​ACTS AND RULES: STAMP ACTS​

INSTRUMENTS GOVERNED BY THE STAMP ACT, 1899(CENTRAL) AS APPLICABLE TO THE STATE OF KARNATAKA

Description of Instrument

Proper Stamp Duty

13.BILL OF EXCHANGE as defined by section 2(2) 1 [***] not being a bond, bank note or currency note -
2 [ *** ]
3 [(b) where payable otherwise than on demand -
(i) where payable not more than three months after date or sight -

if the amount of the bill or note does not exceed Rs.500;

One rupee 4 [twenty-five naye paise].

if it exceeds Rs.500 but does not exceed Rs.1,000;

Two rupees 5 [fifty naye paise]

and for every additional Rs.1,000 or part thereof in excess of Rs.1,000;

Two rupees 5[ fifty naye paise]

(ii) where payable more than three months but not more than six months after date or sight-

if the amount of the bill or note does not exceed Rs.500;

Two rupees 5 [fifty naye paise]

if the exceeds Rs.500 but does not exceed Rs.1,000;

Five rupees

and for every additional Rs.1000 or part thereof in excess of Rs.1,000;

Five rupees

(iii) Where payable more than six months but not more than nine months after date or sight -

if the amount of the bill or note does not exceed Rs. 500;

Three rupees 6 [ seventy-five naye paise ]

1. The word, figure and brackets "and (3)" omitted by Act 5 of 1927 s.5.

2. The entry (a) omitted by Act 5 of 1927 s.5.

3. Subs. by Act 76 of 1956 for the former items (b) and (c) (w.e.f. 1-2-1957), s.4 and sch. II.

4. Subs. by Act 19 of 1958 for "four annas" (w.e.f. 1-10-1958) s.13.

5. Subs. by Act 19 of 1958 for "eight annas" (w.e.f. 1-10-1958) s.13.

6. Subs. by Act 19 of 1958 for "twelve annas" (w.e.f. 1-10-1958) s.13.

Description of Instrument

Proper Stamp Duty

if it exceeds Rs.500 but does not exceed Rs.1,000;

Seven rupees 1 [fifty naye paise]

and for every additional Rs.1,000 or part thereof in excess of Rs.1,000;

Seven rupees 1 [fifty naye paise]

(iv) where payable more than nine months but not more than one year after date or sight -

if the amount of the bill or note does not exceed Rs.500;

Five rupees

if it exceeds Rs.500 but does not exceed Rs.1,000;

Ten rupees

and for every additional Rs.1,000 or part thereof in excess of Rs.1,000;

Ten rupees

(c) Where payable at more than one year after date or sight-

if the amount of the bill or note does not exceed Rs.500;

Ten rupees

if it exceeds Rs.500 but does not exceeds Rs.1,000;

Twenty rupees

and for every additional Rs.1,000 or part thereof in excess of Rs.1,000;

Twenty rupees

14. BILL OF LADING (including a through bill of lading).

2 [ Two rupees ]

Exemptions
(a) Bill of lading when the goods therein described are received at a place within the limits of any port as defined under the 3Indian Ports Act, 1889 (10 of 1889), and are to be delivered at another place within the limits of the same port.

N.B. :- If a bill of lading is drawn in parts, the proper stamp therefor must be borne by each one of the set.

(b) Bill of lading when executed out of 4 [India] and relating to property to be delivered in 4 [India].

1. Subs. by Act 19 of 1958 for "eight annas" (w.e.f. 1-10-1958) s.13.

2. Subs. by Act 32 of 1994 for the words "One rupee, (w.e.f. 16-5-1994) s.99.

3. The relevant provisions of the Indian Ports Act,1908, (15 of 1908) be referred to.

4. Subs. by Act 43 of 1955 for the words "the States" (w.e.f. 1-4-1956), s.2.

Description of Instrument

Proper Stamp Duty

1 [27.DEBENTURE (whether a mortgage debenture or not), being a marketable

(a) by endorsement or by a separate instrument of transfer -

where the amount or value does not exceed Rs.10;

2 [Twenty naye paise]

where it exceeds Rs.10 and does not exceed Rs.50;

3 [ Forty naye paise]

Ditto 50 ditto 100

4 [ Seventy-five naye paise]

Ditto 100 ditto 200

One rupee 5 [ fifty naye paise ]

Ditto 200 ditto 300

Two rupees 6 [twenty-five naye paise]

Ditto 300 ditto 400

Three rupees

Ditto 400 ditto 500

Three rupees 4 [Seventy-five naye paise]

Ditto 500 ditto 600

Four rupees 5 [Fifty naye paise]

Ditto 600 ditto 700

Five rupees 6[twenty-five naye paise]

Ditto 700 ditto 800

Six rupees

Ditto 800 ditto 900

Six rupees 4[ Seventy-five naye paise]

Ditto 900 ditto 1000

Seven rupees 5 [fifty naye paise]

and for every Rs.500 or part thereof in excess of Rs.1,000;

Three rupees 4 [Seventy-five naye paise]

(b) by delivery

where the amount or value of the consideration for such debenture as set forth therein does not exceed Rs.50;

4 [ Seventy-five naye paise]

where it exceeds Rs.50 but does not exceed Rs.100;

One rupee 5 [ fifty naye paise ]

1. Subs. by Act 43 of 1955 (w.e.f. 1-4-1956) s.7.

2. Subs. by Act 19 of 1958 for "three annas" (w.e.f. 1-10-1958) s.13.

3. Subs. by Act 19 of 1958 for "six annas" (w.e.f. 1-10-1958) s.13.

4. Subs. by Act 19 of 1958 for "twelve annas" (w.e.f. 1-10-1958) s.13.

5. Subs. by Act 19 of 1958 for "eight annas" (w.e.f. 1-10-1958) s.13.

6. Subs. by Act 19 of 1958 for "four annas" (w.e.f. 1-10-1958) s.13.

Description of Instrument

Proper Stamp Duty

Ditto 100 ditto 200

Three rupees

Ditto 200 ditto 300

Four rupees 1 [fifty naye paise].

Ditto 300 ditto 400

Six rupees

Ditto 400 ditto 500

Seven rupees 1 [fifty naye paise].

Ditto 500 ditto 600

Nine rupees

Ditto 600 ditto 700

Ten rupees 1 [fifty naye paise].

Ditto 700 ditto 800

Twelve rupees

Ditto 800 ditto 900

Thirteen rupees 1 [fifty-five naye paise].

Ditto 900 ditto 1000

Fifteen rupees

and for every Rs.500 or part thereof in excess of Rs.1,000;

Seven rupees 1 [fifty-five naye paise].

Explanation - The term "Debenture" includes any interest coupons attached thereto but the amount of such coupons shall be included in estimating the duty.

Exemptions 
A debenture issued by an incorporated company or other body corporate in terms of a registered mortgage deed, duly stamped in respect of the full amount of debentures to be issued thereunder, whereby the company or body borrowing makes over, in whole or in part, their property to trustees for the benefit of the debenture holders :

Provided that the debentures so issued are expressed to be issued in terms of the said mortgage deed.

37. LETTER OF CREDIT. That is to say, any instrument by which one person authorises another to give credit to the person in whose favour it is drawn.

2 [Two rupees]

1. Subs. by Act 19 of 1958 for "eight annas" (w.e.f. 1-10-1958) s.13.

2. Subs. by Act 32 of 1985 for the words "one rupee" (w.e.f. 1-7-1985).

Description of Instrument

Proper Stamp Duty

47. POLICY OF INSURANCE
1 [ A - Sea Insurance (See section 7) -
(1) for or upon any voyage-

If drawn singly

If drawn in duplicate for each part

(i) where the premium or consideration does not exceed the rate of 2[***] one eighth per centum of the amount insured by the policy;

3 [Ten naye paise]

4 [Five naye paise]

(ii) in any other case, in respect of every full sum of 5[one thousand five hundred rupees] and also any fractional part of one thousand five hundred rupees insured by the policy;

3 [Ten naye paise]

4 [Five naye paise]

(2) for time-

(iii) in respect of every full sum of one thousand rupees and also any fractional part of one thousand rupees insured by the policy-

where the insurance shall be made for any time not exceeding six months;

6 [Fifteen naye paise]

7 [Ten naye paise]

where the insurance shall be made for any time exceeding six months and not exceeding twelve months.

8[Twenty-five naye paise]

6[Fifteen naye paise]

B.- 10[Fire-Insurance and other classes of insurance, not elsewhere included in this articles, covering goods, merchandise, personal effects, crops and other property against loss or damage]-

8[Twenty-five naye paise]

6[Fifteen naye paise]

(1) in respect of an original policy-

(i) when the sum insured does not exceed Rs. 5,000;

9 [Fifteen naye paise]

1. Subs. by Act 5 of 1906 for the original divisions A and B s.7.

2. The words"fifteen naye paise or" omitted byAct 14 of 1961 s.16.

3. Subs. by Act 19 of 1958 for "one anna" (w.e.f. 1-10-1958) s.13.

4. Subs. by Act 19 of 1958 for "half an anna" (w.e.f. 1-10-1958) s.13.

5. Subs. by Act 19 of 1958 for "one thousand rupees " s.2 and Sch.1.

6. Subs. by Act 19 of 1958 for the word "two anna" (w.e.f. 1-10-1958) s.13.

7. Subs. by Act 19 of 1958 for the word "one anna" (w.e.f. 1-10-1958) s.13.

8. Subs. by Act 19 of 1958 for the word "four anna" (w.e.f. 1-10-1958) s.13.

9. Subs. by Act 19 of 1958 for the word "eight anna" (w.e.f. 1-10-1958) s.13.

10. Subs. by Act 43 of 1923 for the word "Fire Insurance".

Description of Instrument

Proper Stamp Duty

(ii) in any other case......and

One rupee

(2) in respect of each receipt for any payment of premium on any renewal of an original policy.

One-half of the duty payable in respect of the original policy in additional to the amount, if any chargeable under (No. 53)

C.- Accident and Sickness Insurance-

(a) against railway accident, valid for a single journey only.

1[Ten naye paise]

Exemption
When issued to a passenger travelling by the intermediate or the third class in any railway.

(b) in any other case for the maximum amount which may become payable in the case of any single accident or sickness where such amount does not exceed Rs.1000, and also where such amount exceeds Rs.1,000, for every Rs.1000 or part thereof.

2[Fifteen naye paise]:

3[Provided that, in case of a policy of insurance against death by accident when the annual premium payable does not exceed 4[Rs.2.50] per Rs.1,000 the duty on such instrument shall be 2[Ten nay paise] for every Rs.1,000 or part thereof the maximum amount which may become payable under it]

5[CC. Insurance by way of indemnity against liability to pay damages on account of accidents to workmen employed by or under the insurer or against liability to pay compensation under the Workmen's' Compensation Act, 1923 (8 of 1923) for every Rs.100 or part thereof payable as premium

1[Ten naye paise]

6[D Life insurance 7[or group insurance or other insurance] not specifically provided for except such a reinsurance as is described in division E of this article-

If drawn singly

If drawn in duplicate for each part

(i) for every sum insured not exceeding Rs. 250;

2 [Fifteen naye paise]

1 [Ten naye paise]

1. Subs. by Act 19 of 1958 for "one anna" (w.e.f. 1-10-1958) s.13.

2. Subs. by Act 19 of 1958 for "two anna" (w.e.f. 1-10-1958) s.13.

3. Ins. by Act 18 of 1928, s.2 sch. 1.

4. Subs. by Act 19 of 1958 for the words "Rupees 2-8-0" (w.e.f. 1-10-1958), s. 13

5. Ins. by Act 15 of 1925, s.2

6. Subs. by Act 18 of 1928 for the original division D. s.2 Sch. 1

7. Subs. by Act 43 of 1955 for the word "Or other insurance" (w.e.f. 1-4-1956) s.7

Description of Instrument

Proper Stamp Duty

(ii) for every sum insured exceeding Rs.250 but not exceeding Rs.500;

1 [Twenty-five

naye paise]

2 [Fifteen naye paise]

(iii) for every sum insured exceeding Rs.500 but not exceeding Rs.1,000; and also for every Rs.1,000 or part thereof in excess of Rs.1,000

3 [Forty naye

paise]

4 [Twenty naye paise]

Exemption

Policy of life insurance granted by the Director General of Post Offices is accordance with rules for Postal Life Insurance issued under the authority of the Central Government].

5 [N.B.- If a policy of group insurance is renewed or otherwise modified whereby the sum insured exceeds the sum previously insured on which stamp duty has been paid, the proper stamp duty has been paid, the proper stamp must be borne on the excess sum so insured ]

E- Re-insurance by an Insurance Company which has granted a Policy 7 [of the nature specified in Division A of Division B of this Article], with another company by way of indemnity or guarantee against payment on the original insurance of a certain part of the sum insured thereby.

One quarter of the duty payable in respect of the original insurance but not less than 6 [ten naye paise] or more than one rupee:

8 [Provided that if the total amount of duty payable is not a multiple of five naye paise, the total amount shall be rounded off to the next higher multiple of five naye paise]

General Exemption

Letter of cover of engagement to issue a policy of insurance:

1. Subs. by Act 19 of 1958 for the words "four anna" (w.e.f. 1-10-1958) s.13.

2. Subs. by Act 19 of 1958 for the words "two anna" (w.e.f. 1-10-1958) s.13.

3. Subs. by Act 19 of 1958 for the words "six anna" (w.e.f. 1-10-1958) s.13.

4. Subs. by Act 19 of 1958 for the words "three anna" (w.e.f. 1-10-1958) s.13.

5. Ins. by Act 43 of 1955, (w.e.f. 1-4-1956) s.7

6. Subs. by Act 19 of 1958 for the words "one anna" (w.e.f. 1-10-1958) s.13.

7. Subs. by words "of sea-insurance of a policy of fire-insurance" by Act 43 of 1923. s.2.

8. Ins. by Act 14 of 1961, s.16.

Description of Instrument

Proper Stamp Duty

1[49PROMISSORY NOTE (as defined by section 2(22)]-

(a) when payable on demand-

(i) when the amount or value does not exceed Rs. 250;

2[Ten naye paise]

(ii) when the amount or value exceeds Rs. 250 but does not exceeds Rs. 1,000;

3[Fifteen naye paise]

(iii) in any other case.

4[Twenty-five naye paise]

(b) when payable otherwise than on demand

The same duty as a Bill of Exchange (No. 13) for the same amount payable otherwise than on demand.

52. PROXY, empowering any person to vote at any one election of the members of a district or local board or of a body of municipal commissioners, or at any one meeting of (a) members of an incorporated company or other body corporate whose stock or funds is or are divided into shares and transferable, (b) a local authority, or (c) proprietors, members or contributors to the funds of any institution.

5 [Thirty paise]

53. RECEIPT, [ as defined by section 3(23)] for any money or other property the amount or value of which exceeds 7[five hundred rupees]

6 [One Rupee]

Exemptions
Receipt-
(a) endorsed on or contained in any instrument duly stamped 8[or any instrument exempted] under the proviso to section 3

1. Subs. by Act 43 of 1923 for the original s.2.

2. Subs. by Act 19 of 1958 for the words "one anna" (w.e.f. 1-10-1958) s.13.

3. Subs. by Act 19 of 1958 for the words "two anna" (w.e.f. 1-10-1958) s.13.

4. Subs. by Act 19 of 1958 for the words "four anna" (w.e.f. 1-10-1958) s.13.

5. Subs. by Act 66 of 1976, for the words "fifteen naye paise" (w.e.f. 1-6-1976) s.40.

6. Subs. by Act 32 of 1994 for the words "twenty paise" (w.e.f. 13-5-1994) s.99.

7. Subs. by Act 32 of 1994 for the words "twenty rupees" (w.e.f. 13-5-1994) s.99.

8. Subs. by Act 18 of 1928 for the words "or exempted" s.2, and Sch. 1

Description of Instrument

Proper Stamp Duty

(instruments executed on behalf of the Government) 1 [or any cheque or bill of exchange payable on demand] acknowledging the receipt of the consideration money therein expressed or the receipt of any principal money, interest or annuity or other periodical payment thereby secured;

(b) for any payment of money without consideration;

(c) for any payment of rent by a cultivator on account of land assessed to Government revenue or 2 [in the States of Madras, Bombay and Andhra] 3 [as they existed immediately before the 1st November, 1956] of Inam lands;

(d) for pay or allowance by noncommissioned 4 [or petty] officers, 5[soldiers, 6 [sailors] or airmen 6 [7 [the Indian] military, 4 [Naval] or air forces], when serving in such capacity, or by mounted police constables;

(e) given by holders of family certificates in cases where the person from whose pay or allowances the sum comprised in the receipt has been assigned is a noncommissioned 4 [or petty] officer, 5 [soldiers], 4 [sailor or airmen], of any of the said forces, and serving in such capacity;

(f) for pensions or allowances by persons receiving such pensions or allowances in respect of their service as such non-commissioned [or petty officers, 5 [soldiers] 4[sailors or airmen,] and not serving the Government in any other capacity;

1. Ins. by Act 18 of 1928, s.2 and Sch. 1.

2. Subs. by Andhra (Adaptationof laws onUnion Subject) Order, 1954, for "in the Presidencies ofFort St. George and Bombay" (w.e.f. 1-10-1953).

3. Ins. by the A.O., Adaptation of Laws (No.2) 1956.

4. Subs. by Act 35 of 1934 s. 2 and Sch.

5. Subs. by Act 10 of 1927, for the words "or soldiers".

6. Subs. by Act 10 of 1927, for "Her Majesty's Army or Her Majesty's Indian Army, s.2 and Sch. 1

7. Ins. by the A.O., 1950 for "His Majesty's

Description of Instrument

Proper Stamp Duty

(g) given by a headman or lambardar for land revenue or taxes collected by him;

(h) given for money or securities for money deposited in the hands of any banker, to be accounted for;

Provided that the same is not expressed to be received of, or by the hands of, any other than the person to whom the same is to be accounted for;

Provided also the this exemption shall not extend to a receipt or acknowledgement for any sum paid or deposited for or upon a letter of allotment of a share, or in respect of a call upon any script or share of, or in an incorporated company or other body corporate or such proposed or intended company or body or in respect of a debenture being a marketable>

62. Transfer, (whether with or without consideration)-

2 [Seventy-five naye paise] for every hundred rupees or part thereof the value of the share

1[(a) of shares in an incorporated company or other body corporate;

(b) of debentures, being marketable>

3[One-half] of the duty payable for on a Conveyance (No. 23), for consideration equal to the face amount of the debentures;

(c) of any interest secured by a bond, mortgage deed or policy of insurance-

(i) if the duty on such bond, mortgage deed or policy does not exceed five rupees;

The duty with which such bond, mortgage deed or policy of insurance is chargeable

(ii) in any other case.....

Five rupees

1. Subs. by Act 43 of 1955, for "original clause" (w.e.f. 1-4-1956), s.7.

2. Subs. by Act of 1958, for "Twelve annas" (w.e.f. 1-10-1958), s.13.

3. Subs. by Act 6 of 1910, for the "one quarter" s.3.

Description of Instrument

Proper Stamp Duty

(d) of any property under the 1 [Administrator General's Act, 1874 (2 of 1874) section 3];

Ten rupees

(e) of any trust property without consideration from one trustee to another trustee or from a trustee to a beneficiary.

Five rupees or such smaller amount as may be chargeable under clause (a) to (c) of this Article.

Exemptions

Transfers by endorsement-

a. of a bill of exchange, cheque or promissory note;
b. of a bill of lading, delivery order, warrant for goods, or other mercantile document of title to goods;
c. of a policy of insurance;
d. of a securities of the Central Government

  1. The relevant provisions of the Administrator General's Act, 1913 (3 of 1913) and the Administration. General Act. 1963 (45 of 1963) to be referred to.