The government intends to replace another colonial era law, the Indian Stamp Act 1899, with a new one. According, it has come out with draft of new bill and invited suggestions.

The proposed bill aims “to align it with modern stamp duty regime,” a Finance Ministry statement said. Further terming the existing law as a pre-Constitution Act, it said that it has been amended from time to time to enable a more modern Stamp Duty regime. However, a number of provisions contained in the Indian Stamp Act, 1899 have become redundant/ inoperative and hence, there is a need to re-orient the Indian Stamp Act, 1899. Accordingly, “it has been proposed that the Indian Stamp Act, 1899 is repealed and a new legislation is enacted to reflect the present realities and objectives,” the ministry said.

Indian Stamp Act

The Indian Stamp Act, 1899 is a fiscal statute laying down the law relating to tax levied in the form of stamps on instruments recording transactions. Stamp duties are levied by the Central Government, but within the States are collected and appropriated by the concerned States in terms of provisions of Article 268 of the Constitution.   

The Stamp duties on documents specified in Entry 91 of the Union List of the Seventh Schedule (viz. Bills of Exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts) are levied by the Union. Stamp duties on documents other than those mentioned above are levied and collected by the States by virtue of the legislative Entry 63 of the State List of the Seventh Schedule of the Constitution. 

Stamp duties other than duties or fees collected by means of judicial stamps, but not including rates of stamp duty which fall within the scope of Entry 91 of the Union List and Entry 63 of the State List mentioned above, fall within the legislative power of both the Union and the States under Entry 44 of the Concurrent List of the Seventh Schedule.

Related Topics
comment COMMENT NOW