Points To Note
According to New Delhi Finance Act 2019, amendments were conduct to the Indian Stamp Act, 1899 under British India. The amendments of Finance Act 2019 made comes into force from 1 July 2020 onwards. These amendments were made for building a pan-India securities market and to boost Ease of Doing Business in large scale and increase FDI.
- The duty on sale, transfer and issue of securities shall be collected on behalf of the State Governments by the collecting representative who then shall transfer the collected stamp duty in the account of the concerned State Governments.
- In order to prevent multiple incidences of taxation, no stamp duty shall be collected by the Government of States on any secondary record of transaction associated with a transaction on which the depository / stock exchange of India has been authorised to collect the stamp duty.
- Stamp duty was payable by both buyer and seller whereas in the new digital system it is levied only on one side.
- The Stamp duty collecting representative shall be the Stock Exchanges or authorized Clearing Corporations and the Depositories.
- For all exchange based secondary market transactions in securities, Stock Exchanges of India shall collect the stamp duty; and for off-market transactions.
States To Collect Stamp Duty collection States To Collect Stamp Duty collection