News Excerpt:

The Department of Revenue, Ministry of Finance, Government of India, has prepared a draft ‘Indian Stamp Bill, 2023’ to align it with the modern Stamp Duty regime. 

• The Bill shall replace the Indian Stamp Act, 1899 after enactment.

About Indian Stamp Act, 1899:

• The Indian Stamp Act, 1899 is a fiscal statute laying down the law relating to the tax levied in the form of stamps on instruments recording transactions. 
• Stamp duties are levied by the Central Government, but within the States, where they are levied, these are collected and appropriated by the concerned States according to the provisions of Article 268 of the Constitution. 

Need for a new legislation:

• The Indian Stamp Act, 1899, a pre-Constitution Act, has been amended from time to time to enable a more modern Stamp Duty regime. 
• However, several provisions contained in this Act have become redundant/ inoperative and hence, there is a need to re-orient the Indian Stamp Act, 1899.
• Accordingly, it has been proposed that the Indian Stamp Act, 1899 is repealed and a new legislation is enacted to reflect the present realities and objectives.

Features of Indian Stamp Bill, 2023:

• It will extend to the whole of India.
• The bill has a modern Stamp Duty regime, paving the way for the e-stamping of digital instruments.
• The draft law defines an electronic stamp or e-stamp as an electronically generated impression denoting the payment of stamp duty by electronic means or otherwise.
• It focuses on e-governance and removing traces of redundant colonial laws.