Instruments chargeable with duty
Section 3 of the Indian Stamp Act, 1899 deals with instruments chargeable with duty. Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore respectively, that is to say-- (a) every instrument mentioned in that Schedule which, not ha The Act came into force on 01 Jul 1899.
Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore respectively, that is to say--
(a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 1[India] on or after the first day of July, 1899;
(b) every bill of exchange 2[payable otherwise than on demand] 3*** or promissory note drawn or made out of 1[India ]on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in 1[India]; and
(c) every instrument (other than a bill of exchange, 3***or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of 1[India] on or after that day, relates to any property situate, or to any matter or thing done or to be done, in 1[India] and is received in 1India:
Provided that no duty shall be chargeable in respect of--
(1) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Merchant Shipping Act 1894, Act No. 57 & 58 Vict. c. 60 or under Act XIX of 1838 Act No. or the Indian Registration of Ships Act, 1841, (CX of 1841) as amended by subsequent Acts.
STATE AMENDMENT
Himachal Pradesh.--
Amendment of section 3.-- In section 3 of the said Act- (1) After clause (c), the following proviso shall be inserted, namely: --- "Provided that, notwithstanding anything contained in clauses (a), (b) or (c) of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefor, respectively, that is to say:
(aa) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule which, not having been previously executed by any person is executed in the Himachal Pradesh on or after the date of commencement of this Act;
(bb) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed out of Himachal Pradesh, on or after the date of commencement of this Act and relates to any property situated, or to any matter or thing done or to be done in the Himachal Pradesh, and is received in the Himachal Pradesh".
(2) Between the word Provided and the words that no duty the word also shall be inserted.
[Vide Himachal Pradesh Act 4 of 1953, s. 3]
Odisha.--
Insertion of new section 3A.--After section 3 of the Indian Stamp Act, 1899, (2 of 1899) the following section shall be inserted, namely:--
"3.A Duty chargeable on mining lease. -- (1) Notwithstanding anything contained in this Act and the rules made thereunder, on every instrument of grant or renewal of a mining lease, the stamp duty chargeable shall be equivalent to fifteen percentum of the amount of average royalty that would accrue out of the highest annual extraction of minerals permitted under the approved mining plan or mining scheme, as the case may be, for such mining lease under the relevant law in force, multiplied by the period of such mining lease.
Explanation.--For the purpose of this sub-section, the average royalty of the highest grade of minerals based on the date available for past twelve months beginning from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013 shall be taken into consideration:
Provided that where an application for renewal of mining lease has been made to the State Government prior to the expiry of the lease, but renewal of lease has not been granted by the State Government or the mining lease is deemed to have been extended by a further period in accordance with the provisions contained in the relevant law in force, till the State Government passes an order, prior to the commencement of the Indian Stamp (Odisha Amendment) Act, 2013, the sum total of the quantity of mineral permitted for extraction, year wise, in the approved mining plan or mining scheme, as the case, may be, or the actual quantity raised, whichever is higher, shall be taken into consideration for calculation of the stamp duty:
Provided further that in case the production level is enhanced on account of subsequent modification or review of the mining plan, the stamp lease period and the lessee shall deposit the differential stamp duty before such enhancement is carried out by him:
Provided also that in case a lessee is required to surrender the mining lease or, permanently prohibited from undertaking the extraction of mineral by, or for reasons of any operation of law, court orders passed or any order issued under any law for the time being in force and the reasons of such prohibition are not in any manner attributable to such lessee or his agents, servants, employees or persons claiming through or under such lessee, the lessee shall be entitled for refund of the stamp duty paid by him to the extent of such balance period of lease outstanding:
Provided also that where the lessee is prohibited from undertaking the extraction of minerals for a temporary period for the reasons mentioned in the third proviso and subject to the conditions specified therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that would be payable for the mining lease under the relevant law in force, for the period of such prohibition.
(2) Where an application for renewal of a mining lease has been made to the State Government prior to the expiry of the lease but renewal of the lease has not been granted by the State Government or the mining lease is deemed to have been extended as per the provisions contained in the relevant law in force, by a further period till the State Government passes an order thereon, the stamp duty payable under sub-section (1) shall be paid by the applicant on or before the date of expiry of the lease or within sixty days from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013, whichever is later, the manner as may be prescribed.
(3) If the application for grant or renewal of mining lease is rejected by the State Government, the applicant shall be entitled for refund of full stamp duty by him without any interest.
(4) In case of a mining lease whose period is deemed to have been extended by a further period till the State Government passes an order thereon and the State Government, at a later date, passes an order rejecting the renewal of the lease, the applicant shall be entitled for refund of such amount of stamp duty paid under sub-section (1), as arrived at by deducting from the total amount of stamp duty paid, the amount of stamp duty chargeable in respect of such mining lease till the date of such rejection order without any interest.
(5) No refund as mentioned in sub-sections (3) and (4) shall be made if the order rejecting the application is challenged or the time limit for presenting the application for revision of the order of rejection is not expired".
[Vide Odisha Act 16 of 2013, s. 2]
Meghalaya.--
Insertion of a new section in Central Act II of 1899.--After section 3 of the Indian Stamp Act, 1899, the following shall be inserted as section 3A, namely:--
"3A. Surcharge on Stamp Duty.--(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, herein after referred to as Stamp Surcharge on the instruments mention on the following items of Schedule I of the principal Act, namely:--
Item Nos. 1-10, 12,15-20, 22-26, 28, 29,31,38-46,48,50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument.
(3) The Stamp Surcharge shall be payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of stamp Surcharge.
Provide that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rule generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge."
[Vide Meghalaya Act 13 of 1972, s. 2]
Meghalaya.--
Insertion of a new section in Central Act II of 1899.--After section 3 of the Indian Stamp Act, 1899 the following shall be inserted as section 3A, namely:--
"3A. Surcharge on Stamp Duty.--(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, hereinafter referred to as Stamp Surcharge on the instruments mentioned in the following items of Schedule I to the principal Act, namely:--
Item Nos. 1-10, 12, 15-20, 22-26, 28, 29, 31, 36, 38-46, 48, 50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty. Five paise per instrument.
(3) The Stamp Surcharge shall by payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of Stamp Surcharge.
Provided that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this Act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rules generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge."
[Vide Meghalaya Act 15 of 1973, s. 2]
Section 3, The Indian Stamp Act, 1899 (Act 2 of 1899).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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The Sub Registrar Amudalavalasa vs Dankuni Steels LTD
Court's Decision & Legal Precedent
When a single sale deed purports to convey multiple distinct matters including land, building, and plant and machinery permanently embedded to earth, the entire transaction must be examined by reading the preamble, recitals, operative part and schedule together. If the underlying transaction (such as an auction sale) was for all assets as a composite lot, and the parties' conduct indicates intention to operate the unit as a going concern, then plant and machinery permanently embedded to earth constitutes immovable property subject to stamp duty under Section 5 of the Indian Stamp Act. The registering authorities have power under Section 27 (as amended) and Section 47A to verify the true value and nature of property transferred and to refer the matter to the Collector for determination of market value and proper stamp duty payable. The mere fact that the sale deed describes only land and buildings does not permit avoidance of stamp duty liability on plant and machinery that was actually transferred as part of the composite transaction.
On this section: Instruments chargeable with duty - establishes that instruments mentioned in Schedule I are chargeable with duty
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Avinash Kumar Chauhan vs Vijay Krishna Mishra
Court's Decision & Legal Precedent
The phrase 'for any purpose whatsoever' in Section 35 of the Indian Stamp Act 1899 must be given its natural and full meaning, and applies with absolute force to bar admission of unstamped or insufficiently stamped instruments in evidence regardless of whether the purpose is primary (enforcement of contract) or collateral (proof of consideration payment or any other subsidiary fact). An instrument chargeable with stamp duty that has not been properly stamped cannot be admitted in evidence for any purpose unless the requirements of the provisos to Section 35 are satisfied by payment of proper duty and applicable penalties. The proviso to Section 49 of the Indian Registration Act 1908, which permits use of unregistered documents for collateral purposes, does not operate to override or diminish the absolute bar created by Section 35 of the Stamp Act. Where an agreement to sell is accompanied by transfer of possession before execution of formal conveyance, it becomes a conveyance by virtue of the legal fiction created in the Explanation to Article 23 of Schedule IA, and is therefore subject to stamp duty applicable to conveyances rather than agreements to sell.
On this section: Core charging section defining which instruments are chargeable with stamp duty, including instruments executed in India and those relating to property in India
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Uggar Singh v. State of Punjab
Court's Decision & Legal Precedent
Stamp duty on conveyance is assessed on market value at execution of the sale deed, not agreement-to-sell date — reading Stamp Act ss.3 and 17 with Khandaka Jain Jewellers / Shanti Bhushan. DATE VERIFIED Final Order 2025-07-14 (order-2.pdf).
On this section: Charging section: duty on conveyance instrument assessed at execution-date market value, not agreement date.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Therefore, the stamp must be issued by and the stamp duty must be paid to the state government for an instrument to be 'duly stamped'[31]( page-23-0) under the 1952 Act. 23. Pursuant to the adaptations by the 1952 Act, the relevant portion of Section 3 and Schedule I of the Indian Stamp Act, 1899 as adapted to the state of Rajasthan by the 1952 Act is as follows: " 3. Instruments chargeable with duty.—Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount …
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… At this stage, it is essential to deal with the argument raised by the Respondent Bank that 7 out of the 9 lease agreements are unstamped. In this regard, reference may be made to the proviso to Section 3 of the Indian Stamp Act, 1899, which provides that no duty is chargeable in respect of any instrument executed in favour of a developer or unit in connection with the carrying out of purposes of the SEZ. In any case, it is evident that the lender banks were aware of the lease agreements and execution of unstamped …
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… He submits that the stamp duty has to be paid on the revised value at Rs.16/ per sq.ft. which is just valuation of the property. 21.I have considered the arguments of the learned counsel for the appellant and the respondents and perused the documents and evidences. 22.Section 3 of the Indian Stamp Act, 1899 is the charging section under which stamp duty is payable on a instrument. Stamp duty is payable on the amount indicated in the schedule. Article 23 to the schedule to the Indian Stamp Act, 1899 stipulates stamp duty payable on the market value of the property which is the subject …
Made under this section, and citing it
6 instruments name this provision in its title or its text without being made under it.
- The Bihar Stamp (Payment of Duty by means of e-Stamping) Rules, 2020Rule 2021
- to award the Post Contract Consultancy Services for executing the Engineering, Procurement and Construction (EPC) contract for Captive Coal Jetty to the Department of Ocean Engineering, Indian Institute of Technology, Madras (IIT-M) on nomination basis.Notification 2019
- Amendment in the rate of Stamp Duty on specified InstrumentsNotification 2018
- Stamp Duty chargeable on InstrumentsNotification 2018
- Notification under The Indian Stamp Act, 1899 in Year 2016Notification 2016
- Notification under The Indian Stamp Act, 1899 in Year 2004Notification 2004
Questions about Section 3
What have the courts held on Section 3 of the Indian Stamp Act?
The Sub Registrar Amudalavalasa vs Dankuni Steels LTD (26 Apr 2023) is the leading judgment on this section among those set out below: Instruments chargeable with duty - establishes that instruments mentioned in Schedule I are chargeable with duty. Another 2 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2008 to 2025.
How do I find court cases under Section 3 of the Indian Stamp Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Stamp Act 3, section 3 Stamp Act, section 3 of the Indian Stamp Act. People searching for it also type indian stamp act 47a 3. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with The Sub Registrar Amudalavalasa vs Dankuni Steels LTD (26 Apr 2023).
What should I read with Section 3 of the Indian Stamp Act, and has it changed?
Its own text turns on section 3A ([Repealed.]), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. 6 instruments name it without being made under it, most recently The Bihar Stamp (Payment of Duty by means of e-Stamping) Rules, 2020 (2021), then to award the Post Contract Consultancy Services for executing the Engineering, Procurement and Construction (EPC) contract for Captive Coal Jetty to the Department of Ocean Engineering, Indian Institute of Technology, Madras (IIT-M) on nomination basis. (2019).
When did Section 3 of the Indian Stamp Act come into force?
Section 3 of the Indian Stamp Act, cited as Stamp Act 3, came into force on 01 Jul 1899, having been enacted on 27 Jan 1899. It is in force as at the date shown on this page.
Other sections of this Act
- 47. Power of payer to stamp bills, and promissory notes received by him unstamped4923 words
- 2. Definitions3110 words
- 10. Duties how to be paid1187 words
- 28. Direction as to duty in case of certain conveyances961 words
- 73. Books, etc., to be open to inspection932 words
- 33. Examination and impounding of instruments732 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.