AMN / NEW DELHI
President Ram Nath Kovind gave his assent to the amendments in the Indian Stamp Act, 1899, which will rationalise and harmonise the system of levying stamp duty and help curb tax evasion.
The Amendments to the Indian Stamp Act, 1899, were introduced as part of the Finance Act 2019, and was approved by Parliament.
The amendments propose to create the legal and institutional mechanism to enable states to collect stamp duty on securities market instruments at one place by one agency on one Instrument.
A mechanism for appropriately sharing the stamp duty with relevant state governments based on state of domicile of the buying client is also proposed.
According to an official release,the proposed rationalised and harmonised system is expected to lead to zero tax evasion. Under it, cost of collection would be minimised while revenue productivity is enhanced.