STAMP ACT
1. Under the Indian Stamp Act, stamping is required on Demand promissory note, usance bill of
exchange, LC, Bill of Lading, Debentures, Transfer of LIC Policy, Proxy, Receipt etc
2. In case of demand bills stamp duty Not payable.
3. Stamp Duty chargeable has been waived by GOVT in respect of usance bills in the following cases:
Arising out of genuine trade transactions
Which are payable not more than 3 months after date or sight?
Which are drawn on or in favour of commercial/cooperative banks/SIDBI?
4. STAMP DUTY for AOD (CBRL), Indemnity, EQM, Regd Mortgage, Lease Deed, Agreement, Sale
Deed etc document is determined by the State Laws
5. An under stamped agreement can be set right by:


Paying the penalty as prescribed by the appropriate authority (actual deficit stamp duty with penalty
of rs. 5/-. or if ten times of the deficit stamp duty exceeds Rs.5/- then the penalty will be ten times
of the deficit)
6.Stamping on PN should be cancelled: By affixing full signature so that the stamps cannot be used
again
7. The non-judicial stamp paper was purchased on 11/11/2008 from the stamp vendor. This has
been used by the Bank to record an agreement covering the transaction dated 11/10/2008. Whether
it is a valid agreement? No. It is not a valid agreement
8.Your branch has 25 number of agreements embossed with special adhesive stamps. These
agreements cannot be used. To whom it has to be surrendered? Stamp Collector (State Govt).
9. Any instrument executed by or on behalf of or in favour of government is exempted from stamp
duty: YES.
10. In case of doubt as to stamp duty on an instrument, when it should be adjudicated : It should be
adjudicated prior to the document being executed or at latest within a period of one month
from execution thereof.
11.Stamping on DPN should be cancelled by whom? By the executant
12.Stamp duty is charged Depending on the place of execution and kind of document
13. Following instrument even if not adequately stamped at the time of execution can be admitted in
case they are validated by payment of penalty with required stamp duty Pronote, Usance Bills, &
documents requiring stamping of value above 0.10 paise
14.When documents are executed at a place other than the advancing branch, stamp duty payable
at the time of execution is As applicable at the place of executing branch
15.Stamps in the Pronote affixed vertically, one below the other but duly cancelled is: It is not
improper stamping and is valid
16. Non-judicial stamp paper should be cancelled By writing part of the document on the stamp
paper duly signed by executant
17. Transfer of shares to the bank‘s name where it is the pledgee of the shares, Involves payment of
nominal stamp duty only
18. Under which Act, the GOI has enhanced the exemption of stamp duty on receipt from 500 to
5000/- Finance Act 2004
19. Stamp duty on receipts payable for Rs.5000/
No stamp duty is payable for Receipts upto and inclusive of Rs.5000/- .
Only from Rs. 5001/- onwards stamp duty is payable.
20. Effective date for payment of stamp duty on receipts more than 5000/- shall be 10.9.2004
21. In view of the amendment, the Bill of Exchange and