Implementation of Stamp Act changes deferred by 3 months till July 1

The Revenue Department on Monday said the provisions of the amended Indian Stamp Act, which was to come into force from April 1, will now be effective from July 1.

To rationalise and harmonise the system of levying stamp duty and help curb tax evasion, the government had through Finance Act 2019 amended theIndian Stamp Act, 1899. Certain changes were to be effective from April 1, 2020.

Through a notification the Revenue Department said these amended provisions will come into effect from July 1, 2020.

As part of the amendments, it was decided that the stamp duty rates levied by Maharashtra will be taken as a benchmark as it accounts for 70 per cent of the total collection.

It was amended to state that the stamp duty will have to be paid by either the buyer or the seller of a financial security, as against the current practice of levying the duty on both.