Indian Stamp Act
For the purposes of determining the duty that must be paid under the Indian Stamp Act, a "stamp" is defined as any mark, seal, or endorsement by any agency or person lawfully authorized by the State Government, and includes an adhesive or impressed stamp. This definition is found in section 2(26) of the Indian Stamp Act [inserted with effect from September 10, 2004].
Indian Stamp Act
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Presentation Transcript
INTRODUCTION Throughout our lives, we have experienced numerous different levels and types of transactions and documents. Some of these documents and transactions are vital to the State and to us. It would be difficult to keep track of such transactions in the absence of a regulatory structure.
THE STAMP'S MEANING For the purposes of determining the duty that must be paid under the Indian Stamp Act, a "stamp" is defined as any mark, seal, or endorsement by any agency or person lawfully authorised by the State Government, and includes an adhesive or impressed stamp. This definition is found in section 2(26) of the Indian Stamp Act [inserted with effect from 10-9-2004].
WHAT IS STAMP DUTY? Stamp duty, as specified by statute, is the fee owed on any deal based on the signing of documents or the exchanging of papers. Depending on what is subject to it, the kind of duty might either be constant or variable. A document basically acts as a written record of the conditions of an agreement between the parties.
THE INDIAN STAMP ACT DEFINES THE FOLLOWING TYPES OF STAMPS: THERE ARE TWO types OF STAMPS: – • Judicial stamp • Non-judicial stamp
EVIDENCE VALUE OF A DOCUMENT THAT IS NOT PROPERLY STAMPED In accordance with Section 35 of the Indian Stamp Act of 1899, an instrument subject to the obligation cannot be accepted into evidence if it has not been properly stamped; nevertheless, there are some exceptions to this rule. These exclusions include: • On payment of the appropriate duty and penalty, courts and arbitrators may admit documents that have been improperly or insufficiently stamped. • When a one rupee penalty is paid, an unstamped receipt is only admissible against the individual who is at fault.
MODALITY OF STAMP DUTY PAYMENT UNDER THE INDIAN STAMP DUTY It is necessary to make a complete stamp duty payment. Fines will be assessed if the collection of the stamp duty is not finished on time. It is a legally binding document with significance that can be used as evidence in court.