India is proposing amendments to its existing stamp duty Act, The Indian Stamp Act, 1899, as it looks to incorporate options relating to “digital e-stamping”. The amendments will enable for a digital process for payment and acquisition of e-Stamp and “its affixation on a digital instrument”.
A Cabinet note, circulated across various Ministries, a copy of which is with businessline, states that The Indian Stamp Act, 1899 has been amended from time to time. “In order to enable digital e-Stamping, it is desirable to clearly provide in the Act for e-Stamps, for a digital process for payment and acquisition of e-Stamp and for its affixation on a digital instrument,” the office memorandum reads.
At present, 30 States/UTs have adopted the Indian Stamp Act, 1899, while the remaining 6 States/UTs have their own Stamp Acts. Several States have implemented the digital e-stamping process by either amending the Stamp Acts/rules applicable to that State, or by issuing necessary orders.
“However, to ensure a more robust basis for digital e-stamping in the country, the Indian Stamp Act, 1899, is required to be amended by introducing necessary amendments to certain definitions in the Act,” it adds.
Proposed Amendments
Proposed amendments include changes being made to Section 2 of the existing Act, where the present proposal is to provide for “electronic signature” (as defined in the Information Technology Act, 2000).
Another proposed amendment covers segments that enable digital e-Stamping in the Act and it will include electronic Stamp or e-Stamp and “any such other impressions as the State government may specify”. These would be addition to the existing provisions in the Act where the “impressed Stamp” would only include labels affixed and impressed by a “proper officer” and stamps that are “embossed or engraved on stamped paper”.
The scope of an “instrument” as defined under the Stamp Act is also being expanded.
The addition proposed would include “any other document mentioned in Schedule 1 but does not include such instruments as may be specified by the Government.” The explanation given in the office memorandum says, document in this case will refer to any electronic record as defined under provisions of the Information Technology Act, 2000.
Impact of Changes
An official aware of the discussions said, the proposed amendments are “trade friendly measures”, and will facilitate the taxpayers ease of doing business. Compliances are also expected to improve.
“Tax payers will be able to execute instruments digitally. This will lead to enhancement of public accountability,” the official said.