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Indian Stamp Bill, 2023 - Coggle Diagram
Indian Stamp Bill, 2023
Introduction
The Ministry of Finance introduces the 'Indian Stamp Bill, 2023' to modernize the stamp duty regime.
Stamp duty, crucial in India's financial landscape, faces challenges of redundancy and non-uniform application.
Post Office Bill, 2023 replaces the 125-year-old Indian Post Office Act, 1898.
What is
Stamp Duty?
Central government levies, but states collect within their territories.
Levied on various documents for registration, based on fixed value or percentage of agreement's value.
Applicable to diverse documents like bills, cheques, promissory notes, and share transfers.
Stamp duties can be levied on bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, etc.
Article 268- Stamp duties are levied by the Centre but appropriated by the concerned states within their territories.
Key Features
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Penalty Enhancements: Increases maximum penalty to Rs 25,000 for law contraventions and imposes Rs 1,000 per day for repeated offenses.
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Conclusion
It seeks to streamline transactions, enhance compliance, and foster efficiency in India's financial landscape.
The 'Indian Stamp Bill, 2023' aims to modernize stamp duty laws, addressing shortcomings and introducing digital-friendly provisions.
Way forward
Study and benchmark against international best practices in stamp duty administration and digital documentation.
Create channels for stakeholders to provide feedback and suggestions for improving the stamp duty regime.
Take proactive measures to address any disparities or barriers to participation in the digital stamping process.
Establish mechanisms for monitoring and evaluating the implementation of the Indian Stamp Bill, 2023.
Need for
the Bill
Time Inefficiency: Complexity leads to errors, delays, and inefficiencies in procedures.
Tax Evasion Risk: Loopholes enable tax evasion, causing revenue loss and unfairness.
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