The Finance Act, 20191 (Amendment)
proposes to make some significant amendments to the Indian
Stamp Act, 1899 (Act). The primary
objective of the Amendment is to set up a zero-evasion centralised
collection mechanism under which stamp duty is collected through
one agency, at one place and on one instrument for securities
market transactions.
It also seeks to standardise the stamp duty payable on issuance,
sale and transfer of securities market instruments. It does so by
removing multiple instances of stamp duty, waiving stamp duty on
certain instruments, and removing the ability of the State
Governments to determine rates or levy stamp duty in addition to
the Act.2
As of now the Amendment is not yet in force and will come into
force when notified by Central Government.
