Stamped receipt
Shashikant Madkaiker
(Querist) 17 December 2010
This query is : Resolved
From time immemorial, receipts are requested duly signed across a Re1 revenue stamp even for cheque payment. Is there a law that insists on this practice ?
What is the law for a revenue stamped receipt for any payment made by a resident to the Society?
Is it obligatory for the Society to give a signed revenue stamped receipt? or will a receipt generated by a computer program acceptable.
What is the specific law/s that covers this issue.
Shashikant Madkaiker
SAANJAAY GUPTAA
(Expert) 17 December 2010
Receipt of any payment of more than 5,000/= shall attract the revenue stamp.
malipeddi jaggarao
(Expert) 18 December 2010
As far as stamp duty is concerned there are two separate Acts. one is Indian Stamp Act and the other is - individual states have separate Stamp Acts. Affixing revenue stamp on the receipt of above Rs.5000 comes under Indian Stamp Act. Violation attracts penalties under Indian Stamp Act.
Arul Kumar
(Expert) 30 December 2010
As per Article 53 of Schedule to Indian Stamp Act, 1899 stamp duty of Re.1 is payable on receipts for an amount exceeding Rs.5,000/-. It reads as under:
"53. RECEIPT [as defined by section 2(23) for any money or other property the amount or value of which exceeds five thousand rupees.
Exemptions
Receipt—
(a) endorsed on or contained in any instrument duly stamped or any in¬strument exempted under the proviso to section 3 (instruments executed on behalf of the Government) or any cheque or bill of exchange payable on demand acknowledging the receipt of the consideration money, therein ex¬pressed, or the receipt of any principal money, interest or annuity, or other periodical payment thereby secured;
(b) for any payment of money without consideration;
(c) for any payment of rent by a cultiva¬tor on account of land assessed to Government revenue, or in the States of Madras, Bombay and Andhra as they existed immediately before the 1st November, 1956 of Inam lands;
(d) for pay or allowances by non-com¬missioned or petty officers, soldiers, sailors or airmen of the Indian mili¬tary, naval or air forces, when serving in such capacity, or by mounted police constables;
(e) given by holders of family certificates in cases where the person from whose pay or allowances the sum comprised in the receipt has been assigned is a non-commissioned or petty officer, soldier, sailor or airman, of any of the said forces, and serving in such capac¬ity;
(f) for pensions or allowances by persons receiving such pensions or allowanc¬es in respect of their service as such non-commissioned or petty officers, soldiers, sailors or airmen and not serv¬ing the Government in any other capacity;
(g) given by a headman or lambardar for land revenue or taxes collected by him;
(h) given for money or securities for mon¬ey deposited in the hands of any bank¬er, to be accounted for :
Provided that the same is not expressed to be received of, or by the hands of, any other than the person to whom the same is to be accounted for:
Provided also that this exemption shall not extend to a receipt for acknowledgement for any sum paid or deposited for or upon a letter of allotment of a share, or in respect of a call upon any scrip or share of, or in, any incorporated company or other body corporate or such pro¬posed or intended company or body or in respect of a debenture being a marketable security."
Stamp has to be affixed both in case of cash and cheque payments. However, in case of donations, stamp duty is not applicable as per exemption (b) above since the payment is without any consideration.
