Govt proposes repealing Indian Stamp Act, seeks public input on draft Bill

CategoryPolity

Last Updated19/01/2024

The government has proposed repealing the Indian Stamp Act, 1899 and bringing in a new legislation for the stamp duty regime in the country.
The Department of Revenue under the Ministry of Finance has invited suggestions on the draft ‘Indian Stamp Bill, 2023’ from the public within a period of 30 days.

“The Department of Revenue, Ministry of Finance, Government of India, has prepared a draft ‘Indian Stamp Bill, 2023’ to align it with the modern stamp duty regime.
Once enacted, the Bill shall replace the Indian Stamp Act, 1899
The Indian Stamp Act, 1899 lays down the legal provisions for tax levied in the form of stamps on instruments recording transactions.
Stamp duties are levied by the central government, but within the states are collected and appropriated by the concerned states in terms of provisions of Article 268 of the Constitution.
The stamp duties on documents specified in entry 91 of the union list of the Seventh Schedule including
- Bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts) are levied by the Union.
Other stamp duties on documents are levied and collected by the states.
The Indian Stamp Act, 1899, a pre-Constitution Act, has been amended from time to time to enable a more modern stamp duty regime, the ministry said.