THE INDIAN STAMP ACT, 1899

ACT NO. 2 OF 18991

[27th January, 1899]

An Act to Consolidate and amend the law relating to Stamps.

WHEREAS it is expedient to consolidate and amend the law relating to Stamps. It is hereby enacted as
follows:—

CHAPTER I
PRELIMINARY

1. Short title, extent and commencement — (1) This Act may be called the Indian Stamp Act,
1899.
2
[(2) It extends to the whole of India except the State of Jammu and Kashmir:
Provided that it shall not apply to 3[the territories which, immediately before the 1st November, 1956,
were comprised in Part B States] (excluding the State of Jammu and Kashmir) except to the extent to
which the provisions of this Act relate to rates of stamp-duty in respect of the documents specified in
Entry 91 of List I in the Seventh Schedule to the Constitution].
(3) It shall come into force on the first day of July, 1899.
2. Definitions. — In this Act, unless there is something repugnant in the subject or context, —
(1) “Banker”. —“banker” includes a bank and any person acting as a banker;
(2) “Bill of exchange”. — “bill of exchange” means a bill of exchange as defined by the Negotiable
Instruments Act, 1881, (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 other person for, any sum of money;
(3) “Bill of exchange payable on demand”. —“bill of exchange payable on demand” includes—

1. For Report of the Select Committee, see Gazette of India, 1898. Pt. -V, p. 231: and for Proceedings in Council,
see 1898, Pt. VI, pp. 10 and 278; and Gazette of India, 1899, Pt. VI, p 5.
This Act has been partially extended to Berar Laws Act, 1941 (4 of 1941) and has been declared to be in force
in the Sonthal Parganas by the Sonthal Parganas Settlement Regulation (3 of 1872), s. 3, as amended by Reg. 3 of
1899, s. 3; in the Angul District by the Angul Laws Regulation, 1936 (5 of 1936), s. 3 and Sch; and in Panth Piploda
by the Panth Piploda Laws Regulation, 1929 (1 of 1929), s. 2.
Under s. 3(a) of the Scheduled Districts Act, 1874 (14 of 1874) the Act has been declared to be in force
in the Scheduled Districts of Ganjam, Vizagapatam and East Godavary, see Notification No. 121, dated 25th
April, 1927, Fort St. George Gazette, 1927, Pt. I, p. 684. It has also been extended under ss. 5 and 5A of the
same Act, with certain modifications. to the districts of the Khasi and Jaintia Hills, the Garo Hills, the
Lushai Hills and the Naga Hills and the North Kachar sub-division of the Kachar district, the Mikir Hill
Tracts in the Sibsagar and Nowgong districts and the Lakhimpur Frontier Tract, see Notification No. 1541.-
F(a), dated 10th April; 1930. Assam Gazette 1930. Pt. ii, p. 700.
Extended to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. 1: to Goa, Daman and Diu by Reg. 11 of
1963, s. 3 and to Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s. 3 and Schedule.
2. Subs. by Act 43 of 1955, s. 3, for sub-section (2) (w.e.f. 1-4-1956).
3. Subs. by the A.O. (No. 2) 1956, for “Part B States”.

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 (a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for
the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the
payment of any sum of money out of any particular fund which may or may not be available, or upon
any condition or contingency which may or may not be performed or happen;

(b) an order for the payment of any sum of money weekly, monthly, or at any other stated period;
and

(c) a letter of credit, that is to say, any instrument by which one person authorizes another to give
credit to the person in whose favour it is drawn:

(4) “Bill of lading”. — “bill of lading” includes a “through bill lading”, but does not include a mate's
receipt:

(5) “Bond”. — “bond” includes—

(a) any instrument whereby a person obliges himself to pay money to another, on condition that
the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

(b) any instrument attested by a witness and not payable to order or bearer, whereby a person
obliges himself to pay money to another; and

(c) any instrument so attested, whereby a person obliges himself to deliver grain or other
agricultural produce to another:

(6) “Chargeable”. — “chargeable” means, as applied to an instrument executed or first executed

after the commencement of this Act, chargeable under this Act, and, as applied to any other instrument,
chargeable under the law in force in 1 [India] when such instrument was executed or, where several
persons executed the instrument at different times, first executed:

(7) “Cheque”. — “cheque” means a bill of exchange drawn on a specified banker and not expressed
to be payable otherwise than on demand:
2
* * * * * *

(9) “Collector” . — “Collector” —

(a) 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

(b) includes a Deputy Commissioner and any officer whom 3[the 4[State Government]] may, by
notification in the Official Gazette, appoint in this behalf:

(10) “Conveyance”. — “conveyance” includes a conveyance on sale every instrument by which

property, whether moveable or immovable, is transferred inter vivos and which is not otherwise
specifically provided for by schedule I:

(11) “Duly stamped”. — “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 1[India]:

(12) “Executed” and “execution”. — “executed” and “execution” used with reference to
instruments, mean “signed” and “signature”:

1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).

2. Clause (8) omitted by the A.O. 1937.
3. Subs. by the A.O. 1937, for “the L.G.”.
4. Subs. by the A.O. 1950, for “collecting Government”.

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 1
* * * * * *
(13) “Impressed stamp”. — “impressed stamp” includes—
(a) labels affixed and impressed by the proper officer, and
(b) stamps embossed or engraved on stamped paper:
2
[(13A) “India”. — “India” means the territory of India excluding the State of Jammu and Kashmir:]
(14) “Instrument”.— “instrument” includes every document by which any right or liability is, or
purports to be, created, transferred, limited, extended, extinguished or recorded:
(15) “Instrument of partition”.— “instrument of partition” means any instrument where by co-
owners of any property divide or agree to divide such property in severalty, and includes also a final order
for effecting a partition passed by any Revenue-authority or any Civil Court and an award by an arbitrator
directing a partition:
(16) “Lease”. — “lease” means a lease of immovable property, and includes also—
(a) a patta;
(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate,
occupy, or pay or deliver rent for, immovable property;
(c) any instrument by which tolls of any description are let;
(d) any writing on an application for a lease intended to signify that the application is granted;
3
[(16A) “Marketable security”. — “marketable security” means a security of such a description as
to be capable of being sold in any stock market in 4[India] or in the United Kingdom:]
(17) “Mortgage-deed”. — “mortgage-deed” includes every instrument whereby, for the purpose of
securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the
performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over
or in respect of specified property:
(18) “Paper”. — “paper” includes vellum, parchment or any other material on which an instrument
may be written:
(19) “Policy of insurance”. — “policy of insurance” includes—
(a) any instrument by which one person, in consideration of a premium, engages to indemnify
another against loss, damage or liability arising from an unknown or contingent event;
(b) a life-policy, and any policy insuring any person against accident or sickness, and any other
personal insurance; 5***
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* * * * *
2
[(19A) “Policy of group insurance”. — “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 sole benefit of persons other
than the employer, the lives of all the employees or of any class of them, determined

1. Clause (12A) omitted by the A.O. 1950. Earlier ins. by the A.O. 1937.
2. Ins. by Act 43 of 1955, s. 4 (w.e.f. 1-4-1956).
3. Ins. by Act 15 of 1904, s. 2.
4. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
5. The word “and” omitted by Act 5 of 1906, s. 2.
6. Clause (c) omitted by s. 2, ibid.

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by conditions pertaining to the employment, for amounts of insurance based upon a plan which precludes
individual selection :]

(20) “Policy of sea-insurance” or “sea-policy”. — “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
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 damage, such agreement or engagement
shall be deemed to be a contract for sea-insurance:

(21) “Power-of-attorney”.— “power-of-attorney” includes any instrument (not chargeable with a fee
under the law relating to Court-fees for the time being in force) empowering a specified person to act for
and in the name of the person executing it:

(22) “Promissory note”.— “promissory note” means a promissory note as defined by the Negotiable
Instruments Act, 1881 (XXVI 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:

(23) “Receipt”. — “receipt” includes any note, memorandum or writing—

(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to
have been received, or

(b) whereby any other moveable property is acknowledged to have been received in satisfaction
of a debt, or

(c) where by any debt or demand, or any part of 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; 1***

(24) “Settlement”. — “settlement” means any non-testamentary disposition, in writing, of moveable

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:

1. The word “and” omitted by Act 18 of 1928, s. 2 and the First Sch.

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 and includes an agreement in writing to make such a disposition 1[and, where any such disposition
has not been made in writing, any instrument recording, whether by way of declaration trust or otherwise,
the terms of any such disposition]; 2***
3
[(25) “Soldier”. — “soldier” includes any person below the rank of non-commissioned officer who
is enrolled under the 4Indian Army Act, 1911 (8 of 1911).]
5
[(26) “Stamp”. — “stamp” means any mark, seal 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.]
CHAPTER II
STAMP DUTIES
A.—Of the liability of instruments to duty
3. Instruments chargeable with duty. —Subject to the provisions of this Act and the exemptions
contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated
in that Schedule as the proper duty 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 6[India] on or after the first day of July, 1899;
(b) every bill of exchange 7[payable otherwise than on demand] 8*** or promissory note drawn
or made out of 6[India] on or after that day and accepted or paid, or presented for acceptance or
payment, or endorsed, transferred or otherwise negotiated, in 6[India]; and
(c) every instrument (other than a bill of exchange, 8***or promissory note) mentioned in that
Schedule, which, not having been previously executed by any person, is executed out of 6[India] on or
after that day, relates to any property situate, or to any matter or thing done or to be done, in
6
[India] and is received in 6[India]:
Provided 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, Act No. 57 & 58 Vict. c. 60 or under
Act XIX of 1838 Act No. or the Indian Registration of Ships Act, 1841, (CX of 1841) as amended by
subsequent Acts.
3A. [Instruments chargeable with additional duty.] Omitted by the Refugee Relief Taxes (Abolition)
Act, 1973 (13 of 1973), s. 2 (w.e.f. 1-4-1973).
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, for
the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty
of one rupee instead of the duty (if any) prescribed for it in that Schedule.

1. Ins. by Act 15 of 1904, s. 2.

2. The word “and” omitted by the A.O. 1950. Earlier ins. by Act 18 of 1928, s. 2 and the First Sch.
3. Added by Act 1928 of 18, s. 2 and the First Sch.,
4. See. Now the Army Act 1950 (46 of 1950).
5. Ins. by Act 23 of 2004, s. 117.
6. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).
7. Ins. by Act 5 of 1927, s. 5.
8. The word “cheque” omitted by s. 5, ibid.

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 (2) The parties may determine for themselves which of the instrument 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 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, 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 one rupee a
counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty
has been paid.

7. Policies of sea-insurance. —1 * * * * *

(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 a 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 XI of 1879. —

(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the
Local Authorities Loan Act, 1879 (XI of 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
2
[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, sub-division or otherwise.

(2) The provisions 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
Government.

(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 Government 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.

1. Sub-sections (1), (2) and (3) rep. by Act 11 of 1963, s. 92 (w.e.f. 1-8-1963).
2. Subs. by Act 6 of 1910, s. 2 for “eight annas per centum”.

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 28. Direction as to duty in case of certain conveyances. — (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 different instruments, the consideration shall be apportioned 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 valorem duty in respect of such distinct
consideration.
(2) Where 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 consideration therein specified.
(3) Where a person, having contracted for the purchase of any property but not having 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 shall be chargeable with ad valorem duty in
respect of the consideration for the sale by the original purchaser 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
property is in consequence conveyed by the original seller to different persons in parts, the conveyance of
each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the
consideration paid by such sub-purchaser, without regard to the amount or value of the original
consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall
be chargeable with ad valorem duty in respect only of the excess of the original consideration over the
aggregate of the considerations paid by the sub-purchasers:
Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.
(5) Where a sub-purchaser takes an actual conveyance of the interest 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, any conveyance to be afterwards made to him of the same property by the
original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance
for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with
a duty of five rupees.

E.—Duty by whom payable

29. Duties by whom payable. —In the absence of an agreement to the contrary, the expense of
providing the proper stamp shall be borne —
(a) in the case of any instrument described in any of the following Articles of Schedule I, namely: —
No. 2. (Administration Bond),
1
[No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),]
No. 13 (Bill of exchange),
No. 15 (Bond),
No. 16 (Bottomry Bond),
No. 26 (Customs Bond),
No. 27 (Debenture),
No. 32 (Further charge),

1. Subs. by Act 15 of 1904, s. 5, for “No. 6. (Agreement to Mortgage)”.

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 No. 34 (Indemnity-Bond),
No. 40 (Mortgage-deed),
No. 49 (Promissory-note),
No. 55 (Release),
No. 56 (Respondentia Bond),
No. 57 (Security-bond or Mortgage-deed),
No. 58 (Settlement),
No. 62 (a). (Transfer of shares in an incorporated Company or other body corporate),
No. 62 (b). (Transfer of debentures, being marketable securities, whether the debenture is liable to
duty or not, except debentures provided for by section 8),
No. 62 (c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),
by the person drawing, making or executing such instrument:
1
[(b) in the case of a policy of insurance other than fire-insurance—by the person effecting the
insurance,
(bb) in the case of a policy of fire-insurance— by the person issuing the policy;]
(c) in the case of a conveyance (including are-conveyance of mortgaged property:) by the grantee: in
the case of a lease or agreement to lease—by the lessee or intended lessee:
(d) in the case of a counterpart of a lease—by the less or:
(e) in the case of an instrument of exchange—by the parties in equal shares,
(f) in the case of a certificate of sale—by the purchaser of the property to which such certificate
relates: and,
(g) in the case of an instrument of partition—by the parties thereto in proportion to their respective
shares in the whole property partitioned, or, when the partition is made in execution of an order passed by
a Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator
directs.
30. Obligation to give receipt in certain cases. — Any person receiving any money exceeding
twenty rupees in amount, or any bill of exchange, cheque or promissory note for an amount exceeding
twenty rupees, or receiving in satisfaction or part satisfaction of a debt any moveable property exceeding
twenty rupees in value, shall, on demand by the person paying or delivering such money, bill, cheque,
note or property, give a duly stamped receipt for the same.
2
[Any person receiving or taking credit for any premium or consideration for any renewal of any
contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or
consideration, give a duly stamped receipt for the same.]
CHAPTER III
ADJUDICATION AS TO STAMPS
31. Adjudication as to proper stamp. —(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 five rupees and not less than 3[fifty naye paise]) as the Collector may in each case
direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is
chargeable.

1. Subs. by Act 5 of 1906, s. 4, for clause (b).

2. Added by s. 5, ibid.
3. Subs. by Act 19 of 1958, s. 3, for “eight annas” (w.e.f. 1-10-1958).

17
 (2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and
also with such affidavit or other evidence as he may deem necessary to prove that all the facts and
circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with
which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such
application until such abstract and evidence have been furnished accordingly:
Provided that—
(a) no evidence furnished in pursuance of this section shall be used against any person in any
civil proceeding, except in an inquiry 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 payment of the full duty with
which the instrument to which it relates, is chargeable, be relieved from any penalty which he may
have incurred under this Act by reason of the omission to state truly in such instrument any of the
facts or circumstances aforesaid.
32. Certificate by Collector. — (1) When an instrument brought to the Collector under section 31 is,
in his opinion, one of a description chargeable with duty, and
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already
paid in respect of the instrument, is equal to the duty so determined, has been paid,
the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with
which it is chargeable 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 chargeable.
(3) Any instrument upon which an endorsement has been made under this section, shall be deemed to
be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall be
receivable 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 authorize the Collector to endorse—
(a) any instrument executed or first executed in 1[India] and brought to him after the expiration of
one month from the date of its execution or first execution, as the case may be;
(b) any instrument executed or first executed out of 1[India] and brought to him after the
expiration of three months after it has been first received in 1[India]; or
(c) any instrument chargeable 2[with a duty not exceeding ten naye paise], or any bill of exchange
or promissory note, when brought to him, after the drawing or execution thereof, on paper not duly
stamped.
CHAPTER IV
INSTRUMENTS NOT DULY STAMPED
33. Examination and impounding of instruments. — (1) Every person having by law or consent of
parties authority to receive evidence, and every person in charge of a pubic office, except an officer of
police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the
performance of his functions, shall, if it appears to him that such instrument is not duly stamped, impound
the same.

1. Subs. by Act 43 of 1955 s. 2 for “that States” (w.e.f. 1-4-1956).

2. Subs. by Act 19 of 1958, s. 4 for “with the Duty of one anna or half an anna” (w.e.f. 1-10-1958).

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 (2) For that purpose every such person shall examine every instrument so chargeable and so produced
or coming before him, in order to ascertain whether it is stamped with a stamp of the value and
description required by the law in force in 1[India] when such instrument was executed or first executed:
Provided that—
(a) nothing herein contained shall be deemed to require any Magistrate of Judge of a Criminal
Court to examine or impound, if he does not think fit so to do, any instrument coming before him in
the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the
Code of Criminal Procedure, 1898 (V of 1989);
(b) in the case of a Judge of a 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, —

(a) 2[the 3[State Government]] may determine what offices shall be deemed to be public offices;
and
(b) 4[the 3[State Government]] may determine who shall be deemed to be persons in charge of
public offices.
34. Special provision as to unstamped receipts. —Where any receipt chargeable 5[With a duty not
exceeding ten naye paise] is tendered to or produced before any officer unstamped in the course of the
audit of any public account, such officer may in his discretion, instead of impounding the instrument,
require a duly stamped receipt to be substituted therefore.
35. Instruments not duly stamped inadmissible in evidence, etc. — No instrument chargeable
with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties
authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by
any public officer, unless such instrument is duly stamped :
Provided that—
(a) any such instrument 6[shall] be admitted in evidence on payment of the duty with which the
same is chargeable, or, in the case of any 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 rupees, of a sum equal to ten times such duty or
portion;
(b) where any person from whom a stamped receipt could have been demanded, has given an
unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then
such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the
person tendering it;
(c) Where a contract or agreement of any kind is effected by correspondence consisting of two or
more letters and any one of the letters bears the proper stamp, the contract or agreement shall be
deemed to be duly stamped;
(d) nothing herein contained shall prevent the admission of any instrument in evidence in
proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the
Code of Criminal Procedure 1898 (V of 1898);
(e) nothing herein contained shall prevent the admission of any instrument in any 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 provision of this Act.

1. Subs. by Act 43 of 1955, s. 2, for “the States” (w.e.f. 1-4-1956).

2. Subs. by the A.O. 1937, for “the G.G. in C.”.
3. Subs. by the A.O. 1950, for “collecting Government”.
4. Subs. by the A.O. 1937, for “the L.G.”.
5. Subs. by Act 19 of 1958, s. 5, for “with a duty of one anna” (w.e.f. 1-10-1958).
6. Subs. by Act 21 of 2006, s. 69, for “not being an instrument chargeable with a duty not exceeding ten naye paise
only, or a bill of exchange or promissory note, shall, subject to all just exceptions,”

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 36. Admission of instrument where not to be questioned. —Where an instrument has been
admitted in evidence, such admission shall not, except as provided in section 61, be called in question at
any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
37. Admission of improperly stamped instruments. — 1[The 2[State Government]] may make rules
providing that, where an instrument bears a stamp of sufficient amount but of improper description, it
may, on payment of 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.
38. Instruments impounded how dealt with. — (1) When the person impounding an instrument
under section 33 has by law or consent of parties authority to receive evidence and admits such
instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by
section 37, he shall send to the Collector an authenticated copy of such instrument, together with a
certificate in writing, stating the amount of duty and penalty 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 impounding an instrument shall send it in original to the
Collector.
39. Collector’s power to refund penalty paid under section 38, sub-section (1). — (1) When a
copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit,
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*** refund any portion of the penalty in excess of five 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.
40. Collectors power to stamp instruments impounded. — (1) When the Collector impounds any
instrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), not
being an instrument chargeable 4[with a duty not exceeding ten naye paise] only or a bill of exchange or
promissory note, he shall adopt the following procedure: —
(a) if he is of opinion that such instrument is duly stampeded 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 same, together
with a penalty of five rupees; or, if he thinks fit, 5[an amount not exceeding] ten times the amount of
the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five
rupees:
Provided that, when such instrument has been impounded only because it has been written 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-section (1) shall, for the purposes of this Act, be
conclusive evidence of the matters stated therein.
(3) Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector
shall, when he has dealt with it as provided by this section, return it to the impounding officer.

1. Subs. by the A.O. 1937, for “the G.G. in C.”.

2. Subs. by the A. O. 1950, for “collecting Government”.
3. The words “upon application made to him in this behalf or, if no application is made, with the consent of the chief
Controlling Revenue-authority” omitted by Act 4 of 1914, s. 2 and the Sch. Pt I.
4. Subs. by Act 19 of 1958, s. 6, for “with a duty of one anna or half an anna” (w.e.f. 1-10-1958).
5. Ins. by Act 15 of 1904, s. 6.

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 41. Instruments unduly stamped by accident. — If any instrument chargeable with duty and not
duly stamped, not being an instrument chargeable 1[with a duty not exceeding ten naye paise] only or a
bill of exchange or promissory note, is produced 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
amount of the proper duty, or the amount required to make up the same, and the Collector is satisfied that
the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity,
he may, instead of proceeding under sections 33 and 40, receive such amount and proceed as next herein
after prescribed.

42. Endorsement of instruments on which duty has been paid under sections 35, 40 or 41— (1)
When the duty and penalty (if any), leviable in respect of any instrument have been paid under section 35,
section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case
may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty
and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence
of the person paying them.

(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered
and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application
in this behalf to the person from whose possession it came into the hands of the officer impounding it, or
as such person may direct:

Provided that—

(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under
section 35, shall be so delivered before the expiration of one month from the date of such
impounding, or if the Collector has certified that its further detention is necessary and has not
cancelled such certificate;

(b) nothing in this section shall affect 2the Code of Civil Procedure (XIV of 1882), section 144,
clause 3.

43. Prosecution for offence against Stamp-law. — The taking of proceedings or the payment of a
penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person who
appears to have committed an offence against the Stamp-law in respect of such instrument:

Provided that no such prosecution shall be instituted in the case of any instrument in respect of which
such a penalty has been paid, unless it appears to the Collector that the offence was committed with an
intention of evading payment of the proper duty.

44. Persons paying duty or penalty may recover same in certain cases. —(1) When any duty or
penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of
an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at
the time such instrument was executed, some other person was bound to bear the expense of providing the
proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other
person the amount of the duty or penalty so paid.

(2) For the purpose of such recovery any certificate granted in respect of such instrument under this
Act shall be conclusive evidence of the matters therein certified.

(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or
proceeding to which such persons are parties and in which such instrument has been tendered in evidence.
If the Court does not include the amount in such order, no further proceedings for the recovery of the
amount shall be maintainable.

1. Subs. by Act 19 of 1958, s. 6 for “with a duty of one anna or half an anna” (w.e.f. 1-10-1958).
2. See now the Code of Civil Procedure, 1908 (5 of 1908), Sch. I, Order XIII, Rule 9.

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