Introduction
The Finance Act 2019 amends the Indian Stamp Act, 1899.
(Amended Stamp Act). The amendments are set to
come into force from 1 April 2020. Pursuant to the Amended Stamp
Act, the Indian Stamp (Collection of Stamp Duty through Stock
Exchanges, Clearing Corporations, and Depositories) Rules 2019
(Rules) have been enacted. The Rules are also set
to come into force from 1 April 2020.
This update highlights the key provisions of the Amended Stamp
Act and the Rules.
The Amended Stamp Act relates to the levy of stamp duty on
securities. The Amended Stamp Act aims to clarify and streamline
the process for the payment of stamp duty on securities.
The Rules have been introduced as a guidance note for the stock
exchanges and the depositories for collection of stamp duty,
determination of transactions (whether on delivery basis or not),
transfer of duty to respective states, filing of returns, etc.
