The Indian Stamp Act of 1899 (2 of 1899) stands as a fiscal edict delineating the regulatory framework for taxation through the utilization of stamps on instruments documenting various transactions. While the imposition of stamp duties is within the purview of the Central Government, the respective states undertake their collection and allocation, adhering to the stipulations outlined in Article 268 of the Constitution.

Stamp duties, specifically pertaining to instruments enumerated in Entry 91 of the Union List of the Seventh Schedule (including Bills of Exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies, and receipts), fall under the ambit of the Union.

Documents beyond the aforementioned categories attract stamp duties, with their imposition and collection delegated to the states under the legislative Entry 63 of the State List in the Seventh Schedule of the Constitution.

Stamp duties, excluding those or fees garnered through judicial stamps, and excluding the rates falling within the jurisdiction of Entry 91 of the Union List and Entry 63 of the State List, as aforementioned, fall under the concurrent legislative authority of both the Union and the States, designated under Entry 44 of the Concurrent List in the Seventh Schedule.

The Indian Stamp Act of 1899, an antecedent to the Constitution, has undergone amendments over time to accommodate a more contemporary Stamp Duty framework. Nevertheless, certain provisions within the Act have rendered themselves obsolete or non-operational, necessitating a reorientation of the Indian Stamp Act, 1899. Consequently, there is a proposal for the repeal of the current Act and the formulation of a new legislation that aligns with present realities and objectives.

The Government of India has now proposed to repeal the Indian Stamp Act, 1899 and proposes to replace it with new regime.  The Indian Stamp Bill, 2023 seeks public comments and the same can be downloaded from https://www.dor.gov.in/tax/stamp-duty-2023

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