Article 6 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Article 6 charges the written agreement that records a deposit of title-deeds, or a pawn or pledge of movable property, made as security for a loan or a debt. The central Schedule ties its duty to the duty on a bill of exchange under Article 13(b), at the full rate or at half, depending on whether the loan or debt is repayable on demand or beyond three months, or within three months.
Article 6 applies to an instrument evidencing an agreement relating to (1) the deposit of title-deeds or instruments constituting or being evidence of title to any property (other than a marketable security), or (2) the pawn or pledge of movable property, where the deposit, pawn or pledge is made by way of security for the repayment of money advanced or to be advanced by way of loan, or an existing or future debt. The central Schedule prints the same duty as a bill of exchange under No. 13(b) for the amount secured where the loan or debt is repayable on demand or beyond three months, and half that duty where it is repayable within three months. An unattested instrument of pawn or pledge of goods is exempted.
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so check that State's schedule; this article explains the central Act only.
What Article 6 covers
The footnote in the copy consulted shows Article 6 as substituted by Act 15 of 1904, s. 8. As printed, it is headed "Agreement relating to deposit of title-deeds, pawn or pledge, that is to say, any instrument evidencing an agreement relating to" two things.
- The deposit of title-deeds "or instruments constituting or being evidence of the title to any property whatever (other than a marketable security)".
- The pawn or pledge of movable property.
The Article applies only "where such deposit, pawn or pledge has been made by way of security for the repayment of money advanced or to be advanced by way of loan or an existing or future debt". Three points stand out.
- The Article charges an instrument: a document evidencing the agreement. A deposit of deeds made orally, with no writing, produces no instrument for the Article to charge. The text consulted does not discuss that case further and we add nothing.
- The property can be "any property whatever" for title-deeds, with the one carve-out of a marketable security. Marketable securities are dealt with elsewhere: section 23A treats certain instruments connected with a deposit of marketable securities as agreements chargeable under Article 5(c). See our article on section 23A.
- The security must be for money lent or a debt, existing or future.
A lender or borrower who wants a deposit-of-deeds memorandum reviewed can use our loan documentation support service.
The central Schedule's duty
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it | Exemptions as printed |
|---|---|---|---|
| 6(a) | Where the loan or debt is repayable on demand or more than three months from the date of the instrument evidencing the agreement | The same duty as a Bill of Exchange for the amount secured | Instrument of pawn or pledge of goods if unattested |
| 6(b) | Where the loan or debt is repayable not more than three months from the date of the instrument | Half the duty payable on a Bill of Exchange for the amount secured | Same exemption |
These are the amounts in the central text and not the duty payable today. The duty on most instruments is fixed by the State where the instrument is executed. The reference "No. 13 (b)" is to Article 13(b), which the copy prints as the duty on a bill of exchange payable otherwise than on demand; our article on bills, promissory notes and letters of credit sets that Article out as printed.
How the split works
The test is the repayment period fixed by the instrument:
- Repayable on demand, or more than three months from the date of the instrument: the full duty by reference to Article 13(b).
- Repayable not more than three months from the date: half that duty.
Two things follow. First, a loan repayable on demand is treated in the same band as a loan repayable beyond three months. Secondly, the three-month period is counted from the date of the instrument evidencing the agreement, not from the date of the loan.
The amount to which the duty is applied is "the amount secured". The Article does not say how to measure that where the loan is future or fluctuating; the text consulted is silent, and this article does not supply a rule.
The exemption
The Article prints one exemption: "Instrument of pawn or pledge of goods if unattested." So a pawn or pledge of goods is exempted from this Article when the instrument is not attested. If the instrument is attested, the exemption does not apply on its words. The word "attested" is not defined in section 2 of the Act.
The Act's older entry for an equitable mortgage was removed from the alphabetical list by Act 15 of 1904, as the footnote on the "Equitable mortgage" entry shows. The copy prints cross-entries that now lead to Article 6: "Deposit of title-deeds" (see Agreement relating to deposit of title-deeds, pawn or pledge, No. 6) and "Pawn or pledge" (see the same). Article 40, the mortgage-deed Article, excludes an Article 6 agreement from its description. See our article on mortgage deeds and related Articles.
Who bears the stamp expense
Section 29(a) of the Act says that, in the absence of an agreement to the contrary, the expense of providing the proper stamp is borne by the person drawing, making or executing certain instruments. The copy prints Article 6 in the list of Articles named there. So, unless the parties agree otherwise, the person who draws, makes or executes the Article 6 instrument bears the cost. Our article on section 29 explains that section.
An example with invented names
Gupta Engineering borrows a sum from a lender, Shah Finance, repayable on demand, and hands over the title-deeds of its factory with a signed memorandum recording that the deeds are deposited as security. The memorandum is an instrument evidencing an agreement relating to the deposit of title-deeds by way of security for a loan, so Article 6 applies. Because the loan is repayable on demand, the central Schedule's clause (a) rate applies: the same duty as a bill of exchange under No. 13(b) for the amount secured. If the loan had been repayable within three months of the date of the instrument, clause (b) would give half that duty. Under section 29(a), Gupta Engineering, as the party executing the memorandum, bears the expense unless they agree otherwise.
If instead Gupta Engineering pledges some stock-in-trade (movable goods) by an instrument that nobody attests, the exemption for an unattested instrument of pawn or pledge of goods applies on its words.
For the law of pledge itself, see our article on section 172 of the Indian Contract Act, 1872, which defines pledge, pawnor and pawnee. The copy of the Stamp Act consulted adds nothing on how a pledge is created.
What the text does not say
- It does not say how "the amount secured" is measured for a future or revolving advance.
- It does not define "attested".
- It prints no rates of its own for Article 6, only the link to Article 13(b).
Need help with a loan or security document?
If you are borrowing against property or goods and want the memorandum read before it is signed, our team can review the paper under our loan documentation support service. We look at what the document says, which Article it falls under and what the State's schedule requires.
Key takeaways
- Article 6 charges the instrument evidencing a deposit of title-deeds (other than a marketable security), or a pawn or pledge of movable property, made as security for a loan or debt.
- The central Schedule ties the duty to Article 13(b): the same duty where the loan is repayable on demand or beyond three months, half where it is repayable within three months.
- An unattested instrument of pawn or pledge of goods is exempted.
- Section 29(a) names Article 6: the person executing the instrument bears the expense, in the absence of agreement.
- The amounts are the central text's; the State where the instrument is executed fixes the duty actually payable.
Read next
- Articles 40, 32, 41 and 54 of Schedule I: mortgage deed, further charge, mortgage of crop and reconveyance
- Articles 5 and 43 of Schedule I: agreement and broker's note
- Schedule I: how the Schedule is laid out and which duties the States fix
- Stamp duty on loan agreement and hypothecation
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.