
Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). A physical revenue stamp had to be attached to or impressed upon the document to show that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp.
Indian laws require stamp duty payments on a limited category of transaction documents. Broadly, documents affecting rights and titles to property require stamp duties to be paid. The central government requires stamp duty to be paid on several classes of transaction documents, primarily focused on securities, under the Indian Stamp Act, 1899. In addition, stamp duty may be charged by the state government for other transactions depending on state-specific legislation. For example, Maharashtra state’s stamp duty law is governed by the Maharashtra Stamp Act, 1958 (Bombay Act LX of 1958 )
Note that stamp duty ought to be settled completely and immediately, bombing which, a punishment is collected. A stamp duty record is a lawful instrument that has evidentiary worth (acceptable in a courtroom as proof). Stamp duty must be paid before execution (signature by a person’s gathering) of a given record, the following day, or upon the arrival of archive execution. Stamp duty is paid by a purchaser much of the time.
In any case, both the vender and the purchaser need to bear the weight of stamp duty for property trade cases. According to Section 13 of the Indian Stamp Act, 1899, an individual executing a given instrument needs to drop the stamp (glue) by composing his initials or name across it. In the event that a stamp isn’t dropped in the previously mentioned technique, the record is considered unstamped. At the end of the day, the stamp ought to be noticeable on the essence of an instrument and accordingly, can’t be applied to another instrument.
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