Govt to amend Stamps Act

NEW DELHI: Government on Tuesday proposed to amend the Indian Stamp Act to delegate powers to states for consolidation of stamp duties and validate instruments not stamped duly on payment of the duty with penalty.

At present, the benefit of such validation is not available in case of Bills of Exchange and Promissory Notes not duly stamped which creates difficulties in enforcement of financial obligations between the debtors and creditors.

In the Union Budget presented in Parliament, Finance Minister P Chidambaram proposed amendments to Indian Stamp Act, 1899, to delegate powers from Centre to states for composition or consolidation of stamp duties to simplify the existing procedure.