Sections 11 and 12 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.
Sections 11 and 12 of the Indian Stamp Act, 1899 deal with adhesive stamps. Section 11 lists the instruments that may be stamped with adhesive stamps. Section 12 says who must cancel an adhesive stamp, when, and how, and what follows if the stamp is not cancelled: so far as that stamp is concerned, the instrument is deemed unstamped.
Section 11 allows adhesive stamps on five kinds of instrument, including those chargeable with a duty not exceeding ten naye paise, bills of exchange and promissory notes drawn or made out of India, and transfers of shares by endorsement. Section 12 requires whoever affixes an adhesive stamp to an executed instrument, or whoever executes an instrument on paper bearing one, to cancel it so that it cannot be used again. An uncancelled stamp leaves the instrument deemed unstamped so far as that stamp is concerned.
How to read this article
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. 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 must be checked for which stamps may be used on a given instrument. The text consulted gives no State rule on adhesive stamps and this article describes none. If a document of yours is to carry an adhesive stamp, a contract review before signing can confirm who has to do what, and when.
Section 11: the five kinds of instrument
The section says: "The following instruments may be stamped with adhesive stamps, namely:—". The word is "may", so the section permits adhesive stamps on these instruments; section 10 is where the Act says duty is paid by stamps generally and leaves detail to State rules.
| Clause | Instrument that may be stamped with adhesive stamps |
|---|---|
| (a) | Instruments chargeable with a duty not exceeding ten naye paise, except parts of bills of exchange payable otherwise than on demand and drawn in sets |
| (b) | Bills of exchange and promissory notes drawn or made out of India |
| (c) | Entry as an advocate, vakil or attorney on the roll of a High Court |
| (d) | Notarial acts |
| (e) | Transfers by endorsement of shares in any incorporated company or other body corporate |
Points to note:
- Old money. Clause (a) says "ten naye paise". A footnote shows that this wording was substituted by Act 19 of 1958, section 2, for "with the duty of one anna or half an anna", with effect from 1 October 1958. The amount is quoted as printed and is not converted or updated.
- Sets of bills. The exception in (a) removes parts of bills payable otherwise than on demand and drawn in sets from the ten-naye-paise class.
- Cheques. A footnote shows the word "cheques" was omitted from clause (b) by Act 5 of 1927, section 5.
- Offices and acts. Clauses (c) and (d) name an entry on the roll of a High Court and notarial acts. Those are matters for Schedule I and its articles.
- Bills and notes drawn abroad. Clause (b) links to section 19, under which the first holder in India of such a bill or note affixes and cancels the stamp; see the article on bills and notes drawn outside India.
Section 12(1): who must cancel, and when
Sub-section (1) imposes a duty on two sets of people.
- Clause (a): "Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again". This is for a stamp that is stuck on after the instrument has been executed. The person who sticks it on cancels it at the same moment.
- Clause (b): "whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again". This is for a stamp that is already on the paper when the instrument is executed. The person who executes cancels it at execution unless somebody has already cancelled it.
The test in both clauses is the same: after cancellation, the stamp "cannot be used again".
Section 12(2): the effect of an uncancelled stamp
Sub-section (2) reads: "Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped."
The effect is limited to "such stamp". If an instrument bears two stamps and only one is uncancelled, the uncancelled one is disregarded and the instrument may still be duly stamped for the amount covered by the other. Whether it is "duly stamped" overall depends on the remaining stamps meeting the proper amount under section 2(11). Where an instrument is treated as unstamped, the consequences in the later sections on admissibility and penalty follow; see the article on section 35 and the penalty for failing to cancel in section 63, which has its own article.
Section 12(3): how to cancel
Sub-section (3) says the person required by sub-section (1) to cancel may do so "by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner."
So there are two routes: writing across the stamp the person's name or initials, or the firm's name or initials, together with the true date of writing, or any other effectual manner. The words "true date" matter: the date written is the date the cancellation is made, not an earlier or later one.
A worked example
Ritu draws a promissory note outside India and sends it to Mohan in India. Section 11(b) allows adhesive stamps on notes made out of India. Mohan, as the first holder in India, affixes the stamp before presenting it or negotiating it, as section 19 requires. Section 12(1)(a) now applies to him because he is affixing a stamp to an instrument already executed: he must cancel the stamp as he affixes it. He writes his initials and the true date across it. If he forgets, section 12(2) deems the note unstamped so far as that stamp is concerned.
A second case: Suresh buys a sheet of paper that already has an adhesive stamp for a small-value instrument and signs the instrument on it. Under section 12(1)(b), he cancels the stamp at the time of execution unless it has already been cancelled. If a clerk had cancelled it earlier "in manner aforesaid", he does not need to do it again.
Need help making sure a stamp counts?
A stamp that is not cancelled in time can leave a document short of a valid stamp. If you are preparing instruments that may carry adhesive stamps, a contract review and vetting service can set out who cancels, when, and how it should be recorded on the instrument.
Key takeaways
- Section 11 lists five kinds of instrument that may carry adhesive stamps, including instruments chargeable with a duty not exceeding ten naye paise and transfers of shares by endorsement.
- The person who affixes an adhesive stamp to an executed instrument cancels it as they affix it.
- The person who executes an instrument on paper already bearing a stamp cancels it at execution unless it is already cancelled.
- Cancellation means the stamp "cannot be used again"; the usual way is writing a name or initials with the true date across it, or any other effectual manner.
- An uncancelled stamp is deemed unstamped so far as that stamp is concerned.
Read next
- Section 10 of the Indian Stamp Act, 1899: how stamp duty is paid and shown on the instrument
- Sections 13-16 of the Indian Stamp Act, 1899: writing on stamp paper, one instrument per stamp and denoting duty
- Section 19 of the Indian Stamp Act, 1899: bills of exchange and promissory notes drawn outside India
- Modes of stamping: adhesive, impressed and e-stamp
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.