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.
The Constitution of India has provided provisions for levying taxes. Tax is levied in the form of stamps on
nstruments recording the transactions. This form of taxation has been found to be convenient for collection and
upervision. The stamp Act is Fiscal statue dealing with tax on transactions. Article 246 and the 7th schedule
re relevant in regard to the legislative power to levy stamp duties. Article 265,268 and 269(e) are relevantmainly as regards the distribution of revenue. The proceeds of stamp duty levyable in any financial year shall
e assigned to the state. Under Article 246 such stamp duties as are mentioned in a list are levied by the Union,
ut under Article 268 the state in which they are levied collects and retains the proceeds. As the revenue from
tamp duty is assigned to the state in which they are collected each State Government has prescribed by rule
hat stamps purchased in the state alone should be used for instruments executed in it.
Tax is levied in the form of stamp in respect of transactions in instruments like Bi ll of exchange, letter of
redit, Debenture, policy of insurance, Agreement or memorandum of Agreement, lease cum sale, sale of
roperty, deposit of deeds, conveyance etc as defined in schedule 2 of Stamp Act. As provided in the Stamp
ct all duties with which any instruments are chargeable shall be paid and such payment shall be indicated on
uch instrument by means of impressed stamps or stamps issued by the Government An instrument to be duly
tamped should be stamped with a stamp not only of the amount required by law but also in the manner
rescribed by law.
The stamp duty payable on an instrument may also be paid in cash by Challan in banking treasury or
reasury countersigned by an officer empowered by a State Government or by Demand draft or by pay order
rawn on branch of any scheduled bank.
The instruments may be stamped with Adhesive stamp. There shall be two kinds of stamp for indicating
he payment of duty.
1) Impressed stamps
2)Adhesive stamps
Impressed stamps includes
a) Labels affixed and impressed by the proper officer
b) Stamps embossed or engraved on stamped paper
c) Impressions by franking machines.
Special adhesive Stamps are labels.
ll Stamps shall be purchased only from any of the State Treasuries / Sub Treasuries / from a person / localodies who has been granted a licence under the Karnataka Stamps Rules, 1958. Franking or impressing of
tamps may be allowed upto to any amount.
The stamp as a history of more than 150 years. The concept of registration of property is older and got
pecial evidentiary value in law. The stamps are generally categorized as Postal stamps and Non-Postal stamps.
ostal stamps are used for transaction with post offices and related functions. The following types of stamps
ome under Non-Postal stamp category.
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Non judicial stamp papers of denominations up to Rs. 500/- are printed at Security Printing Press
yderabad. Non-judicial stamps of denomination Rs 1000/- and above (up to Rs.25000/-) are printed at India
ecurity Press, Nasik. All types of Adhesive stamps, Revenue stamps, Judicial stamps are printed at I.S.P
asik. Government of India has established security press at Nasik and Hyderabad to cater the needs of various
tates of the country in respect of security documents and stamps of different denominations. Security press is
lso entrusted with the task of designing and developing the security documents. The Security press is headed
y an officer of the rank of General Manager and functions under the control of Finance Ministry, Government
f India.
The features of each of the different stamps are enumerated bellow
1) Revenue stamps:
) Court fee st amps :
1 Judicial stamps2 Court fee stamps3 Coping sheets
4 Non-Judicial stamp papers5 Revenue stamps6 Special Adhesive stamps (Labels)7 Notarial stamps8 Foreign Bill stamps
9 Brokers Note10 Insurance policy stamps
11 Share Transfer stamps
12 Hundi13 Insurance Agency stamps
Revenue stamps are widely used by all section of the society especiallyinvolving payment of money.
Denomination: Re.0.25, 0.50, 1.00
Usage: Receipt of payment of Money
3) Judicial stam ps (I mp ressed Court Fee Stam p) :
Judicial stamp are used for transactions with judiciary.
Court fee stamps are generally used by public and other
departments for correspondence with Government
departments, such as RTO, Police, Revenue offices, etc.,
Denominations: Re.0.05, 0.10, 0.20, 0.25, 0.35, 0.50, 0.55, 0.60,
0.65, 0.75,0.90, 1.00, Rs.1.10, 1.25, 1.50,2.00, 3.00, 4.00,
5.00,10.00, 20.00
Usage: As processing fee for transactions with RTO, Police,Revenue & other Government Department
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4) Non Judicial Stamp :
) Fiscal stam ps :
ll Adhesive stamps (Labels) are known as Fiscal stamps. These stamps are issued in the following three series.
(a) Paise series- 5,10,20,25and 50
(b) Rupees series 1,2,5 and 10
(c) High Rupee series 20, 50, 100, 500, 1000, 5000 and 10,000
i) Special Adhesive Stamp
Denominations : Rs.25, 30, 40, 50, 60, 75, 100, 200, 300, 500, 1000, 3000, 5000 and 25000/-.
Usage: Payment of Stamp duty in respect of Transactions with Civil and Criminal Courts
Non-judicial stamps are printed and circulated commencing from 1928 Non-Judicial Stamps are commonly
used through out the country to register the contracts, agreements, deeds, wills, etc.
Denomination: Rs.1, 2, 5, 10, 20, 50, 100, 500, 1000, 5000, 10000, 15000, 20000, 25000
Usage: Agreements, Sale Deed, Hypothecation, etc.,
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i i) I nsurance Stam p
i i i) Foreign Bill Stam p
iv) Share Transfer Stamp
) Brokers Note Stam p
Denomination: Re.0.05, 0.10, 0.25, 0.40, Rs.5, 10, 20, 50, 500, 1000, 5000.
Usage:
Used in form of Non-Judicial Stamp in Financial transaction covering Stamp Duty
Denomination : Re.0.10, 0.20, 0.25, 0.40, 0.50, 1, Rs.2, 5, 10,20, 50, 100, 500, 1000
Usage:
Used in Insurance Departments to authenticate the Insurance Policies
Denomination : Re.0.20, 0.25, 0.50, 1, Rs.3, 10, 20, 50, 100
Usage: Stamp Duty in respect of import paid to India
Denomination : Re.0.15, 0.25, 0.50, 1, Rs.2, 5, 10, 50, 100, 200.
Usage : Used in transaction of Shares by financial institution
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vi) Notar ial Stam p
Denomination: Re.0.25, 0.50, 0.75, 1, Rs.2,5, 10, 50, 100, 500.
Usage: Stamp Duty payment in respect of Transaction through Brokers
Denomination: Re.0.50, 1, Rs.2, 5.
Usage: Used by Notary
Letters are printed in Black on overprinting of all these stamps. If the watermark is genuine in a stamp paper,
by placing a genuine stamp paper on a tracing paper and rubbing with a crayon, one can obtain the replica of
the watermark on the tracing paper.
These Adhesive stamps (Fiscal stamps) are generally used by the insurance companies,
commercial Banks, Financial institution, corporate offices, Business Houses, Registered companies etc. all
over the country and have common acceptability.
EMBOSSI NG OF STAMP DUTY :
This is one among the several forms of payment of stamp duty which is done exclusively in the Office of
the Deputy Director, Stamp Depot, Vidhana Soudha, Bangalore. Any person desiring to get the
document of emboss will make an application indicating the amount of stamp duty to be embossed. A
challen is countersigned for the required amount, which will be remitted
to the Reserve Bank of India and returned to the Treasury. The
payment will be reconciled or the payment scroll will be obtained from
the Reserve Bank next day. And the document is transmitted to the
Government Printing Press, Peenya, where the embossing machine is
located. The stamp duty will be embossed on the first sheet of the
document and return to the Deputy Director of Stamps, who will attest
the embossed impression and also affix a counter embossing seal. The
document will then is returned to the applicant.
FRANKI NG : This is one of the several methods of indicating the payment of stamp
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duty. Franking machines are installed in some Sub-Registrar office in
the State. These machines frank upto a denomination of 999 rupees. An application indicating the
amount of duty to be frank is made to the proper officer authorize under the rules along with the
unexecuted typed or printed documents. The necessary amount is paid in cash to the proper officer
and the required denomination is franked on the document and return to the
applicant. .....HTop
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