The Indian Stamp Act,1899

The Indian Stamp Act, 1899
No.2 of 1899
(As amended in its application to the State of Madhya Pradesh )
An act to consolidate and amend the law relating to Stamps.
 
Notes
The object of the Act is to collect proper stamp duty on an instrument or
conveyance on Which such stamp duty is payable. On sale deeds stamp duty is
impose on actual market value of such property and not on the value described in
the conveyance. Thus, there is an obligation cast on the Authority to properly
ascertain its true value for Which he is not bound by the apparent tenor of the
instrument. AIR 1999 SC
2126: 1999(5) SCC 62.
Whereas it is expedient to consolidate and amend the law relating to
Stamps; it is hereby enacted as fallowsz-
CHAPTER I
Preliminary
Short title, extent and commencement. — (1) This Act may be called the Indian
Stamp Act 1899.
(2) it extends to the Whole of India except the State ofjammu and Kashmir:
provided that it shall not apply to the territories Which, immediately before the 1st
November, 1956 were comprised in part b State (excluding the State of Jammu
and Kashmir) except to the extent to Which the provision of this Act relates of
stamp-duty in respect of the document specified in entry 91 of List I in the
Seventh Schedule to the constitution:
1[ Provided further that the provision of this Act shall in so far as
they relate to the instruments specified in schedule I-A apply to the Madhya
Bharat, Vindhya Pradesh, Bhopal and Sironj regions With effect from the
appointed day]
(3) it shall come into force on the first day ofjuly,1 899.
Notes
The Act levies Stamp duty on the instruments Which mostly and practically and
not on transaction. Shanker-
Lal saoni V. smt. Shanta bai, 1975 MPLJ s.n. 67 .The Act has nothing to do With
the jurisdiction of plants, appeals or applications. It is a fiscal enactment and has
been amended several times. Recently it has been amended by the Registration
and other Registration and other Related laws (Amendment) Act, 2001 (central
Act no.48 of2001)
( 0). Definitions. — in this Act, unless there is something repugnant in the subject
or context,
“banker” includes a bank and any person acting as a banker;
1[(1-a) “appointed day” means the date appointed under sub-section (3) of section
1 of the Madhya Pradesh
Taxation Laws (Extension) Act, 1957 (18 of 1957);]
“Bill of exchange” means a bill of exchange as defined by the Negotiable
Instrument Act,1881 (26 of1881) 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)“Bi11 of exchange payable on demand” includes-
an order for the payment of any sum of money by bill of exchange or promissory
note, or for he 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
partiular fund Which may or may not be performed or happen.
An order for the payment of any sum of money weekly, monthly, or at any other
stated period; and
a letter of credit ,that is to say , any instrument by Which one person authorizes
another to give credit
to the person in Whose favor it is drawn;
(4) “Bill of landing” includes a “through bill of landing, “ but does not include a
mate receipt;
(5) “Bond” includes-
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;
any instrument attested by a Witness and not payable to order or bearer, whereby a
person obliges
himself to pay money to another; and
any instrument so attested, whereby a person obliges himself to deliver grain or
other agriculture produce to another
(6) “Chargeable” means, as applied to an instrument execute 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 India When such instrument was executed or, Where several persons
executed the isnstrument at
Different. Times, first executed;
(7) “Cheque” means a bill of exchange drawn on specified banker and not
expressed to be payable otherwise
than on demand;
(8) Omitted by A.O.1937.
(9) “Collector”-
Means, Within the limits of the towns of Calcutta, madras and Bombay, the
Collector of Calcutta,
Madras and Bombay, respectively and Without those limits, the collector of a
district; and
Includes a Deputy Commissioner and any officer Whom the State Goyemment
may, by notification in the official Gazatte, appoint in this behalf;
NOTIFICATION
Notification No.B-7- (A)-98-94-CTD-V dated the 8th September, 1994. - In
exercise of the powers conferred by sub-clause (b) of clause 9 of Indian Stamp
Act,1899(II of 1899), the state Goyemment hereby
Appoints all Deputy Inspector General of registration as the Collector for the
purpose of the said Act Within the limits of their re spective jurisdiction.
[published in M.P. Rajpatra (Asadharan)
dated 12-9-94 page 1565.]
(10) “Conveyance” includes a conveyance on sale and every instrument by Which
proper, Whether movable or immovable, is transferred inter Viyos and Which is not
otherwise specifically provided for by schedule I[ or by schedule l-A, as the case
may be;]
(1 l) “Duly Stamped”, as applied to an instrument, means that the instrument bears
an adhesive or impressed 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 India;
(12) “Executed” and “execution” used With reference to instrument, means
“signed’ and “signature”;
(l2-A) omitted by AD 1950.
(13) “ Impressed Stamp” includes
labels affixed and impressed by the proper officer; and
Stamps embossed or engraved on stamped paper;
2[(13-A)” India” means the territory of India excluding the State of Jammu and
Kashmir;]
(14) “ Instrument” includes every document by Which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished or recorded;
3[(15) “ Instrument of Partition” means any instrument whereby co-owners of any
property divide pr agree to divide such property in severalty, and also mcludes-
a final order for effecting a partition passed by any revenue authority or any civil
court;
an award by an arbitrator directing a partition; and
When any partition is effected Without executing any such instrument, any
instrument or instrument, signed by the co-owners and recording, Whether by way
of declaration of such partition or otherwise , the terms of such partition amongst
the co-owners;]
(l6) “ Lease” means a lease of immovable property and includes also-
a patta;
a kabuliyat or other undertaking in writing, not being a counterpart of lease, to
cultivate, occupy or pay or deliver rent for, immovable property;
any instrument by Which tolls of any description are let;
any writing on an application for a lease intended to signify that the application is
granted;
NOTES
Instrument of agreement for toll tax is lease deed under section 2 (l 6) (c) of the act
Hence Stamped duty is leViable accordingly. A.I.R.1992 ALLD.181.
(16-A) “Marketable security” means a security of such a description as to be
capable of being sold in any stock market in India or in the United kingdom;
(l7) “ 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 favor of, another, a right over or in respect of specified property;
(18) “Paper” includes vellum, parchment or any other material on Which an
instrument may be written;
(19) “Policy of insurance” includes-
(a) any instrument by Which one person, in consideration of a premium
engages to identify another against loss, damage or liability arising from an
unknown or contingent event;
a life policy, and any policy insuring any person against accident or sickness, and
any other personal insurance;
1[(19-A) “ Policy of group insurance” means any instrument covering not less
than fifty or such smaller number as the Central Goyemment may approve, either
generally or With reference to any particular case, by Which an insurer, in
consideration of premium paid by an employer or by an employer and his
employees jointly, engages to cover, With or Without medical examination and for
the sole benefits of person other than the employer, the lives of all the employees
or of any class of them, determined based upon a plan Which precludes mdiyidual
selection;]
(20) ‘Policy of sea-msurance” or “sea policy”-
means any insurance made upon any ship or vessel (Whether for marine or inland
navigation), or upon the machinery, tackle or furniture of any ship or vessel, or
upon any goods, merchandise or property of any description Whatever on board of
any ship or vessel or upon the freight of , or any other interest Which may be
lawfully or upon the freight of or any other interest Which may be lawfully
insured in or relating to any ship or vessel ;and
includes any insurance of goods, merchandise or property for any transit Which
includes, not only a sea risk Within the meaning of Clause(a), but also any other
risk incidental to the transit insured from the commencement of the transit to the
ultimate destination covered by the insurance;
Where any person, in consideration of any sum of money paid or to be paid for
additional freight or otherwise, agrees to take upon himself any risk attending
goods, merchandise or property of any description Whatever While on board of any
ship or vessel, or engages to indemnify the owner of any such goods, merchandise
or property from any risk, loss or damages, such agreement or engagement shall
be deemed to be a contract for sea-msurance;
(21) “Power-of—attomey” 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;
(22) “Promissory note” means a promissory note as define by the Negotiable
Instrument Act, 1881(26 of 1881);
It also include 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;
Notes
Acknowledgment of loan, Which is accompanied by promise to pay. It is not a
promissory note.1961 jlj 851:1961 MPLJ 169.
(23) “Receipt” includes any note, memorandum or writing-
Where by any money ,or any bill of exchange, cheque or promissory note is
acknowledged to have been reciVed, or
Where by any other movable property is acknowledge to have been reciVed in
satisfaction of a debt, or
Where by any debt or demand or any part of debt or demand is acknowledge to
have been satisfied or discharge, or
Which signifies or imports any such acknowledgement, and Whether the same is or
is not signed With the name of any person;
(24) “Settlement” means any non-testamentary disposition, in writing of movable
or immovable property made-
In consideration of marriage;
For the purpose of distributing property of the settlor among his family or those
for Whom he provide, or for the purpose of providing for some person dependent
on him; or
For any religious or charitable purpose;
And includes an agreement in writing to make such a disposition and, where any
such disposition has been made in writing, any instrument recording, where by
way of declaration of trust or otherwise, the terms of any such disposition;
(25) “Soldier’ includes any person below the rank of non-commissioned officer
who is enrolled under the Indian Army Act, 191 1(no.8 of 191 1).
(26) Omitted by Central Act 43 of 1955
CHAPTER II
Stamp-duties
A- ofthe liability ofinstrument to duty
3.1nstrument chargeable with duty.— Subject to the provision of this Act and the exemptions contained is
Schedule I, the following instrument shall be chargeable with duty of the amount indicated in the schedule
as the proper duty therefore, respectively, that is to say-
(a) Every instrument mentioned in that schedule which, not having been previously executed by any
person, is executed in India on or after the first day of july 1899;
(b) Every person bill of exchange payable otherwise than on demand or promissory not drawn or
made out of on or after that day and accepted or paid, or presented for acceptance or payment, or
endorsed, transferred or otherwise negotiable in India; and (c) every instrument (other than a bill
of exchange or promissory note) mentioned in that schedule, which not having been previously
executed by any property situate, or to any matter or thing done, or to be done, in India and is
reciV ed in India:
1[Provided that, except as otherwise expressly provided in this Act, and notwithstanding anything
contained in clause (a), Clause(c) of this section or in schedule I, the amount indicated in schedule, be the
duty chargeable on the instruments mentioned in clauses (aa) and (bb) of this proviso, as the proper duty
thereof, respectively, -
(aa) every instrument, mentioned in schedule I—A as chargeable with duty under that schedule, which not
having been previously executed by any person, is executed in Madhay Pradesh on or after the
commencement of the Central Provinces and Berar Indian stamp (Amendment) Act, 1939; and
(bb) every instrument mentioned in Schedule I—A as chargeable with duty under that schedule, which not
having been previously executed by any person, is executed out of Madhya Pradesh on or after the
commencement of the Central Provinces and Berar Indian Stamp (Amendment) Act, 1939 and relates to
any property situated or to any matter or thing done or to be done, in Madhya Pradesh and is recived in
Madhya Pradesh :
Provided 1[further] that no duty shall be chargeable in respect of-
(1) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this
exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely, or by way of mortgage or
otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered
under the Merchant Shipping Act, 1894 or under Act 19 of 1838, or the Indian Registration of Ships Act,
1841 as amended by subsequent Acts.
2 [3 -A. Instrument chargeable with addition duty- (1) Every instrument chargeable with duty under
seclion3, read with schedule I-A shall in addition to such duty, be chargeable with a duty of ten paise
(2) the additional duty with.
(2) The additional duty with which any instrument is chargeable under
subsection (1) shall be paid and such payment shall be indicated on such
instrument by means of adhesive stamps bearing the words [additional duty]
whether with or without any other design, picture or inscription.
(3) Except as otherwise provided in sub-section (2), the provisions of this Act
shall, so far as may be, apply in relation to the additional duties chargeable under
sub-section (1) in respect of the instruments referred to therein as they apply in
relation to the duty chargeable under section 3 in respect of those instruments.
4. Several instruments used in single transaction of sale, mortgage or
settlement. — [(1) Where, in the case of any sale, mortgage or settlement, several
instruments are employed for completing the transaction, the principal instrument
only shall be chargeable with the duty prescribed in Schedule I—a for the
conveyance, mortgage or settlement, and each of the other instruments shall be
chargeable with a duty of [six rupees] instead of the duty (if any) prescribed for it
in that Schedule]
(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.
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 separate instruments, each comprising or
relating to one of such matters, would be chargeable under this Act.
6. Instruments coming within several descriptions 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 in Schedule I, or in Schedule l-A, as the
case may be, 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 exceeding a counterpart or duplicate of any instrument chargeable with duty
and in respect of which the proper duty has been paid, unless it falls within the
provisions of section 6-A.
6-A. Payment of duty on copies, counterparts 0r duplicates when that duty
has not been paid on the principal original instrument — (l) Notwithstandmg
anything contained in section 4 or section 6 or in any other enactment for the time
being in force the duty chargeable on an instrument of sale, mortgage or settlement
other than a principal instrument or on a counterpart, duplicate or copy of any
instrument shall, if the principal or original would, when received in Madhya
Pradesh have been chargeable under this Act, as amended by the Central
Proymces and Berar Indian Stamp (Amendment) Act, 1939, with a higher rate of
duty, be the duty with which the principal or original instrument would have been
chargeable under section l9-A, unless it is proved that the duty chargeable under
this Act, as amended by the Central Proymces and Berar Indian Stamp
(Amendment) Act, 193 9, has been paid —
(a) on the principal or original instrument, as the case may be, or
(b) in accordance with the provisions of the section.
(2) Notwithstanding anything constrained in any enactment for the time being
in force, on instrument, counterpart, duplicate or copy chargeable with duty under
this section shall be received in evidence as properly stamped unless the duty
chargeable under this section has been paid thereon:
Provided that a court before which any such instrument, counterpart,
duplicate or copy is produced may permit the duty chargeable under this section to
be paid thereon, and may then receive it in evidence.
7. Policies of sea insurance.
(4) Where any sea—insurance is made for or upon a voyage and also for time, or
to extend to or cover any time beyond thirty days after the ship shall have arrived
at her destination and been there moored at anchor, the policy shall be charged
with duty as policy for or upon a voyage, and also with duty as a policy for time.
8. Bonds, debentures or other securities issued on loans under Act 11 of
1879. — (1) Notwithstanding anything in this Act, any local authority raising a loan
under the provisions of the Local Authorities Loan Act,1879, or of any other law
for the time being in force , by the issue of bonds, debentures or other securities,
shall, in respect of such loan, be chargeable with a duty of one per centum on the
total amount of the bonds, debentures or other securities issued by it , and such
bonds, debentures or other securities need not be stamped, and shall not be
chargeable with any further duty on renewal, consolidation, subdivision or
otherwise.
(2) The provision of sub-section (1) exempting certain bonds, debentures or
other securities from being stamped and from being chargeable with certain
further duty shall apply to the bonds, debentures or other securities of all
outstanding loans of the kind mentioned therein, and all such bonds, debentures or
other securities shall be valid, whether the same are stamped or not:
Provided that nothing herein contained shall exempt the local authority
which has issued such bonds, debentures or other securities from the duty
chargeable in respect thereof prior to the twenty- sixth day of March, 1897, when
such duty has not already been paid or remitted by order issued by the Central
Goyemment.
(3) In the case of willful neglect to pay the duty required by this section, the
local authority shall be liable to forfeit to the Goyemment a sum equal to ten per
centum upon the amount of duty payable, and a like penalty for every month after
the first month during which the neglect continues.
8A. Securities dealt in depositor not liable to stamp duty :- Notwithstandmg
anything contained in this Act or another 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 amount
of security issued by it and such securities need not be stamped;
(b) where an issuer issues certificate of security under sub-section (3) of
section 14 of the Depositories Act, 1996 (22 of 1996), on such
certificate duty shall be payable on the issue of duplicate certificate
under this Act;
(c) the transfer of —
(i) registered ownership of securities from a person to a depository or
from a depository to a beneficial owner;
(ii) beneficial ownership of securities, dealt with by a depository;
(iii) beneficial ownership of units, such units being units of a Mutual
Fund including units of the Unit Trust of Indian established under
sub-section (1) of section 3 of the Unit Trust of India Act, 1963 (52
of 1963), dealt with by a depository,
shall not be liable to duty under this Act or any other law for the time being
in force.
Explanation 1- For the purposes of this section, the expressions “beneficial
ownership”, “depository” and “issuer” shall have be meanings respectively
assigned to them in clauses (a), (e) and (i) of sub-section (1) of section 2 of the
Depositories Act, 1996 (22 of 1996).
Explanation 2 — For the purposes of this section, the expression
“securities” shall have the meaning assigned to it in clause (h) of section 2 of the
Securities contracts (Regulation) Act, 1956 (1956).
9. Power to reduce, reduce, remit 0r compound duties. — (l) The
Goyemment may, by rule or order published in the Official Gazette, -
(a) reduce or remit, whether prospectively or retrospectively, in the
whole or any part of the territories under its administration, 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 or in favour of any particular class of
persons, or by or in favour of any members of such class, are
chargeable, and
(b) provide for the composition or consolidation of duties in the case of
issues by any incorporated company or other body corporate [or of
transfers (where here is single transferee, whether incorporated or
not)] of debentures, bonds or other marketable securities.
(2) In this section the expression “the Goyemment” means —
(a)
(b)
in relation to stamp duty in respect of bills of exchange, cheques,
promissory notes, bills of ladmg, letters of credit, policies of
insurance, transfer of shares, debentures, proxies and receipts, and in
relation to any other stamp-duty chargeable under this Act and
falling within entry 96 in List I in the Seventh Schedule to the
Constitution, the Central Goyemment;
save as aforesaid, the State Goyemment.
NOTIFICATIONS
Notification N0. F. B-6-23-V-SR—85 (1) dated the lSt September, 1989. —
In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (II of 1899) the State Goyemment hereby remit stamp
duty chargeable on instruments of sale deed / lease deeds executed to acquire land
in favour of the members of a family displaced on account of the Narmada Valley
Project subject to the following conditions namely :-
[(a)
(b)
(C)
[(d)
(e)
A certificate bearing the name of the displaced person, area of the
land acquired and the amount of compensation from the Land
Acquisition Officer or the Rehabilitation Officer of the Proj ect area
is given to the concerned displaced person;
The land is purchased by the displaced person anywhere in the state
of Madhya Pradesh during the process of rehabilitation;]
The position in (a) and (b) above is expressed in the instrument of
transfer itself; and
The eligibility of exemption from the Stamp duty shall be limited to
the amount of duty payable on the value of land purchased equal in
area of his land acquired or the amount of compensation, whichever
is higher;
The Stamp duty due on such instrument in accordance with the
provisions of the Indian Stamp Act, 1899 shall be re-imbursed by the
Narmada valley Development Authority to the Commercial Taxes
Department in the same financial year in which the registration of
sale deed/lease deed takes place]
Notification N0. F.B.—4-28-V-C-TaX-89 (15) dated the 27th June, 1990. —
In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (II of 1899) the State Goyemment hereby remit in
whole the stamp duty chargeable of Affidavits submitted under Bhopal Gas Leak
Disaster (Processing of Claims) Act, 1985 (No. 21 of 1985).
Notification N0. (33) B-4-23-95-CTD-5 dated the 21st December, 1995. —
In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899) and in supersession of this
Department Notification No. F-2592-B-6-23-V-SR-86, dated 15-5-87 and F-3148-
B-4-3-VSR-88 the State Goyemment hereby remits the stamp duty, with effect
from Ist January 1996 in the whole of the State of Madhya Pradesh, chargeable on
instruments of sale/lease executed by Madhya Pradesh Housing Board, Nagar
Vikas Pradhikarans and Madhya Pradesh Housing Federation Ltd, in favour of
persons of Economically Weaker Sections and Lower income Group subject to the
conditions that :-
(A) Where the purchase/lessee belongs to economical weaker section -
(i) If he produces a certificate from the seller/lessor to the effect that he
belongs to the economically weaker section,
(ii) If the cost of plot together with building thereon does not exceed Rs.
50,000 and in case of plot only the cost thereof not exceed Rs.
15,000 on the date of allotment of the buildmg/plot,
(iii) If the area of the plot with or without building is not more than 60
square meters.
(B) Where the purchaser/lessee belongs to Lower Income Group-
(i) If he produces a certificate from the seller/lessor to the effect that he
belongs to lower income group,
(ii) If the cost of plot together with building thereon does not exceed Rs.
75,000 and in case of plot only the cost thereof does not exceed Rs,
25,000 on the date of allotment of the buildmg/plot,
(iii) If the area of the plot with or without building is not more than 96
sq. meters.
Explanation — For the purpose of this order-
(i) Purchaser/Lessee belonging to economically weaker section means a
person whose family’s monthly income from all courses does not
exceed Rs. 1,250/- on the date of allotment of the buildmg/plot.
(ii) Purchaser/Lessee belonging to lower income group means a person
whose family income from all sources exceed RS. 1,250/- but does
not exceed Rs. 2,650/- on date of allotment of the buildmg/plot.
Notification N0. (39)-R—4—2-96-CTD-V dated the 23rd August, 1996 — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the State Goyemment hereby remits
the stamp duty chargeable under Article 45 of Schedule I-A of the said Act in
respect of deeds of partition of agricultural land between joint Khatedars, under
following conditions :-
1. there is neither any dispute nor any case pending in any Court regarding the
land to be partitioned,
2. the land being partitioned is not within the provisions of ceiling.
Notification N0.(51) B-4-12-96-CTD-V dated the 8th November, 1996-In
exercise of the powers conferred by clause (a) of sub-section (i) of Section 9 of the
Indian Stamp Act, 1899 (No. II of 1899), the State Goyemment hereby remits the
stamp duty chargeable under Article 31 of Schedule l-A of the said Act in respect
of deeds of exchange of agricultural land upto 5 acres under following conditions,
namely :-
(1) The lands being exchanged are agricultural,
(2) The lands being exchanged are adjacent to the land owners land, i.e., there
is chakbandi,
(3) The lands being exchanged are approximately of equal market value,
(4) The lands being exchanged should not be Nazul or extra—Nazul agricultural
lands,
(5) The lands being exchanged are situated within the same Revenue inspector
circle,
(6) Provision should not be misused for evading Ceiling on agricultural land.
Notification N0. (13) B-4—18—98—CT-V dated the 19th May, 1998. — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II 1899), the State Goyemment hereby reduces
the stamp duty with which an instrument of securitization of loans or of
Assignment of Debt with underlying securities is chargeable under Schedule l-A
of the said Act, to 0.1 per cent. Of the loan securitized or debt assigned with
underlying securities, if the securities, if the securities are noyable properties and
to 2 percent. Of the loan securitized or debt assigned with underlying securities, if
the securities are immovable properties.
Notification N0. B-4—17—94—C.T.-5(22) dated the 22nd June, 1998 — In
exercise of powers conferred by clause (a) of sub-section (1) of Section 9 of the
Indian Stamp Act, 1899 (No. II of 1899), and in supersession of this Department
Notification No. 2851-B-6-17-C.T.-V87, dated the 30th May, 1922, the State
Goyemment hereby reduces/ remits the reates of stamp duty chargeable on the
instruments of sale executed by Madhya Pradesh Housing Board, Vikas
Pradhikaran, Primary Co-operatiVe Housing Societies and Madhy Pradesh Co-
operative Housing Federation Ltd., in relation to the houses/apartments
constructed under Self Financing Scheme, subject to the following conditions,
namerly :-
(a) the chargeable stamp duty shall be exempted/reducted to the xtent of
100 percent, 50 percent and 25 percent for the categories of
houses/apartments of Economically Weaker Section, Low Income
Group and Middle Income Group respectively. No
exemption/reduction shall be granted in cases, of High Income
Group Houses/apartments.
(b) this exemption/reduction shall be limited only to original allottees
under the Self Financing Scheme,
(c) For purpose of clause (a), except the Primary Co-operatiVe Housing
Societies a necessary certificate shall be given by the said executing
institutions, and in relation to the Primary Co-operatiVe Housing
Societies an affidavit shall be given by the concerning Co-operatiVe
Society.
Explanation — For the purpose of this notification, the words
“Houses/apartments of economically weeker sections, Low Income Group and
Middle Income Group mean such houses/apartments whose maximum plinth area
and plot area shall not exceed,”-
 
 
Category of housing Maximum Plinth area Maximum Plot area
(sq. M.) (sq. M.)
(1) (2) (3)
Economically Weaker Section 30 60 
 
Low Income Group 48 96 
Middle Income Group 85 190 
Notification N0. (22) —B-4-22-98-C.T.V. dated the 20th August, 1998 — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899) the State Goyemment hereby remits
the Stamp duty chargeable on all kinds of deeds of transfers of Agricultural land
executed by a person belonging to Scheduled Tribe in favour of his legal heir/heirs
during his life time.
Notification N0. (39) B-4—1-97-C.T.V. dated the 19th May, 1999 — In
exercise of the powers conferred by caluse (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the State Goyemment is pleased —
(1) to remit the whole of stamp duty on the instruments of Charter Party (No.
20), Mortgage of crops (No. 41), Note of protest by Master of a ship (No.
44), protest by Master of ship (No. 51) and shipping order (No. 60).
(2) to reduce the duty chargeable under clause (f—l) of Article 48 of Schedule
l-A to one hundred rupees on a power of attorney in the following cases :-
(a) when such power of attorney is given by a principal to his or her real
brother/brothers or sister/sisters.
(b) when such power of attorney belongs to any immovable property
situated outside the State of Madhya Prades.
Notification N0. (48) B-4-45-98-CTD-5 dated the 13th October, 1999 —
In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the State Government hereby reduces
the Stamp duty chargeable on a mortgage deed executed by a “New Industry” to
be set up in the field of energy generation and mineral oil refining, for raising
capital to set up the industry, to rupees five lacs where the duty payable on such
deed exceeds that amount.
Explanation — For this purpose, “New Industry” means an industrial unit
which has not gone into production before 19-8-1999 and is so certified by the
Commissioner of Industries or any Officer appointed by him in this behalf.
Notification N0. (35) B-4-20-99-CTD-V dated the 12th July, 2000. — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the State Goyemment hereby remits
the stamp duty chargeable on instruments of lease executed by the Goyemment in
favour of Madhya Pradesh State Tourism Corporation in relation to the land on
which the units of the said corporation are situated.
Notification N0. (51) B-4-21-99-CTD.—V. dated the 10th November,
2000. — In exercise of the powers conferred by clause (a) of sub-section 1 of
Section 9 of the Indian Stamp Act, 1899 (No. II of 1899), the State Government
hereby remits the Stamp duty of Rs. 2,06,190/— (Rs. Two Lac Six thousand one
hundred ninety only) on the sale deed of 2,0378 hectares of agricultural land being
purchased by the Kshipra Power Loom Bunkar Maryadit Sahkari Samiti, Ujjain
for of its members.
Notification N0. (15)—B-4-6-2000-CTD-V dated the 4th April, 2001. — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the state Goyemment hereby remits
the stamp duty chargeable on the instruments of Sale/Lease relating to plot or built
up space executed by or on behalf of the State Goyemment or any Semi
Goyemment Organisation or any Goyemment Undertaking, in favour of the
Information Technology Industries to be established in the State of Madhya
Pradesh.
Notification N0. N0. F.B.—4-46-97-CTD-V. dated the 18th May, 2001 — In
exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), the State Goyemment hereby remits
the Stamp duty chargeable in respect of the following instrument, namely :-
(1) The lease deed executed in favour of a Fisherman Cooperative society
registered or deemed to be registered under the Madhya Pradesh,
Cooperative Societies Act, 1960 (No. 17 of 1961) relating to catch fish
from a reservoir admeasurmg not more than two thousand hectares in area,
(2) The Stamp duty of Rs. 29522/- chargeable on the lease to catch fish from
Hirsa and Tigra reservoirs for the year 1981 -82.
Notification N0. (1)-F.B.-4.6-2001-CTD-V dated the 5th January, 2002.
— In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9
of the Indian Stamp Act 1899 (No. II of 1899), the State Goyemment hereby
reduces with effect from 15th January, 2002 and upto 15th March, 2002 (both days
inclusive) the Stamp duty chargeable on instruments produced under the
“Amnesty Scheme” and specified in column 1 of Schedule below to the extent
specified in column (2) thereof :-
Schedule
 
Date of execution Duty reduced by 
1 When the execution of the The amount of duty chargeable on 75
transaction of instrument is before percent of the present guide line value.
the year,
2 When the execution of the The amount of duty chargeable on 50
transaction of the instrument is percent of the present guide line value.
between the year 1975 to year
1985,
3 When the execution of the The amount of duty chargeable on 40
transaction of the instrument is percent of the present guide line value.
between the year 1986 to year
1990,
4 When the execution of the The amount of duty chargeable on 30
transaction of the instrument is percent of the present guide line value.
between the year 1986 of year
1995,
5 When the execution of the The amount of duty chargeable on 20
transaction of the instrument is percent of the percent guide line value.
between the year 1996 to year
2000,
Explanation — The aforesaid reduction in duty shall be applicable only in
cases in which duty is chargeable as per the guide line values.
Notification N0. (1) F.B. 4-6-2001-CTD-V dated the 5th January, 2002 —
In exercise of the power conferred by clause (a) of sub-section (1) os Section 9 of
the Indian Stamp Act, 1899 (No. II of 1899), State Goyemment hereby reduces
with effect from 15th January, 2002 and upto 15th March, 2002 (both days
inclusive), the maximum penalty of an amount not exceeding ten times the amount
of proper duty or the deficient portion thereof payable on an instrument under the
provision of clause (b) of sub-section (1) of Section 40 in respect of an instrument
produced under the ‘Amnesty Scheme’ of five hundred rupees, when it exceeds
five hundred rupees.
B-Ofst6amp and the mode ofusmg them
10. Duties how to be paid — (1) Except as otherwise expressly provided in this
Act, all duties with which any instruments are chargeable shall be paid, and such
payment shall be indicated on such instruments, by means of stamps —
(a) according to the provisions herein contained, of
(2)
(b) when no such provision is applicable thereto — as the State
Goyemment may by rule direct.
The rules made under sub-section (1) may, among other matters, regulate,-
(a) in the case of each kind of instrument — the description of stamps
which may be used,
(b) in the case of instruments stamped with impressed stamps — the
number of stamps which may be used,
(c) in the case of bill of exchange or promissory notes [* * *] the size of
the paper on which they are written.
[10—A. Payment of duty in cash — (1) Notwithstanding anything contained
in section 10, where the Collector is satisfied that there is temporary shortage of
stamps in the district or that stamps of required denominations are not available,
he may permit duty to be paid in cash and authorise the Treasury Officer or Sub-
Treasure Officer, as the case may be, on production of a challan eVidencmg
payment of duty in the Government Treasury or Sub-Treasury, as the case may be,
to certify in such manner as may be prescribed by endorsement on the instrument
or instruments the amount of duty so paid in cash.
(2) An endorsement made on any instrument under sub-section (1) shall have
the same effect as if the duty of an amount equal to the amount stated in the
endorsement has been paid in respect thereof and such payment has been
indicated on such instrument by means of stamps in accordance with the
requirement of section 10.]
11. Use of adhesive stamps — The following instruments may be stamped
with adhesive stamps, namely :-
(a) instruments chargeable [with a duty not exceeding ten naye paise,]
except parts of bill of exchange payable otherwise than on demand
and drawn in sets,
(b) bills of exchange, and promissory notes drawn or made out of India,
(c) entry as an advocate, yakil or attorney on the role of a High Court,
(d) notarial acts, and
(e) transfers by endorsement of shares in any incorporated company or
other body corporate.
12. Cancellation of adhesive stamps - (1) (a) Whoever affixes andy
adhesive stamp to any instrument chargeable with duty which has been executed
by any person shall, when affixing such stamp, cancel the same so that it cannot be
used again, and
(b) whoever executes any instrument on any paper bearing an adhesive
stamp shall, at the time of execution, unless such stamp has been
already cancelled in manner aforesaid, cancel the same so that it
cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so
that it cannot be used again, shall, so far as such stamp is concerned, be
deemed to be unstamped.
(3) The person required by sub-section (1) to cancel an adhesive stamp may
cancel it by writing on or across the stamp his name or initials or the name
or initials of his firm with the true date of his so writing, or in any other
effectual manner.
13. Instruments stamped with impressed stamps how to be written — Every
instrument written upon paper stamped with an impressed stamp shall be written
in such manner that the stamp may appear on the face of the instrument and cannot
be used for or applied to any other instrument.
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 noting in this section shall prevent any endorsement which is
duly stamped or is not chargeable with duty being made upon any instrument for
the purpose of transferring any right created or evidenced thereby, or of
acknowledging the receipt of any money or goods the payment or delivery of
which is secured thereby.
15. Instrument written contrary to section 13 or 14 deemed unstamped —
Every instrument written in contravention of section 13 or section 14 shall be
deemed to be unstamped.
16. Denoting duty — Where the duty with which an instrument is chargeable,
or its exemption from duty, depends in any manner upon the duty actually paid in

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