Time limit of Indian Stamp Act


The Indian Stamp Act of 1899, is the applicable law of the Government of India for the imposition of stamp duty on recording instruments.

What is validity of stamps

According to Section 54 of the Indian Stamp Act, if you do not use the stamp immediately, you can return it to the collector within six months from the date of purchase and return your money as a refund after the seizure.

What are the legal rights

The main purpose of this Act is to monetize the Government of India. A stamped document serves as valid evidence in a court of law. The Stamps Act also makes the payment of stamp duty on some documents mandatory which makes such documents legal and valid.

Case laws and it’s judgements

Thiruvengada Pillai Vs. Navaneethammal case

It was held by the Supreme Court that the paper stamp, even if it is more than six months old, is allowed to be used. Section 54 bars take a refund after six months of purchase, but that does not preclude the use of that old stamp paper in the agreement. Therefore, nothing prevents you from using it even after years of purchase. The law does not have a limit on its legitimacy.


The main purpose of this Act is to monetize the Government of India. A stamped document serves as valid evidence in a court of law. The Stamps Act also makes the payment of stamp duty on some documents mandatory which makes such documents legal and valid.


The main purpose of this Act is to monetize the Government of IndiaA stamped document serves as valid evidence in a court of law.The Stamps Act also makes the payment of stamp duty on some documents mandatory which makes such documents legal and valid.


The issuer, by issuing securities in one or more places, must, in that case, be taxed on the full amount of securities issued by it and such securities should not be stamped.The transfer of registered securities ownership from a person to a bank or from the bank to the beneficiary will be tax free


The Union Government introduced Part I of Chapter IV of the Finance Act, 2019 (“Amendments”) and promulgated the Indian Stamp Laws (Stamp Collection by Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019 (“Rules”)

.The amendment has been made in respect of securities market transactions, with the main objective of facilitating business and to bring about the same stamp duty applicable to the issuance and transfer of securities throughout the country

.The amendment continues to streamline the process of levying and collecting stamp duty on instruments related to the issuance or transfer of securities, by all States through the same agencies. This will also reduce collection costs and improve income productivity, and improve equity markets and a culture of equity across the country.

.Indian Stamp Act, imposes a stamp duty on a non-binding instrument and this fact has been supported by many courts, as the Finance Act aims to charge stamp duty on securities issued, sold, transferred, etc., through electronic means, so the issue is, what will be a tool in such cases where stamp duty will be collected and collected

.The transfer of securities to dematerialization (“demat”) or electronic form was not subject to any stamp duty. However, the Amendment has revoked the luxury offered on such transfers and provided for tax and stamp collection on securities in the form of demat / electronic transfers. This proposed amendment aims to eliminate the largest profit margin in the removal of any material security.

Amendments to the Indian Stamp Act of 1899 (Act) came into effect on 1 July 2020. These amendments were originally proposed under the Finance Act of 2019 and the Indian Stamp (Stamp-Work Collection for Stock Exchange, Clearance Companies and Accounting Stores) Regulations, 2019 (Rules).These amendments are intended to facilitate business and bring uniformity in the payment of stamp duty on the issuance and transfer of securities and introduced major changes to the old stamp system. Amendments relate not only to the stamp tax but also to the billing and tax collection system. Stamp activity has undergone significant changes as the taxpayer event has shifted from ‘creating a schedule tool’ to ‘work-related business activity’. These paradigm changes may be subject to legal testing to determine their constitutional validity.We have summarized below some of the key features of these amendments and their impact on Consolidation and Procurement (M&As) in India – namely the issuance and transfer of securities of public and private companies.


Under section 35 of the Stamp Act, no service charge shall be permitted as evidence of any purpose by any person legally or with the consent of the organizations authorized to obtain the evidence, or to be processed, unless such instrument is duly sealed.

Validity of lndian stamp paper

The Indian Stamp Act does not provide any expiration date for stamp paper use. The only limited edition stamp is under section 54 of the Indian Stamp Act.

Validity of old stamp paper

The Court concluded that there is no restriction on using a stamp that may be purchased more than six months before it is used in a document. Therefore, as may be taken above, the paper stamp has no expiration date and can be used for document issuance at any time.Bombay Stamp Act 1958 Bombay Stamp Act , 1958 came into applicable on February 16, 1959 and applies to the State of Maharashtra. The law is intended to impose a stamp duty on certain types of documents issued to the government or imported to do the same for the government.


Stamp rules indicated that a four-year time limit was provided for reference to the collector. Rule 346 undoubtedly provides that the Stamp and Registration Inspector shall refer to the collector within four years from the date of registration of the instrument.


There is no time limit on the validity of stamps within six months without the Bombay Stamp Act, 1958. In addition, under the Indian Registration Act, 1908: All documents other than Will must be registered within four months of the date of execution.



Click to access A1899-2.pdf

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.


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