Indian Stamp Law This is a fiscal act that was implemented in India in British India, which has been maintained till today after the independence of India and changes were made from time to time in it. We chose to write this topic because even professionally knowledgeable people do not go to the root of this law and the general information about it is not available to other people either.
Indian Stamp Act 1899 This law is used for all the transactions taking place in India in which one person is responsible and the other person is benefited, this transaction can be for permanent property or can be for temporary property. We see many types of stamps in normal life, which are used for different reasons, we try to understand what is its legal importance.
The government takes the legal responsibility of any economic transaction on itself through the Stamp Act, so that it works for this behavior in the future, which we call universal. Documents made under this law are considered valuable as evidence, hence their cost is much higher than other documents. This is a sign of the law and order of the country in economic dealings.
Indian Stamp Act 1899 –
For any document, we pay stamp duty to the government in the form of tax, which is called an instrument, whether it is for permanent property or it is for temporary property. Stamp duty does not charge for stock market transactions done in digital form, but stamp duty is applicable on shares or bond documents in physical form.
The law made in 1899, it was maintained even after the independence of India and some important changes were made in it from time to time, in which the state and central jurisdiction were fixed according to the constitution in lieu of the earlier provinces and presidency towns.
Impressed Stamp – Which is done by the franking machine that through the banks in which the document is authorized by means of a mark like paper digging.
- Adhesive Stamp – These are such stamps which are affixed or added on the document, in which mainly Postal Stamp which is used for the work related to the post office.
- Non Postal Stamp – Revenue Stamp , Court fee stamp , Insurance Policy Stamp etc.
- E – Stamp – Process of stamp duty conducted through the digital medium
What is Stamp Duty?
Stamp Duty It is a tax levied by any state government for the transaction of the property which is levied according to the list of the Stamp Act and its powers are given to the government to regulate. According to the value of that property at the time of transaction, these stamp rates are determined according to the law of the Stamp Act.
This payment of stamp duty has to be completed at the time of completion of this transaction or the provisions of penalty have been made by the government for delay and the stamp duty rate prescribed is required to be paid, if intentionally wrong or less stamp duty is paid. The corresponding officer has the right to take penal action and confiscate documents.
Therefore, if there is any confusion in filling this stamp duty, then the higher stamp duty rate should be filled or you can get information about the eligible rate by applying to the Chief Officer along with the normal fee. The corresponding officer can recover from 2% to 200% of the amount of penal action. Therefore, it is important to keep all this information while filing the stamp duty of such transactions.
Today the online service for filling the stamp duty for some major cities has been provided by many states by the government which will help in avoiding a lot of time and mistakes. Because a lot of information and updates are circulated by the government on the website, which helps in reducing the problems.
History of Indian Stamp Act 1899 –
This law was brought to our country for the first time by the British Government in India, the first time the Stamp Act was brought in the world was in Holland in 1624, after which it was introduced in England. This law was first introduced in England during King Charles II, but this law was actually developed during the tenure of King William, which was a first in the world.
The first time the British brought this law in India was Bengal, Bihar, Orissa and Banaras in this area which was in the form of regulation which was run under the East India Company in 1797. The principle of the English Basic Law has been from the beginning that “the things which is made liable to duty is an instrument” for the running of any state, money is needed and that money is raised through tax.
In which through the main tax, when there is more opposition from the society, then this law was brought in place of the tax which was stopped with the help of laws like the Stamp Act. Which is the main thing for every transaction whether it is of permanent property or any temporary thing on which tax is levied in which both the parties should be alive. The struggle of 1857 brought the authority of the East India Company out of India and the system of India under the British Parliament started working and the Stamp Act 1899 was brought in a new way.
How to pay stamp duty in Maharashtra?
Stamp duty is a type of tax that is levied on various documents, including property agreements, lease agreements, and others. If you are in Maharashtra and you need to pay stamp duty, you can follow the below steps:
- Calculate the amount of stamp duty payable: The stamp duty amount depends on the type of document and the transaction value. You can use the stamp duty calculator available on the Maharashtra government’s website to calculate the exact amount of stamp duty payable.
- Purchase stamp papers: Once you know the amount of stamp duty payable, you need to purchase stamp papers of the required denomination from an authorized vendor. You can find the list of authorized vendors on the Maharashtra government’s website.
- Fill the stamp paper: After purchasing the stamp paper, you need to fill in all the required details, including the transaction details, name of parties involved, and other necessary information.
- Submit the stamp paper: Once you have filled in the stamp paper, you need to submit it along with the necessary documents to the concerned authorities, such as the Registrar’s office or the Sub-Registrar’s office.
- Pay the stamp duty: You need to pay the stamp duty at the time of submitting the stamp paper. You can pay the stamp duty either in cash or through a demand draft drawn in favor of the concerned authorities.
- Get the stamped document: After the stamp duty is paid, the authorities will stamp the document, indicating that the stamp duty has been paid. You can then collect the document from the authorities.
It is important to note that stamp duty rates and procedures may vary based on the type of transaction and the location within Maharashtra. You should check the relevant guidelines and rules before proceeding with the stamp duty payment.
What are the modes of payment of stamp duty?
In Maharashtra, there are different modes of payment for stamp duty. These include:
- Cash: You can pay the stamp duty in cash at the designated counter in the Registrar’s office or Sub-Registrar’s office.
- Demand Draft: You can pay the stamp duty by drawing a demand draft in favor of the concerned authorities and submitting it at the designated counter.
- Pay Order: You can also pay the stamp duty by drawing a pay order in favor of the concerned authorities and submitting it at the designated counter.
- Online Payment: Maharashtra government has also introduced an online payment system for stamp duty payment called e-stamping. You can make an online payment through the Maharashtra government’s website using net banking, credit card, or debit card.
- Franking: Franking is another mode of stamp duty payment, which involves printing a special adhesive stamp on the document. You can get the document franked from authorized banks or vendors.
It is essential to note that the stamp duty payment modes and procedures may vary depending on the location and type of transaction. You should check the relevant guidelines and rules before proceeding with the stamp duty payment.
What documents required for stamp duty and registration in Maharashtra?
The documents required for stamp duty and registration in Maharashtra may vary depending on the type of transaction. However, some of the commonly required documents are:
- Agreement for Sale: This document is required for the sale of a property and includes details such as the buyer and seller’s names, property details, sale price, payment terms, and possession date.
- Power of Attorney: This document is required when a person authorizes another person to act on their behalf in a property transaction.
- Lease Agreement: This document is required for leasing a property and includes details such as the lessor and lessee’s names, property details, lease term, rent, and security deposit.
- Gift Deed: This document is required when a person gifts a property to another person and includes details such as the donor and donee’s names, property details, and the gift’s value.
- Release Deed: This document is required when a person relinquishes their claim on a property in favor of another person.
- Mortgage Deed: This document is required when a property is mortgaged to a bank or financial institution and includes details such as the mortgagor and mortgagee’s names, property details, loan amount, and interest rate.
Apart from these documents, you will also need to provide identity proof, address proof, and PAN card copies for stamp duty and registration. It is always advisable to check the exact documents required for your transaction with the relevant authorities before proceeding with stamp duty and registration.
Features of Stamp Act –
- Under this law, all instruments where for the behavior done by the person or organization, different stamps for the different behavior by the government, which with the approval of the government, its validity is established.
- The main form of stamp duty is Adhesive or Impressed stamp, which is determined by law, how much stamp duty will be applicable for all the transactions.
- Due to the federal character of the Constitution of India, the rights of both the state and central government are decided according to the law.
- Stamp Act This law works in collaboration with the Registration Act and the Property Act and the Sales and Goods Act in law.
- Documents created through the Stamp Act are very important in the judicial process as evidence.
- The rates fixed for stamp duty, the state and the central government can increase or decrease according to their own, such provisions were made in the law, which we got to see in the corona time where the stamp duty was reduced for some time.
- Where more than one document is made for the same work, the provisions of one stamp have been made by the law, where stamp duty is taken on the main document according to the law and one rupee stamp duty has been prescribed for the rest of the document related to it. She goes .
- This law is known as a financial law like the Income Tax Act, whose main purpose is to determine the tax generated by the government.
Indian Stamp Act 1899 & Registration Act 1908 –
If we want to understand the Indian Stamp Act, then we have to understand the Registration Act as well, in which registration is done mainly in respect of immovable property. Stamp duty is determined under the tax rate given under the Stamp Act and the corresponding authority given by the government, in which paying less stamp duty, more amount has to be paid through penalty.
Since the amount of immovable property is much higher than the rest of the transaction and the possibility and risk of fraud increases greatly, so this law was brought by the Parliament to further protect the documents through the Registration Act. This increases the credibility of these documents as evidence in the legal process. Due to the registration law, this document can remain safe with the government for many years and we can remove it anytime.
There are mainly three ways we can see it to do the registration document, which has been described as the procedure under this law.
- Compulsory to Registration
- Voluntary Registration / Not Compulsory to Registration
- General Registration / Registration with nominal duty
This tax system is run through stamp papers on the basis of the Stamp Act and Registration Act and other laws of temporary property, which mainly works to strengthen the government’s economic system along with major taxes. does, the Registration Act This law is very important for the Stamp Act, which simultaneously works to levy tax for immovable property.
Whom Stamp Duty is Payable –
- Stamp duty is required to be paid for any fixed asset, including will, exchange and gift deed.
- The buying and selling of shares and bonds in the stock market, which takes place in physical form, the transactions in digital form were not kept in this.
- In any transaction where any amount is paid out of interest, stamp duty is charged on the principal amount only.
- Where a lease agreement is made for a fixed asset.
- Bill of Exchange, also known as Hundi in common language, has to pay stamp duty.
- The interest of any transaction is for the government, that stamp duty is not paid.
In this way we have seen that the Indian Stamp Act was introduced for the first time in India in the form of regulation during the Stamp Duty It is a tax levied by any state government for the transaction of the property which is levied according to the list of the Stamp Act and its powers are given to the government to regulate. According to the value of that property at the time of transaction, these stamp rates are determined according to the law of the Stamp Act. time of the East India Company, whose purpose at that time was only to collect revenue. For this, this tax system was mainly run as a provincial state. This law was retained after the independence of India.
In the Stamp Act, we see that it is sold on a large scale from ordinary revenue stamps to the authorized authority of the government through stamp papers, which are used for permanent property and for temporary property and it is used to make documents like affidavits. is used.
It is used as a proof of legal process, therefore it has a legal value, and to prevent fraud in economic dealings, this has been the original purpose of keeping the Stamp Act law and to support the main tax system for the government. For this tax system has proved to be very effective, whose rights have been given by dividing the state and the center according to Schedule VII of the constitution.