The government of India is set to repeal the Indian Stamp Act of 1899. In return, the Centre plans to bring a new law to India. While the Centre aims at bringing these robust changes, here we aim to simplify every bit of the process.
First things first, let's start with understanding stamp duty.
A stamp duty is a form of government tax. This tax is levied to register documents, such as transaction papers and agreements. The amount of stamp duty is generally fixed on the basis of the nature of the documents. It can also be charged at a specified percentage of the agreement value mentioned in the document. One may find this tax applied to a wide array of documents, such as cheques, promissory notes bills of exchange, promissory notes, etc. It is important to note that in a court of law, stamp duties are considered valid evidence.
The stamp duties are imposed by the Centre. However, as per Article 268 of the Constitution, it is the states that appropriate these duties.
The Indian Stamp Act of 1899?
The Indian Stamp Act of 1899 plays the role of a fiscal statute that governs the taxation of transactions by means of stamps.
The Indian Stamp Act of 1899 defines the term "instrument" as any document that creates, transfers, limits, extends, extinguishes, or records any right or liability. Additionally, the Indian Stamp Act of 1899 defines a "stamp" as a mark, endorsement, or seal that is authorized by the State Government for the duty chargeable as per the Act.
Why is the Indian Stamp Bill, 2023 proposed?
As per the Ministry of Finance, various provisions in the Indian Stamp Act of 1899 have become outdated. For instance, the digital world that we live in today requires provisions surrounding it which the Indian Stamp Act of 1899 lacked. The new Bill proposes to add provisions surrounding digital e-stamping. A uniform legislation for stamp duties in all the states of India is also what the new Bill puts forward.
The proposed draft Bill defines the term "electronic stamp" as an impression that is electronically generated and that denotes payment done through electronic means. The new bill also includes provisions for digital signatures. The bill aligns the terms "executed" and "execution" with the terms "signed" and "signature" (terms defined in the Information Technology Act of 2000).
What's more?
The draft Bill thus proposed also talks about raising the penalties. Earlier, the penalty for breaching any provisions of the law, the maximum penalty was Rs 5,000. However, the new bill increases the maximum penalty to Rs 25,000. Moreover, in the case of repeated offenses, a daily penalty of Rs 1,000 is also proposed.
The Indian Stamp Bill of 2023 has been presented on the official website of the Department of Revenue for the purpose of seeking public feedback and scrutiny.
ALSO READ: US Postal Service Stamps Feature Iconic NASA Webb Images, Key Details Here
ALSO READ: How Can You Determine A Fake GST Bill?
Comments
All Comments (0)
Join the conversation