Introduction of Indian stamp act

The law relating to Stamp Duty in India can be traced to the Regulation VI of 1797, which was introduced in the province of Bengal.   Similar regulations were in force in other provinces and amended and replaced by different regulations from time to time and finally replaced by Act XXXVI of 1860 which was consolidating Act relating to stamp duty in India.  This Act was repealed in 1862, by another Act of 1869 and repealed by Act I of 1879 and this Act of 1879 was amended nine times till it was finally replaced by the present Act II of 1899.

The Indian Stamp Act came into force on 01-07-1899 under the relevant provisions of Government of India Act for the List I and List III of the Constitution of India and it extends to whole of India except Jammu & Kashmir in Schedule I of I.S. Act.  Under of Article 246 (1) of the Indian Constitution, Parliament has exclusive powers to make laws with respect to any of the matter enumerated in List 1 in which rates of Stamp duty on certain instruments has been included.  The Parliament has exclusive power to enact laws prescribing the rates of stamp duty for the said instruments. Under of Article 246 (2) of the Indian Constitution, the State Legislature of any State specified in Part A or Part B of the schedule has similarly exclusive power to enact laws in respect of documents not included in List 1.  The State Legislature has exclusive power to enact laws in respect of the said instruments. 

It is open to the State Legislature either to adopt the provisions of the I.S. Act and amend or modify them (except the rates prescribed in List 1) or enact both by the Parliament and the State Legislatures subject to the provisions of Article 254 of the Indian Constitution.

There are four (4) types of Stamps. (1) Common stamps are postal stamps and Non-postal stamps such as match excise banderols, tobacco excise duty labels and all revenue stamps, which form sources of central revenues,  (2) certain stamps for the purpose of fund raising like N.C.C., Red Cross, Navy etc.and are hardly of any legal significance.  The other stampsi.e. (3) Non-judicial stamps and (4) Judicial stamps which have legal significance.  The Non-judicial stamps are to be used in respect of the instruments charged under Indian Stamp Act.  The Judicial Stamps are used in the judicial and such other proceedings before courts and other authorities and Tribunals and dealt with by Court Fees Act.

The non-judicial stamps are sub-divided into Impressed Stamps and Adhesive Stamps.  The Impressed Stamps consist of the printed impressions or Stamps embossed or engraved on the stamped paper.  The Adhesive stamps (lables) are affixed and impressed by the Proper Officer.

The Adhesive Stamps are sub-divided into === the Adhesive Stamps and Special Adhesive stamps. The Adhesive stamps are used on Promissory Note and other instruments as noted in Rule 13 of the Stamp Rules.  The Special Adhesive Stamps are used for notarial acts and for other instruments as noted in Rule 17 of the Stamp Rules.

( At present match excise banderols, tobacco excise duty labels obsoleted).

All type of Stamps shall be printed at Indian Security Press, Nasik, Maharashtra.

The Stamp Act is a fiscal act.  It’s meant for the increase of revenues of the states.

The Stamp duty leviable on instruments but not on the transactions.

The Stamp Act contains 79 Sections at present.  And the Indian Stamp Rules, 1925 came into force in Andhra Pradesh vide Notification No.C-63 Stamp/25, dated 05-05-1925.

Courtesy: All Authors of Indian Stamp Act.

Source: Indian Stamp Act written by Authors.

The above information obtained by  K.A.V.K.SATYANARAYANA, SUB REGISTRAR (RETIRED AS SUPDT)