A Welcome Temporary Relief – Maharashtra Stamp Duty Amnesty Scheme, 2023

Introduction:

Stamp Duty is a levy payable on instruments specified by statute. In India, the payment of Stamp Duty is governed by the provisions of the Indian Stamp Act, 1899 (ISA). The ISA also contains state specific amendments which specify the amount of stamp duty payable on instruments in various states. However, in Maharashtra, the law governing Stamp Duty is the Maharashtra Stamp Act, 1958¹ (MSA). Section 3 of the MSA, read with Schedule – I² (Stamp Duty on Instruments) appended therein, speaks about the instruments chargeable with duty.

Deficiently stamped instruments:

Chapter IV of the MSA governs the provisions relating to insufficiently stamped instruments. Section 34 of the MSA specifically states that instruments which are not duly stamped shall not be admissible as evidence. The exceptions to this, however, are that such instruments shall be admitted on the payment of both the appropriate amount of duty, and a penalty of 2% on the deficient