duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the mortgage.
Amendment of section 24.— In the proviso to section 24, of the said Act, for the full stop shall be substituted a comma followed by the words “or Schedule I -A, as the case may be.
[Vide Himachal Pradesh Act 4 of 1953, s. 9]
Amendment of section 24.— In Section 24 of the Indian Stamp Act, 1899 (2 of 1899) (herein after referred to as the principal Act), for the words “in respect whereof the transfer is chargeable with ad valorem duty” the words “and the transfer is chargeable with ad valorem duty in respect of the consideration or the market value of the property so transferred, whichever is higher,” shall be substituted.
[Vide Orissa Act 7 of 1987, s. 2]
25. Valuation in case of annuity, etc.— Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,—
(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 where value of subject-matter is indeterminate.— Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
1 [Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp-duty,—
(a) when the lease has been granted by or on behalf of 2[the Government], at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to 3[the Government] under the lease, or
(b) when the lease has been granted by any other person, at twenty thousand rupees a year,
and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:] Provided also that where proceedings have been taken in respect of an instrument under section 31 or
41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.
27. Facts affecting duty to be set forth in instrument. — The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it its chargeable, shall be fully and truly set forth therein.
Amendment of section 27 .—In the principal Act, in section 27, for the words and brackets, “The consideration (if any)”, the words “the market value of the property” shall be substituted.”
[Vide Assam Act 22 of 2004, s. 4]
Amendment of section 27 .—In the principal Act, after section 27, the following new section shall be inserted namely:—
“27A . Instrument of conveyance etc. under valued how to be dealt with .—(1) If the Registering Officer appointed under the Registration Act, 1908 (Central Act 16 of 1908) while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property as fixed by the Government/Collector of the district, which is subject matter of conveyance, exchange or gift had not been truly set forth in the instrument, he may after registering such instrument, refer the same to the Collector for determination of the market value of such proper and the property 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 and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of conveyance, exchange or gift and the duty as aforesaid, and thereupon the difference, if any, in the amount of duty, shall be payable by the persons liable to pay the duty.
1. Subs. by Act 15 of 1904, s. 4, for the proviso.
2. Subs. by the A.O. 1937, for “the secretary of State in Council”.
3. Subs., ibid., for “the said Secretary of State in Council”.
(3) The Collector may, on his own motion or otherwise, within two years from the date of registration of any instrument or conveyance, exchange or gift not already referred to him under subsection (1) call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property as set forth in such instrument, which is the subject matter of conveyance, exchange or gift and the 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 and the duty as aforesaid and thereupon the difference, if any in the amount of duty, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to instrument registered before the date of commencement of the Indian Stamp (Assam Amendment) Act, 2004.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may prefer an appeal to the Civil Judge of appropriate jurisdiction and all such appeals shall be preferred within such time and shall be heard and disposed of in such manner as may be prescribed.
Explanation —For the purpose of this Act, market value of any property shall be estimated to be the price which in the opinion of the Collector or the Civil Judge Senior Division, as the case may be, such property would have fetched or would fetch, if sold in the open market on the date of execution of the instrument of conveyance, exchange or gift.
[Vide Assam Act 22 of 2004, s. 5]
Amendment of section 27. —For the words and brackets “The consideration (if any)” occurring in section 27 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter called as the principal Act), the words and signs “The consideration, if any, the market value of the property” shall be substituted.
[Vide Himachal Pradesh Act 7 of 1989, s. 2]
Orissa
Amendment of section 27. — In Section 27 of the principal Act, for the words and brackets “the consideration if any”, the words and commas “the consideration, if any, the market value of the property” shall be substituted.
[Vide Orissa Act 7 of 1987, s. 3]
28. Direction as to duty in case of certain conveyances.— (1) Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.
(2) Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.
(3) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence
conveyed immediately to the sub-purchaser the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.
(4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers:
Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.
(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.
Amendment of section 28 .— In Section 28 of the principal Act,—
(i) for sub-section (1), the following sub-section shall be substituted, namely:—
“(1) where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit:
Provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration:
Provided further that the market value of the separate part shall be set forth along with the consideration for each part and the conveyance shall be chargeable with ad valorem.
[duty in respect of such distinct consideration or the market value, whichever is higher.”.
(ii) to sub-section (2) the following words and comma shall be added at the end, namely:— “or the market value of each such separate part whichever is higher.”;
(iii) to sub-section (3) the following words and comma shall be added at the end, namely:— “or the market value of the property, whichever is higher.”.
(iv) for sub-section (4), the following sub-section shall be substituted, namely:-
“(4) where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in part, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect of the consideration paid by such sub-purchaser or the market value of each part whichever is higher without regard to the amount or value of the original consideration; and the conveyance of the residue, if any , of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers or the market value of the residue of such property whichever is higher:
Provided that the duty on such last mentioned conveyance shall in no case be less than one rupee.”.
(v) for sub-section (5), the following sub-section shall be substituted, namely:—
“(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of consideration paid by him or the market value of the property whichever is higher and is duly stamped accordingly, any conveyance to be
afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller or the market value of such property whichever is higher, or, where such duty would exceed five rupees with a duty of five rupees”,]
[Vide Orissa Act 7 of 1987, s. 4]
D. —Duty by whom payable
29. Duties by whom payable.— In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne —
(a) in the case of any instrument described in any of the following Articles of Schedule I, namely:— No. 2. (Administration Bond),
1 [No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),] No. 13 (Bill of exchange),
No. 15 (Bond),
No. 16 (Bottomry Bond), No. 26 (Customs Bond),
2 * * * * * No. 32 (Further charge),
No. 34 (Indemnity-Bond),
No. 40 (Mortgage-deed),
No. 49 (Promissory-note),
No. 55 (Release),
No. 56 (Respondentia Bond),
No. 57 (Security-bond or Mortgage-deed), No. 58 (Settlement),
3 * * * * *
4 * * * * *
No. 62 (c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),— by the person drawing, making or executing such instrument:
5 [(b) in the case of a policy of insurance other than fire-insurance—by the person effecting the insurance;
(bb) in the case of a policy of fire-insurance— by the person issuing the policy;]
(c) in the case of a conveyance (including re-conveyance of mortgaged property) by the grantee: in the case of a lease or agreement to lease—by the lessee or intended lessee:
(d) in the case of a counterpart of a lease—by the lessor;
(e) in the case of an instrument of exchange 6[including swap]—by the parties in equal shares,
(f) in the case of a certificate of sale—by the purchaser of the property to which such certificate relates; 7***
1. Subs. by Act 15 of 1904, s. 5, for “No. 6 (Agreement to Mortgage)”.
2. The words, figures and brackets “No. 27 (Debenture)” omitted by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
3. The words, figures, brackets and letter “No. 62 (a) (Transfer of shares in an incorporated Company or other body corporate)” omitted by s. 17, ibid. (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
4. The words, figures, brackets and letter “No. 62 (b). (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided for by section 8),” omitted by s. 17, ibid. (w.e.f. 1-7-2020). [Earlier notified
w.e.f. 9-1-2020 followed by 1-4-2020]
5. Subs. by Act 5 of 1906, s. 4, for clause (b).
6. Ins. by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
7. The “and” omitted by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
(g) in the case of an instrument of partition—by the parties thereto in proportion to their respective shares in the whole property partitioned or, when the partition is made in execution of an order passed by a Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator directs.
1 [(h) in the case of sale of security through stock exchange, by the buyer of such security;
(i) in the case of sale of security otherwise than through a stock exchange, by the seller of such security;
(j) in the case of transfer of security through a depository, by the transferor of such security;
(k) in the case of transfer of security otherwise than through a stock exchange or depository, by the transferor of such security;
(l) in the case of issue of security, whether through a stock exchange or a depository or otherwise, by the issuer of such security; and
(m) in the case of any other instrument not specified herein, by the person making, drawing or executing such instrument.]
Amendment of section 29 .—In Section 29 of the Principal Act,--
(a) In clause (a), after the words (and figures, "No. 40 (Mortgage deed))," the words (and figures "No. 43 (Note or memorandum))," shall be inserted;
(b) after clause (f), the following clause shall be inserted, namely,-''(f-f) in the case of an Instrument of Gift by the donee;"
[Vide Uttarakhand Act 1 of 2016, s. 4]
Amendment of section 29.— In section 29 of the principal Act,—
(a) in clause (a), after the words and figures, "No. 40 (Mortgage deed)," the words and figure, "No. 43 (Note or Memorandum)" shall be inserted ;
(b) after the clause (f) the following clause shall be inserted, namely:— “(ff) in the case of an Instrument of Gift, by the donee"
[Vide Uttar Pradesh Act 38 of 2001, s. 3]
30. Obligation to give receipt in certain cases.— Any person receiving any money exceeding twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding twenty rupees, or receiving in satisfaction or part satisfaction of a debt any movable property exceeding twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same.
2 [Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.]
1. Ins. by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020). [Earlier notified w.e.f. 9-1-2020 followed by 1-4-2020]
2. Added by Act 5 of 1906, s. 5.
CHAPTER III
ADJUDICATION AS TO STAMPS
31. Adjudication as to proper stamp.— (1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than 1[fifty naye paise]) as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable.
(2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application until such abstract and evidence have been furnished accordingly:
Provided that—
(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and
(b) every person by whom any such evidence is furnished, shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.
Amendment of Section 31.— In section 31 of the principal Act, in sub-section (1), for the words “not exceeding five rupees” and “not less than fifty naye paise”, the words “not exceeding twenty rupees” and “not less than five rupees”, shall respectively be substituted
[Vide Orissa Act 1 of 2003, s. 4]
Amendment of section 31 .—In sub-section (1), for the words, "Pays a fee of such amount not exceeding five rupees and not less than fifty paisa as the collector may in Each case direct," the words, "Pays a fee such amount as may be fixed by State Government By notification in the Official Gazette", shall be substituted.
[Vide Uttarakhand Act 1 of 2016, s. 5]
Amendment of section 31.— In section 31 of the principal Act, in sub-section (1), for the words, "such amount not exceeding five rupees and not less than fifty paise as the collector may in each case direct", the words, "such amount as may be fixed by the State Government by notification in the Official Gazette", shall be substituted.
[Vide Uttar Pradesh Act 38 of 2001, s. 4]
32. Certificate by Collector.— (1) When an instrument brought to the Collector under section 31 is, in his opinion, one of a description chargeable with duty, and
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid,
1. Subs. by Act 19 of 1958, s. 3, for “eight annas” (w.e.f. 1-10-1958).
the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.
(3) Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped:
Provided that nothing in this section shall authorize the Collector to endorse—
(a) any instrument executed or first executed in 1[India] and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
(b) any instrument executed or first executed out of 1 [India] and brought to him after the expiration of three months after it has been first received in 1[India]; or
(c) any instrument chargeable 2[with a duty not exceeding ten nayepaise], or any bill of exchange or promissory note, when brought to him, after the drawing or execution thereof, on paper not duly stamped.
Amendment of section 32.— In section 32 of the said Act.—
(1) in clause (a) of the proviso, after the words “any instrument” the words “other than an instrument chargeable with a duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952” shall be inserted.
(2) the word “or” at the end of clause (b) of the proviso shall be omitted,
(3) after clause (c) of the proviso the word “or” shall be inserted, and the following new clause shall be added:-
(d) any instrument chargeable with duty under clause (bb) of the first proviso to section 3 as amended by the Indian Stamp (Himachal Pradesh Amendment) Act, 1952, and brought to him after the expiration of three months from the date on which it is first received in Himachal Pradesh.
[Vide Himachal Pradesh Act 4 of 1953, s. 10]
CHAPTER IV INSTRUMENTS NOT DULY STAMPED
33. Examination and impounding of instruments. — (1) Every person having by law or consent of parties authority to receive evidence, and every person in charge of a public office, 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.
(2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in 3[India] when such instrument was executed or first executed:
Provided that—
(a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (V of 1898);
1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
2. Subs. by Act 19 of 1958, s. 4, for “with the Duty of one anna or half an anna” (w.e.f. 1-10-1958).
3. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
(b) in the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.
(3) For the purposes of this section, in cases of doubt, —
(a) 1[the 2[State Government]] may determine what offices shall be deemed to be public offices;
and
(b) 3[the 4[State Government]] may determine who shall be deemed to be persons in charge of
public offices.
STATE AMENDMENT
Amendment of Section 33.— In section 33 of the principal Act after sub-section (1), the following sub-sections shall be inserted, namely:—
“(1-a) If it appears to such person from the copy of an instrument produced or coming in performance of his functions, within three years from the date of registration of the instrument, that such instrument is not duly stamped, he shall call for the original instrument and if he is satisfied on production of the instrument that it has not been duly stamped, impound the same and the deficient amount of duty shall be payable by the person liable to pay the duty.
(1-b) Where the original instrument is not produced such person shall refer the copy of the instrument to the Collector for determination of the market value of the property and the duty payable thereon and the Collector may determine the market value of the property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2) of section 47-A.”.
[Vide Orissa Act 7 of 1987, s. 5]
Amendment of section 33 of Act no. 11 of 1899.— In section 33 of the Indian Stamp Act, 1899, as amended in its application to Uttar Pradesh, hereinafter in this Chapter referred to as the principal Act, --
(i) in sub-section (2), 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 “sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall be substituted.
(ii) after sub-section (2), for the existing sub-sections, the following sub-sections shall be substituted, namely:--
“(3) For the purpose of this section the State Government may in cases of doubt, determine what offices shall be deemed to be public offices and who shall be deemed to be persons in charge of public offices.
(4) Where deficiency in stamp duty paid is noticed from the any court or from the Commissioner of Stamps or an, Additional Commissioner of Stamp or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board of Revenue in that behalf, call for the original instrument so purpose, and the instrument so produced before the Collector shall be deemed to have been produced or come before him in the performance of his functions.
(5) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty under section 40 on the copy of the instrument:
Provided that no action under sub-section (4) or sub-section (5) shall be taken after a period of four years from the date of execution of the instrument.”
[Vide Uttar Pradesh Act 6 of 1980, s. 6]
1. Subs. by the A.O. 1937, for “the G.G. in C.”.
2. Subs. by the A.O. 1950, for “collecting Government”.
3. Subs. by the A.O. 1937, for “the L.G.”.
Amendment of section 33 of Act no. 11 of 1899.— In section 33 of the Indian Stamp Act, 1899 hereinafter referred to as the Principal Act, in sub-section (5), after the existing proviso the following Proviso shall be inserted. namely :—
“Provided further that with the prior permission of the State Government an action under subsection (4) or sub-section (5) may be taken after a period of four years but before a period of eight years from the date of execution of the instrument.”
[Vide Uttar Pradesh Act 22 of 1998, s. 2]
Amendment of section 33.— In section 33 of the principal Act, after sub-section (2), the following Sub-sections shall be inserted, namely :—
(3) Where deficiency in stamp duty paid is noticed from the copy of any instruments, the Collector may suo motu or on a reference from any court or from the Chief Inspector of Stamps, Uttar Pradesh or any Officer of the Stamp Department, Board of Revenue, call for the original instrument for the purpose of satisfying himself as to the adequacy of the duty paid thereon and the instrument so produced before the Collector shall be deemed to have been produced or come in the performance of his functions.
(4) In case the instrument is not produced within the period specified by tile Collector, he may require payment of deficit stamp duty, if any, together with penalty under section 40 on the copy of the instrument ;
Provided that no action under sub-section (3) or sub-section (4) shall be taken after a period of four years from the date of execution of the instrument"
[Vide Uttar Pradesh Act 49 of 1975, s. 5]
34. Special provision as to unstamped receipts.— Where any receipt chargeable 1[with a duty not exceeding ten nayepaise] is tendered to or produced before any officer unstamped in the course of the audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefore.
35. Instruments not duly stamped inadmissible in evidence, etc.— No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped:
Provided that—
(a) any such instrument 2[shall] be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required to make up such duty, together with 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;
(b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it;
(c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;
(d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure 1898 (V of 1898);
1. Subs. by Act 19 of 1958, s. 5, for “with a duty of one anna” (w.e.f. 1-10-1958).
2. Subs. by Act 21 of 2006, s. 69, for “not being an instrument chargeable with a duty not exceeding ten nayepaise only, or a bill of exchange or promissory note, shall, subject to all just exceptions,”
(e) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act.
Amendment of section 35 .—In section 35 of the principal Act, in the proviso in clause (d), for the words and figures “Chapter XII or Chapter XXXVI of the Code of criminal Procedure, 1898”, the words and figures “sections 125 to 128 and sections 145 to 148 of the Code of Criminal Procedure, 1973” shall be substituted.
[Vide Uttar Pradesh Act 6 of 1980, s. 7]
Amendment of section 35.— In section 35 of the principal Act, in clause (a) of the proviso for the words "five rupees. or, when ten times the amount of the proper duty of deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion:" the following words shall be substituted, namely :—
"a sum equal to ten times the amount of the proper duty or deficient portion thereof ;
[Vide Uttar Pradesh Act 22 of 1998, s. 3]
36. Admission of instrument where not to be questioned.— Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
37. Admission of improperly stamped instruments.— 1 [The 2[State Government]] may make rules providing that, where an instrument bears a stamp of sufficient amount but of improper description, it may, on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.
38. Instruments impounded, how dealt with.— (1) When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall send such amount to the Collector, or to such person as he may appoint in this behalf.
(2) In every other case, the person so impounding an instrument shall send it in original to the Collector.
39. Collector’s power to refund penalty paid under section 38, sub-section (1).— (1) When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, 3*** refund any portion of the penalty in excess of five rupees which has been paid in respect of such instrument.
(2) When such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may refund the whole penalty so paid.
Omission of section 39.— Section 39 of the principal Act shall be omitted. [ Vide Uttar Pradesh Act 22 of 1998, s. 4]
1. Subs. by the A.O. 1937, for “the G.G. in C.”.
2. Subs. by the A. O. 1950, for “collecting Government”.
3. The words “upon application made to him in this behalf or, if no application is made, with the consent of the chief Controlling Revenue-authority” omitted by Act 4 of 1914, s. 2 and the Schedule Pt I.
40. Collectors power to stamp instruments impounded.— (1) When the Collector impounds any instrument under section 33, or receives any instrument sent to him under section 38, sub-section ( 2), not being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or a bill of exchange or promissory note, he shall adopt the following procedure:—
(a) if he is of opinion that such instrument is duly stamped, or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same, together with a penalty of five rupees; or, if he thinks fit, 2[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:
Provided that, when such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section.
(2) Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be conclusive evidence of the matters stated therein.
(3) Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer.
