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Section4
The Indian Stamp Act, 1899

Several instruments used in single transaction of sale, mortgage or settlement

In force From 01 Jul 1899 Act 2 of 1899 As on 15 Oct 2026

Act 2 of 1899 Ministry Finance Enacted 27 Jan 1899 In force 01 Jul 1899 Cited by 2 provisions Instruments 5

Section 4 of the Indian Stamp Act, 1899 deals with several instruments used in single transaction of sale, mortgage or settlement. Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, for the conveyance, mortgage or settlement, and each of the other instruments shall be ch The Act came into force on 01 Jul 1899.

(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, for the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty of one rupee instead of the duty (if any) prescribed for it in that Schedule.

(2) The parties may determine for themselves which of the instrument so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:

Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

1[(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be the principal instrument for the purpose of this section and no stamp-duty shall be charged on any other instruments relating to any such transaction.]

STATE AMENDMENT

Himachal Pradesh.--

Amendment of section 4.-- In sub-section (1) of section 4 of the said Act--

(a) for the word and figure "Schedule I" the word, figure and letter "Schedule I-A" shall be substituted, and

(b) for the words one rupee, the words "two rupees" shall be substituted.

[Vide Himachal Pradesh Act 4 of 1953, s. 4]

Orissa.--

Amendment of section 4. --In section 4 of the Indian Act, 1899 (2 of 1899) (hereinafter referred to as the principal Act) in sub-section (1), for the words, "one rupee", and eight annas the words "ten rupees" shall be substituted.

[Vide Orissa Act 1 of 2003, s. 2]

Manipur

Amendment of sections 4 and 6.-In sub-section (1) of section 4 and in the proviso to section 6 of the Indian Stamp Act, 1899 s application to the State of Manipur hereinafter referred to as the Principal Act the words "two rupees" wherever they occur, the words "two rupees and paise fifty" shall be substituted.

[Vide Manipur Act 4 of 1989, s. 2]

Section 4, 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

  1. s. 6 Instruments coming within several descriptions in Schedule I
  2. s. 9A Instruments chargeable with duty for transactions in stock exchanges and depositories

Referred to by 2

  1. s. 6 Instruments coming within several descriptions in Schedule I
  2. s. 73 Books, etc., to be open to inspection

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.

  1. The Sub Registrar Amudalavalasa vs Dankuni Steels LTD

    Supreme Court of India 26 Apr 2023 Binding (Supreme Court) Reportable

    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: Several instruments used in single transaction - principal instrument charged with prescribed duty, others with Re. 1

    Read the full order on eCourts India

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.

Made under this section, and citing it

5 instruments name this provision in its title or its text without being made under it.

All subordinate legislation

Questions about Section 4

What have the courts held on Section 4 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: Several instruments used in single transaction - principal instrument charged with prescribed duty, others with Re. 1.

How do I find court cases under Section 4 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 4, section 4 Stamp Act, section 4 of the Indian Stamp Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with The Sub Registrar Amudalavalasa vs Dankuni Steels LTD (26 Apr 2023).

What should I read with Section 4 of the Indian Stamp Act, and has it changed?

Its own text turns on section 6 (Instruments coming within several descriptions in Schedule I), section 9A (Instruments chargeable with duty for transactions in stock exchanges and depositories), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. 5 instruments name it without being made under it, most recently the award of Construction of Deep Sea Long lining Gill netting Fishing Vessel to the Registrar, Tamil Nadu Dr. J. Jayalalithaa Fisheries University by Cochin Shipyard Limited. (2022), then to engage Indian Institute of Technology (IIT) Madras and Centre for Development of Advanced Computing (C-DAC) by the State Project Director, Samagra Shiksha for the project to strengthen the assessment and learning management system in the State. (2022).

When did Section 4 of the Indian Stamp Act come into force?

Section 4 of the Indian Stamp Act, cited as Stamp Act 4, 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

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.