AMENDMENTS IN THE INDIAN STAMP ACT, 1899

About:

• From July 1, 2020, all shares and mutual fund purchases will attract a stamp duty of 0.005 % and any transfer of security (MF units) will attract a stamp duty of 0.015 %. With this, all categories of mutual funds (except for ETFs) will attract stamp duty for the first time.
  
  
• The stamp-duty on sale, transfer and issue of securities shall be collected on behalf of the State Government by the collecting agents (i.e. the Stock Exchanges or authorized Clearing Corporations and the Depositories) who will then transfer the collected stamp-duty in the account of the concerned State Government.
  
  
• In order to bring in uniformity of the stamp duty on securities across States and thereby build a pan-India securities market, the Central Government has created the legal and institutional mechanism. It will enable states to collect stamp duty on securities market instruments at one place by one agency through one Instrument.
  
  
• A mechanism for appropriately sharing the stamp duty with relevant State Governments has also been developed which is based on the state of domicile of the buyer.