UTTAR PRADESH STAMP ACT, 2008

Preamble 1 - THE UTTAR PRADESH STAMP ACT, 2008

THE UTTAR PRADESH STAMP ACT, 20081

[Act No. 17 of 2010]

[27th March, 2010]

PREAMBLE

An Act to consolidate and amend the law relating to stamp duties in the State of Uttar Pradesh.

It is hereby enacted in the Fifty-ninth Year of the Republic of India as follows :

Statement of Objects and Reasons

The Indian Stamp Act, 1899 which is presently in vogue does not cope with the modern developments and
advancement in information technology. As such, documents which are not covered under this said Act, go
without paying proper stamp duty. With a view to keeping in pace with new technology and development,
it has been decided to make a new enactment by the name of The Uttar Pradesh Stamp Act, 2008 to
consolidate and amend the law relating to stamp duties in the State of Uttar Pradesh.

The Uttar Pradesh Stamp Bill, 20C8 is introduced accordingly.

______________________

1. Received the assent of the President on 27th March, 2010 and Published in the U.P. Gazette, Extra.. Part 1, Section (Ka),

dated 7th April, 2010, pp. 62-119.

Section 1 - Short title, extent, and commencement

(1) This Act may be called The Uttar Pradesh Stamp Act, 2008.

(2) It extends to the whole of Uttar Pradesh.

(3) It shall come into force on such date as the State Government may, by notification, appoint in
this behalf and different dates may be fixed for different provisions.

Section 2 - Definitions

In this Act, unless there is anything repugnant in the subject or context,--

(i) "Association" means any association, exchange, organization or body of individuals,

whether incorporated or not, established for the purpose of regulating and controlling or
conducting business of the sale or purchase of, or making any other transaction relating to,
any goods or marketable securities;

(ii) "Banker" means an association, a company or a person who accepts for the purpose of
lending or investment deposits of money from the public, repayable on demand or
otherwise and withdrawable by cheque, draft, pay-order or otherwise;

(iii) "Bond" includes--

(a) any instrument whereby a person obliges himself to pay money to another, on
condition that the obligation shall be void if a specified act is performed, or is not
performed, as the case may be;

(b) any instrument attested by a witness and not payable to order or bearer,
whereby a person obliges himself to pay money to another; and

(c) any instrument so attested, whereby a person obliges himself to deliver grain or
other agricultural produce to another.

Explanation.--Notwithstanding anything to the contrary contained in any

other law for the time being in force, for the purposes of this clause,
"attested" in relation to an instrument means attested by one or more
witnesses each of whom has seen the executant sign or affix his mark to the
instrument, or has seen some other person sign the instrument in the
presence and by the direction of the executant or has received from the
executant a personal acknowledgement of his signature or mark or of the
signature of such other person, and each of whom has signed the instrument
in the presence of the executant; but it shall not be necessary that more
than one of the such witnesses shall have been present at the same time,
and no particular form of attestation shall be necessary;

(iv) "Chargeable" means, as applied to an instrument executed, or first executed after the
commencement of this Act, chargeable under this Act and, as applied to any other
instruments, chargeable under the law in force in the State when such instrument was
executed or, where several persons executed the instrument at different times, first
executed.

(v) "Chief Controlling Revenue Authority" means a member of the Board of Revenue, a
Divisional Commissioner, an Additional Divisional Commissioner or an officer of the Stamp
Department not below the rank of Deputy Commissioner of Stamps and any such officer as
the State Government may, by notification in the Gazette, appoint in this behalf for the
whole or any part of the State;

(vi) "Clearance List" means a list of transactions relating to contracts required to be

submitted to the Clearing House of an Association in accordance with the rules or bye-laws
of the Association :
 Provided that no instrument shall, for the purposes of this Act, be deemed to be a
clearance list unless it contains the following declaration signed by the persons
dealing in such transactions or on his behalf by a properly constituted attorney,
namely :--

"I/We hereby solemnly declare that the above list contains a complete and
true statement of my/our transactions including crossed out transactions and
transactions required to be submitted to the clearing house in accordance
with the rules/bye-laws of the Association. I/We further declare that no
transaction, for which an exemption is claimed under clause (b) of Article 5
(Agreement or its records or memorandum of an agreement) or Article 44
(Note or Memorandum) of the Schedule of this Act, as the case may be, is
omitted."

Explanation.--Transaction for the purpose of this clause shall include

both sale and purchase.

(vii) "Collector" means the Chief Officer in-charge of Revenue Administration of a District
and includes any officer whom the State Government may, by notification in the Gazette
appoint in this behalf; and on whom any or all the powers of the Collector exercisable under
this bill are conferred either by such notification or by any other like notification.

(viii) "Conveyance" includes--

(a) conveyance oh sale, or

(b) every instrument, or

(c) every decree or final order of any Civil or Revenue Court,

(d) every order made by the High Court under Section 394 of the Companies Act,
1956 (Act No. 1 of 1956) in respect of the amalgamation or reconstruction of
companies, or

(e) every order made by the Reserve Bank of India under Section 44-A of the
Banking Regulation Act, 1949 (Act No. 10 of 1949) in respect of the amalgamation
or reconstruction of banking companies,

(f) transfer of share by co-operative housing societies in immovable property of an

existing member of such society in favour of an incoming person by means of
issuance of new share certificate or by endorsement on the share certificate of the
existing member in favour of the incoming person.

by which property whether movable or immovable is transferred to, or vested in, any other
person, inter vivos, and which is not otherwise specifically provided for by the Schedule.

Explanation.--Notwithstanding anything to the contrary contained in any other

provisions of this Act or any other law for the time being in force, the following
 instruments shall, for the purpose of this clause, be deemed to be an instrument by
which property is transferred inter vivos--

(i) An instrument whereby a co-owner, of a property having defined share

therein, transfers such share or part thereof to another co-owner of the
property; or

(ii) An instrument whereby a partner transfers his share in the property of

the partnership business to another partner or to other partners whether
separately or together with the transfer of other business or assets on
retirement or dissolution, or whereby he contributes to the capital of
partnership firm by transferring his right and title to, or interest in any
property; or

(iii) An instrument whereby the property of an incorporated company or body

corporate is transferred by transfer of its equity shares to another
incorporated company or body corporate, or a person or a group of persons.

(ix) "Duly stamped" as applied to an instrument, means that the instrument bears an
adhesive or impressed stamp of not less than the proper amount and that such stamp has
been affixed or used in accordance with the law for the time being in force in the State, (x)
"Executed" and "execution" used with reference to instruments, means "signed" and
"signature".

Explanation.--The terms "signed" and "signature" also include attribution of

electronic record as provided under Section 11 of the Information Technology Act,
2000, (Act No. 21 of 2000).

(xi) "Government Security" means a Government Security as defined in the Public Debt Act,
1944, (Act No. 18 of 1944);

(xii) "Immovable Property" includes land, buildings, hereditary allowances, right of way,
lights, ferries, fisheries, or any other benefit arising out of land and things attached to the
earth or permanently fastened to anything attached to the earth but does not include
standing timber, growing crops or grass, fruit upon or juice in trees, or beneficial interest of
a beneficiary in a trust property.

(xiii) "Impressed stamp" includes--

(a) labels affixed and impressed by the proper officer, and

(b) stamps embossed and engraved on stamped paper,

(c) impression by franking machine, e-stamping or any other such machine as the
State Government may by notification in the Gazette specify, or

(d) any mark, seal or endorsement by any agency or person duly authorized by the
State Government by notification in the Gazette.
(xiv) "Instrument" includes every document and record created or maintained in or by an
electronic storage and retrieval device, media or electronic record, as defined in clause (t)
of sub-section (1) of Section 2 of the Information Technology Act, 2000 (Act No. 21 of
2000), by which any right or liability is, or purports to be, created, transferred, limited,
extended, vested, extinguished or recorded, but does not include a bill of exchange,
cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of
share, debenture, proxy and receipt.

(xv) "Instrument of Gift" includes an instrument whether by way of declaration or

otherwise, for making or accepting an oral gift.

(xvi) "Instrument of partition" means any instrument whereby co-owners of any property
divide or agree to divide such property in severalty, and also includes,--

(a) a final order for effecting a partition passed by any Revenue Authority, or any
Civil Court;

(b) an award by an arbitrator directing a partition; and

(c) when any partition is effected without executing any such instrument, any
instrument or instruments, signed by the co-owners and recording, whether by way
of declaration of such partition or otherwise, the terms of such partition amongst the
co-owners.

(xvii) "Lease" means a lease of movable or immovable property, and includes--

(a) a patta;

(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to

cultivate, occupy or pay or deliver rent for immovable property;

(c) any instrument by which tolls of any description are let;

(d) any writing on application for a lease intended to signify that the application is
granted;

(e) any instrument by which mining lease is granted in respect of minor minerals as
defined in clause (e) of Section 3 of the Mines and Minerals (Regulation and
Development) Act, 1957, (Act No. 67 of 1957);

(f) a decree or final order of any Civil or Revenue Court in respect of a lease;

(xviii) "Marketable security" means a security of such a description as to be capable of

being sold in any stock market in India.

(xix) "Market value" Market value of property means the value as determined on the basis
of, the rates fixed by the Collector or the consideration as set forth in the instrument,
whichever is higher.

For "Market value of shares" see Explanation (2) to Article 24 (e).

(xx) "Mortgage-deed" includes every instrument whereby, for the purpose of securing
money advanced, or to be advanced, by way of loan, or an existing or future debt, or the
performance of an engagement, one person transfers or creates to, or in favour of, another,
a right over or in respect of specified property;

(xxi) "Paper" includes vellum, parchment or any other material on which an instrument may
be written.

(xxii) "Power-of-attorney" includes any instrument (not chargeable with a fee under the law
relating to court-fees for the time being in force) empowering a specific person to act for
and in the name of the person executing it.

(xxiii) "Public Officer" means a Public Officer as defined in clause (17) of Section 2 of the
Code of Civil Procedure, 1908 (Act No. 5 of 1908) and includes every officer working in
connection with the affairs of any of the following organizations, namely--

(a) any statutory body or authority constituted under any Uttar Pradesh Act;

(b) a "Financing Bank" or "Central Bank" as defined in clause (k) of Section 2 of the
Uttar Pradesh Co-operative Societies Act, 1965 (Act No. 11 of 1966);

(xxiv) "Settlement" means any non-testamentary disposition in writing, of movable or

immovable property made--

(a) in consideration of marriage;

(b) for the purpose of distributing property of the settler among his family, or those
for whom he desires to provide, or for the purpose of providing for some person
dependent on him; or

(c) for any religious or charitable purpose;

and includes an agreement in writing to make such a disposition, and, where any such
disposition has not been made in writing, any instrument recording, whether by way of
declaration of trust ot otherwise, the terms of any such disposition.

(xxv) "Schedule" means the Schedule appended to this Act.

(xxvi) "Soldier" includes any person below the rank of noncommissioned officer, who is
enrolled under the Army Act, 1950 (Act No. 46 of 1950).

(xxvii) "Stamp" means any mark, seal or endorsement by any agency or person duly
authorised by the State Government and includes an adhesive or impressed stamp, for the
purpose of duty chargeable under this Act."

(xxviii) The expressions "Common Roll" and "State Roll" shall have the meanings assigned
to them in the Advocates Act, 1961 (Act No. 25 of 1961).

(xxix) The words and expressions not defined in this Act but defined in the Indian Stamp
Act, 1899 (Act No. 2 of 1899) shall have the meaning assigned to them in the said Act of
 1899.

Section 3 - Instruments chargeable with duty

Subject to the provisions of this Act and the exemptions contained in the Schedule, the following
instruments shall be chargeable with duty of the amount indicated in the Schedule as the proper
duty therefor, respectively, that is to say--

(a) every instrument mentioned in the Schedule which, not having been previously
executed by any person, is executed in the State on or after the date of the commencement
of this Act,

(b) every instrument (other than a bill of exchange or promissory note) mentioned in the
Schedule, which, not having been previously executed by any person, is executed out of the
State under Section 23 :

Provided that expect as otherwise expressly provided in this Act, and

notwithstanding anything contained in clauses (a) and (b) of this section or in the
Schedule, the following instruments shall, subject to the exemptions contained in
the Schedule, be chargeable with duty of the amount indicated in the Schedule as
the proper duty therefore, respectively, that is to say--

(a) every instrument mentioned in the Schedule, which, not having been
previously executed by any person was executed in Uttar Pradesh :

(i) in the case of instruments mentioned in the Schedule, on or after

the date on which the Uttar Pradesh Stamp (Amendment) Act, 1948,
came into force; and

(ii) in the case of instruments mentioned in the Schedule, on or after

the date on which the Uttar Pradesh Stamp (Amendment) Act, 1952,
comes into force;

(b) every instrument, mentioned in the Schedule, which, not having been
previously executed by any person, was executed out of Uttar Pradesh,-

(i) in the case of instruments mentioned in the Schedule, on or after

the date on which the Uttar Pradesh Stamp (Amendment) Act, 1948,
came into force; and

(ii) in the case of instruments mentioned in the Schedule on or after

the date on which the Uttar Pradesh Stamp (Amendment) Act, 1952
comes into force, and relates to any property situated, or to any
matter or thing done or to be done in Uttar Pradesh, and is received
in Uttar Pradesh :

Provided also that no duty shall be chargeable in respect of--

 (1) any instrument executed by, or on behalf of, or in favour of the
Government, in cases where, but for this exemption, the Government
would be liable to pay the duty chargeable in respect of such
instrument;

(2) any instrument for the sale, transfer or other disposition, either
absolutely, or by way of mortgage, or otherwise, of any ship or vessel,
or any part, interest, share or property of, or in any ship or vessel
registered under the Merchant Shipping Act, 1958 (Act No 44 of
1958). or under Bombay Coasting Vessels Act, 1838 (Act XIX of
1838), or the Indian Registration of Ships Act, 1841 (Act No. 10 of
1841), as amended by subsequent Acts;

(3) any instrument executed by or on behalf of or in favour of, the

developer, or unit or in connection with the carrying out of purposes
of a Special Economic Zone.

Explanation

(1) For the purposes of this clause the expressions "developer", "special economic zone" and "unit"
shall have meaning respectively assigned to them in clause (g), (za), and (zc) of Section 2 of the
Special Economic Zones Act, 2005 (Act No. 28 of 2005)

(2) Where the amount of duty prescribed in the Schedule contains any fraction of a ten rupee, the
proper duty shall be an amount rounded of to the next higher multiple of ten rupee, as hereinafter
appearing in the said Schedule.

Section 4 - Several instruments used in any single transaction

(1) Where several instruments are employed for completing any single transaction, the principal
instrument only shall be chargeable with the duty prescribed in the Schedule for the same and
each of the other instruments shall be chargeable with a duty of one hundred rupees instead of the
duty (if any) prescribed for it in that Schedule;

(2) The parties may determine for themselves, which of the instruments so employed shall, for the
purposes of sub-section (1), be deemed to be the principal instrument:

Provided that the duty chargeable on the instrument so determined, shall be the highest
duty which would be chargeable in respect of any of the said instruments employed.

Section 5 - Instrument relating to several distinct matters

Any instrument comprising or relating to several distinct matters shall be chargeable with the
aggregate amount of the duties with which separate instruments, each comprising or relating to
one of such matters, would be chargeable under this Act.

Section 6 - Instruments coming within several descriptions in the Schedule

 Subject to the provisions of Section 5, an instrument so framed as to come within two or more of
the descriptions in the Schedule shall, where the duties chargeable thereunder are different, be
chargeable only with the highest of such duties :

Provided that nothing in this Act contained shall render chargeable with duty exceeding fifty
rupees, a counterpart or duplicate of any instrument chargeable with duty and in respect of
which the proper duty has been paid unless it falls within the provisions of Section 7.

Section 7 - Payment of the Uttar Pradesh stamp duty on copies, counterparts or duplicates,
when that duty has not been paid on the principal or original instrument

(1) Notwithstanding anything contained in Section 4 or 6 or any other law, unless it is proved that
the duty chargeable under this Act has been paid,--

(a) on the principal or original instrument, as the case may be, or

(b) in accordance with the provisions of this section;

the duty chargeable on any one of the several instruments employed for completing a transaction,
other than the principal instrument, or on a counterpart, duplicate or copy of any instrument shall,
if the principal or original instrument would, when received in Uttar Pradesh, have been chargeable
under this Act, with a higher rate of duty, be the duty with which the principal or original
instrument would have been chargeable under Section 24.

(2) Where any instrument is registered in any part of India other than Uttar Pradesh and the
instrument relates wholly or partly to any property situated in Uttar Pradesh, the copy of such
instrument shall, when received in Uttar Pradesh, be liable to be charged with the difference of
stamp duty as on the original under Section 24 to the extent of and in proportion to the
consideration or value of the property situated in Uttar Pradesh, and the party liable to pay the
stamp duty on the original instrument shall, upon receipt of notice from the registering officer pay
the difference in duty within the time allowed.

(3) Notwithstanding anything contained in any other law, no instrument, counterpart, duplicate or
copy chargeable with duty under this section shall be received in evidence as properly stamped
unless the duty chargeable under this section has been paid thereon :

Provided that a Court before which any such instrument, counterpart, duplicate or copy is
produced, may, in its discretion, permit the duty chargeable under this section to be paid
thereon, and may then receive it in evidence.

Section 8 - Bonds, debentures or other securities issued on loans

(1) Notwithstanding anything contained in this Act, any local authority raising a loan under the
provisions of the Local Authorities Loan Act, 1914 (Act No. 9 of 1914), or of any other law for the
time being in force, by the issue of bonds, or securities other than debentures, shall, in respect of
such loan, be chargeable with a duty of two per centum on the total amount of the bonds or
 securities issued by it, and such bonds or securities need not be stamped and shall not be
chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

(2) The provisions of sub-section (1), exempting certain bonds or securities from being stamped
and from being chargeable with certain further duty, shall apply to the bonds or securities other
than debentures of all outstanding loans of the kind mentioned therein, and all such bonds, or
securities shall be valid, whether the same are stamped or not:

(3) In the case of willful neglect to pay the duty required by this section, the local authority shall
be liable to forfeit to the State Government a sum equal to ten per centum upon the amount of
duty payable, and a like penalty for every month after the first month during which the neglect
continues.

Section 9 - Securities dealt in depository not liable to stamp duty

(1) Notwithstanding anything contained in any other provision of this Act or any other law for the
time being in force,--

(a) an issuer, by the issue of securities to one or more depositories shall, in respect of such
issue, be chargeable with duty on the total amount of security, issued by it and such
securities need not be stamped;

(b) where an issuer issues certificate of security under sub-section (3) of Section 14 of the
Depositories Act, 1996 (Act No. 22 of 1996) on such certificate duty shall be payable as is
payable on the issue of duplicate certificate under this Act;

(c) transfer of--

(i) registered ownership of securities from a person to a depository or from a

depository to beneficial owner;

(ii) beneficial ownership of securities, dealt by a depository;

(iii) beneficial ownership of units, such units being units of a mutual fund including
units of the Unit Trust-of India established under sub-section (1) of Section 3 of the
Unit Trust of India Act, 1963 (Act No. 52 of 1963) dealt with a depository,

shall not be liable to duty under this Act or any other law for the time being in force.

Explanation.--1. For the purposes of this section, the expression "beneficial ownership",
"depository" and 'issuer" shall have the same meanings respectively assigned to them in
clauses (a), (e) and (f) of sub-section (1) of Section 2 of the Depositories Act, 1996 (Act
No. 22 of 1996).

Explanation.--2. For the purposes of this section, the expression, "securities" shall have the
meaning assigned to it in clause (h) of sub-section (2) of Section 2 of the Securities
Contracts (Regulation) Act, 1956 (Act No. 42 of 1956).
Section 10 - Corporatisation and demutualization Schemes and related instruments not liable to
duty

Notwithstanding anything contained in any other provision of this Act or any other law for the time
being in force--

(a) a scheme for corporatisation or demutualization, or both of a recognized stock

exchange; or

(b) any instrument, including an instrument of or relating to, transfer of any property,
bunsiness, asset, whether movable or immovable, contract, right, liability and obligation, for
the purpose of, or in connection with, the corporatisation or demutualization or both of a
recognized stock exchange pursuant to a scheme, as approved by the Securities and
Exchange Board of India under subsection (2) of Section 4-B of the Securities Contracts
(Regulation) Act, 1956 (Act No. 42 of 1956) shall not be liable to duty under this bill or any
other law for the time being in force.

Explanation.--For the purposes of this section--

(a) The expressions "Corporatisations" "demutualization" and "scheme" shall

have the meanings respectively assigned to them in clauses (aa), (ab) and
(ga) of Section 2 of the Securities Contracts (Regulation) Act, 1956 (Act No.
42 of 1956).

(b) "Securities and Exchange Board of India" means the Securities and
Exchange Board of India established under Section 3 of the Securities and
Exchange Board of India Act, 1992 (Act No. 15 of 1992).

Section 11 - Negotiable warehouse receipts not liable to stamp duty

Notwithstanding anything contained in this Act, negotiable warehouse receipts shall not be liable to
stamp duty.

Section 12 - Power to reduce, remit or compound duties

(1) Where the State Government is satisfied that it is necessary so to do in public interest, it may,
by rule or order published in the Gazette--

(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of the
State the duties with which any instrument, or any particular class of instruments, or any of
the instruments belonging to such class, or any instruments when executed by or in favour
of any particular class of persons, or by, or in favour of any members of such class, are
chargeable; and

(b) provide for the composition or consolidation of duties in the case of issues by any
incorporated company or other body corporate or of transfers (where there is a single
transferee, whether incorporated or not) of bonds or other marketable securities other than
debentures :
 Provided that the State Government shall have the power to impose conditions while
remitting or reducing stamp duty :

Provided further that in the case of breach of the conditions imposed in the rule or
order to reduce or remit stamp duty, the Collector shall have the power to recover
the stamp duty so remitted or reduced alongwith an interest of one percent for
every month or part thereof from the date of execution of the instrument on which
stamp duty has been so remitted or reduced after giving a proper opportunity of
hearing to the party concerned.

Section 13 - Duties how to be paid

(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are
chargeable shall be paid, and such payment shall be indicated on such instruments by means of
stamps,--

(a) according to the provisions herein contained; or

(b) where in any case no such provision is applicable thereto in accordance with the rules
made by the State Government.

(2) The rules made under sub-section (1) may, among other matters, provide for regulating--

(a) the description of stamps which may be used in the case of each kind of instrument,

(b) the numbers of stamps which may be used in the case of instruments stamped with
impressed stamps.

(3) Subject to the rules made under sub-section (1), the State Government in this behalf, may
authorize any person, body or organization including Post offices or Banks or any other financial
institution to use machines for franking impression of stamps, e-stamping, mark, seal or
endorsement indicating the payment of stamp duty of the instruments.

Section 14 - Payment of stamp duty by cash, by demand draft or by pay order in certain cases

(1) Notwithstanding anything contained in Section 13, the stamp duty payable on an instrument
may also be paid in cash or by demand draft or by pay order or by challan in the banking treasury
or the treasury, countersigned by an officer empowered by the State Government by notification in
this behalf. The officer so empowered on production of such challan and after due verification that
the duty has been paid, certify in such manner as may be prescribed by endorsement on the
instrument of the amount of duty so paid.

(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if
the duty of an amount equal to the amount stated in the endorsement has been paid in respect
thereof and such payment has been indicated on such instrument by means of stamps in
accordance with the requirements of Section 13.
 Explanation,--For the purposes of this sub-section, the expressions, "demand draft" or "by
pay order" means the demand draft or pay order issued by the State Bank of India
Constituted under the State Bank of India Act, 1955, (Act No. 23 of 1955) or a
corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition
and Transfer of Undertaking) Act, 1970 (Act No. 5 of 1970) or under Section 3 of the
Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (Act No. 40 of
1980), or any other bank being a scheduled Bank as defined in clause (e) of Section 2 of
the Reserve Bank of India Act, 1934 (Act No. 2 of 1934).

Section 15 - Stock Exchange and Association to deduct stamp duty from Trading member's
account

Notwithstanding anything contained in this Act, in the case of transactions through Stock Exchange
or an Association as defined in clause (a) of Section (2) of the Forward Contracts (Regulation) Act,
1952, (Act No. 74 of 1952), the Stock Exchange or as the case may be, the Association, shall
collect the due stamp duty by deducting the same from the Trading Member's account at the time
of settlement of such transactions. The stamp duty so collected shall be transferred to the proper
Head of Account in any Government Treasury/Sub-Treasury or Government Business Branch of the
State Bank of India or any other bank authorized by the State Government for this purpose, and in
the manner specified by Commissioner of Stamps.

Explanation--For the purposes of this section, "stock exchange" means the stock Exchange
as defined in clause (j) of sub-section (2) of the Securities Contract (Regulation) Act, 1956
(Act No. 42 of 1956).

Section 16 - Use of adhesive stamps

The following instruments may be stamped with adhesive Stamps, namely--

(a) certificate of enrolment under Section 22 of the Advocates Act, 1961 (Act No. 25 of
1961), issued by the State Bar Council of Uttar Pradesh;

(b) notarial acts; and

(c) transfers by endorsement of shares in any incorporated company or other body

corporate.

Section 17 - Cancellation of adhesive stamps

(1) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been
executed by any person shall, when affixing such stamp, cancel the stamp so that it cannot be
used again.

(2) Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of
execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so
that it cannot be used again.
 (3) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be
used again, shall, so far as such stamp is concerned, be deemed to be unstamped.

(4) The person required by sub-section (1) or sub-section (2) to cancel an adhesive stamp may
cancel it by writing on or across the stamp his name or initials or the name or initials of his firm
with the true date of his so writing or in any other effectual manner.

Section 18 - Instruments stamped with impressed stamps how to be written

Every instrument written upon paper stamped with an impressed stamp shall be written in such
manner that the stamp may appear on the face of the instrument and cannot be used for or
applied to any other instrument.

Section 19 - Only one instrument to be on same stamp

No second instrument chargeable with duty shall be written upon a piece of stamped paper upon
which an instrument, chargeable with duty, has already been written :

Provided that nothing in this section shall prevent any endorsement, which is duly stamped,
or is not chargeable with duty, being made upon any instrument for the purpose of
transferring any right created or evidenced thereby, or of acknowledging the receipt of any
money or goods, the payment or delivery of which is secured thereby.

Section 20 - Instrument written contrary to Section 18 or Section 19 deemed unstamped

Every instrument written in contravention of Section 18 or Section 19 shall be deemed to be

unstamped.

Section 21 - Denoting duty

Where the duty with which an instrument is chargeable or its exemption from duty, depends in any
manner upon the duty actually paid in respect of another instrument, whether registered or not
under the Registration Act, 1908 (Act No. 16 of 1908), the payment of such last mentioned duty
shall, if application is made in writing to the Collector for that purpose, and on production of both
the instruments, be denoted upon such first mentioned instrument, by endorsement under the
hand of the Collector, or in such manner (if any) as the State Government may by rule prescribe.

Section 22 - Instruments executed in the State

All instruments chargeable with duty and executed by any person in the State shall be stamped
before or at the time of execution.

Section 23 - Instruments, other than bills and notes executed out of Uttar Pradesh

(1) Every instrument chargeable with duty, executed only out of Uttar Pradesh and not being a bill
of exchange or promissory note, may be stamped within three months after it has been first
 received in Uttar Pradesh.

(2) Where any such instrument cannot, with reference to the description of stamp prescribed
therefor, be duly stamped by a private person, it may be taken within the said period of three
months to the Collector, who shall stamp the same, in such manner as the State Government may,
by rule prescribe, with a stamp of such value as the person so taking such instrument may require
and pay for.

Section 24 - Payment of duty on instruments liable to be increased duty in Uttar Pradesh under
Clause (b) and Clause (d) of Section 3

Where any instrument has become chargeable in any of the States, other than the Uttar Pradesh,
with duty under this Act or any other law for the time being in force, in any of such States, and
thereafter becomes chargeable with a higher rate of duty in Uttar Pradesh under Clause (b) of the
first proviso to Section 3, then--

(i) notwithstanding anything contained in the first proviso to Section 3, the amount of duty
chargeable on such instrument shall be the amount chargeable on it under the Schedule,
less the amount of duty, if any, already paid on it in such States; and

(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be
stamped with the stamps necessary for payment of the amount of duty chargeable on it
under clause (i) in the same manner and at the same time and by the same persons as
though such instrument were an instrument received in the States for the first time, at the
time, when it became chargeable with the higher duty.

Section 25 - Conversion of amount expressed in foreign currencies

(1) Where an instrument is chargeable with ad valorem duty in respect of any money expressed in
any currency other than of India, such duty shall be calculated on the value of such money in the
currency of India according to the current rate of exchange on the day of the date of the
instrument.

(2) The rate of exchange for conversion of British or any foreign currency into the currency of India
prescribed under sub-section (2) of Section 20 of the Indian Stamp Act, 1899 (Act No. 2 of 1899)
shall be deemed to be the current rate for the purpose of sub-section (1).

Section 26 - Stock and marketable securities--how to be valued

Where an instrument is chargeable with ad valorem duty in respect of any stock or of any
marketable or other security, such duty shall be calculated on the value of such stock or security
according to the average price or the value thereof on the day of the date of the instrument.

Section 27 - Effect of statement of rate of exchange or average price

Where an instrument contains a statement of current rate of exchange, or average price as the
case may require, and is stamped in accordance with such statement, it shall, so far as regards the
 subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

Section 28 - Instruments reserving interest

Where interest is expressly made payable by the terms of an instrument, such instrument shall not
be chargeable with duty higher than that with which it would have been chargeable had no mention
of interest been made therein.

Section 29 - Certain instruments connected with mortgages of marketable securities to be

chargeable as agreements

(1) Where an instrument (not being a promissory note or bill of exchange)--

(a) is given upon the occasion of the deposit of any marketable security by way of security
for money advanced, or to be advanced by way of loan, or for an existing or future debt, or

(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any
marketable security,

it shall be chargeable with duty as if it were an agreement or its records or memorandum of an

agreement chargeable with duty under clause (h) of Article No. 5 of the Schedule.

(2) A release or discharge of any such instrument shall only be chargeable with like duty.

Section 30 - How transfer in consideration of debt, or subject to future payment etc. to be

charged

Where any property is transferred to any person in consideration wholly, or in part, of any debt due
to him, or subject either certainly or conditionally to the payment or transfer of any money or
stock, whether being or constituting a charge or encumbrance upon the property or not, such debt,
money or stock shall be deemed to be the whole or part, as the case may be, of the consideration
in respect whereof the transfer is chargeable with ad valorem duty :

Provided that nothing in this section shall apply to any such certificate of sale as is
mentioned in Article 18 of the Schedule.

Explanation.--In the case of a sale of property subject to mortgage or other

encumbrance, any unpaid mortgage money or money together with the interest (if
any) due on the same, shall be deemed to be part of the consideration for the sale :

Provided that where any property subject to a mortgage is transferred to the mortgagee, he
shall be entitled to deduct from the duty payable on the transfer, the amount of any duty
already paid in respect of the mortgage.

Illustrations

(1) A owes B Rs. 1000. A sells property to B, the consideration being Rs. 500 and the release of
the previous debt of Rs. 1000. Stamp duty is payable on Rs. 1500.
 (2) A sells a property to B for Rs. 500, which is subject to a mortgage to C for Rs. 1000 and unpaid
interest Rs. 200. Stamp duty is payable on Rs, 1700.

(3) A mortgaged a house of the value of Rs. 10,000 to B for Rs. 5000 B afterwards buys the house
from A. Stamp duty is payable on Rs. 10,000 less the amount of stamp duty already paid for the
mortgage.

Section 31 - Valuation in case of Annuity, etc.

Where an instrument is executed to secure the payment of an annuity, or other sum payable
periodically, or where the consideration for a conveyance is an annuity, or other sum payable
periodically, the amount secured by such instrument or the consideration for such conveyance, as
the case may be, shall, for the purposes of this Act, be deemed to be--

(a) where the sum is payable for a definite period so that the total amount to be paid can
be previously ascertained such total amount;

(b) where the sum is payable in perpetuity, or for an indefinite time, not terminable with
any life in being at the date of such instrument, or conveyance--the total amount which
according to the terms of such instrument or conveyance, will or may be payable during the
period of twenty years calculated from the date on which the first payment becomes due;
and

(c) where the sum is payable for an indefinite time terminating with any life in being at the
date of such instrument, or conveyance--the maximum amount which will or may be
payable as aforesaid, during the period of twelve years calculated from the date on which
the first payment becomes due.

Section 32 - Stamp where value of subject matter is indeterminate

Where the amount or value of the subject matter of any instrument, chargeable with ad valorem
duty cannot be, or in the case of an instrument executed before the commencement of this Act,
could not have been ascertained at the date of its execution or first execution, nothing will be
claimable under such instrument more than the highest amount or value for which, if stated in an
instrument of the same description, the stamp actually used, would at the date of such execution,
have been sufficient:

Provided that in the case of the lease of a mine, in which royalty, or a share of the produce
is received as the rent, or part of rent, it shall be sufficient to have estimated such royalty
or the value of such share, for the purposes of stamp duty --

(a) when the lease has been granted by or on behalf of the Government, at such
amount or value, as the Collector may, having regard to all the circumstances of the
case, have estimated as likely to be payable by way of royalty or share to the
Government under the lease;
 (b) when the lease has been granted by any other person, at twenty thousand
rupees a year;

and the whole amount of such royalty or share, whatever it may be, shall be claimable
under such lease :

Provided also that, where proceedings have been taken in respect of an instrument under
Section 37 or 46, the amount certified by the Collector shall be deemed to be the stamp
actually used at the date of execution.

Section 33 - Facts affecting duty to be set forth in instrument

(1) The consideration (if any) and all other facts and circumstances affecting the chargeability of
any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and
truly set forth therein.

(2) In the case of instruments relating to immovable property, chargeable with an ad valorem duty
on the value of the property, and not on the value set forth, the instrument shall fully and truly set
forth the annual land revenue in the case of revenue paying land, the annual rental or gross assets,
if any, in the case of other immovable property, the local rates Municipal or other taxes, if any, to
which such property may be subject, and any other particulars, which may be prescribed by rules
made under this Act.

Section 34 - Direction as to duty in case of certain conveyances

(1) When any property has been contracted to be sold for one consideration for the whole, and is
conveyed to the purchaser in separate parts by different instruments, the consideration shall be
apportioned in such manner as the parties think fit, provided that a distinct consideration for each
separate part is set forth in the conveyance relating thereto and such conveyance shall, be
chargeable with ad valorem duty in respect of such distinct consideration or the market value of
such separate part of the property, whichever is higher.

(2) Where property contracted to be purchased for one consideration for the whole, by two or more
persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts
by separate instruments to the persons by or for whom the same was purchased, for distinct parts
of the consideration, the conveyance of each separate part shall be chargeable with ad valorem
duty in respect of the distinct part of the consideration therein specified or the market value of the
property, whichever is higher.

(3) Where a person, having contracted for the purchase of any property but not having obtained a
conveyance thereof, contracts to sell the same to any other person and the property is in
consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with
ad valorem duty in respect of the consideration for the sale by the original purchaser to the
subpurchaser or the market value of the property, whichever is higher.

(4) Where a person, having contracted for the purchase of any property, but not having obtained a
conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or
 persons, and the property is in consequence conveyed by the original seller to different persons in
parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem
duty in respect only of the consideration paid by such sub-purchaser or the market value of the
property, whichever is higher, without regard to the amount or value of the original consideration;
and the conveyance of the residue (if any)' of such property to the original purchaser shall be
chargeable with ad valorem . duty in respect only of the excess of the original consideration over
the aggregate of the considerations paid by the sub-purchaser or the market value of the property,
whichever is higher :

Provided that the duty on such last-mentioned conveyance shall in no case be less than one
hundred rupees.

(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately
selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him
or the market value of the property, whichever is higher and is duly stamped accordingly, any
conveyance to be afterwards made to him of the same property by the original seller shall be
chargeable with a duty equal to that which would be chargeable on a conveyance for the
consideration obtained by such of original seller, or where such duty would exceed one hundred
rupees, with a duty of one hundred rupees.

Section 35 - Duty by whom payable

In the absence of an agreement to the contrary, the expense of providing the proper stamp shall
be borne :

(a) in the case of any instrument described in any of the following Articles of the Schedule,
namely--

No. 2. (Administration Bond);

(Agreement relating to Deposit of Title-deeds, Pawn,

No. 6.
Hypothecation or Pledge);

No. 14. (Bond);

No. 15. (Bottomary Bond);

No. 27. (Customs Bond);

No. 31. (Further Charge);

No. 33. (Indemnity-bond);

No. 41. (Mortgage-deed);

No. 44. (Note or memorandum);

No. 53. (Release);

No. 54. (Respondentia Bond);

No. 55. (Security Bond not being a Mortgage-deed);

 No. 56. (Settlement);

(Transfer of shares in an incorporated company or other

No. 60 (a).
corporate);

(Transfer of debentures, being marketable securities, whether

No. 60 (b). the debenture is liable to duty or not, except debentures
provided by Section 8);

(Transfer of any interest secured by a bond, mortgage-deed or

No. 60 (c).
policy of insurance).

by the person drawing, making or executing such instrument:

(b) in the case of a conveyance (including a re-conveyance of mortgaged property)--

by the grantee : in the case of a lease or agreement to lease--by the lessee or

intended lessee;

(c) in the case of transfer of one company to another under the order of the High Court
under Section 394 of the Companies Act, 1956 (Act No. 1 of 1956), the stamp duty shall be
borne by the company which is acquiring or re-constructing the assets and liabilities under
sub-clause (d) of clause (viii) of Section 2;

(d) in the case of acquisition of one bank by another bank under the provisions of Section
44-A of the Banking Companies Act, 1949 (Act No. 46 of 1949), the stamp duty shall be
borne by the bank which is acquiring or re-constructing the other bank under sub-clause (e)
of clause (viii) of Section 2;

(e) in the case of transfer of property by any incorporated company or body corporate by
the transfer of equity shares to another company or body corporate, the stamp duty shall
be borne by the transferee company which is acquiring under explanation (iii) of clause
(viii) of Section 2;

(f) in the case of a counterpart of a lease--by the lessor;

(g) in the case of an instrument of exchange--by the parties in equal shares;

(h) in the case of a certificate of sale--by the purchaser of the property to which such
certificate relates;

(i) in the case of an instrument of Gift--by the donee; and (j) in the case of an instrument
of partition--by the parties thereto in proportion to their respective shares in the whole
property partitioned, or, when the partition is made in execution of an order passed by a
Revenue Authority or in Civil Court, or an Arbitrator, in such proportion as such Authority,
Court or an Arbitrator directs.

Section 36 - Adjudication as to proper stamp

 (1) When any instrument whether executed or not, and whether previously stamped or not, is
brought to the Collector, and the person bringing it applies to have the opinion of that officer as to
the duty (if any), with which it is chargeable, and pays a fee of rupees one hundred (subject to
such other amount as may be fixed by the State Government by notification in the Gazette), the
Collector shall determine the duty (if any) with which, in his judgment, the instrument is
chargeable

(2) For this purpose the Collector may require to be furnished with an abstract of the instrument,
and also with such affidavit or other evidence, as he may deem necessary to prove that all the
facts and circumstances affecting the chargeability of the instrument with duty, or the amount of
the duty with which it is chargeable, are fully and truly set forth therein and may refuse to proceed
upon any such application until such abstract and evidence have been furnished accordingly:

Provided that--

(a) no evidence furnished in pursuance of this section shall be used against any
person in any civil proceeding, except in an enquiry as to the duty with which the
instrument, to which it relates, is chargeable; and

(b) every person by whom any such evidence is furnished, shall, on payment of the
full duty with which the instrument to which it relates, is chargeable, be relieved
from any penalty which he may have incurred under this Act by reason of the
omission to state truly in such instrument any of the facts or circumstances
aforesaid.

Section 37 - Certificate by Collector

(1) When an instrument brought to the Collector under Section 36 is, in his opinion, one of a
description chargeable with duty, and--

(a) the Collector determines that it is already fully stamped, or

(b) the duty determined by the Collector under Section 36 or such a sum as, with the duty
already paid in respect of the instrument, is equal to the duty so determined has been paid
the Collector shall certify by endorsement on such instrument that the full duty (stating the
amount) with which it is chargeable has been paid.

(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in
manner aforesaid that such instrument is not so chargeable.

(3) Any instrument upon which an endorsement has been made under this section, shall be
deemed to be duly stamped, or not chargeable with duty, as the case may be, and if chargeable
with duty, shall be receivable in evidence or otherwise, and may be acted upon and registered as if
it had been originally duly stamped:

Provided that nothing in this section shall authorize the Collector to endorse--
 (a) any instrument, other than an instrument chargeable with a duty under clause
(b) of the first proviso to Section 3, executed or first executed in Uttar Pradesh and
brought to him after the expiration of one month from the date of its execution or
first execution, as the case may be;

(b) any instrument chargeable with duty under clause (b) of the first proviso to
Section 3, and brought to him, after the expiration of three months from the date on
which it is first received in Uttar Pradesh.

Section 38 - Examination and impounding of instruments

(1) Every person having by law or consent of parties authority to receive evidence, and every
person uncharge of a public office, except an officer of police, before whom any instrument,
chargeable, in his opinion with duty, is produced or comes in the performance of his duties, shall, if
it appears to him that such instrument is not duly stamped, impound the same.

(2) For that purpose every such person shall examine every instrument so chargeable and so
produced or coming before him, in order to ascertain whether it is stamped with a stamp of the
value and description required by the law in force in India, when such instrument was executed, or
first executed :

Provided that--

(a) nothing herein contained shall be deemed to require any Magistrate, or Judge of
a criminal Court to examine or impound if he does not think fit so to do, any
instrument coming before him in the course of any proceeding other than a
proceeding under Section 125 to 128 and section 145 to 148 of the Code of Criminal
Procedure, 1973 (Act No. 2 of 1974).

(b) in the case of Judge of a High Court, the duty of examining and impounding any
instrument under this section may be delegated to such officer as the Court appoints
in this behalf.

(3) For the purposes of this section, the State Government may, in cases of doubt, determine what
offices shall be deemed to be public offices and who shall be deemed to be persons in charge of
public offices.

(4) Where deficiency in stamp duty paid is noticed from the copy of an instrument, the Collector
may suo motu or on a reference from any Court, or from the Commissioner of Stamps, or an
Additional Commissioner of Stamps, or a Deputy Commissioner of Stamps, or an Assistant
Commissioner of Stamps call for the original instrument for the purpose of satisfying himself as to
the adequacy of the duty paid thereon, and the instrument so produced before the Collector shall
be deemed to have been produced, or come before, him in the performance of his functions.

(5) In case the instrument is not produced within the period specified by the Collector, he may
require payment of deficit stamp duty, if any, together with penalty under Section 45 on the copy
of the instrument:
 Provided that no action under sub-section (4) or sub-section (5) shall be taken after a
period of four years from the date of execution of the instrument :

Provided further that with the prior permission of the State Government an action under
sub-section (4) or sub-section (5) may be taken after a period of four years but before a
period of eight years from the date of execution of the instrument.

Section 39 - Instruments not duly stamped, inadmissible in evidence, etc.

No instrument chargeable with duty shall be admitted in evidence for any purpose by any person,
having by law, or consent of parties authority to receive evidence, or shall be acted upon,
registered or authenticated by any such person or by any public officer, unless such instrument is
duly stamped :

Provided that--

(a) Any such instrument shall be admitted in evidence on payment of the duty with
which the same is chargeable, or, in the case of an instrument insufficiently
stamped, of the amount required to make up such duty, together with a penalty of
an amount not less than one time but not exceeding four times of the amount of
proper duty or of the deficient portion thereof;

(b) Where a contract or agreement of any kind is effected by correspondence

consisting of two or more letters, and any one of the letters bears the proper stamp,
the contract or agreement shall be deemed to be duly stamped;

(c) Nothing herein contained shall prevent the admission of any instrument in
evidence in any proceeding in a Criminal Court, other than a proceeding under
Section 125 to 128 and Sections 145 to 148 of the Code of Criminal Procedure, 1973
(Act No. 2 of 1974);

(d) Nothing herein contained shall prevent the admission of any instrument in any
Court when such instrument has been executed by or on behalf of the Government
or where it bears the certificate of the Collector as provided by Section 37 or any
other provision of this Act.

Section 40 - Admission of instrument where not to be questioned

Where an instrument has been admitted in evidence, such admission shall not, except as provided
in Section 63, be called in question at any stage of the same suit or proceeding on the ground that
the instrument has not been duly stamped.

Section 41 - Admission of improperly stamped instruments

The State Government may make rules providing that, where an instrument bears a stamp of
sufficient amount but of improper description, it may, on payment of the duty with which the same
 is chargeable, be certified to be duly stamped, and any instrument so certified, shall then be
deemed to have been duly stamped as from the date of its execution.

Section 42 - Instruments impounded, how dealt with

(1) When the person impounding an instrument under Section 38 has by law, or consent of parties,
authority to receive evidence and admits such instrument in evidence upon payment of a penalty
as provided by Section 39, or of duty as provided by Section 41, he shall send to the Collector an
authenticated copy of such instrument together with a certificate in writing, stating the amount of
duty and penalty levied in respect thereof, and shall send such amount to the Collector, or to such
other person as he may appoint in this behalf.

(2) In every other case, the person so impounding an instrument shall sent it in original to the
Collector.

Section 43 - Collector's power to stamp instruments impounded

(1) When the Collector impounds any instrument under Section 38, or receives any instrument sent
to him under sub-section (2) of Section 42, not being a receipt, or a bill of exchange or a
promissory note, he shall adopt the following procedure :

(a) if he is of the opinion that such instrument is duly stamped, or is not chargeable with
duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so
chargeable, as the case may be;

(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped,
he shall require the payment of the amount required to make up the deficiency together
with a penalty of an amount not exceeding four times the amount of deficient portion of the
proper duty:

Provided that, when such instrument has been impounded only because it has been
written in contravention of Section 18 or Section 19, the Collector may, if he thinks
fit, remit the whole penalty prescribed by this section :

Provided further that no penalty shall be levied unless the party concerned has been
given a reasonable opportunity of being heard.

(2) The Collector shall also require, alongwith the amount of deficit stamp duty or penalty required
to be paid under clause (b) of sub-section (1), the payment of a simple interest at the rate of one
percent per mensem on the amount of deficit stamp duty calculated from the date of execution of
the instrument till the date of actual payment:

Provided that the amount of interest under this sub-section shall be recalculated if the
amount of deficit stamp duty is varied on appeal or revision or by any order of a Competent
Court or Authority.

(3) The amount of interest payable under sub-section (2) shall be added to the amount due and be
also deemed for all purposes to be part of the amount required to be paid.
 (4) Where realization of the deficit stamp duty remained stayed by any order of any Court or
Authority and such order of stay is subsequently vacated, the interest referred to in sub-section (2)
shall be payable also for any period during which such order of stay remained in operation.

(5) Any amount paid or deposited by, or recovered from or refundable to any person under the
provisions of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding
against him and the excess, if any, shall then be adjusted towards the interest, if any, due from
him.

(6) Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be
conclusive evidence of the matter stated therein.

(7) Where an instrument has been sent to the Collector, under sub-section (2) of Section 42, the
Collector shall, when he has dealt with it as provided by the section, return it to the impounding
officer.

Section 44 - Instruments unduly stamped by accident

If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable
with a duty not exceeding twenty paise only, is produced by any person of his own motion before
the Collector within one year, from the date of its execution or first execution, and such person
brings to the notice of the Collector the fact that such instrument is not duly stamped and offers to
pay to the Collector the amount of the proper duty, or the amount required to make up the same,
and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned
by accident, mistake or urgent necessity, he may, instead or proceeding under Sections 38 and 43,
receive such amount and proceed as next hereinafter prescribed.

Section 45 - Endorsement of instruments on which duty has been paid under Sections 39, 43,
44 or 49

(1) When the duty and penalty (if any), leviable in respect of any instrument have been paid under
Sections 39, Section 43 or Section 44 or Section 49, the person admitting such instrument in
evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper
duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been
levied in respect thereof, and the name and residence of the person paying them.

(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be
registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered
on his application in this behalf to the person from whose possession it came into the hands of the
officer impounding it, or as such person may direct:

Provided that--

(a) no instrument which has been admitted in evidence upon payment of duty and a
penalty under Section 39, shall be so delivered before the expiration of one month
from the date of such impounding, or if the Collector has certified that its further
detention is necessary and has not cancelled such certificate;
 (b) nothing in this section shall affect Schedule I of Order XXIII of the Code of Civil
Procedure, 1908 (Act No. 5 of 1908) Section 144 clause 3.

Section 46 - Prosecution for offence against Stamp law

The taking of proceedings or the payment of a penalty under this chapter in respect of any
instrument shall not bar the prosecution of any person who appears to have committed an offence
against the stamp-law in respect of such instrument:

Provided that no such prosecution shall be instituted in the case of any instrument in
respect of which such a penalty has been paid, unless it appears to the Collector that the
offence was committed with an intention of evading payment of the proper duty.

Section 47 - Persons paying duty or penalty may recover same in certain cases

(1) When any duty or penalty has been paid under Sections 39, Section 41, Section 43 or Section
44, by any person in respect of an instrument, and, by agreement or under the provisions of
Section 35 or any other enactment in force at the time such instrument was executed, some other
person was bound to bear the expense of providing the proper stamp for such instrument, the first-
mentioned person shall be entitled to recover from such other person the amount of the duty or
penalty so paid.

(2) For the purpose of such recovery, any certificate granted in respect of such instrument under
this Act shall be conclusive evidence of the matters therein certified.

(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or
proceeding to which such persons are parties and in which such instrument has been tendered in
evidence. If the Courts does not include the amount in such order, no further proceedings for the
recovery of the amount shall be maintainable.

Section 48 - Non-liability for loss of instruments sent under Section 42

(1) If any instrument sent to the Collector under sub-section (2) of Section 42, is lost, destroyed,
or damaged during transmission, the person sending the same shall not be liable for such loss,
destruction or damage.

(2) When any instrument is about to be so sent, the person from whose possession it came into
the hands of the person impounding the same, may require a copy thereof to be made at the
expense of such first-mentioned person and authenticated by the person impounding such
instrument.

Section 49 - Under-valuation of the instrument

(1) (a) If the market value of any property which is the subject of any instrument, on which
duty is chargeable on the market value of the property as set forth in such instrument, is less than
even the minimum value in accordance with the rules made under this Act, the registering officer
appointed under the Registration Act, 1908, (Act No. 16 of 1908), notwithstanding anything
contained in the said Act, immediately after presentation of such instrument and before accepting
it for registration and taking any action under Section 52 of the said Act, require the person liable
to pay stamp duty under Section 35, to pay the deficit stamp duty as computed on the basis of the
minimum value determined in accordance with the said rules and return the instrument for
presenting again in accordance with Section 23 of the Registration Act, 1908 (Act No. 16 of 1908).

(b) When the deficit stamp duty required to be paid under clause (a) is paid in respect of
any instrument and the instrument is presented again for registration, the Registering
Officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in
respect thereof and the name and the residence of the person paying them and register the
same.

(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp
duty may be paid under clause (a) in the form of impressed stamps or otherwise, containing
such declaration as may be prescribed.

(d) If any person does not make the payment of deficit stamp duty after receiving the order
referred to in clause (a) and presents the instrument again for registration, the registering
officer shall, before registering the instrument refer the same to the Collector, for
determination of the market value of the property and the proper duty payable thereon.

(2) On receipt of a reference under sub-section (1), the Collector shall after giving the parties a
reasonable opportunity of being heard and after holding an enquiry in such manner as may be
prescribed by rules made under this Act, determine the market value of the property which is the
subject of such instrument and the proper duty payable thereon.

(3) The Collector may sno motu, or on a reference from any Court or from the Commissioner of
Stamps or an Additional Commissioner of Stamps or from a Deputy Commissioner of Stamps or
from an Assistant Commissioner of Stamps or any officer authorized by the State Government in
that behalf, within four years from the date of registration of any instrument on which duty is
chargeable on the market value of the property, not already referred to him under sub-section (1),
call for an examine the instrument for the purpose of satisfying himself as to the correctness of the
market value, of the property which is the subject of such instrument and the duty payable
thereon, and if, after such examination, he has reason to believe that market value of such
property has not been truly set forth in such instrument, he may determine the market value of
such property and the duty payable thereon :

Provided that, with the prior permission of the State Government, an action under this sub-
section may be taken after a period of four years but before a period of eight years from the
date of registration of the instrument on which duty is chargeable on the market value of
the property.

Explanation .--The payment of deficit stamp duty be any person under any order of
Registering Officer under sub-section (1) shall not prevent the Collector from initiating
proceedings on any instrument under sub-section (3).
(4) If on enquiry under sub-section (2) and examination under sub-section (3) the Collector finds
the market value of the property--

(i) truly set forth and the instrument duly stamped, he shall certify by endorsement that it
is duly stamped and return it to the person who made the reference;

(ii) Not truly set forth and the instrument not duly stamped, he shall require the payment of
the amount required to make up the deficiency in the same, together with a penalty of an
amount not exceeding four times the amount of deficient portion of the proper duty.

(5) The Collector shall also require alongwith the deficit stamp duty or penalty required to be paid
under clause (ii) of sub-section (4), the payment of a simply interest at the rate of one percent per
mensem on the amount of deficit stamp duty calculated from the date of the execution of the
instrument till the date of actual payment:

Provided that the amount of interest under the sub-section shall be recalculated if the
amount of deficit stamp duty is varied on appeal or revision or by any order of a competent
Court or Authority.

(6) The amount of interest payable under sub-section (5) shall be added to the amount due and be
also deemed for all purposes to be part of the amount required to be paid.

(7) Where realization of the deficit stamp duty remained stayed by any order of any Court or
Authority and such order of stay is subsequently vacated, the interest referred to in sub-section (5)
shall be payable also for any period during which such order of stay remained in operation.

(8) Any amount paid or deposited by or recovered from, or refundable to, a person under the
provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding
against him and the excess, if any, shall then be adjusted towards the interest, if any, due from
him.

(9) The instrument produced before the Collector under sub-section (2) or under sub-section (3)
shall be deemed to have come before him in the performance of his functions.

(10) In case the instrument is not produced within the period specified by the Collector, he may
require payment of deficit stamp duty, if any, together with penalty on the copy of the instrument
in accordance with the procedure as laid down in sub-sections (2) and (4).
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