Documents and Indian Stamp Act

A document is any written instrument that records a transaction, right, or obligation, and is used as evidence in legal proceedings. Under the Indian Stamp Act, 1899, such documents attract stamp duty if they fall within the scheduled categories.

Central Government levies stamp duty on bills of exchange under Schedule I.

The Indian Stamp Act, 1899 is a central legislation that governs the payment of stamp duty on various instruments and documents. It aims to generate revenue for the government and ensures that documents are legally enforceable only if properly stamped.

A receipt acknowledging payment above Rs. 5,000 must bear an adhesive stamp.

An unstamped or insufficiently stamped document is inadmissible as evidence in a court of law. However, it can be admitted after paying the deficit stamp duty along with a penalty, typically ten times the deficient amount.

Any document by which a right or liability is created, transferred, or extinguished.

Stamp duty is a tax levied by the government on legal documents to make them valid and enforceable. In a loan transaction, the liability to pay stamp duty is generally on the borrower unless the parties agree otherwise.

A penalty of up to ten times the deficient stamp duty is imposed.