The Indian Stamp Act, 1899
The Indian Stamp Act, 1899, Act No. 2 of 1899, issued as a primary law of India on 27th January, 1899, is the central law that consolidates and amends the law relating to stamps and stamp duty on instruments. It sets out which instruments are chargeable with duty, how stamping must be done, what hap...
What this law is
The Indian Stamp Act, 1899, Act No. 2 of 1899, is a central law made to consolidate and amend the law relating to stamps. The text says it extends to the whole of India, subject to the extent stated in the Act itself.
For a Tamil Nadu reader, this is a basic stamp law framework for instruments and documents. It is not limited to land documents, but it matters to property buyers, owners and professionals because conveyances and other instruments can be chargeable with stamp duty.
What it governs
The Indian Stamp Act, 1899 covers the full stamp duty system for instruments, including:
- instruments chargeable with duty
- several instruments used in a single transaction of sale, mortgage or settlement
- instruments relating to several distinct matters
- how duties are to be paid
- use of adhesive stamps and impressed stamps
- time of stamping instruments executed in India and outside India
- valuation for duty
- who must pay duty
- adjudication as to proper stamp
- treatment of instruments not duly stamped
- allowances for spoiled, misused or unneeded stamps
- reference and revision before revenue authorities and the High Court
- criminal offences, penalties and prosecution
- rule-making powers and inspection of books
Why property buyers and owners should care
The definitions section specifically includes "conveyance". The Act says "conveyance" includes a conveyance on sale and every instrument by which property, whether moveable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I.
That means the law can affect documents used in property transfers. The arrangement of sections also shows that sale, mortgage and settlement transactions are directly addressed.
Key points from the text
- The law is called the Indian Stamp Act, 1899.
- It came into force on the first day of July, 1899.
- It contains a Schedule I on stamp duty on instruments.
- It provides for examination and impounding of instruments.
- It states that instruments not duly stamped can be inadmissible in evidence.
- It gives the Collector power to certify proper stamp, deal with impounded instruments, stamp certain instruments and refund penalty or excess duty in some cases.
- It creates penalties for executing an instrument not duly stamped and for other failures under the stamp law.
- It gives the Central Government power to make rules, and also contains powers to make rules relating to sale of stamps and generally to carry out the Act.
Authorities named in the text
The Indian Stamp Act, 1899 refers to the Collector, the Chief Controlling Revenue-authority, the High Court, the Central Government and the State Government in different parts of the law.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does the Indian Stamp Act, 1899 apply to property transfer documents?
Yes. The text defines "conveyance" to include a conveyance on sale and every instrument by which property, whether moveable or immovable, is transferred inter vivos, unless specifically provided for by Schedule I.
What happens if a document is not duly stamped?
The Act contains a full chapter on instruments not duly stamped. The arrangement of sections states that instruments not duly stamped are inadmissible in evidence, and it also provides for examination, impounding and later stamping in some cases.
Who decides whether the stamp on a document is proper?
The Act provides for adjudication as to proper stamp and a certificate by the Collector. The text also defines "Collector" and includes officers appointed by the State Government by notification in the Official Gazette.
Does this law only deal with land documents?
No. The Act is a general law relating to stamps and stamp duty on instruments. The arrangement of sections shows that it covers many kinds of instruments, including bills, notes, securities, receipts, policies, conveyances, mortgages and stock exchange or depository transactions.
