LI Network
Published on: January 18, 2024 at 11:56 IST
The Finance Ministry has extended an invitation to the public for their suggestions on the draft Indian Stamp Bill 2023, aiming to align stamp duty provisions with modern standards. Stakeholders are encouraged to provide their feedback within 30 days, following a specified format.
Once enacted, the new bill will replace the Indian Stamp Act of 1899, according to the statement issued by the Finance Ministry.
“The Department of Revenue, Ministry of Finance, Government of India, has prepared a draft ‘Indian Stamp Bill, 2023’ to align it with the modern stamp duty regime,” the ministry stated. The current Indian Stamp Act of 1899 is a fiscal statute dictating the law concerning tax levied in the form of stamps on transaction-recorded instruments.
Stamp duties are imposed by the Central Government, but the collection and appropriation within states are handled by the respective states in accordance with Article 268 of the Constitution.
Despite several amendments to the pre-Constitution Indian Stamp Act of 1899 to adapt to a more contemporary Stamp Duty regime, certain provisions have become obsolete or inoperative.
As a result, there is a growing necessity to revamp the Indian Stamp Act of 1899, as proposed by the Finance Ministry. The intention is to repeal the existing act and establish new legislation that reflects present realities and objectives.