The Indian Stamp Act, 1899 (the “Act”) is the legislation governing stamp duty. As per Sec.35 of the Act, an instrument shall be admissible only when appropriately stamped and executed.[1] The Schedule of the Act prescribes such stamp duty to be paid on each instrument. Further, the stamp paper of prescribed denominations are used for execution of the instruments.
Validity period of a stamp paper –
Under Indian Stamp Act, 1899 there is no bar on use of stamp _ papers beyond 6 months or there is no such expiration period ascribed _ for a stamp paper. A stamp paper shall have perpetual validity.
However, Sec.54 lays down certain conditions [1]
- Any stamp papers being in a good condition;
- Any stamp papers that are no longer fit for usage;
- Any stamp paper that are no longer required;
In any of the above scenarios, a stamp paper holder may deposit back such stamp papers to collect a refund. For availing such refund, the maximum period shall be 6 months from the date of issue of such stamp paper. The period prescribed under the law is only for the limited purpose of refund on such stamp papers.
This has been reiterated by the Supreme Court in the case of Thiruvengada Pillai v. Navaneethammal & Anr.[2] .that a stamp paper, even if it is more than six months old, is valid to be used. Section 54 only bars taking refund after six months of purchase, but it does not restrict the use of such old stamp paper for an agreement. Thus, a stamp paper has perpetual validity.
Relevant Sections of the Act:
Section 35. Instruments not duly stamped inadmissible in evidence, etc. — No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped :
Provided that—
- any such instrument 6[shall] be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of any instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five rupees, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five rupees, of a sum equal to ten times such duty or portion;
- where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the person tendering it;
- Where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;
- nothing herein contained shall prevent the admission of any instrument in evidence in proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure 1898 (V of 1898);
- nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act.
Section 54. Allowance for stamps not required for use. — When any person is possessed of a stamp or stamps which have not been spoiled or rendered unfit or useless for the purpose intended, but for which he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in money, deducting 1[ten naye paise] for each rupee or portion of a rupee, upon such person delivering up the same to be canceled, and proving to the Collector’s satisfaction—
- that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
- that he has paid the full price thereof; and
- that they were so purchased within the period of six months next preceding the date on which they were so delivered:
Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.
Schedule I of the Act lists the instruments that are required to be stamped.
[2] AIR 2008 SC 154
