The Kerala Stamp Act, 1959 (No.17 of 1959)

THE KERALA STAMP AC.: l', 19~9 
(Act 17 of 1959) 
CONTENTS. 
CHAPTER I 
Sections. 
PRELIMINARY 
1. Short title, extent and commencement. 
2. Definitions. 
CHAPTER 11 
STAMP DUTIES. 
3. Instruments chargeable with duty. 
4. Several instruments used in single transaction of sale, 
mortgage or settlement. 
5. Instruments relating to several distinct matters. 
6, Instruments coming within several descriptions in ~ 
Schedule 
7. Payment of higher duty in respect of certain instruments. ,.. 
8 Bonds or other securities issued on loans. 
9 Power to reduce remit or compound duties. 
10. Duties how to be paid. 
11. Use of adhesive stamps. 
12. Cancellaticn of adhesive stamps. 
13. Instruments stamped with impressed stamps how to be 
written. 
14. Only one instrument to be on same stamp. 
15. Instruments written contrary to section 13 or 14 deemed 
unstamped. 
16. Denoting duty 
17. Instruments executed in the State vf Kerala 
18. l'lstrument~; executed out of India 
19 Payment of duty on certain instruments liable to increa.,ed 
duty in the State of Kerala. 
20. Conversion of amount expre;;sed in foreign currencies. 
21. Stock and marketable securities how to be valued. 
22. Effect of statement of rate of exchange or average price. 
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23. Instrument rcservmg mterest, 
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24. Certain instruments connected with mortgages of market­
able secuntie<> to be char£?;eable as agreements 
25. How transfer in consiJeration of debt, or subJect to future 
payment etc , to be charged. 
26. Valuation in case of annuity, etc 
27. Stamp where value of subJect matter is indetermitate. 
28 Facts affect1ng duty to be set forth in instrument. 
29. Direc1ion as to duty in case of certain conveyances. 
30. Du1ies by whom payable. 
CHAl:'TER III 
ADJUDICATION AS TO STAMPS 
31. AdJudication as to proper stamp 
32 Certificate by Collector. 
33. 
34. 
35. 
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37. 
38. 
39. 
40. 
41. 
42. 
43. 
44. 
45. 
46. 
CHAPTER IV 
INSTRUMENTS NOT DULY STAMPED 
Examination and impounr!ing of instruments. 
Instrument not duly stamped inadmissible in evidence, 
etc. • 
Admission of instrument where not to be questioned. 
Admission of improperly stamped instruments 
Instruments impounded how dealt with. 
Collector's power to refund penalty paid under sub .. 
section (1) of section 37. 
Collector'5 power to stamp instruments impounded. 
Instruments unduly stamped by accident. 
Endorsement of instruments on which duty has been paid 
under sect ions 34,' 39 or 40. 
Prosecution for offence against Stamp Law. 
Persons paying duty or penalty may ricover the same in 
certain cases. 
Power of Government or other specified authority to 
refund penalty or excess duty in certain cases. 
Non-liability for Joss of instruments sent under section 37. 
Recovery of duties and penalties. 
CHAPTER V 
ALLOWANCES FOR STAMPS IN CERTAIN CASES. 
47. Allowance for spoiled stamps. 
48. Application tor rehet under section 47 when to be made. 
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49. Allowance in case of printed forms no longer required hy Corporations. 
50 AIJowance for misused stam,:>s 
51. Allowance for spoiled or misused stamps how to be made. 
52. AIJowance for stamps not required for use. 
53 Allowances for stamps in denominations of annas. 
CHAPTER VI 
REFERENCE AND REVISION 
54. Control of and statement of case to, the Government or 
other authority specified by the Government. 
55. Statement of case by the Government or other authority 
specif1ed by the Government to High Court. 
56 Power of High Court to call for further particulars as to 
case stated. 
57. Procedure in disposing of case stated. 
58. Statement of case by other Courts to High Court 
59. R ~vision of certain decisions of Courts regard in~ the 
sufficiency of stamps. 
CHAPTER Vll 
CRIMINAL OFFENCES AND PROCEDURE 
60 Penalty for execution, etc., Instrament not duly stamped. 
61. Penalties for failure 1o cancel adhesive stamp. 
62. Penalty for omission to comply with provisions of sec .. 
tion 28. 
63. Penalty for devices to defraud the revenue. 
64. Penalty for breach of rule relating to sale of stamps and 
for unauthorised sale. 
65. Institution and conduct of prosecutions. 
66. Jurisdiction of Magistrates. 
67. Place of trial. 
CHAPTER VIII 
SUPPLEMENTAL PROVISIONS 
68. Books etc., to be open to inspection. 
89. Power to make rules. 
70. Saving as to Court Fees. 
71. Saving as to certain stamps. 
72. Application af the Indian Stamp Act, 189~. 
73. Repeal and Savings. 
SCHEDULE 
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*THE KRRALA STAMP ACT, 1959. 
(ACT 17 OF 1959) 
A11 
ACT 
to collsolrdafe and amwd Lite law relalt1l~ to Stamps i11 Llzc 
Stale of Kcrn/n. 
WHEREAS it is expedient to consolidate and amend the law 
relating to stamps in the State of Kerala; 
BE it enacted in the Tenth Year of the Republic of India as 
follows:-
CHAPTER 1 
PRELIMiNARY 
1. Sltorlltt!c, cxlml a11d commertcc•nc111.-(l) This Act may be 
called the Kerala Stamp Act, 1959. 
(2) It extends to the whole of the State of Kerala. 
(3) It shall come into force on such date as the Government 
may, by notification in the Gazette, appoint. 
2. De/mzli'Jtts.-ln this Act, unless the context otherwise 
requires,-
( a) "bond" includes-
(i) 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; 
(ii) any instrument attested by a witness and not payable 
to order or bearer, whereby a person obliges himself to pay 
money t0 another; and 
(iii) any instrument so attested, whereby a person obliges 
himself to deliver grain or other agricultural produce to another; 
(b) "chargeable" means, as applied to an instrument exe­
cuted or first executed after the commencement of this Act, 
chargeable under this Act, and as applied to any other instru­
ment chargeable under the law in force in the territories of the 
State of Kerala when. such instrument was executed, or, where 
several persons executed the instrument at d1fferent times, first 
executed; 
*Received the assent of the Pres1dent on 28th May 1959 and published m 
the Gazett¢ E'>traordmary dated !?th June 1959. 
(c) "Collector" means the Chief Officer in charge of the 
Revenue Administration of a district; and includes any other 
officer whom the Government may, by notification in the G.uette, 
appoint in thi-; behalf; 
(J) "conveyance" includes a conveyance on sale and every 
instrument by which property, whether _moveable, or immovable 
~s transferred mlm•Izas anti which is not otherwise specifically 
provided for the Schedttlc; 
(e) "duly stamped'' as applied to an instrument means that 
the instrument bears an adhesive or impressed stamp of not less 
than the proper amo~nt and that such stamp has been affixed or 
used in accordance with the law for the time being in force in the 
territories of the State of Kerala; 
(f) "executed" and "execution'' used with reference to in· 
struments, mean "signed" and "signature,; 
(g) "Government security" means a Government security a~ 
defined in the Publlc Debt Act, 1244 (Central Act 18 of 1944); 
(h) "impressed stamp" includes-
(i) labels affixed and impressed by the proper officer; and 
(ii) stamps embossed or engraved on stamped paper; 
(i) ''India" means the territory of India excluding the State 
of Jammu and Kashmir; 
( 1). "instrument" includes every docmnent by which any 
right or liability is, or purports to be, created, transferred, limit­
ed, extended, extinguished or recorded but does not mculde a bill 
ot exchange, promissory note, bill of lad1ng, letter of credit, 
policy of insurance, transfer of share,debenture, proxy and receipt; 
(k) "instrument of partition'' means any instrument whereby 
co-owners of any property divide or agree to divide such pro­
perty in severality, anu wcludes abo a final order for eftdcting a 
partition passed by any Revem.:e Authority or any Civil Court 
and an award by an arbitrator directing a partition; 
(I) "lease" means a lease of immovable property, ar1d 
includes also-
(i) Marayapatlom; 
(ii) Kanapattom; 
(iii) an agreement or other undertaking in writing not 
being a counterpart of a lease, to cultivate, occupy, cr pay or 
deliver rent for immovable property; 
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(iv) an agreement or other undertaking in writing, exe­
cuted by the renters of abkari and opium farms; 
(v) any instrument by which tolls of any description are Jet; 
(vi) any writing on an application for a lease intended to 
signify that the application is granted; and 
(vii) a patta. 
(m) "marketable security" means a security of such a 
description as to be capable of being sold in any stock market 
in India; 
(n) "mortgage deed" includes every instrument whereby, 
for the purpose of securing money advanced, or to be aclvanceu, 
by way of lean, or an'existing or future debt, or the performance 
of an engagement, one person transfers, or creaters, to or in 
favour of another, a right over or in respect of specified property; 
(o) ''paper" includes vellum, parchment or any other 
material on which an instrument may be written; 
(P) "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 per<>on to act for 
and in the name of the person executing it; 
(q) "settlement•' means any non-testamentary disposition 
in writing, of movable or immovable property made-
(i) in consideration of marriage, 
(ii) for the purpose of distributing property of the settler 
among hi-; fanuly or those for whom he desires to proviue, or for 
the purpose of providing for some person dependent on him, or 
(iu) for any religious or chartiable purpose; 
and include:; an agreement in writing to make such a disposition, 
(and where any such disposition has not been made in woting, 
any instrument recording whether by way of declaration, of 
trust or otherwbe, the terms of any such disposition); 
(r) "vessel" me~ns anything made for the conveyance by 
water, of human beings or property. ' 
CHAPTER II 
STAMP DUIIES. 
A. Of the Liability of Instruments to Duty. 
3. lmtrumertls chat·geab!e wuh duly.-Sub,ect to the provisions of 
this Act and the exemptions contained in the Sclz:drt!~, the follow­
ing instruments shall be chargeable with duty of the amount 
12B 
incHcated in that Sclzedule as the proper duty therefor, respec· 
tivcly, that iii to say-
(a) every instrument mentioned in the Sclzcdule which, not 
having been previously executed by any person, is executed in 
the territories of the State of K erala on or after the commence­
ment of this Act; and 
(b) every instrument mentioned in that Schedule which, 
not having been previously executed by any person, is executed 
out of the State of Kerala on or after that day, relates to any 
property situate, or to any matter or thing done or to be done, 
in the territories of the State of Kerala and is received in the -.... 
territories of the State of Kerala: ' 
Provided that no duty shall be chargeable in respect of­
(1) any instrument, executed by, or on behalf, of or in 
favour of, the Central Government or this or any other State 
Government, in cases where, but for this exemption, the Central 
Governruent or the State Government, would be liable to pay the 
duty chargeable in respect of such instrument; 
(2) any instrumennt for sale, transfer or other disposition 
either absolutely or by way of mortagage or otherwise of any 
ship or vessel or any part, interest, share or property of or in 
any ship or vessel. 
4. Scvfl• al i11slnllnen/s II Sid 111 siugle lrmzsnclion of sale mortgage or 
selllemcnt-(1) \Vhere, in the case of any sale, mortgage or settle-
ment, several instrument~ are employed for completing the 
transaction, the principal -instrument only shall be chargeable 
with the duty prescnbed in the Schedule for the conveyance, mort-
gage, or settlement, and each of the other instruments shall be 
chargeable with a duty of two rupees instead of the duly, if 
any, prescribed for it in the Sclzcdz1lc. 
(2) The parties may determine for themselves which of the 
instruments ~o employed shall, for the purpose of sub section (1), 
be deemed to be the principal instrument: 
Provided that the duty chargeable on the instrument so 
determined shall be the hi~hest duty which would be chargeable 
in respect of any of the said instruments employed, 
5. lmlrumwts rclalltlf.! to ~ccc1 al dzs/mrt rnaltcrs.-Any instrument 
comprising or relating to several distinct matters shall Le chare­
abltt with the aggregate amount of the duties with which 
sepaoote instrum1mt, each comprising or~relating to one of such 
matter'>, would be chargeable nnder this Act. 
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S. luslrlllne.rls co mill/;! wzllzi11 scvc1 at dtsrnplzorzs i11 Sr.Jzedulc -Subject 
to the prov1sionc; of the last preceding section, an instrument so 
framed as to come within two or more of the descripti'onc; in the 
Sc/z.dulc shall, where the duties chargeable thereunder are differ­
ent, be chargeable only with the highest of such duties: 
Provided that nothing contained in this Act shall render 
chargeable with duty exceeding two rupees a counter-part or 
duplicate of any instrument chargeable with duty and in respect 
of which·the proper duty has been paid. 
7. Pnq mcut of lu [!Jzer dulrJ 111 respect of wlotn wslrumellls-( 1) Not­
withstanding anything contained in sections 4 or 6 or in any other 
enactment, unlec;s it is proved that the duty chargeabla under 
his Act has been paid-
(a) on the princial or orginal instrument, as the caiie may 
be, or 
(b) in accordance with the provisions of this section, the 
duty chargeable on an instrument of sale, mortgage or settle­
ment, other than a principal instrument or on a counterpart, 
duplicate or copy of any instrument, shall, if the principal or 
original instrument would, when received in the State, have 
hccn chargHable under this Act with a higher rate ot duty, be 
the duty with which the princiDal or original instrument would 
have been chargeable under section 19. 
(2) Notwithstanding anything contained in any enactment 
for the time being in force, no instrument, counterpart, duplicate 
or cony chargeable with duty under this section shall be received 
in evidence unless the duty chargeable under this section has 
been paid thereon: 
Provided that any Court before which any such instrument, 
duplicate or copy is produced may permit the duty charH-Cable 
under this section to be paid thereon and may then receive it in 
evidence. 
8. fluu,is or ollzcr scctmlics 1ssued ott loans -(1) Notwiths1anding 
anything contained in this Act, any local authority raising a 
Joan under the provi'iions of any law for the time being in force, 
by the issue of bonds or other securities other than debentures, 
shall, in respect of such loan, be chargeable with a duty of one 
per centum on the total amount of the bonds, or other securities 
issued by it, and such bonds or other securities need not be 
stamped and shall not be chargeable with any further duty on 
renew at, consolidation, sub ·division or otherwise. 
(2) The prov1sxons of ~ub section (1) exempting ccrtaln 
bonds, or other securities from being stamped and from being 
chargeable w1th r.ertain further duty shall apply to the bonds or 
other securities other than debentures of all outstanding loans of 
the kind mentioned 1berein, and all such bonds or other sec1rities 
shall be valid, whether the same are stamped or not. 
(3) In the case of wJiful neglect to pay the duty required 
by this ~ection, the local authority shall be liable to forfeit to 
the Government a sum equal to ten per centum upon the amour.t 
of duty payable, and a like penalty for every month after the 
first month during which the neglect continues. 
9. Power to rcdurc, 1 cm1t or compotmd dutzes.-( I) The Government 
may, by order published in the Gazette. 
(a) reduce or remit, whether prospectively, or retrospectively, 
in the whole cr any part of the State of Kerala, if in the opinion 
of the Government it is necessary in public interest so to do, the 
duties with which 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 or persons, 
or by or in favour of any members of such class, are ch1rgeable; 
and 
(b) provide for the composition or consolidation of duties 
in the case of issues by any incorporated company or other body 
corporate of bonds or other marketable securities other than 
debentures. 
(2) Every rule or order published under clause (a) of sub· 
section (1 ), shall be laid, as soon as may be after it is published, 
before the Legislative Assembly. 
B. Of Stamps and the mode of using thetn, 
10. Dutzcs !row to be jwzd.-(1) Except as otherwise expressly 
provided in this Act, all duties with which any instruments arc 
chargeable shall be paid, and such payment shall be indicated on 
such instruments, by means of stamps-
(a) according to the provisi?ns herein contained; or 
(b) when no such provision is applicable thereto, as the 
Government may by rules direct. 
(2) The rules made under sub-section (1) may, among other 
fnatters, regulate,-
( a) in the case of each kind of instrument-the description 
of stamps which may be used; 
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(bJ in the case of instruments stamped with impressed 
stamps-the number of stamps which may be used. 
11. Use of ndlzesl'llc ~tamps -The following instruments may be 
stamped with adhesive stamps, namely:-
(a) instruments chargeable with the duty of twelve naye 
paise and less; 
(b). entry as an advocate on the roll of the High Court; 
(c) notarial acts; 
td) instruments as the Government may, by notification in 
the Gazette, specify 
12. Caucellnlzott of a,lhtslvc stn mps.-( 1) (a) Whoever affixes any 
adhesive stamp to any instrument chargeable with duty which 
has been executed by any person shalt, 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 s!amp shalt, at the time ot 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 writting or in any other effectual manner. 
13. lnslrumenls ~tampd wzlh 111tpresseJ stamps how lo be wrztieii.­
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. 
14. Onl11 o11c iuslrttmeul to be 011 same stamp.- No second instru­
ment 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 end­
orsement 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 ~ecurcd thereby. 
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15. lusillll/ICills w•zllttl cmllary loscrlzoll13 01 1·1 dc.mcd lllzslampcd.­
Every instrument written in contravention of section 13 or sec­
tion 14 shall be deemed to be unstamped 
16 Dclwtwg July.- Where the duty with which an instrument 
is chargeable, or its exempt JOn 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 or the Registering Officer for 
that purpose, and on prodution of both the in&truments, be de­
noted upon such first mentioned instrument, by endorsement 
under the hand of the Collector or the Registering Officer or in 
such other manner as the Government may by rules prescribe. 
C Of the time of Stamping Instruments 
17. /nsl 11l1l nts ct:cuzlt:d 111 tire Slzlc of J( ral<~.-AJI instruments 
chargeable with duty and executed by any person in the State 
of Kerala shall be stamped before or at the time execution. 
18. ln~ll umc11Ls exccu'cd out of /ndJ'J-(1) Every instrument charge­
able with duty executed only out of India may be stam!)ed with­
in three months after it has been first received in the State of 
Kerala. 
(2) Where any such instrument cannot, with reference to 
the description of stamp prescriberl therefor, 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 Government may by rules prescribe, with a stamp 
of such value as theperson so taking such instrument may require 
and pay for. 
19. Paymwl of duty 011 a1lai11 i11slrnme11t~ !table lo wcrcascd duly 111 
lite Stale of Kerala.-Where any instrument of the nature described 
in any article in the Schedule and relating to any property situate 
or to any matter or thing done or to be done in the State .of 
Kerala is executed out of the said State and subsequently re­
ceived in the said State-
( a) the amount of duty chargeable on such instrument shall 
be the amount of duty chargeable under the Schedule on a docu­
ment of the hke description executed in the State of Kerala less 
the amount of duty, if any, already paid on such instrument in 
any other State in India. 
(b) and in addition to the stamps, if any, already affixed 
thereto, ::,uch instrument shall be stamped with the stamp::, 
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necessary for the payment of the duty chargeable on it under 
clause (a) of this section, in the same manner and at the same 
time and by the same persons as though such instrument were 
an instrument received in the State of Kerala for the first time 
at the time when it became chargeable with the higher duty, anri 
(c) the provisions contained in clause (b) of the proviso to 
sub-section (3) of section 32 shall apply to such instrument as if 
such were an instrument executed or first executed out of India 
and first received in the State ot Kerala whe:t it became charge­
able to the higher duty aforesaid, but the provision contained itV 
clause (a) of the said proviso shall not apply thereto 
D. Of Valuation for duty. 
20. Co11vemorz of arr>.'ttllt expressed 111 fvrezg,, currmcies.-( 1) Where 
an instrument is chargeable with ad-valo,cm duty in respect of 
any money expressed in any currency other than that of India, 
such, duty, shall be calculated on the value of such money in the 
currency of India according to the current rate of exchange on 
the day of the date of the instrument. 
(2) The rate of exchange prescribed by the Central Govern­
ment under sub-section (2) of section' 20 of the Indian Stamp 
Act, 1BB9 (Central Act II of ISB9) shall be deemed to be the 
current rate of exchange for the "conversion of any foreign 
currency for the purposes of calculating the duty under sub· 
section (1 ). 
2L Stock aud m rt kdczble sccuiz/Ics lzow f.J ht v zlllcrf - \Vhere an ' 
in<>trument is chargeable with ad valonm duty in respect of any 
stock or of any marketable or other security, such duty shall be 
calculated on the value of such stock or security according to 
the average price or the value thereof on the day of date of the 
instrument. 
22. E{(tcl of sfaltmwf n/1'flle of eJ-·clu1If!.e 01 avu age pt itr.- Where 
an instrument contains a statPment of current rate of exchange, 
or avcra~e price, a<> 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 presume~. until the contrary 
is proved, to be duly c:tamped. 
23. /r•sf1 ume1.t teS'J vtng mtcresl -Where interest is ex·pressly 
made payable by the terms of an instrument, such instrument 
shall not be chargeable wtth duty higher than that with which 
it would have been chargeable had no mention of interest been 
made therein. 
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24. Cerlni11 imltttmmfs comrcclcd with morlgngcs of mmkclnblt secrmties 
to be cllllrgeafJ!e ns ag1 ccnwt/s.-(1) Where an instrument-
( a) is given upon the occasion of the d\Jposit of any market­
able 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 secunty, 
it shall be chargeable with duty as if it were an agreement 
or memorandum of an agreement chargeable with duty under 
Article 5 of the Schedule. 
(2) A release c.r discharge of any such instrument shall be 
chargeable with the like duty, 
25. How lra11S/cr i11 cotlszderaltotz of debt, or sub? eel to fulm e paymmt 
etc, to be cltargcd.-Where any property is transferred to any 
person in consideration, wholly or in part, o{ 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 in mentioned in Article 16 of the Schedule. 
E:.pla11atio11.-ln 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 sal~: 
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. 
(l) A. owes B Rs. J ,000. A sells a property lo B the consi­
deration 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 intP.rec;t Rs. 200. Stamp 
duty is payable on Rs. 1,'700. 
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(3) A mortgages a house of the value of Rs. 10,000 to B for 
Rs. 5000. 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. 
26. ValuatiOn w w;e of mmuily, clc.-Where an instrument is 
executed to secure the payment of annuity or other sum payable 
periodically, or where the CC'nsideration 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 ic; 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 indefi­
nite time not terminable with any life in being at the date of 
such instrument or conveyance-the total amount which accord. 
ing 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 termi­
nable with any life in being at the date of c;uch 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. 
27. Stamp wlzere 'D'llue of subject matter ts it~dclerm•11ale- Where the 
amount or value of the subJect matter of any instrument charge­
able with advalorem duty cannot be or could not hava been, as­
certained 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: 
Provided that, in the case of the lease of mine in which roy­
alty or a share of the produce is received as the rent or the part 
of the rent it shall be sufficient to have estimated such royalty 
or the value of such share, for the purpose of stamp du!Y-
(a) When the lease has been granted by or on behalf of the 
Government, at such amount or value as the Collector may hav 
ing regard to all the circumstances of the case, have estimated 
as likely to be payable by way of royal!ty or share to the Govern­
ment under the lease, or 
13(} 
(b) whetl 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 ....e 
may be, shall be claimable under such lease: 
Provided also that, where proceedings have been taken in 
respect of any iustrJment under section 31 or 39 the amount 
certified by the Collector shall be deemed to be tht> stamp 
actually used at the date of execution 
28. Facts affecfit~g dttll! iJ b: sd joJth 1 n 1n slmmmt:- The con­
sideration, if any, and all other facts and circumstance affecting 
the chargeability of any instrument with duty, or the amount of • 
the duty with which it is chargeable, shall be fully and truly 
set forth therein. 
29. Di1 rclro11 a~ to dull; 111 cnse of ccrlartz cotrveiJtzllces.-(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 difterent instruments, the consideration shall be appor­
tioned 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 valvrcm duty in respect of such distinct consi- .._ 
deration. 
(2) Wl~ere 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 cons1deration therein specified. 
(3) Where a person, havin,c; contracted for the purchase of 
any property but not raving 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 shdll be chargeable with ad valorem duty in 
respect of the considera1ion for the sale by the original purchaset 
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 prOi)erty is in consequertce conveyed 
.. 
• 
137 
by the original seller, to d1fterent persons in parts, the convey­
ance of each part sold to a sub-purchaser shall be chargeable 
with od z·olo1c1T• duty in respect only of the consideration paid 
by such sub-purchaser without regc1rd to the amount or value 
of the original consideration; and the conveyance of the residue, 
xf any, of such property to the original purchaser shall be 
charw~ablc vnth ad vator~m duty in respect only of the excess of 
the original consideration over the aggregate of the consider­
ations paiJ by the sub-purchasers: 
Provided that the duty on ~uch last mentioned conveyance 
shall in no ca~c be les.,; than two rupees . 
(5) Where a sub-purchaser takes an actual conveyance of 
the interec;t 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, and conveyance 
to be afterwards made to him of the same property by the 
CJrigin,tl seller ~hall be chargeable with a duty equal to that 
which would be chargeable on a conveyance for the consider­
atwn obtained by ~uch original seller, or where such duty would 
exceed ten rupees, with a duty of ten rupees 
E. Duty by whom payable. 
30. /Ju'zcs b1J wlzol/l p IIJablc -ln the absence of an agreement to 
the contrary, the expen~e of providing the proper stamp shall be 
borne,-
( a) in the case of any in:-trument described in any of the 
following Articles of the Schedule, namely:-
No 2 (Administration Bond), 
No.6 (Agreement relating to deposit of title deeds, pawn 
or pledge), 
No. 13 (Bond), 
Nu. J4 (Bottomry Bon d), 
No 24 (Customs Bond), 
No 29 (Further Charge), 
No. 3t (Indemnity Bond), 
No 36 (Mortgage deed), 
No. 47 (Release), 
No. 4B (Respondentia Bond), 
No. 49 (Security Bond or Mortgage deed), 
No 50 (Settlement), 
No. &4 (c). (Transfer of any interest secured by a bond 
or mortgage deed), 
by the person drawing, making or executing such insrrumenr; 
(b) In the case of a conveyance (including a reconveyance 
of mortgaged property) by the grantee; in the case of a lease or 
agreement to lease by the lessee or intended lessee; 
(c) in the case of a counterpart of lease by the lessor: 
(d) in the case of an instrument of exchange hy the 
parhes in equal shares; 
(e) in the case of a certificate of sale lty the purchaser 
of the property to which such certificate relates; and 
(f) in the case of an instruments of partition b,· the 
parties thereto in proportion to their respective shares in the 
whole property partltioned, or, when the partiTion is made in 
execut10n of an order passed by a Revenue authority or Civil 
Court or arbitrator, in such proportion as such authority, Court 
or arbitrator directs. 
CHAPTER III 
ADJUDiCATION AS TO STAMPS 
31. AdJttdtcalwtz as tu p1oper ~lamp.-(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 ten rupees and not less than one rupee) as the 
Collectcr 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 purposes the Collector may require to be 
furmshed w1th an abstract of the instrument, and also with such 
affidavit c.r other evidence as he may deem necessary to prove 
that all the facts and circumstances aftecting the chargeab11lty 
of the instrument wlth duty, or the amount of the duty with 
which it is chargeable, are fully and truly set forth therein, 
and may resuse to proceed upon any such application, until such 
abstract and ev1dence have been furnished accordingly: 
Provided that-
---.-.J 
J 
(a) no evidence furnished in pursuance of this section 
shall be used against any pt!rson ir: any civil proceeding except 
in any enquiry 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 l ayme'1t of the full duty with which the instrument 
to wh.ch it relate<>, is chcrgeable, be relieved from any penalty 
which he may have incurred under this Act by reason of the 
• ommission to state truly in such inc:;trument any of the facts cr 
circumstances aforesaid. 
• 32. Cc1.'1jl(ltlc by Cvll c 01 -(1) When an instrument brought 
to the Collector under section 31, is in his opinion, one of a des­
cription chargeable with duty, and 
:a) the Collectur determines that it is already fully 
stamped, or 
(b) the duty determined by the Collector under section 31, 
or such a sum as, with duty already paid in respect of the in­
strument, is equal to the duty so determined, has been paid, 
the Collector shall certify by cndor~ement on such instrument 
that the full duty (stating the amount) with which it is charge­
able 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 chargeablt! 
(3) Any instrument upon which an endorsement has been 
made under this section shall be deemed to be duly stamped or 
not chargeable w1th duty, as the case may be; and, if chargeable 
Wlth duty, ~hall be rece1vable 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 authorise the 
Collector to endorse:-
(a) any instrument executed or first executed in India 
and brought to him after the expiration of one month from the 
date of its execution, or first f'Xecution, as the case may be; 
(b) any 1nstrument executed er first executed out of 
India and brought to him after the expiratirm of three months 
after it has been first received in the State; or 
--(c) Any instrument chargeable with the duty of twelve 
naye paise or less than twelve naye paise when brought to him, 
after the cxecutwn theroot on paper not duly stamped. 
7 
1 
146 
CHAPTER IV 
INSTRUMENTS NOT DULY STAMPED 
3~. Exanarwlioll a11d w1~oundmg of rmtrume11!s:-(l) Every person 
hav1ng by law or consent of parties authority to receive evidence, 
and every person in charge of a publtc office, except an Officer 
of Pollee, before whom any instrument, chargeable in his opin-
, ion, with duty, is produced or comes in the performance of his 
-......._..- functions, shall, it it appears, to him that such instrumen:t is not 
duly stamped impound the same. 
~ 1 I .,. 
(21 For that purpose every such person shall examine every 
in~trument ~o shargeable and so produced or comin~ before 
him, in order to ascertain whether it is a stamped with a stamp 
of the value and description required by the law in force i11 the 
State when such instrument was executed or first executed: 
Provided that-
(a) nothing herein contained shall be deemed to require 
any Magisfra te or Judge of a Criminal Court to ex a mmc or im­
pound, if he does not think fit so to do, any instrument coming 
before him in the course of any proceeding other than a proceed­
ing under Chapter Xll or Chapter XXXVI of the Code of Cri-
minal Procedure, 1898; _ 
(b) in the case of a Judge of the 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, the 
Government may determine-
(a) what offices shall be deemed to be public offices; and 
(b) who shall be deemed to be persons in charge of pubhc 
offices. 
34, lush ttme11t 11ol duly stamped ir~adoH~szble w cvzt/ctl(e etc.-No in­
strument chargeable with duty shall be admitted in evidence for 
any purpose by any person having by law or consent of parties 
authorised to receive, evidence, or shall be acted upon, registered 
or authenticated by any such person or by any bublic officer, 
unless such instrument is duly stamped: 
Provided that-
(a) any such instrument not being an instrument charge­
able with a duty of twelve nay a paise or less than twelve naya 
paise liihall, subJeCt to all jUst exceptions, be admitted in evid­
ence on payment of the rluty with which the same is chargeable, 
• 
141 
or, in the case of an 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 rupeas, of a sum 
equal tc ten times such duty or portion; 
(b) any such instrument, when presented to a Regi~ter­
in~ Officer for registration, shall be registered, if the party agrees 
to pay the duty anti penalty due thereon as decided by the 
Regi;:;tering Officer and pays the same within seven davs from 
the date of such decision; 
(c) where a contrat or agreement of any kind is eftected 
by correspondence consiting of two or more letters and any one of 
the letters bears the proper stamp, the contract or agreement 
shall be tleemed to be duly stamped; 
(d) nothing herein contained c;h3.ll prevent the admission 
of any instrument in evidence in any preceding in a Criminal 
Court, other than a proceedin~ untler Chapter XII or Chapter 
XXXVI of the Code of Criminal Procedure, 1898• 
(e) nothing herein contained shall prevent the admission 
of any in~trument many 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 provic;ion of this Act. 
35. A.lmls,r(lrJ of fllllrttntenlll wllCie 11oi to be queslio11ed.-Where an 
instrument has been admitted in evidence such admission shall 
not, except as provided in section 59. be called in question at 
any ~tage of the same suit or proceeding on the ground that the 
instrument has not been duly stamped. 
36. Adm1ssz-t1 of zmptoperlu stamped wstrumenl1- The Government 
may make rules providing that, where an instrument bears a 
5tamp of sufficient amount but of improper desct iption, it may, 
on payment uf 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. 
37 itJstrumCilfs zmpomzdcd how drnlt ~mth.-(1) When the person 
impounding an instrument under section 33 bas by law or consent 
of parties authority to receive evidence and admits such instru­
ment in evidence or when he is a registering officer to regic;ter 
such instrument upon payment of a penalty as •provided by 
section 34 or of duty as provided by section 36, he shall send 
142 
to the Collector an authenticated copy of such instrument, 
together with a certificate in writing, slating the amount of 
duty and penaltv 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 impounaing an instru­
ment shall send it in original to the Collector. 
38. Co!leciul 's power to 1eju11d pmnlttJ patd wzdel' sub-sccltoll (1) of 
~eclzo11 37.-(1) When a copy of an instrument is sent to the 
Collector under sub-section (l) of section 37, he may, if he thinks 
fit, refund the whole or any portion of the penalty in excess of 
ten 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 
39. Collector•, power to stamp iuslrumwt:; zmpowzded -(1) When 
the Collector impounds any instrument under section 33, or 
receives any instrument sent to him under sub-section (2) of 
section 37, not being an instrument chargeable with a duty of 
twelve naye paise or less, he shall adopt the following pro- • 
eedure:-
(a) if he is of opinion that such instrument is duly c:tamped 
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 c;ame 
together with a penalty of five rupees; or if he thinks fit, an 
amount not exceeding ten times the amount of the proper duty 
or of the deficient portion thereof whether such amc-unt exceeds 
or falls short of five rupeec:: 
Provided that, when such instrument has been impounded 
only because it has been wri1ten 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 st>ction (1) 
shall, for the pnrposes of this Act be conclusive evidence of the 
matters stated therein: 
,/If I 
b 
.. 
143 
(3) Where an instrument hai been sent to the Collector 
under sub-section (2) of section 33, the Collector shall, when he 
has dealt with it as provided by this section, return it to the im~ 
pounding officer. 
40. l11~lJ wncnts ttwluly stamped T>!J acczdr.:nt.-If any instrument_ char­
geable with duty and not duly stamped, not being an instrument 
chargeable with a duty of twelve naye paic;e or less is produ­
ced by any person of his own motion before the Collector Within 
one year from the date of its execution or first execution and such 
person brings to the notice of the Collector the fact that such 
instrument is not duly stamped and offers to pay to the Collector 
the amou

Excerpt shown. Open the full act in Lexace.

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