Government to increase revenue with the new enhanced Stamp Act

The Financial Minister renews an old law which ages more than a century. This proposed bill states an increase in the maximum penalty to Rs 1 Lakh. Currently, the bill penalises for a few hundred rupees. The draft states that if a share warrant is issued without being duly stamped, the penalty will be upto Rs. 1 lakh. In the case of any other instrument chargeable with duty, such as debentures or preferential shares, the fine will be Rs 10,000. With regard to any component chargeable with duty , for instance debentures or perhaps preferential shares, the fine is going to be Rs 10,000.

A new section is proposed to be inserted which provides for a fine up to Rs 1 lakh on any person or association which fails to file a duly stamped clearance list to the state government within a prescribed time and manner or makes a false declaration.

This new law comes into action whenever a person or an organization fizzle to file a duly stamped clearance list to the state government within a given time or the file to be false. In such situations the responsible individual or the association will be fined Rs.1 lakh or less than that. The proposed bill would double the stamp revenue to about Rs. 60,000 cr a year.

The penalty in addition has recently been enhanced massively for stamp duty evasion. At present, the highest possible punishment for this purpose is Rs 5,000 . It is recommended that for an evasion as much as Rs 10 lakh, the penalty could be amplified to Rs 50,000 or 20% of the duty evaded, regardless of which might be more. If perhaps the evaded sum may be more than Rs 10 lakh, the verdict entails imprisonment of as much as 12 months or possibly a penalty with a minimum of Rs 50,000 or perhaps both of them.

However, this law is not applicable to states such as Karnataka, Maharashtra and Delhi where the penalties have already been increased. This is only for Assam, Bihar, Osidha and Kerala where there were laws applicable only for that state and now states have adopted the national law and would defenetely increase their states revenue.

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