Section 1 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.
Section 1 is the opening provision of the Indian Stamp Act, 1899. It gives the Act its name, says where it extends, and fixes 1 July 1899 as the day it came into force. It also carries a proviso on certain former Part B States, and it sets the stage for the rule in section 9(2) on whether the Central Government or a State Government fixes the duty. If a document you are about to sign raises a doubt on which law governs it, a legal consultation before execution is the safer course.
Section 1 has three sub-sections: the short title, the extent and the commencement. The Act extends to the whole of India, subject to a proviso that limits its reach in the territories that were Part B States before 1 November 1956. It came into force on 1 July 1899. The Act also has to be read with section 9(2), which says whether the Central Government or a State Government fixes the duty on a given instrument. For most instruments it is the State, so the State where the instrument is executed must always be checked.
What this article covers, and what it does not
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021). Amendments made after that text should be checked before you rely on anything here. It explains the central Act only. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State's own rules, rates and procedure are outside this article and must be checked separately.
If you are new to the Act, the site's introduction to the Indian Stamp Act, 1899 gives the general picture. This article takes the Act section by section, and section 1 is the first.
Section 1(1): the short title
Sub-section (1) reads: "This Act may be called the Indian Stamp Act, 1899." The long title printed with the Act describes it as an Act to consolidate and amend the law relating to Stamps, and the preamble says it is expedient to do so. The Act is Act 2 of 1899, dated 27 January 1899, as the copy consulted prints it.
A footnote to the title also lists places where the Act was declared in force or extended by other laws, for example Dadra and Nagar Haveli, Goa, Daman and Diu, and the Laccadive, Minicoy and Amindivi Islands. These are historical extension notes and are not part of the section itself.
Section 1(2): extent, and the proviso
Sub-section (2) says the Act "extends to the whole of India". The footnotes show two things about this sub-section:
- It was substituted by Act 43 of 1955, section 3, with effect from 1 April 1956.
- Words "except the State of Jammu and Kashmir" were omitted by Act 34 of 2019, section 95 and the Fifth Schedule, with effect from 31 October 2019.
The proviso then says the Act "shall not apply to the territories which, immediately before the 1st November, 1956, were comprised in Part B States (excluding the State of Jammu and Kashmir)" except to the extent that its provisions relate to rates of stamp-duty in respect of the documents specified in "Entry 91 of List I in the Seventh Schedule to the Constitution". The phrase "the territories which, immediately before the 1st November, 1956, were comprised in Part B States" was substituted by the "A.O. (No. 2) 1956", as the footnote prints it.
In plain words, as the text consulted prints it: for those former Part B State territories the Act applies only for the rates of duty on the documents listed in that Entry. The text does not list those documents, and this article does not guess at them.
A printing point to note. The footnote says the words "except the State of Jammu and Kashmir" were omitted from the main sentence by Act 34 of 2019. Yet the proviso in the copy still reads "(excluding the State of Jammu and Kashmir)", and section 2(13A) still defines "India" as "the territory of India excluding the State of Jammu and Kashmir". The copy therefore carries both the omission and the older wording. This article states what the copy prints and does not say which is the present position. Check the official current text.
Another reference to check. Section 1(2) refers to "Entry 91 of List I", while section 9(2)(a) refers to "entry 96 in List I". The copy prints each as shown and this article does not reconcile them.
Section 1(3): commencement
Sub-section (3) says: "It shall come into force on the first day of July, 1899." That is the date the Act began to operate. Section 3(a) later uses the same date when it charges instruments executed "on or after the first day of July, 1899", and section 2(6) uses the commencement to distinguish instruments executed after it from older ones.
Union and State: who fixes the duty
Section 1 does not say who sets the rates of duty. The answer is in section 9(2), and it matters because it decides which schedule you read.
| Kind of instrument | Which Government is "the Government" under s.9(2) |
|---|---|
| Bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts | The Central Government (s.9(2)(a)) |
| Other stamp-duty chargeable under the Act that falls within the entry referred to there, as printed | The Central Government (s.9(2)(a)) |
| Everything else ("save as aforesaid") | The State Government (s.9(2)(b)) |
Section 9 itself is explained in its own article, and section 3, which says which instruments are chargeable, in another.
For the instruments named in the first row, the rate is the one printed in the central Schedule I, and any reduction or remission under section 9 and later amendments should be checked. For every other instrument, such as a sale deed, a lease, a mortgage-deed, a gift or a power of attorney, the duty actually payable comes from the law and schedule of the State where the instrument is executed. The amounts in the central Schedule, many of them still in annas and naye paise, are not the figures a reader pays today.
Part AA of Chapter II adds a related rule for securities traded through stock exchanges and depositories: the duty is collected "on behalf of the State Government" at the rate in Schedule I. Those provisions have their own articles in this series.
A one-screen map of the Act
The copy consulted prints 97 section heads (79 numbered sections and 18 lettered ones), in eight Chapters, followed by Schedule I. Two sections carry no text: section 3A is shown as omitted and section 79 as repealed.
| Chapter | Subject | Sections |
|---|---|---|
| I | Preliminary | 1 and 2 |
| II | Stamp duties (liability, securities, stamps, time, valuation, who pays) | 3 to 30 |
| III | Adjudication as to stamps | 31 and 32 |
| IV | Instruments not duly stamped | 33 to 48 |
| V | Allowances for stamps | 49 to 55 |
| VI | Reference and revision | 56 to 61 |
| VII | Criminal offences and procedure | 62 to 72 |
| VIII | Supplemental | 73 to 79 |
After section 79 comes Schedule I, the table of instruments and their duty. The copy consulted does not print Articles 1 to 4 of that Schedule, so nothing is said about them in this series.
A practical example
Meridian Traders Private Limited signs a lease for a warehouse and, a week later, signs a promissory note to its lender. Both are signed in India. Section 1 tells the company that the Act extends to the whole of India, subject to the proviso discussed above. Section 9(2) then separates the two documents. The promissory note is one of the instruments for which the Central Government is "the Government", so the rate is the one printed in the central Schedule. The lease is not, so the company must look to the stamp law and schedule of the State where the lease is executed. Section 1 on its own does not answer either question; it opens the door to the rest of the Act.
Need help with stamp duty questions?
If you are unsure which instruments in your transaction attract duty, or which State's rules apply to a document you are about to sign, a short legal consultation session can help you map the documents before execution. Sorting this out before signing is usually simpler than correcting it afterwards.
Key takeaways
- Section 1 gives the short title, the extent and the commencement of the Act.
- The Act extends to the whole of India, with a proviso for the former Part B State territories as printed.
- It came into force on 1 July 1899.
- The copy consulted shows the Jammu and Kashmir wording inconsistently; check the official text.
- Under section 9(2), the Central Government fixes duty on the named Union instruments; the State Government fixes it on the rest.
- Always check the law and schedule of the State where the instrument is executed.
Read next
- Section 2 of the Indian Stamp Act, 1899: instrument, executed, duly stamped and stamp
- Section 3 of the Indian Stamp Act, 1899: instruments chargeable with stamp duty
- Section 9 of the Indian Stamp Act, 1899: power to reduce, remit or compound stamp duty
- Stamp duty on legal documents: overview and State-wise rules
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.