How Many Stamps Do I Need

Summary of the Indian Stamp Act, 1899

The Indian Stamp Act, 1899, is a statute that consolidates and amends the law relating to stamps in India. It was enacted to ensure that all instruments and documents are stamped with the appropriate duty to raise revenue for the government. The Act has undergone several revisions since its inception in 1899, with the last revision taking place in 2004.

Key Provisions of the Act

1. Short Title and Extent:
   • The Act may be called the Indian Stamp Act, 1899.
   • It extends to the whole of India, excluding the State of Jammu and Kashmir, except for provisions relating to rates of stamp-duty in respect of documents specified in Entry 91 of List I in the Seventh Schedule to the Constitution.
2. Definitions:
   • “Bill of exchange” includes a hundi and any other document entitling or purporting to entitle any person to payment by another person.
   • “Bill of exchange payable on demand” includes orders for payment of any sum of money weekly, monthly, or at any other stated period.
3. Stamping of Instruments:
   • Instruments chargeable with duty can be stamped with adhesive stamps.
   • Certain instruments, such as bills of exchange and promissory notes drawn or made out of India, can be stamped with adhesive stamps.
4. Payment of Duty:
   • Duty can be paid in cash if there is a temporary shortage of stamps or if stamps of required denominations are not available.
   • The Collector or any authorized officer can certify the amount of duty paid in cash by endorsement on the instrument.
5. Penalties for Non-Compliance:
   • Penalties are imposed for executing instruments not duly stamped, failure to comply with provisions, and other offenses related to the evasion of duty.

Types of Stamp Paper in India

In India, there are mainly five types of stamp papers available:

1. Judicial Stamp Paper:
   • Used for legal documents related to the administration of justice.
   • Paid under the Court Fees Act of 1870.
2. Non-Judicial Stamp Paper:
   • Used for executing legal documents such as POA, rent agreements, and transfer of property.
   • Paid under the Indian Stamp Act, 1899.
3. Revenue Stamp:
   • Used to raise money for court maintenance through the collection of fees.
   • Required for receipts over Rs 5000 (formerly Rs 500) and can be obtained from postal offices or nearby stores.

How to Check Stamp Paper Authenticity

To determine if a stamp paper is real or fake, you can verify the following characteristics:

• Ashoka Pillar and Four-Headed Lion Emblem: These are common features on genuine stamp papers.
• Security Code and Watermark: These are also present on genuine stamp papers.
• Stamp Vendor’s Seal: The stamp vendor must stamp their seal, license number, year of appointment, serial number, buyer’s name, and location.

FAQ Section

Q1. How many stamps do I need?
A1. The number of stamps required depends on the type and value of the instrument or document being stamped. For example, any receipt over Rs 5000 must have a revenue stamp attached.

Q2. Where can I get revenue stamps?
A2. Revenue stamps are available at postal offices and nearby stores. They can also be purchased online from various websites.

Q3. What is the cost of revenue stamps?
A3. The cost of revenue stamps is typically Re 1 at postal offices and Re 100 at nearby stores.

Q4. What should I do if I don’t have a revenue stamp on my rent receipt?
A4. If payment in cash exceeds Rs 5000, a stamp must be placed on the receipt. A rent receipt with a revenue stamp becomes a legal document, indicating that payment has been received by the recipient and paid by the payer.

Q5. How do I make a claim for HRA if my company does not pay me the same amount?
A5. If you are not eligible for House Rent Allowance and have not claimed any expense for rent paid under any other provision of the income tax act, you can deduct the amount paid under Section 80GG.

Q6. What if my landlord isn’t in possession of a PAN card?
A6. If the landlord does not have a PAN card and charges more than Rs 1 lakh in annual rent, he must produce a written declaration along with Form 60. These documents can subsequently be submitted to the tenant’s employer in order to receive HRA deductions.

Table with Wikipedia or .gov Link

Source: Wikipedia

This summary provides an overview of the Indian Stamp Act, 1899, and the types of stamp papers used in India. It also includes frequently asked questions and a table with relevant information.