Keywords : Banker, Bond, Cheque, Clearance List, Duly Stamped, Executed, Immovable Property, Impressed Stamp, Instrument of Partition, Lease, Marketable Security, Market Value, Mortgage Deed, Policy of Insurance, Power of Attorney, Promissory Note, Receipt, Settlement, Stock Exchange
CHAPTER-I
Preliminary
- Short title, extent and commencement1. This Act may be called the Rajasthan Stamp Act, 1998.
- It extends to whole of the State of Rajasthan.
- It shall come into force on such 1date as the State Government may,
by notification in the Official Gazette, appoint, - Definitions– In this Act, unless there is something repugnant in the
subject or context,
(i) “air-rights ” shall mean rights to construct upper floors for sale
and use, independent of the existing building;
2
(ia) ‘association’ means any association of person, exchange broker,
or any other organisation or body of persons, whether
incorporated or not, and regulating or controlling or conducting
business of the sale or purchase of, or other transaction relating
to, any goods or marketable securities.
3
(ii)”Banker” means an association, a company or a person who
accepts, for the purpose of lending or investment, deposits of
money from the public, repayable on demand or otherwise, and
1
This Act come into force w.e.f. 27.5.2004 vide Notification No. F. 2(3) FD/Tax Div/98-II dated 27.5.2004
2
Inserted by the Raj. Finance Act 2006 (Act No. 4 of 2006) (w.e.f. 8.3.2006).
3
Substituted by the Raj. Finance Act 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013)
Last Updated – 16-08-19
Page | 2
withdrawal by cheque, draft, order, or otherwise within the
territories of India and includes-
(a) a banking company as defined in clause (c) of section 5 of the
Banking Regulation Act, 1949 (Central Act No. 10 of 1949)
(b) a co-operative bank as defined in clause (cci) of section 56 of
the Banking Regulation Act, 1949 (Central Act No. 10 of 1949);
(c) the State Bank of India constituted under section 3 of the State
Bank of India Act, 1955 (Central Act No 23 of 1955), any of its
subsidiary banks as defined in clause (k) of section 2 of the State
Bank of India (Subsidiary Banks) Act, 1959 (Central Act No 38
of 1959) and any of the corresponding new banks constituted
under section 3 of the Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970 (Central Act No. 5 of 1970)
and the Banking Companies (Acquisition and Transfer of
Undertaking) Act, 1980 (Central Act No. 40 of 1980), as the
case may be.
(iii) “bill of exchange” means a bill of exchange as defined by the
Negotiable Instruments Act, 1881 (Act No. 26 of 1881) and includes
also a hundi, and any other document entitling or purporting to
entitle any person, whether named therein or not to payment by any
other person of, or to draw upon any other person for, any sum of
money.
(iv) “bill of exchange payable on demand” includes,-
(a) an order for the payment of any sum of money by a bill of
exchange or promissory note, or for the delivery of any bill of
exchange or promissory note in satisfaction of any sum of
money, or for the payment of any sum of money out of any
particular fund which may or may not be available, or upon
any condition or contingency which may or may not be
performed or happen,
(b) an order for the payment of any sum of money weekly,
monthly or at any other stated period, and
Page | 3
(c) a letter of credit, that is to say, any instrument, by which one
person authorises another to give credit to the person in whose
favour it is drawn;
(v) “Bill of lading” includes a “through bill of lading”, but does not
include a mate’s receipts;
(vi) “Bond” includes,-
(a) any instrument whereby a person obliges himself to pay money
to another, on condition that the obligation shall be void if a
specified act is performed, or is not performed, as the case may
be;
(b) any instrument attested and not payable to order or bearer,
whereby a person obliges himself to pay money to another; and
(c) any instrument attested, whereby a person obliges himself to
deliver grain or other agricultural produce to another;
Explanation- For the purpose of this clause “attested” means attested
by one or more witnesses each of whom has seen the executants sign
or affix his mark to the instrument or has seen some other person sign
the instrument in the presence and by the direction of the executants,
or has received from the executants, a personal acknowledgment of
such signature or mark or of the signature of such other person, and in
which each of whom has signed the instrument in the presence of the
executants; but is shall not be necessary that more than one of such
witnesses shall have been present at the same time, and no particular
form of attestation shall be necessary.
(vii) “chargeable” means, as applied to an instrument, executed or first
executed after the commencement of this Act, chargeable under this
Act, and, as applied to any other instrument, chargeable under the law
in force in India when such instrument was executed or; where several
persons executed the instrument at different times, first executed;
(viii) “Cheque” means a bill of exchange, drawn on a specified banker, and
not expressed to be payable otherwise than on demand;
Page | 4
1
(viii-A) “Chief Controlling Revenue Authority” means an officer or
authority specified as such by the State Government by notification in
the Official Gazette;
(ix) “Clearance list” means a list of transactions relating to contracts
required to be submitted to the clearing house of an association in
accordance with the rules or bye-laws of the association:
Provided that no instrument shall, for the purposes of this Act, be
deemed to be a clearance list unless it contains the following
declaration signed by the person dealing in such transaction or on his
behalf by a properly constituted attorney, namely-
“I/We hereby solemnly declare that the above list contains a
complete and true statement of my/our transactions including crossed
out transactions and transactions required to be submitted to the
clearing house in accordance with the rules/bye-laws of the association.
I/We further declare that no transaction for which an exemption is
claimed under Article 5 or Article 36 in Schedule to the Rajasthan
Stamp Act, 1998, as the case may be, is omitted.”
Explanation- Transaction for the purpose of this clause shall include
both sale and purchase.
(X) “Collector” includes any officer whom the State Government may, by
notification in the Official Gazette, appoint in this behalf;
2
(x-a) “Concession agreement” means an agreement involving grant of
any right by the Government, local authority, public sector
undertaking or other statutory entity in respect of any of its land or
property situated in the State, to provide some service on commercial
basis using such land or property;
(xi) “Conveyance” includes,-
(i) a conveyance on sale,
(ii) every instrument,
(iii) every decree or final order of any civil court,
1
Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
2
Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
Page | 5
1
(iv) every order made sections 232, 233 or 234 of the
Companies Act, 2013 (Central Act No. 18 of 2013) or
section 44-A of the Banking Regulation Act, 1949 (Central
Act No. 10 of 1949),
(v) sale of air rights,
(vi) sale/consent related to below surface rights,
by which property, whether movable or immovable, or any estate or
interest in any property is transferred to, or vested in, any other person,
intervivos, and which is not otherwise specifically provided for by the
Schedule;
(xii) “duly stamped” as applied to an instrument, means that the instrument
bears an adhesive or impressed stamp of not less than the proper
amount and that such stamp has been affixed or used in accordance
with law for the time being in force in the state;
(xiii) “executed” and “execution” used with reference to instruments,
mean “signed” and “signature”;
(xiv) “Government security” means a Government security as defined in
the Public Debt Act, 1944 (Act. No. 18 of 1944);
(xv) “immovable property” includes land, benefits to arise out of land and
thing attached to the earth, or permanently fastened to anything
attached to the earth, but shall not include standing timber, growing
crops or grass;
2
(xvi) “impressed stamp” includes,-
(a) lables affixed and impressed by the proper officer;
(b) stamps embossed or engraved on stamped paper;
(c) impression by franking machine;
(d) impression or print on a paper by any other method including
electronic method; and
(e) such other impressions as the State Government may by
notification in the Official Gazette, specify;
1
Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
2
Substituted by the Raj. Finance Act 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013).
Page | 6
(xvii) “India” means the territory of India excluding the State of Jammu and
Kashmir;
(xviii) “Inspector General of Stamps” means the Inspector General,
Registration & Stamps appointed by the State Government;
(xix) “instrument” includes every document by which any right or liability
is, or purports to be, created, transferred, limited, extended,
extinguished, or recorded;
(xx) “Instrument of partition” means any instrument whereby co- owners
of any property divide, or agree to divide such property in severalty,
and includes-
(i) a final order for effecting a partition passed by any revenue
authority or any civil court,
(ii) an award by an arbitrator directing a partition, and
(iii) when any partition is effected without executing any such
instrument, any instrument or instruments signed by the coowners and recording, whether by way of declaration of such
partition or otherwise, the terms of such partition amongst the
co-owners;
(xxi) “Lease” means a lease as defined in section 105 of the Transfer of
Property Act, 1882 (Act No. 4 of 1882), a lease of immovable
property or movable property, or of both, and includes also;
(a) a patta,
(b) a kabuliyat, or other undertaking in writing, not being a
counterpart of a ”lease”, to cultivate, occupy, or pay or deliver
rent for, immovable property,
(c) 1
[deleted]
(d) any writing on an application for a lease intended to signify
that the application is granted,
(e) any agreement to lease,
(f) a declaratory decree or final order of any Civil Court in respect
of lease:
1
Deleted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)
Page | 7
Provided that, where subsequently an instrument of lease is executed
in pursuance of such decree or order, the stamp duty if any, already
paid and recovered on such decree or order shall be adjusted towards
the total duty leviable on such instrument;
1
(xxi-a) “Leave and Licence” means any instrument, whether called
leave or licence or called by any other name, by which one person grants
to another, or to a definite number of other persons, a right to do, or
continue to do, in or upon the immovable property of the granter,
Something which would, in the absence of such right, be unlawful, and
such right does not amount to an easement or an interest in property;
(xxii) “marketable security” means security of such a description as to
be capable of being sold in any stock market in India or outside;
2
(xxiii) “market value” in relation to any property, which is the subject
matter of an instrument, means the price which such property
would have fetched or would fetch if sold in open market on the
date of execution of such instrument as determined by in such
manner and by such authority as may be prescribed by rules made
under this Act or the consideration stated in the instrument,
whichever is higher;
(xxiv) ”mortgage deed” includes every instrument, whereby, for the purpose
of securing money advanced, or to be advanced, by way of loan, or
an existing or future debt, or the performance of any engagement, one
person transfers, or creates, to, or in favour of, another, a right over
or in respect of specified property;
(xxv) “movable property” includes standing timber; growing crops and
grass, fruit upon and Juice in trees, and property of every other
description, except immovable property;
(xxvi) ”Paper” includes vellum parchment or any other material on which an
instrument may be written;
1
Inserted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014) (w.e.f. 14.7.2014).
2
Substituted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014) (w.e.f. 14.7.2014).
Page | 8
Page | 9
(xxvii) ”Policy of insurance” includes,-
(a) any instrument by which one person, in consideration of a
premium, engages to indemnify another against loss, damage
or liability arising from an unknown or contingent event,
(b) a life policy and any policy insuring any person against
accident or sickness, and any other personal insurance;
(xxviii) “policy of group insurance” means any instrument covering, not less
than fifty or such smaller number as the Central Government
may approve, either generally or with reference to any particular
case, by which an insurer, in consideration of a premium paid by
an employer or by an employer and his employees jointly, engages
to cover with or without medical examination and for the sole
benefit of persons other than the employer, the lives of all the
employees or of any class of them, determined by conditions
pertaining to the employment, for amounts of insurance based upon
a plan which precludes individual selection;
(xxix) “Policy of sea-insurance” or “sea-policy”,-
(a) means any insurance made upon any ship or vessel (whether
for marine or inland navigation), or upon the machinery, tackle
or furniture of any ship or vessel, or upon any goods,
merchandise or property of any description whatever on board
of any ship or vessel, or upon the freight of, or any other
interest which may be lawfully insured in, or relating to, any
ship or vessel, and
(b) Includes any insurance of goods, merchandise or property for
any transit which includes, not only a sea risk within the
meaning of clause (a), but also any other risk incidental to the
transit insured from the commencement of the transit to the
ultimate destination covered by the insurance,
Explanation- Where any person in consideration of any sum of money
paid or to be paid for additional freight or otherwise, agrees to take upon
himself any risk attending goods, merchandise or property of any
Page | 10
description whatever while on board of any ship or vessel, or engages to
indemnify the owner of any such goods, merchandise or property from
any risk, loss or damage, such agreement or engagement shall be deemed
to be a contract for sea-insurance;
(xxx) “power of Attorney” includes any instrument, (not chargeable
with a fee under the law relating to court fees for the time being in
force) empowering a specified person to act for and in the name of
the person executing it and includes an instrument by which a
person, not being a person who is legal practitioner, is authorized
to appear on behalf of any party in any proceeding before any
Court, Tribunal or Authority;
(xxxi) “promissory note” – means a promissory note as defined by the
Negotiable Instruments Act, 1881 (Act No. 26 of 1881); it also
includes a note promising the payment of any sum of money out
of any particular fund which may or may not be available, or upon
any condition or contingency which may or may not be
performed or happen;
(xxxii) “Public officer” means a public officer as defined in clause (17)
of section 2 of the Code of Civil Procedure, 1908 (Act No. 5 of 1908);
(xxxiii) ”receipt”- includes any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or
promissory note is acknowledged to have been received,
or
(b) whereby any other movable property is acknowledged
to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or
demand, is acknowledged to have been satisfied or
discharged, or
(d) which signifies or imports any such acknowledgment,
and whether the same is or is not signed with the name
of any person,
Page | 11
1
(xxxiii-a) “securities” shall have the same meaning as assigned to it in
clause (h) of section 2 of the Securities Contracts (Regulation)
Act, 1956 (Central Act No. 42 of 1956);
(xxxiv) “Settlement” means any non-testamentary disposition, in
writing, of movable or immovable property made,-
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among
his family or those for whom he desires to provide, or for the
purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose, and includes an
agreement in writing to make such a disposition and, where
any such disposition has not been made in writing, any
instrument recording, whether by way of declaration of trust
or otherwise, the terms of any such disposition;
(xxxv) “Soldier” includes any person below the rank of noncommissioned officer who is enrolled under the Army Act,
1950 (Act No. 46 of 1950); and
2
(xxxvi) “Stamp” means any mark, seal, certificate or endorsement by
any agency or person duly authorised by the State Government,
and includes an adhesive or impressed stamp, for the purposes
of duty chargeable under this Act.]
3
(xxxvii) ‘stock exchange’ means anybody of individuals, whether
incorporated or not, constituted for the purpose of assisting,
regulating or controlling the business of buying, selling or
dealing in securities.
1
Inserted by the Raj. Finance Act, 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013)
2
Substituted by the Raj. Finance Act, 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013).
3
Inserted by the Raj. Finance Act, 2006 (Act No. 4 of 2006) (w.e.f. 8.3.2006) and substituted by Raj. Fin. Act, 2011 (Act No.
15 of 2011) (w.e.f. 15.4.2011).
Page | 12
CHAPTER-II
Stamp Duties
A- Of the liability of Instruments to Duty.
- Instrument chargeable with duty – Subject to the provisions of this
Act and the exemptions contained in the Schedule, the following
instruments shall be chargeable with duty of the amount indicated in the
Schedule as the proper duty therefore respectively, that is to say,-
(a) every instrument mentioned in that Schedule, which not having
been previously executed by any person, is executed in the State
on or after the date of commencement of this Act;
1
(b) every instrument mentioned in that Schedule, which, not having
been previously executed by any person, is executed out of the
State on or after the said date, relates to any matter or thing done
or to be done in the State and is received in the State, or relates to
any property situate in the State:
Provided that no duty shall be chargeable in respect of, –
(i) any instrument executed by or on behalf of, or in favour of, the
Government in cases where, but for this exemption, the
Government would be liable to pay the duty chargeable in respect
of such instrument;
(ii) any instrument for the sale, transfer or other disposition, either
absolutely or by way of mortgage or otherwise, of any ship or
vessel, or any part, interest, share or property of or in any ship or
vessel registered under the Merchant Shipping Act, 1958 (Act
No. 44 of 1958), as amended by subsequent Acts.
2
3-A, Certain instruments chargeable with surcharge –
(1) All instruments chargeable with duty under section 3 read with
schedule to the Act, shall be chargeable with surcharge at such rate
not exceeding 10 percent of the duty chargeable on such
instruments under section 3 read with Schedule to the Act, as may
1
Substituted by the Raj. Finance Act, 2019(Act No. …… of 2019)
2
Inserted by the Raj. Finance Act, 2011(Act No. 15 of 2011) (w.e.f. 09-03-2011) and sub section (i) was substituted by the
Raj. Finance Act, 2017.
