Articles 13 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.
Bills of exchange, promissory notes and letters of credit are among the few instruments whose duty is fixed by the Central Government. Section 9(2)(a) of the Act names them, together with cheques, bills of lading, policies of insurance, transfer of shares, debentures, proxies and receipts, as the instruments on which the Central Government is "the Government" for the purposes of reducing, remitting or compounding duty. For these Articles the rate is the one the central Schedule prints. Article 50, the protest of a bill or note, is not among them.
Article 13(b) and (c) charge a bill of exchange payable otherwise than on demand by the time it has to run and by its amount, from thirty paise up to five rupees for each band as printed. Article 49 charges a promissory note payable on demand at ten, fifteen or twenty-five naye paise by amount, and one payable otherwise than on demand at the same duty as a bill under Article 13. Article 37 prints two rupees for a letter of credit, and Article 50 prints one rupee for a protest. For the Union instruments the rate is the one the central Schedule prints; any reduction or remission under section 9 and later amendments should be checked.
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; the exceptions are the Union instruments named in section 9(2)(a), and this article explains the central Act only.
What section 9(2)(a) says about these instruments
A lender or exporter who holds or issues such paper can have it read through our loan documentation support service. Section 9(2) is the place where the text draws the line between the Central Government and the State Government. Clause (a) lists the instruments named above, and "save as aforesaid" the State Government is the Government. The printing of the clause has slips: it refers to "entry 96 in List I" while section 1(2) refers to "Entry 91 of List I", and it contains the word "expect" where "except" appears to be meant. We quote the clause as printed and do not reconcile the two entry numbers. For the section itself, see our article on section 9. No notification under section 9 is in the text consulted.
The definitions of bill of exchange, promissory note and cheque in section 2 borrow from the Negotiable Instruments Act, 1881; see our article on the section 2 definitions of bill of exchange, promissory note, cheque and policy of insurance.
Article 13: bill of exchange
Article 13 is headed "Bill of exchange as defined by s.2(2), not being a Bond, bank-note or currency-note". The footnote shows Articles 13 and 14 as substituted by notification S.O. 130(E) dated 28-1-2004.
What the copy prints and does not print. Only clauses (b) and (c) appear. No clause (a) is printed, and no footnote explains why. We supply none. Article 6 refers to "No. 13 (b)", and the copy shows nothing for a bill payable on demand under this Article. The matter should be checked against the official text.
The central Schedule prints these amounts for a bill payable otherwise than on demand.
| Period of payment | Amount of the bill | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 13(b)(i) Not more than three months after date or sight | Not exceeding Rs. 500 | Thirty paise |
| Exceeding Rs. 500 but not exceeding Rs. 1,000 | Sixty paise | |
| For every additional Rs. 1,000 or part thereof in excess of Rs. 1,000 | Sixty paise | |
| 13(b)(ii) More than three months but not more than six months | Not exceeding Rs. 500 | Sixty paise |
| Exceeding Rs. 500 but not exceeding Rs. 1,000 | One rupee twenty paise | |
| For every additional Rs. 1,000 or part thereof in excess of Rs. 1,000 | One rupee twenty paise | |
| 13(b)(iii) More than six months but not more than nine months | Not exceeding Rs. 500 | Ninety paise |
| Exceeding Rs. 500 but not exceeding Rs. 1,000 | One rupee eighty paise | |
| For every additional Rs. 1,000 or part thereof in excess of Rs. 1,000 | One rupee eighty paise | |
| 13(b)(iv) More than nine months but not more than one year | Not exceeding Rs. 500 | One rupee twenty five paise |
| Exceeding Rs. 500 but not exceeding Rs. 1,000 | Two rupees fifty paise | |
| For every additional Rs. 1,000 or part thereof in excess of Rs. 1,000 | Two rupees fifty paise | |
| 13(c) Payable at more than one year after date or sight | Not exceeding Rs. 500 | Two rupees fifty paise |
| Exceeding Rs. 500 but not exceeding Rs. 1,000 | Five rupees | |
| For every additional Rs. 1,000 or part thereof in excess of Rs. 1,000 | Five rupees |
No exemptions are printed under Article 13. The amounts are quoted exactly as the copy prints them, including its mix of paise and rupees.
Article 49: promissory note
Article 49 is headed "Promissory note ". The footnote shows the Article as substituted by Act 43 of 1923, s. 2, and shows the naye paise amounts as substituted by Act 19 of 1958, s. 13, for annas, with effect from 1-10-1958.
| Article | Description of instrument as printed | Proper stamp-duty as the central Schedule prints it |
|---|---|---|
| 49(a)(i) | When payable on demand, the amount or value not exceeding Rs. 250 | Ten nayepaise |
| 49(a)(ii) | Exceeding Rs. 250 but not exceeding Rs. 1,000 | Fifteen nayepaise |
| 49(a)(iii) | In any other case | Twenty-five nayepaise |
| 49(b) | When payable otherwise than on demand | The same duty as a Bill of Exchange (No. 13) for the same amount payable otherwise than on demand |
No exemptions are printed. A promissory note payable otherwise than on demand is therefore charged by looking up the same period and amount in the Article 13 table above. Section 29(a) names both Article 13 and Article 49, and the expense falls on the person drawing, making or executing the instrument in the absence of agreement to the contrary.
Article 37: letter of credit
Article 37 charges a "letter of credit, that is to say any instrument by which one person authorizes another to give credit to the person in whose favour it is drawn". The central Schedule prints "Two rupees". The footnote shows the Article as substituted by notification S.O. 130(E) dated 28-1-2004 and the amount as substituted by Act 32 of 1985, s. 50, with effect from 1-7-1985. No exemptions are printed. The cross-entry "Letter of guarantee. See Agreement (No. 5)" sends a letter of guarantee to the agreement Article.
Article 50: protest of bill or note
Article 50 charges a "protest of bill or note, that is to say, any declaration in writing made by a Notary Public, or other person lawfully acting as such, attesting the dishonour of a bill of exchange or promissory note". The central Schedule prints "One rupee". It is not among the Union instruments of section 9(2)(a), so the duty actually payable is fixed by the State where the instrument is executed.
For the notary's protest under the Negotiable Instruments Act, 1881, see our article on sections 99 and 100 of the Negotiable Instruments Act, 1881.
How the Stamp Act sections fit these Articles
- Section 19 deals with bills of exchange and promissory notes drawn outside India; see our article on section 19.
- Section 47 lets a payer affix a stamp to an unstamped bill or note and charge the duty to the person liable; see our article on sections 47 and 48.
- Sections 67 and 68 punish bills drawn in sets without stamping the whole set and post-dating with intent to defraud; see our article on sections 66 to 68.
An example using the Schedule's mechanics
Kapoor Exports draws a bill of exchange for Rs. 2,300 payable five months after date. It falls under Article 13(b)(ii), because the period is more than three months but not more than six. The bill exceeds Rs. 1,000, so the base rate for the band that exceeds Rs. 500 but not Rs. 1,000 applies (one rupee twenty paise), and the excess of Rs. 1,300 over Rs. 1,000 counts as two additional units of Rs. 1,000 or part thereof, each at one rupee twenty paise: three rupees sixty paise in all on the central Schedule's rates. Because a bill of exchange is a Union instrument under section 9(2)(a), that is the rate under the central Schedule, and any reduction or remission under section 9 and later amendments should be checked. A promissory note for Rs. 800 payable on demand would be Article 49(a)(ii): fifteen naye paise as printed.
Need help with bills, notes or credit documents?
If you are issuing or taking bills, notes or letters of credit and want them read for stamping before they go out, our team can help under our loan documentation support service. We check the instrument against the Articles and tell you what the central text leaves to later amendments.
Key takeaways
- Bills of exchange (Article 13), promissory notes (Article 49) and letters of credit (Article 37) are Union instruments under section 9(2)(a); the rate is the one the central Schedule prints, subject to any reduction under section 9.
- Article 13 prints only clauses (b) and (c); no clause (a) is printed.
- A promissory note payable otherwise than on demand follows Article 13.
- Article 37 prints two rupees; Article 50 (protest) prints one rupee and is a State matter.
- The copy mixes paise, naye paise and rupees; the amounts are quoted exactly as printed.
Read next
- Section 19 of the Indian Stamp Act, 1899: bills of exchange and promissory notes drawn outside India
- Sections 66-68: penalties on insurance policies, bills in sets and post-dated bills
- Article 47 of Schedule I: policy of insurance
- Section 4 of the Negotiable Instruments Act, 1881: promissory note, meaning and essentials
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.