The STAMP ACT, 1977 (1920 A. D.)

STAMP ACT, 1977 (1920 A.D.)
(Act No. XL of Samvat 1977)

THE STAMP ACT, 1977 (1920 A. D.)
(Act No. XL of Svt. 1977)
———
CONTENTS
SECTION.
CHAPTER I.
Preliminary.
1. Name, extent and enforcement.
1A.
2. Definitions.
CHAPTER II.
Stamp Duties.
A.—Of the Liability of Instruments to Duty.
3. Instruments chargeable with duty.
4. Several instruments used in single transaction of sale, mortgage or
settlement.
4-A. Omitted.
4-B. Omitted.
5. Instruments relating to several distinct matters.
6. Instruments coming within several descriptions in Schedule I.
6A. Securities dealt in depository not liable to stamp-duty.
7. Omitted.
8. Omitted.
9. Power to reduce, remit or compound duties.
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.
 STAMP ACT, 1977 (1920 A. D.) 221
222  STAMP ACT, 1977 (1920 A. D.)
SECTION.
9B. Instruments chargeable with duty for transactions otherwise than through
stock exchanges and depositories.
B.—Of Stamps and the mode of using them.
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.
14-A.Alterations in instruments how to be charged.
15. Instruments deemed not duly stamped.
16. Denoting duty.
C.—Of the time of stamping instrument.
17. Instruments executed in the Union territory of Jammu and Kashmir.
18. Instruments other than bills and notes executed out of the Union territory
of Jammu and Kashmir.
19. Bills and notes drawn out of the Union territory of Jammu and Kashmir.
D.—Of Valuation for Duty.
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.
23-A.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.
 STAMP ACT, 1977 (1920 A. D.) 223
SECTION.
26-A.Special provision to re-assess stamp duty on instruments of mining leases.
27. Facts affecting duty to be set forth in the instrument.
27-A.Fixation of market value guidelines.
28. Direction as to duty in respect of certain conveyances.
E.—Duty  by whom payable.—
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 un-stamped 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.
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 sections
35, 40 or 41.
43. Prosecution for offence against Stamp law.
224  STAMP ACT, 1977 (1920 A. D.)
44. Persons paying duty or penalty may recover same in certain cases.
45. Power to Commissioner of Stamps 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.
47-A.Instruments undervalued how to be dealt with.
48. Recovery of duties and penalties.
CHAP TER 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.
54-A.Omitted.
55. Allowances on renewal of certain debentures.
CHAPTER VI.
Reference and Revision.
56. Control of Government and statement of case to the Revenue Minister.
57. Revision of certain decisions of Collector regarding sufficiency of stamps.
58. Omitted.
59. Omitted.
60. Omitted.
SECTION.
 STAMP ACT, 1977 (1920 A. D.) 225
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.
62A. Penalty for failure to comply with provisions of section 9A.
63. Penalty for failure to cancel adhesive stamp.
64. Penalty for omission to comply with provisions of section 27.
64-A.Recovery of amount of deficit stamp duty.
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. Omitted.
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 unauthorised
sale.
70. Institution and conduct of prosecutions.
71. Omitted.
72. Place of trial.
CHAPTER VIII.
Supplemental Provisions.
73. Books,  etc. to be open  to inspection.
73-A.Furnishing of statement, return and information.
74. Powers to make rules.
75. Omitted.
SECTION.
226  STAMP ACT, 1977 (1920 A. D.)
SECTION.
76. Omitted.
76-A. Delegation of powers.
77. Saving as to court-fees.
77-A.Omitted.
78. Omitted.
79. Omitted.
SCHEDULE I.—Stamp duty on Instruments.
SCHEDULE II.—Omitted.
 STAMP ACT, 1977 (1920 A. D.) 227
THE  STAMP  ACT,  1977  (1920  A.  D.)
(Act  No.  XL of  Svt. 1977)
[Sanctioned  by His Highness  the Maharaja  Sahib Bahadur  per
Chief  Minister’s  endorsement No. 8372, dated 11th September, 1920  and
State Council  Resolutions  No. I, dated  8th  April,  1925. (Notification
14-L/81)]
An  Act to consolidate and  amend the law relating to Stamps.
Whereas it is expedient to consolidate and amend the law relating to
stamps ; It is hereby enacted as follows :—
CHAPTER  I
Preliminary
1[1. Name, extent  and enforcement.—(1) This Act may be called the
Stamp Act, 1977.
(2) It extends to the 2[whole of the Union territory of Jammu and
Kashmir]. It shall come into force on the 1st day of Baisakh, 1978].
3[1A. The provisions incorporated in the Act by virtue of the Jammu and
Kashmir Reorganization (Adaptation of State Laws) Fifth Order, 2020 shall
come into force on such date as the Government may, by notification in the
Official Gazette, appoint.]
2. Definitions.—In this Act, unless there is something repugnant  in
the subject or context,—
4[(1) “allotment list” means a list containing details of allotment of
the securities intimated by the issuer to the depository under sub-section
(2) of section 8 of the Depositories Act, 1996 (22 of 1996) ;
(1A) “banker” includes a bank and any person acting as a banker ;]
1. Section 1 revived by Act XI of Svt. 1993.
2. Substituted by S.O. 1229(E) dated 31.03.2020 for “whole of the State of Jammu and
Kashmir”.
3. Section 1A inserted by S.O. 3808(E) dated 26.10.2020.
4. Substituted ibid. (For earlier amendment see Act XII of 2011, s. 2.)
228  STAMP ACT, 1977 (1920 A. D.)
(2) Bill of exchange.—‘‘bill of exchange’’ means a bill of exchange
as defined by the Negotiable Instruments Act, 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 ;
(3) ‘‘Bill of exchange  payable on demand’’.—‘‘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 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 ;
(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 authorises another to give credit to the person in whose
favour it is drawn ;
(4) Omitted.
(5) Bond.—‘‘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 may 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 1[but does
not include a debenture].
2[Explanation:––Notwithstanding anything contained in any law for the time
being in force, for the purposes of this clause “attested”, in
1. Inserted by S.O. 3808(E) dated 26.10.2020.
2. Explanation inserted by Act XII of 2011, s. 2.
 STAMP ACT, 1977 (1920 A. D.) 229
relation to an instrument means attested by one or more wit-
nesses each of whom has seen the executant sign or affix his
mark to the instrument in the presence and by, the direction
of the, executant or has received from the executant a per-
sonal acknowledgement of his signature or mark or of the
signature of such other person, and each of whom has signed
the instrument in the presence of the executant, but it shall
not be necessary that more than one of such witnesses shall
have been present at the same time, and no particular form of
attestation shall be necessary ;
(6) Chargeable.—‘‘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, chargeable under the
law in force in the 1[Union territory of Jammu and Kashmir] when such
instrument was executed or, where several persons executed the instrument
at different times, first executed ;
(7) Cheque.—‘‘cheque’’ means a bill of exchange drawn on a specified
banker and not expressed to be payable otherwise than on demand ;
2[(7A) “Clearance List” means a list of transactions of sale and purchase
relating to contracts traded on the stock exchanges submitted to a clearing
corporation in accordance with the law for the time being in force in this
behalf ;]
(8) Omitted.
3[(9) “Collector” means the Deputy Commissioner of a district and
includes any officer whom the 4[Government of the Union territory of Jammu
and Kashmir] may, by notification in the 5[Official Gazette], appoint in this
behalf and on whom any or all powers of the Collector under this Act are
conferred by the said notification or any other notification ;]
6[(9-a) “Commissioner of Stamps” means such officer as the
4[Government of the Union territory of Jammu and Kashmir] may, by
notification in the 5[Official Gazette], appoint in this behalf, for the whole
or any part of the 1[Union territory of Jammu and Kashmir] ;]
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “State”.
2. Clause (7A) inserted by S.O. 3808(E) dated 26.10.2020.
3. Clause (9) substituted by Act XII of 2011, s. 2.
4. Substituted for “Government” by S.O. 1229(E) dated 31.03.2020.
5. Substituted ibid for “Government Gazette”.
6. Clause (9-a) substituted by Act XII of 2011, s. 2.
230  STAMP ACT, 1977 (1920 A. D.)
1[(10) “Conveyance” includes—
(i) a conveyance on sale;
(ii) every decree or final order of any civil court or revenue authority ;
(iii) every order made by the High Court/ Tribunal under section 394 of
the Companies Act, 1956 (Central Act) in respect of the amalgamation
or reconstruction of companies ;
(iv) every order made by the Reserve Bank of India under section 44A
of the Banking Regulation Act, 1949 in respect of amalgamation or
reconstruction of banking companies ; and
(v) any other instrument,
by which property, whether movable or immovable, or any estate or interest in
any property is transferred to, or vested in, any other person inter vivos and
which is not otherwise specifically provided for by Schedule—I ;]
2[(10-A) Deputy Commissioner of Stamps” means an officer appointed
by the 3[Government of the Union territory of Jammu and Kashmir] as
Deputy Commissioner of Stamps ;
4[(10 b) “Debenture” includes—
(i) debenture stock, bonds or any other instrument of a company
evidencing debt, whether constituting a charge on the assets of the
company or not ;
(ii) bonds in the nature or debenture issued by any incorporated
company or body corporate ;
(iii) certificate of deposit, commercial usance bill, commercial paper and
such other debt instrument of original or initial maturity upto one
year as the Reserve Bank of India may specify from time to time ;
(iv) securitised debt instruments ; and
(v) any other debt instruments specified by the Securities and Exchange
Board of India from time to time ;
1. Clause (10) substituted by Act XII of 2011, s. 2.
2. Inserted by Act III of 2006.
3. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government”.
4. Clauses (10b) and (10c) inserted by S.O. 3808(E) dated 26.10.2020.
 STAMP ACT, 1977 (1920 A. D.) 231
(10 c) “Depository” includes—
(a) a depository as defined in clause (e) of sub-section (1) of section 2
of the Depositories Act, 1996 (22 of 1996) ; and
(b) any other entity declared by the Central Government, by notification
in the Official Gazette, to be depository for the purpose of this Act ;]
(11) Duly stamped.—‘‘duly stamped’’, as applied to an instrument,
means that the instrument bears 1[a 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 the 2[Union territory of Jammu and
Kashmir] ;
3[(12) “Executed” and “Execution”, used with reference to
instruments, mean “signed” and “signature”, and includes attribution of
electronic record as per section 11 of the Information Technology Act,
2000 (Central Act 21 of 2000) ;]
4[(12-a) “immovable property” includes land, building, hereditary
allowances, rights to way, light, ferries and fisheries or any other benefit
arising out of land and things attached to the earth or anything
permanently fastened to anything attached to the earth but does not
include standing timber, growing crops or grass ;]
(13)Impressed stamp.—‘‘impressed stamp’’ includes—
(a) labels affixed and impressed by the proper officer,  and
(b) stamps embossed or engraved  on stamped paper  ;
5[(c) impression, mark or endorsement by a machine or any other mode
of stamping, as the Government may, by notification in the 6[Offi-
cial Gazette], specify ;]
7[(14) “Instrument  includes––
1. Substituted for “an adhesive or impressed stamp” by Act XII of 2011, s. 2.
2. Substituted by S.O. 1229(E) dated 31.03.2020 for “State”.
3. Clause (12) substituted by Act XII of 2011, s. 2.
4. Clause (12-a) inserted ibid.
5. Sub-clause (c) inserted ibid.
6. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government Gazette”.
7. Clause (14) substituted by S.O. 3808(E) dated 26.10.2020.
232  STAMP ACT, 1977 (1920 A. D.)
(a) every document, by which any right or liability is, or purports to be,
created, transferred, limited, extended, extinguished or recorded ;
(b) a document, electronic or otherwise, created for a transaction in a
stock exchange or depository by which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished
or recorded ; and
(c) any other document mentioned in Schedule 1, but does not include
such instruments as may be specified by the Government, by
notification in the Official Gazette ;]
1[(15) “instrument of partition” means any instrument whereby co-
owners of any property divide or agree to divide such property in severalty,
and also includes—
(a) a final order for effecting a partition passed by any Revenue Authority
or any Civil Court ;
(b) an award by an arbitrator directing the partition; and
(c) when any partition is effected without executing any such instrument,
any instrument signed by co-owners and recording, whether by way
of a declaration of such partition or otherwise, the terms of such
partition amongst the co-owners;
2[(15A) “Issuer  means any person making an issue of securities ;]
(16) Lease.––“lease” means a lease of immovable 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, immovable property  ;
(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 ;
1. Clause (15) substituted by Act XII of 2011, s. 2.
2. Clause (15A) inserted by S.O. 3808(E) dated 26.10.2020.
 STAMP ACT, 1977 (1920 A. D.) 233
1[(e) any agreement to lease ; and
(f) a decree or final order of any civil or revenue court, by which the
lease rights are transferred in favour of the lessee ;]
2[(16-a) “market value” in relation to any property which is the subject
matter of an instrument, means the price which such property would fetch or
would have fetched if sold in open market on the date of execution of such
instrument as determined in such manner and by such authority as specified in
this Act, or the rules made thereunder or the considerations stated in the
instrument, whichever is higher :
3[Provided “market value”, in relation to an instrument through which—
(a) any security is traded in a stock exchange, means the price at which
it is so traded ;
(b) any security which is transferred through a depository but not traded
in the stock exchange, means the price or the consideration
mentioned in such instrument ;
(c) any security is dealt otherwise than in the stock exchange/
depository,
means the price or consideration mentioned in such instrument ;]
4[(16-b) “Marketable Security” means a security capable of being traded
in any stock exchange in India ;]
(17)Mortgage-deed.––“mortgage-deed” includes every instrument
whereby, for the purpose of securing money advanced, or to be advanced,
by way of loan, or an existing or future debt, or the performance of an
engagement, one person transfers, or creates, to, or in favour of, another, a
right over or in respect of specified property ;
5[(17-a) “moveable property” includes standing timber, growing crops
and fruit upon, or juice in, the trees, and property of every other description
except immovable property ;
1. Inserted by Act XII of 2011, s. 2.
2. Substituted ibid.
3. Inserted by S.O. 3808(E) dated 26.10.2020.
4. Clause (16-b) substituted ibid.
5. Clause (17-a) inserted by Act XII of 2011, s. 2.
234  STAMP ACT, 1977 (1920 A. D.)
(18)Paper.—‘‘paper”  includes  vellum,  parchment  or  any other
material on which an instrument may be written  ;
(19)Policy  of insurance.—‘‘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  ;
(20)Omitted.
1[(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 and
includes an instrument by which a person, not being a person who is a legal
practitioner, is authorised to appear on behalf of any party in any proceeding
before any court, tribunal or authority ;]
(22)Promissory  note.—‘‘promissory note’’  means a promissory note
as defined by the Negotiable Instruments Act  ;
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 ;
2[(22-a) “public officer” means a public officer as defined in clause (17)
of section 2 of the 3[Code of Civil Procedure, 1908 (5 of 1908)] ;]
(23)Receipt.—‘‘receipt’’ includes  any note, memorandum or writing—
(a) whereby any money, or any bill of exchange, cheque or
promissory note is acknowledged to have been received, or
(b) whereby any other movable property is acknowledged to have
been received in satisfaction of a debt, or
(c) where by any debt or demand, or any part of a debt or demand,
is acknowledged to have been satisfied or discharged, or
1. Clause (21) substituted by Act XII of 2011, s. 2.
2. Clause 22-a) inserted ibid.
3. Substituted by S.O. 1229(E) dated 31.03.2020 for “Code of Civil Procedure, Samvat 1977”.
 STAMP ACT, 1977 (1920 A. D.) 235
(d) which signifies or imports any such acknowledgment,
and whether the same is or is not signed with the name of any  person ; and
1[(23-a) “Rural Areas” mean areas which do not fall within the limits
of any Municipal Corporation, Municipal Council or Municipal Committee
constituted under any law for the time being force ;]
2[(23-b)  Securities  includes,—
(i) securities as defined in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) ;
(ii) a “derivative” as defined in clause (a) of section 45U of the Reserve
Bank of India Act, 1934 (2 of 1934) ;
(iii) a certificate of deposit, commercial usance bill, commercial paper,
repo on corporate bonds and such other debt instrument of original
or initial maturity upto one year as the Reserve Bank of India may
specify from time to time ; and
(iv) any other instrument declared by the Central Government, by
notification in the Official Gazette, to be securities for the purpose
of this Act ;]
(24) Settlement.—‘‘settlement’’ means any non-testamentary
disposition, in writing, of movable or immovable property made—
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among his
family or those for whom he desires to provide, or for the
purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose ;
and includes an agreement in writing to make such a disposition and, where
any such disposition has not been made in writing, any instrument
recording, whether by way of declaration of trust or otherwise, the terms of
any such disposition ;
1. Clause (23-a) inserted by Act III of 2006, s. 2.
2. Clause (23-b) inserted by S.O. 3808(E) dated 26.10.2020.
236  STAMP ACT, 1977 (1920 A. D.)
1[(24-a) Stamp.–– “stamp” menas any mark, seal or endorsement by
any agency or person duly authorised by the *[Sate Government], and
includes an adhesive or 2[impressed or electronic stamp], for the purpose of
duty chargeable under this Act ;
3[(25) ‘‘Urban  Areas’’ mean areas falling within the limits of any
Municipal Corporation, Municipal Council or Municipal Committee
constituted under any law for the time being in force ;]
4[(26) “stock exchange” includes,—
(i) a recognised stock exchange as defined in clause (f) of section 2 of
the Securities Contracts (Regulation) Act, 1956 (42 of 1956) ; and
(ii) such other platform for grading or reporting, a deal in securities,
as may be specified by the Central Government, by notification in
the Official Gazette, for the purposes of this Act.]
CHAPTER II
Stamp Duties
A.—Of the Liability of Instruments to Duty.
3. Instruments chargeable with duty.–– Subject to the provisions of
this Act and the exemptions contained in Schedule I, the following
instruments shall be chargeable with duty of the amount indicated in that
Schedule as the proper duty therefor respectively, that is to say—
(a) every instrument mentioned in that Schedule which, not having
been previously executed by any person, is executed in the
5[Union territory of Jammu and Kashmir] on or after the date on
which this Act comes into force ;
(b) every bill of exchange 6[*] 7[payable otherwise than on demand]
or promissory note drawn or made out of  the 5[Union territory
1. Clause (24-a) inserted by Act XXVI of 2010, s. 2, w.e.f. 18-08-2010.
* Now Government of the Union territory of Jammu and Kashmir.
2. Substituted for “impressed stamp” by Act XII of 2011, s. 2.
3. Clause (25) added by Act III of 2006, s. 2.
4. Clause (26) inserted by S.O. 3808(E) dated 26.10.2020.
5. Substituted by S.O. 1229(E) dated 31.03.2020 for “State”.
6. The word ‘‘cheque’’ omitted by Act  I of Svt. 1993.
7. Inserted ibid.
 STAMP ACT, 1977 (1920 A. D.) 237
of Jammu and Kashmir] on or after that day and accepted or
paid, or presented for acceptance or payment, or endorsed,
transferred or otherwise negotiated, in the 1[Union territory of
Jammu and Kashmir] ; and
(c) every instrument (other than a bill of exchange, 2[*] or
promissory note) mentioned in that Schedule, which, not having
been previously executed by any person, is executed out of the
1[Union territory of Jammu and Kashmir] on or after that day,
relates to any property situate, or to any matter or thing done or
to be done, in the 1[Union territory of Jammu and Kashmir] and
is received in the 1[Union territory of Jammu and Kashmir] :
3[Provided that wherever no proper duty has been paid on the original of
an instrument which is chargeable to duty with an amount indicated in the
Schedule—I as the proper duty therefor, a copy of such instrument or record
relating to, or in respect of, the transaction shall be chargeable with duty of an
amount which is indicated in Schedule—I as the proper duty for the original
of such instrument :]
4[Provided further that] no duty shall be chargeable in respect of—
(1) any instrument executed by, or on behalf of, or in favour of, the
5[Government of the Union territory of Jammu and Kashmir] in
cases where, but for this exemption, the 5[Government of the
Union territory of Jammu and Kashmir] would be liable to pay
the duty chargeable in respect of such instrument ;
(2) Omitted.
4. Several instruments used in single transaction of sale, mortgage or
settlement. ––6[(1) Where in the case of any transaction, several instruments
are employed for completing the transaction, only the principal instrument
shall be chargeable with a duty prescribed for it in Schedule—I and
thereafter, each of the other instruments shall be chargeable with a duty of
one hundred rupees.]
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “State”.
2. The word ‘‘cheque’’ omitted by Act  I of Svt. 1993.
3. Proviso inserted by Act XII of 2011, s. 3.
4. Substituted for “Provided that” ibid.
5. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government”.
6. Substituted by Act XII of 2011, s. 4.
238  STAMP ACT, 1977 (1920 A. D.)
1. Sub-section (3) inserted by S.O. 3808(E) dated 26.10.2020.
2. Sections 4-A and 4-B omitted by Act XII of 2011, s. 5. (For earlier amendment see Act III
of 2006).
3. Inserted by Notification No. II-14/86 published in Govt. Gazette dated 28th  Maghar, 1986.
4. Substituted for “exceeding five rupees” by Act XII of 2011, s. 6.
5. Section 6A inserted by S.O. 3808(E) dated 26.10.2020.
(2) The parties may determine for themselves which of the
instruments so employed shall, for the purposes of sub-section (1), be
deemed to be the  principal instrument :
Provided that the duty chargeable on the instrument so determined
shall be the highest duty which would be chargeable in respect of any of
the said instruments employed.
1[(3)Notwithstanding anything contained in sub-sections (1) and (2), in
the case of any issue, sale or transfer of securities, the instrument on which
stamp-duty is chargeable under section 9A shall be the principal instrument
for the purpose of the section and no stampduty shall be charged on any other
instrument relating to any such transaction.]
2[x x x x].
5. Instruments relating to several distinct matters.–– Any instrument
comprising or relating to several distinct matters shall be chargeable with
the aggregate amount of the duties with which separate instruments, each
comprising or relating to one of such matters, would be chargeable under
this Act.
6. Instruments coming within several description in Schedule I—
Subject to the provisions of the last preceding section, an instrument so
framed as to come within two or more of the descriptions 3[given] in
Schedule I, shall, where the duties chargeable thereunder are different, be
chargeable only with the highest of such duties :
Provided that nothing in this Act contained shall render chargeable
with duty 4[exceeding one hundred rupees] a counterpart  or duplicate of
any instrument  chargeable  with  duty and in respect of which the proper
duty has been paid.
5[6A. Securities dealt in depository not liable to stamp-duty.––
Notwithstanding anything contained in this Act or any other law for the time
being in force,—
(a) an issuer, by the issue of securities to one or more depositories,
shall in respect of such issue, be chargeable with duty on the total
 STAMP ACT, 1977 (1920 A. D.) 239
amount of securities issued by it and such securities need not be
stamped,
(b) the transfer of registered ownership of securities from person to a
depository or from a depository to a beneficial owner shall not be
liable to duty.
Explanation.––For the purpose of this section, the expression “beneficial
ownership” shall have the same meaning as assigned to it in
the clause (a) of sub-section (1) of section 2 of the
Depositories Act, 1996 (22 of 1996).]
7. Omitted.
8. Omitted.
9. Power to reduce, remit or compound duties.–– 1[The 2[Government
of the Union territory of Jammu and Kashmir], if satisfied that it is
necessary to do so in the public interest, may], by rule or order published
in the 3[Official Gazette],—
(a) reduce or remit, whether prospectively or retrospectively,
in the whole or any part of the 4[Union territory of Jammu and
Kashmir], the duties with which any instruments or any
particular class of instruments, or any of the instruments
belonging to such class, or any instruments when executed by
or in favour of any  particular  class of persons, or by or in
favour of any members of such class, are chargeable, and
5[(b) provide for the composition or consolidation of duties of
policies of insurance and on issues by any incorporated
company or other body corporate, or on transfers where there
is a single transferee whether incorporated or not, of debentures,
bonds or other marketable securities.]
6[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,—
1. Substituted for the words “The Government may” by Act XII of 2011, s. 7.
2. Substituted for “Government” by S.O. 1229(E) dated 31.03.2020.
3. Substituted for “Government Gazette” ibid.
4. Substituted for “State” ibid.
5. Clause (b) substituted by Act XII of 2011, s. 7.
6. Part AA inserted by S.O. 3808(E) dated 26.10.2020.
240  STAMP ACT, 1977 (1920 A. D.)
(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
Government of Union territory of Jammu and Kashmir 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
transaction 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 Government of
Union territory of Jammu and Kashmir 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 ; and
(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 Government of Union territory
of Jammu and Kashmir by the 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 1 and such instrument need not be stamped :
Provided that no duty shall be chargeable in respect of the instrument 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 Government of Union territory of Jammu and
Kashmir on any note or memorandum or any other document, electronic or
otherwise, associated with the transaction 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 the 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 Government of Union territory of Jammu
 STAMP ACT, 1977 (1920 A. D.) 241
and Kashmir, transfer the stamp duty collected under this section to the
Government of Union territory of Jammu and Kashmir where the residence of
the buyer is located and in case the buyer is located outside India, to the
Government of Union territory of Jammu and Kashmir 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 Government of Union territory
of Jammu and Kashmir 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 of 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 1;
(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 1.]
B.—Of Stamps and the mode of using them.
1[10. Duties how to be paid. ––(1) Except as otherwise expressly
provided in this Act, all duties with which the instruments are chargeable
1. Section 10 substituted by Act XII of 2011, s. 8.
242  STAMP ACT, 1977 (1920 A. D.)
shall be paid, and such payment shall be indicated on such instruments, by
means of stamps,––
(a) in accordance with the provisions herein contained ; or
(b) when no such provision is applicable thereto, as the 1[Government
of the Union territory of Jammu and Kashmir] may by rules prescribe.
(2) The rules as mentioned in clause (b) of sub-section (1) may, among
other matters, regulate––
(a) in the case of any or all kinds of instruments, 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, the size of the
paper on which they are written ;
(d) the use of franking machine or any other machine as specified in the
rules ; and
(e) the used and procedure of electronic stamping.
(3) Subject to the rules made under sub-section (2), the 1[Government of
the Union territory of Jammu and Kashmir] may authorise any person, body or
organization, including post offices and banks, to use a franking machine or any
other such machine for making impression of stamps, indicating the payment of
stamp duty on the instruments.
(4) The stamp duty may be paid in cash by a challan in any Government
treasury, sub-treasury or bank authorised to conduct Government business and
such payment shall be indicated on such instrument by endorsement to that effect
made on the instrument by such officer as may be authorised by the Government
in this behalf.
(5) Notwithstanding anything contained in sub-section (4), and subject to
rules made by the 1[Government of the Union territory of Jammu and Kashmir]
in this behalf, the duty on an instrument can also be paid in the Government
Account electronically and indicated by means of a certificate issued under
Electronic Stamping System specified by the 1[Government of the Union territory
of Jammu and Kashmir] for the purpose :
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government”.
 STAMP ACT, 1977 (1920 A. D.) 243
Provided that if the 1[Government of the Union territory of Jammu and
Kashmir] is satisfied that circumstances exist in public interest to restrict the
mode of indicating the payment of duty on any instrument or a particular
class of instruments to any of the modes as specified in sub-section (4) and
this sub-section, it can do so by an order published in this behalf in the
2[Official Gazette].
(6) An impression or endorsement made on an instrument under sub-
sections (3), (4) and (5) shall have the same effect as if the duty of an amount
equal to the amount indicated in the impression or endorsement, as the case may
be, had been paid in respect of that instrument and such payment had been
indicated on such instrument by means of stamps under sub-section (1).]
3[11. Use of adhesive stamps.–– The following instruments may be
stamped with adhesive stamps, namely :––
(a) acknowledgement (article 1) ;
(b) articles of association (article 10) ;
(c) certificates (article 16) ;
(d) delivery order in respect of goods (article 23) ;
(e) letter of allotment of shares (article 30) ;
(f) letter of credit (article 31) ;
(g) notarial act (article 37) ;
(h) note or memorandum (article 38) ;
(i) policy of insurance (article 41) ;
(j) protest of bill or note (article 44) ;
(k) proxy (article 45) ;
(l) receipt (article 46) ;
(m) transfer of shares [article 54(a)] ; and
(n) warrant for goods (article 57).]
1. Substituted for “Government” by S.O. 1229(E) dated 31.03.2020.
2. Substituted ibid for “Government Gazette”.
3. Section 11 substituted by Act XII of 2011, s. 9.
244  STAMP ACT, 1977 (1920 A. D.)
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 form 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.
Where a stamp duty payable in respect of an instrument is made of
two or more papers stamped with impressed stamp, the instrument shall be
written in such manner that some part of the writing shall, as far as
possible, appear  on each such paper so as to leave as few blank sheets
as possible. Each blank sheet shall be dated and signed and shown as part
of the instrument.
1[Explanation 1:––Where two or more sheets of paper stamped with impressed
stamps are used to make up the amount of duty chargeable
in respect of any instrument, either a portion of such
instrument shall be written on each sheet so used or the
sheet on which no such portion is written shall be signed
by the executant or the executants, as the case may be,
with an endorsement indicating that the sheet is attached
to another sheet on which the instrument is written.
Explanation 2:––Where a single sheet of paper, not being paper bearing an
impressed hundi stamp, is insufficient to admit of the entire
instrument being written on the stamped paper, so much
1. Explanations inserted by Act XII of 2011, s. 10.
 STAMP ACT, 1977 (1920 A. D.) 245
plain paper may be sub-joined thereto as may be necessary
for completing the writing of such instrument, provided a
substantial part of the instrument is written on the sheet
which bears the stamp before any part is written on the
plain paper sub-joined and such plain paper shall be signed
by the executant or the executants, as the case may be.]
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.
1[14-A. Alterations in instruments how to be charged.–– Where due to
material alterations made in an instrument by a party, with or without the consent
of other parties, the character of the instrument is materially or substantially
altered, then such instrument shall require a fresh stamp duty according to its
altered character.
Explanation:––For the purpose of this section, a material alteration is one
which varies the rights, liabilities or legal position of the parties
as ascertained by the instrument in its original state or otherwise
varies the legal effect of the instrument as originally executed.]
2[15. Instruments deemed not duly stamped.–– Every instrument in
contravention of sections 13, 14 or 14-A shall be deemed to be not duly
stamped.]
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 3[the Government
of the Union territory of Jammu and Kashmir] may by rule prescribe.
1. Section 14-A inserted by Act XII of 2011, s. 11.
2. Section 15 substituted ibid, s. 12.
3. Substituted for “Government” by S.O. 1229(E) dated 31.03.2020.
246  STAMP ACT, 1977 (1920 A. D.)
C.—Of the time of Stamping Instruments.
17. Instruments executed in the 1[Union territory of Jammu and
Kashmir].–– All instruments chargeable with duty and executed by any
person in the 1[Union territory of Jammu and Kashmir] shall be stamped
before or at the time of execution 2[or immediately thereafter].
18. Instruments other than bills and notes executed out of the
1[Union territory of Jammu and Kashmir]. ––(1) Every instrument
chargeable with duty executed only out of the 1[Union territory of Jammu
and Kashmir], and not being a bill of exchange 3[*] or promissory note,
may be stamped within three months after it has been first received in the
1[Union territory of Jammu and Kashmir].
(2) Where any such instrument cann

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