LexThe rajasthan stamp act, 1998
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Part-I
THE RAJASTHAN STAMP ACT, 1998
(Act No. 14 OF 1999)
(Received the assent of the President of India on 24th day of March, 1999)
An Act to consolidate and amend the law relating to Stamps in the
State of Rajasthan.
Be it enacted by the Rajasthan State Legislature in the Forty -ninth Year
of the Republic of India as follows--
CHAPTER-I
Preliminary
1. Short title, extent and commencement-
1. This Act may be called the Rajasthan Stamp Act, 1998.
2. It extends to whole of the State of Rajasthan.
3. It shall come into force on such 1date as the State Government may,
by notification in the Official Gazette, appoint,
2. Definitions-- In this Act, unless there is something repugnant in the
subject or context,
(i) "air-rights " shall mean rights to construct upper floors for sale
and use, independent of the existing building;
2(ia) 'association' means any association of person, exchange broker,
or any other organi sation or b ody of persons, whether
incorporated or not, and regulating or controlling or conducting
business of the sale or purchase of, or other transaction relating
to, any goods or marketable securities.
3(ii)"Banker" means an association, a company or a person who
accepts, for the purpose of len ding or investment, deposits of
money from the public, repa yable on demand or otherwise, and
1 This Act come into force w.e.f. 27.5.2004 vide Notification No. F. 2(3) FD/Tax Div/98 -II dated 27.5.2004
2 Inserted by the Raj. Finance Act 2006 (Act No. 4 of 2006) (w.e.f. 8.3.2006).
3 Substituted by the Raj. Finance Act 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013)
Last Updated - 16-08-19
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withdrawal by cheque, draft, order, or otherwise within the
territories of India and includes-
(a) a banking company as defined in c lause (c) of section 5 of the
Banking Regulation Act, 1949 (Central Act No. 10 of 1949)
(b) a co-operative bank as defined in clause (cci) of section 56 of
the Banking Regulation Act, 1949 (Central Act No. 10 of 1949);
(c) the State Bank of India constituted unde r section 3 of the State
Bank of India Act, 1955 (Central Act No 23 of 1955), any of its
subsidiary banks as defined in clause (k) of section 2 of the State
Bank of India (Subsidiary Banks) Act, 1959 (Central Act No 38
of 1959) and any of the corresponding new banks constituted
under section 3 of the Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970 (Central Act No. 5 of 1970)
and the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1980 (Central Act No. 40 of 1980), as t he
case may be.
(iii) "bill of exchange" means a bill of exchange as defined by the
Negotiable Instruments Act, 1881 (Act No. 26 of 1881) 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 oth er person for, any sum of
money.
(iv) "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 whi ch 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 period, and
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(c) a letter of credit, that is to say, any inst rument, by which one
person authorises another to give credit to the person in whose
favour it is drawn;
(v) "Bill of lading" includes a "through bill of lading" , but does not
include a mate's receipts;
(vi) "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 and not payable to order or bearer,
whereby a person obliges himself to pay money to another; and
(c) any instrument attested, whereby a person obliges himself to
deliver grain or other agricultural produce to another;
Explanation- For the purpose of this clause "attested" means attested
by one or more witnesses each of whom has seen the executants sign
or affix his mark to the instrument or has seen some other person sign
the instrument in the presence and by the direction of the executants,
or has received from the executants, a personal acknowledgment of
such signature or mark or of the signature of such other person, and in
which each of whom has signed the instrument in the presence of the
executants; but is shall not be necessary that more than one of such
witnesses shall have been present at the same time, and no p articular
form of attestation shall be necessary.
(vii) "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 India when such instrument was executed or; where several
persons executed the instrument at different times, first executed;
(viii) "Cheque" means a bill of exchange, drawn on a specified banker, and
not expressed to be payable otherwise than on demand;
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1(viii-A) "Chief Controlling Revenue Authority" means an officer or
authority specified as such by the State Government by notification in
the Official Gazette;
(ix) " Clearance list" means a list of transactions relating to contracts
required to be submitted to the clearing house of an association in
accordance with the rules or bye-laws of the association:
Provided that no instrument shall, for the purposes of this Act, be
deemed to be a clearance list unless it contains the following
declaration signed by the person dealing in such transaction or on his
behalf by a properly constituted attorney, namely-
"I/We hereby solemnly declare that the above list contains a
complete and true statement of my/our transactions including crossed
out transactions and transactions required to be submitted to the
clearing house in accordance with the rules/bye-laws of the association.
I/We further declare that no transaction for which an exemption i s
claimed under Article 5 or Article 36 in Schedule to the Rajasthan
Stamp Act, 1998, as the case may be, is omitted."
Explanation- Transaction for the purpose of this clause shall include
both sale and purchase.
(X) "Collector" includes any officer whom the State Government may, by
notification in the Official Gazette, appoint in this behalf;
2(x-a) "Concession agreement" means an agreement involving grant of
any right by the Government, local authority, public sector
undertaking or other statutory entity in respect of any of its land or
property situated in the State, to provide some service on commercial
basis using such land or property;
(xi) "Conveyance" includes,-
(i) a conveyance on sale,
(ii) every instrument,
(iii) every decree or final order of any civil court,
1 Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
2 Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
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1(iv) every order made sections 232, 233 or 234 of the
Companies Act, 2013 (Central Act No. 18 of 2013) or
section 44-A of the Banking Regulation Act, 1949 (Central
Act No. 10 of 1949),
(v) sale of air rights,
(vi) sale/consent related to below surface rights,
by which property, whether movable or immovable, or any estate or
interest in any property is transferred to, or v ested in, any other person,
intervivos, and which is not otherwise specifically provided for by the
Schedule;
(xii) "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 law for the time being in force in the state;
(xiii) " executed" and "execution" used with reference to instruments,
mean "signed" and "signature";
(xiv) "Government security" means a Government security as defined in
the Public Debt Act, 1944 (Act. No. 18 of 1944);
(xv) "immovable property" includes land, benefits to arise out of land and
thing attached to the earth, or permanently fastened to anything
attached to the earth, but shall not include standing timber, growing
crops or grass;
2(xvi) "impressed stamp" includes,-
(a) lables affixed and impressed by the proper officer;
(b) stamps embossed or engraved on stamped paper;
(c) impression by franking machine;
(d) impression or print on a paper by any other method including
electronic method; and
(e) such other impressions as the State Government may by
notification in the Official Gazette, specify;
1 Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
2 Substituted by the Raj. Finance Act 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013).
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(xvii) "India" means the territory of India excluding the State of Jammu and
Kashmir;
(xviii) "I nspector General of Stamps" means the Inspector General,
Registration & Stamps appointed by the State Government;
(xix) "instrument" includes every document by which any right or liability
is, or purports to be, created, transferred, limited, extended,
extinguished, or recorded;
(xx) "Instrument of partition" means any instrument whereby co- owners
of any property divide, or agree to divide such property in severalty,
and includes-
(i) a final order for effecting a partition passed by any revenue
authority or any civil court,
(ii) an award by an arbitrator directing a partition, and
(iii) when any partition is effected without executing any such
instrument, any instrument or instruments 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;
(xxi) "Lease" means a lease as defined in section 105 of the Transfer of
Property Act, 1882 (Act No. 4 of 1882), a lease of immovable
property or movable property, or of both, 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) 1[deleted]
(d) any writing on an application for a lease intended to signify
that the application is granted,
(e) any agreement to lease,
(f) a declaratory decree or final order of any Civil Court in respect
of lease:
1 Deleted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
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Provided that, where subsequently an instrument of lease is executed
in pursuance of such decree or order, the stamp duty if any, already
paid and recovered on such decree or order shall be adjusted towards
the total duty leviable on such instrument;
1(xxi-a) "Lea ve and Licence" means any instrument, whether called
leave or licence or called by any other name, by which one person grants
to another, or to a definite number of other persons, a right to do, or
continue to do, in or upon the immovable property of the granter,
Something which would, in the absence of such right, be unlawful, and
such right does not amount to an easement or an interest in property;
(xxii) "marketable security" means security of such a description as to
be capable of being sold in any stock market in India or outside;
2(xxiii) "market value" in relation to any property, which is the subject
matter of an instrument, means the price which such property
would have fetched or would fetch if sold in open market on the
date of execution of such instrument as determined by in such
manner and by such authority as may be prescribed by rules made
under this Act or the consideration stated in the i nstrument,
whichever is higher;
(xxiv) ''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 any engagement, one
person transfers, or creates, to, or in favour of, another, a right over
or in respect of specified property;
(xxv) "movable property" includes standing timber; growin g crops and
grass, fruit upon and Juice in trees, and property of every other
description, except immovable property;
(xxvi) ''Paper'' includes vellum parchment or any other material on which an
instrument may be written;
1 Inserted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014) (w.e.f. 14.7.2014).
2 Substituted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014) (w.e.f. 14.7.2014).
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(xxvii) ''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 agai nst
accident or sickness, and any other personal insurance;
(xxviii) "policy of group insurance" means any instrument covering, not less
than fifty or such smaller number as the Central Government
may approve, either generally or with reference to any particular
case, by which an insurer, in consideration of a premium paid by
an employer or by an employer and his employees jointly, engages
to cover with or without medical examination and for the so le
benefit of persons other than the employer, the lives of all the
employees or of any class of them, determined by conditions
pertaining to the employment, for amounts of insurance based upon
a plan which precludes individual selection;
(xxix) "Policy of sea-insurance" or "sea-policy",-
(a) 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 insured in, or relating to, any
ship or vessel, and
(b) Includes any insurance of goods, merchandise or property for
any transit which includes, not o nly 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,
Explanation- 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
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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 damage, such agreement or engagement shall be deemed
to be a contract for sea-insurance;
(xxx) "power of A ttorney" 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 legal practitioner, is authorized
to appear on behalf of any party in any proceeding before any
Court, Tribunal or Authority;
(xxxi) "promissory note" - means a promissory note as defined by the
Negotiable Instruments Act, 1881 (Act No. 26 of 1881); 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;
(xxxii) "Public officer" means a public officer as defined in clause (17)
of section 2 of the Code of Civil Procedure, 1908 (Act No. 5 of 1908);
(xxxiii) ''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) whereby any debt or demand, or any part of a debt or
demand, is acknowledged to have been satisfied or
discharged, or
(d) which signifies or imports any such acknowledgment,
and whether the same is or is not signed with the name
of any person,
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1(xxxiii-a) "securities" shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation)
Act, 1956 (Central Act No. 42 of 1956);
(xxxiv) " 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 dispos ition has not been made in writing, any
instrument recording, whether by way of declaration of trust
or otherwise, the terms of any such disposition;
(xxxv) " Soldier" includes any person below the rank of non -
commissioned officer who is enrolled under the Army Act,
1950 (Act No. 46 of 1950); and
2(xxxvi) "Stamp" means any mark, seal, certificate or endorsement by
any agency or person duly authorised by the State Government,
and includes an adhesive or impressed stamp, for the purposes
of duty chargeable under this Act.]
3 (xxxvii) 'stock exchange' means anybody of individuals, whether
incorporated or not, constituted for the purpose of assisting,
regulating or controlli ng the business of buying, selling or
dealing in securities.
1 Inserted by the Raj. Finance Act, 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013)
2 Substituted by the Raj. Finance Act, 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013).
3 Inserted by the Raj. Finance Act, 2006 (Act No. 4 of 2006) (w.e.f. 8.3.2006) and substituted by Raj. Fin. Act, 2011 (Act No.
15 of 2011) (w.e.f. 15.4.2011).
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CHAPTER-II
Stamp Duties
A- Of the liability of Instruments to Duty.
3. Instrument chargeable with duty - Subject to the provisions of this
Act and the exemptions contained in the Schedule, the following
instruments 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 the State
on or after the date of commencement of this Act;
1(b) every instrument mentioned in that Schedule, which, not having
been previously executed by any person, is executed out of the
State on or after the said date, relates to any matter or thing done
or to be done in the State and is received in the State, or relates to
any property situate in the State:
Provided that no duty shall be chargeable in respect of, -
(i) 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;
(ii) any instrument for the sale, transfer or other disp osition, 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, 1958 (Act
No. 44 of 1958), as amended by subsequent Acts.
23-A, Certain instruments chargeable with surcharge –
(1) All instruments chargeable with duty under section 3 read with
schedule to the Act, shall be chargeable with surcharge at such rate
not exceeding 10 percent of the duty chargeable on such
instruments under section 3 read with Schedule to the Act, as may
1 Substituted by the Raj. Finance Act, 2019(Act No. ...... of 2019)
2 Inserted by the Raj. Finance Act, 2011(Act No. 15 of 2011) (w.e.f. 09-03-2011) and sub section (i) was substituted by the
Raj. Finance Act, 2017.
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be notified by the State Government, for the purpose of the
development of basic infrastructure facilities such as rail or road
transportation system, communication system, power distribution
system, sewerage system, drainage system or any other such public
utilities serving any area of the State and for financing
Municipalities and Panchayati Raj Institutions and
(2) The surcharge chargeable under sub-section (1) shall be in addition
to any duty chargeable under section 3.
(3) Except as otherwise provided in sub -section (i), Provisions of this
Act shall so far as may be apply in relation t o the surcharge,
chargeable under sub-section (1) as they apply relation to the duty
chargeable under-section 3.
1¼4½ Save as pro vided in sub -section (3), the State Government may
make rules for collection of surcharge leviable under this section
and for regulating the duties and remuneration of the person
through whom surcharge is collected.
2[3-B. Surcharge for conservation and propagation of cow and its
progeny.-
3(1) All instruments chargeable with duty under section 3 read with
Schedule to the Act, shall be chargeable with surcharge at such rate
not exceeding 4 20 percent of the duty chargeable on such
instruments under section 3 read with Schedule to the Act, as may
be notified by th e State Government, for the purpose of
conservation and propagation of cow and its progeny.]
(2) The surcharge chargeable under sub-section (1) shall be in addition
to any duty chargeable under section 3 and any surcharge
chargeable under section 3-A.
(3) Except as otherwise provided in sub -section (1), provisions of this
Act shall so far as may be apply in relation to the surcharge,
1 Inserted by Rajasthan Finance Act, 2017.
2 Inserted by Rajasthan Finance Act, 2016(Act No. 5 of 2016).
3 Sub-section (1) was Substituted by the Rajasthan Finance Act, 2017.
4 The Rajasthan Stamp (Amendment) Act, 2018.
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chargeable under sub-section (1) as the apply in relation to the duty
chargeable under section 3.
1(3A) Save as provided in sub-section (3), the State Government may
make rules for collection of surcharge leviable under this section
and for regulating the duties and remuneration of the person
through whom surcharge is collected.]
(4) The surcharge collected under this section shall be earmarked and
utilized for the purpose of conservation and propagation of co w and
its progeny-in the State.
24. Payment of stamp duty in cash. - (1) Notwithstanding anything
contained in section 10,-
(i) any instrument chargeable with the stam p duty may be
executed on an unstamped paper; and
(ii) The stamp duty chargeable on such instrument may be
paid or collected in such manner as the State Government
may prescribe by rules.
(2) The registering officer or any other officer authorized by the
State Government shall, on production of such proof of
payment of stamp duty under clause (ii) of sub -section (1) as
the State Government may prescribe by rules, endorse on the
instrument the amount of stamp duty so paid in such manner as
the State Government may prescribe by rules.
(3) An instrument endorsed under sub-section (2) shall be deemed
to be duly stamped under this Act and may be used or acted
upon as such to all intents and for all purposes.
3[4-A. Rounding off of fractions in duty, fee or surcharge payable
or allowances to be made. - In determining the amount of duty,
surcharge or fee payable, or of the allowances to be made, under
this Act, any fraction of one rupee, equal to or exceeding fifty paise
1 Inserted by Rajasthan Finance Act, 2017
2 Substituted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014)(w.e.f. 14 -07-2014)
3 Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 12-02-2018)
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shall be rounded off to the next one rupee, and any fraction of less
than fifty paise shall be disregarded.]
5. Several instruments used in single transaction of sale, mortgage,
1 [agreement or any other document (memorandum etc.)
relating to the deposit of title deeds] or settlement. - (1) Where,
in case of any of sale, mortgage , 2 [agreement or any other
document (memorandum etc.) relating to the deposit of title deeds]
or settlement, several instruments are employed for completing the
transaction, only the principal instrument shall be chargeable with
the duty prescribed for it in the Schedule 3[and each of the other
instruments shall be chargeable with a duty of two hundred 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 any of
the said instruments employed.
6. Instrument relating to several distinct matters - Any instrument
comprising or relating to several distinct matters, shall be
chargeable with the aggregate amount of dutie s with which
separate instruments, each comprising or relating to one of such
matters would be chargeable under this Act.
7. Instruments coming within several descriptions in the Schedule
- Subject to the provisions of the last preceding section, an
instrument so framed as to come within two or more of the
descriptions in the Schedule, shall, wh ere the duties chargeable
thereunder are different, be chargeable only with the highest of
such duties.
1 Inserted by the Rajasthan Finance Act, 2017. (w.e.f. 30-03-2017)
2 Inserted by the Rajasthan Finance Act, 2017. (w.e.f. 30-03-2017)
3 Substituted by the Rajasthan Finance Act, 2017. (w.e.f. 30-03-2017)
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8. Payment of duty on copies, counterparts or duplicates when that
duty has not been paid on the principal or original document-
(1) Notwithstanding anything contained in section 5 or section 7 or in
any other law for the time being in force, the duty chargeable on
any of the several instruments employed for completing a
transaction 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 instrument would, when received
in the State of Rajasthan have been chargeable under this Act, with
a higher rate of duty be the duty with which the principal or
original instrument would have been chargeable under section 20
unless it is proved that the duty chargeable under this Act has been
paid-
(a) On the principal or original instrument, as the case may be,
(b) Or in accordance with the provisions of this section.
(2) Notwithstanding anything contained in section 39 or in any other
law for the time being in force, no 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 instrument,
counterpart, duplicate or copy is produced, shall permit the
duty chargeable under this section to be paid thereon any may
then receive it in evidence.
9. Power to reduce, remit or compound duties. -
(1) The Government, if satisfied that it is necessary to do so in the
public interest, may by rule or order published in Official Gazette,
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 by or in favour of any particular
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class of persons, or by or in favour of any member of such class are
chargeable.
(2) The Inspector General of Stamps may by order provide fo r the
composition or consolidation of duties in the case of receipt, policy
of Insurance and issues by any incorporated company or other body
corporate or of transfers where there is a single transferee, whether
incorporate or not, of debentures, bonds or other marketable
securities.
Explanation- In sub -section (1) of section 9, the expression "the
Government means,-"
(a) in relation to stamp duty in respect of bills of exchange,
cheques, promissory notes, bills of lading, letters of credit,
policies of insuran ce, transfer of shares, debentures, proxies
and receipts chargeable to stamp duty under the Indian Stamp
Act, 1899 (Act No. 2 of 1899) the Central Government,
(b) save as aforesaid, the State Government.
1[9.A. Power to reduce or remit penalty or interest - The State
Government, if satisfied that it is necessary to do so in the public
interest, may by notification published in the official Gazette,
reduce or remit, the penalty or interest or both imposed or
chargeable under this Act."
B. Of Stamps, and the mode of using them.
10. Duties how to be paid-
(1) Except as otherwise expressly provided in this Act, all duties with
which any instrument 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, or
(b) When no such provision is applicable thereto, as the State
Government may, by rule, direct.
(2) the rules made under sub -section (1) may, among other matters,
regulate,-
1 Inserted by Act No. 7 of 2004 (w.e.f. 27.5.2004).
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(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; and
(c) in the case of bills of exchange or promissory notes, the size of
the paper on which they are written.
(3) The Inspector General of Stamps may, subject to such conditions
as he may deem fit to impose, authorize use of fran king machine
or any other machine specified by the State Government, for
making impressions on instruments chargeable with duties to
indicate payment of duties payable on such instruments,
(4) (i) Where the Inspector General of Stamps or the Superintendent
of Stamps when authorized by the Inspector General of Stamps in
this behalf, is satisfied that having regard to the exten t of
instruments executed and the duty chargeable thereon, it is
necessary in public interest to authorize any person, body or
organization to such use of franking machine or any other machine,
he may, by order in writing authorize such person, body or
organization; and
(ii) Every such authorization shall be subject to such conditions, if
any, as the Inspector General of Stamps may, by any general or
special order, specify in this behalf.
(5) The procedure to regulate the use of franking machine or any other
machine as so authorized shall be such as the Inspector General of
Stamps may, by order determine.
(6) An impression made under sub -sections (3) (4) and (5), on any
instrument, shall have the same effect as if duty of an amount equal
to the amount indicated in the impression has been paid, in respect
of such instrument by means of stamps, under sub-section (1).
1 10-A. Certain departments, organisations, institutions etc., to
ensure payment of stamp duty. - (1) Notwithstanding anything
contained in this Act, the State Government may, by notification
in the Official Gazette, direct that any department of the State
Government, institution of Local Self -Government, Semi -
Government organization, banking or nonbanking financial
institution or the body owned, controlled or substantially financed
1 Inserted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
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by the State Government or any class of them, shall ensure that the
proper stamp duty is paid to the State Government through
electronic Government Receipt Accounting System (e -GRAS) in
respect of such instruments, as may be specified in the notification,
passing through their system or related to their functioning of
which registration is not compulsory.
(2) The Inspector General of Stamps shall authorise a person nominated
by such department or body, etc. as mentioned in sub -section (1)
as a proper officer for defacing the challan and making the
endorsement on such instruments.
(3) It shall be the duty of the proper officer so authorised under
subsection (2) to make an endorsement on the instruments after
defacing the challan, as follows: - Stamp duty of Rs._________
paid in *cash/by demand draft/by pay order/ e -Challan v ide
Receipt/Challan No._________/GRN No._______ CIN____ dated
the___________.
Seal of the Office. Signature of the Officer.
*Strike out whatever is not applicable.
11. Use of adhesive stamps. - The following instruments may be
stamped with adhesive stamps, namely,-
(a) Instruments chargeable with a duty not exceeding twenty paise
except parts of bills of exchange payable otherwise than on
demand and drawn in sets;
(b) bills of exchange drawn or made out of India and promissory
notes so drawn or made;
(c) entry as an advocate on the roll of a High Court;
(d) notarial acts; and
(e) transfers by endorsement of shares in any incorporated
company or other body corporate.
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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;
(b) Whoever executes any instrument on any paper bearing an
adhesive stamp shall, at the time of execution, unless such stamps
have been already cancelled in the 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 is 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 th e 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.
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 one of the Executants, 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 the
entire instrument being written on the side of the paper which bears
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the stamp so much plain paper may be sub-joint thereto as may be
necessary for completing the writing of such instrument, provided
that in every such case, a substantial part of the instrument is
written on the sheet which bears the stamp before any part is
written on the plain papers sub-joined.
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.
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 not duly stamped.
16. Denoting duty - Where 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 the 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 the State Government may by the rule
prescribe.
C. Of the time of stamping instrument
17. Instruments executed in the State- All instrument chargeable with
duty and executed by any person in the State shall be stamped
before or at the time of execution or immediately thereafter on the
next working day following the day of execution.
18. Instruments other than bills and notes executed out of State-
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(1) Every instrument chargeable with duty executed out of the
State and not being a bill of exchange, or promissory note, may be
stamped within three months after it has been first received in the
State.
(2) Where any such instrument cannot, with reference to the
description of stamp prescribed therefore, 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 State Government may by rule prescribe, with a stamp of
such value as the person so taking such instrument may require and
pay for.
19. Bill and notes drawn out of India- the first holder in the State of
any bill of exchange, payable otherwise than on demand or
promissory note drawn or made out of India shall, before he
presents the same for acceptance or payment, or endorses, transfers
or otherwise negotiate s the same in the State, affix thereto the
proper stamp and cancel the same:
Provided that-
(a) if, at the time any such bill of exchange or note comes into the
hands of any holder thereof in the State, the proper adhesive
stamp is affixed thereto and cancelled in the manner prescribed
under section 12 and such holder has no reasons to believe that
such stamp was affixed or cancelled otherwise than by the
person and at the time required by this Act, such stamp shall,
so far as relates to such holder, be deemed to have been duly
affixed and cancelled;
(b) nothing contained in this proviso shall relieve any person from
any penalty incurred by him for omitting to affix or cancel a
stamp.
20. Payment of duty on certain instrument liable to increased duty
in the State of Rajasthan- When any instrument has become
chargeable in any part of India other than the State of Rajasthan
with duty under the Indian Stamp Act, 1899 (Act No. 2 of 1899)
Page | 23
or under any other law for the time being in force in such part and
thereafter becom es chargeable with a higher rate of duty in the
State of Rajasthan under this Act,-
(i) the amount of duty chargeable on such instrument shall be the
amount chargeable on it under this Act less the amount of duty, if
any, already paid on it in India; and
(ii) in addition to the stamps, if any, already affixed thereto, such
instrument shall be stamped with the stamp necessary for the
payment of the amount of duty chargeable on it under clause (i)
in the same manner and at the same time and by the same pers on
as though such instrument were an instrument received in this State
for the first time, when it became chargeable with the higher duty.
21. Payment of difference of duty on copies of instruments registered
out of the State - (1) Where any instrument is registered in any part of
India other than the State of Rajasthan and such instrument relates, wholly
or partly to any property situate in the State of Rajasthan, the copy of such
instrument shall, when received in the State of Rajasthan under the
Registration Act, 1908 (Act No. 16 of 1908), be liable to be charged with
the difference of duty as on the original instrument.
(2) The difference of duty shall be calculated having regard to, the extent
of property situated in the State of Rajastha n and the proportionate
consideration or market value of such extent of property.
(3) The party liable to pay duty on the original instrument shall upon
receipt of notice from the registering officer, pay the difference of duty
within the time allowed by such registering officer.
(4) Where deficiency in duty paid is noticed from the copy of any
instrument, the Collector may suo-moto or on a reference from any court
or any registering officer, require the production of the original instrument
before him within the period specified by him for the purpose of satisfying
himself as to the adequacy of the duty paid thereon, and the instrument so
produced before the Collector, shall be deemed to have produced or come
Page | 24
before him in the performance of his functio ns and the provisions of
sections 35 and 51 shall, mutatis mutandis apply.
(5) In case the original instrument is not produced within the period
specified by the Collector, he may require the payment of deficit duty, if
any, together with penalty under section 44 on the copy of the instrument,
within such time as may be prescribed.
D. Of Valuation for duty
22. Conversion of amount expressed in foreign currencies-
(1) Where an instrument is chargeable with ad valorem 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 for conversion of British or any foreign currency
into the currency of India, as may be prescribed by the Central
Government, under sub -section (2) of section 20 of the Indian Stamp
Act, 1899 (Act No. 2 of 1899), for the purposes of calculating stamp
duty, shall be deemed to be the current rate of exchange for the purposes
of sub-section (1).
23. Stock and marketable securities how to be valued- Where an instrument
is chargeable with ad valorem 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 the date of the instrument.
24. Effect of statement of rate of exchange or average price - Where an
instrument contains a state ment of current rate of exchange, or average
price, as 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 presumed, until the contrary is proved, to be duly stamped.
25. Instruments reserving interest - Where interest is expressly made
payable by the terms of an instrument, such instrument shall not be
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chargeable with duty higher than that with which it would have been
chargeable had no mention of interest been made therein.
26. Certain instruments connected with mortgages of marketable
securities to be chargeable as agreements-
(1) Where an instrument (not being promissory note or bill of
exchange),-
(a) is given upon the occasion of the deposit of any marketable
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 redeemaExcerpt shown. Open the full act in Lexace.