Draft Indian Stamp Bill 2023

January 18, 2024

GS Paper II Indian Polity

Context:

The Department of Revenue, Ministry of Finance has prepared a draft ‘Indian Stamp Bill, 2023’ to repeal the Indian Stamp Act, 1899 for the stamp duty regime in the country.

Key Highlights of Draft ‘Indian Stamp Bill, 2023

E-stamping: The new law will equip India for a seamless digital era as it has a provision of e-stamping digitally.
Definition: The draft Indian Stamp Bill defines an electronic stamp or e-stamp as an electronically generated impression denoting the payment of stamp duty by electronic means or otherwise.

Indian Stamp Act, 1899

Objective: It lays down the legal provisions for tax levied in the form of stamps on instruments recording transactions.
- It covers Stamp duties on instruments specified in Entry 91 of the Union List.
Need for Reform: The Law Commission in its 67th report submitted in 1976 made extensive recommendations for reforms.

What are Stamp Duties?

Stamp duties are levied by the central government, but within the states are collected and appropriated by the concerned states in terms of provisions of Article 268 of the Constitution.
The Stamp duties on documents specified in Entry 91 of the Union List of the Seventh Schedule (viz. Bills of Exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts) are levied by the Union.
Stamp duties on documents other than those mentioned above are levied and collected by the States by virtue of the legislative Entry 63 of the State List of the Seventh Schedule of the Constitution.

Also Refer: Provisions of the new Post Office Bill (2023)

News Source: Indian Express