Section 29 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 29 settles who bears the expense of providing the proper stamp when the parties have not agreed otherwise. It sorts instruments into groups, from bonds and mortgage-deeds, where the maker pays, to conveyances, where the grantee pays, and to the securities transactions added by Act 7 of 2019.
The rule applies "in the absence of an agreement to the contrary", so the parties are at liberty to agree who pays. If they do not, the section allocates the cost: the person drawing, making or executing for bonds, mortgage-deeds, bills, promissory notes and the other listed Articles; the person effecting the insurance for a policy other than fire insurance and the person issuing the policy for fire insurance; the grantee for a conveyance; the lessee for a lease; the lessor for a counterpart; equal shares for an exchange; the purchaser for a certificate of sale; the parties in proportion to their shares for a partition; and a set of rules for securities in clauses (h) to (m).
Reading section 29 in context
This article follows 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 the State of execution must be checked. This article explains the central Act only. The section says who bears the expense of the stamp; it does not say what the duty is. For agreements that allocate costs clearly, our agreement drafting service can place the clause in the document.
Section 29 is in Part E of Chapter II ("Duty by whom payable"). Two things must be kept apart: who is liable to the State for the duty on an instrument, which is a matter for the other sections, and who ultimately bears the cost as between the parties, which is what section 29 answers. If one party pays and another was bound to bear it, section 44 gives a right of recovery; see Sections 43 to 45.
The opening words
"In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne ..." The section is a default rule. A buyer and seller can agree that the seller bears the duty on a conveyance, and a lessor can agree to bear the duty on a lease. Section 44(1) also refers to a person "bound to bear the expense of providing the proper stamp" by agreement or under section 29 or any other enactment in force when the instrument was executed. For the practical question buyers ask, see who is liable to pay stamp duty, buyer or seller.
Clause (a): the listed Articles, borne by the person drawing, making or executing
Clause (a) lists instruments described in these Articles of Schedule I, as printed in the copy consulted:
| Article | Instrument as printed |
|---|---|
| No. 2 | Administration Bond |
| No. 6 | Agreement relating to Deposit of Title-deeds, Pawn or Pledge |
| No. 13 | Bill of exchange |
| No. 15 | Bond |
| No. 16 | Bottomry Bond |
| No. 26 | Customs Bond |
| No. 32 | Further charge |
| No. 34 | Indemnity-Bond |
| No. 40 | Mortgage-deed |
| No. 49 | Promissory-note |
| No. 55 | Release |
| No. 56 | Respondentia Bond |
| No. 57 | Security-bond or Mortgage-deed |
| No. 58 | Settlement |
| No. 62 (c) | Transfer of any interest secured by a bond, mortgage-deed or policy of insurance |
The expense is borne "by the person drawing, making or executing such instrument". Some points on the printed text:
- The copy does not print Article 2 in Schedule I (Articles 1 to 4 are not printed in the copy consulted), so its duty is not stated here.
- The entry for Article 6 was substituted by Act 15 of 1904, s. 5, for "No. 6 (Agreement to Mortgage)", according to the footnote.
- Three entries are marked as omitted by Act 7 of 2019, s. 17: "No. 27 (Debenture)", "No. 62 (a)" (transfer of shares in an incorporated company or other body corporate) and "No. 62 (b)" (transfer of debentures). The footnotes give 1-7-2020, with the earlier notification dates in brackets. Securities are now covered by clauses (h) to (m).
- Several of the older Acts and instruments named in these Articles belong to old law, and the reader should check the current law for the corresponding provisions.
Clause (b) and (bb): insurance policies
Clause (b), substituted by Act 5 of 1906, s. 4 according to the footnote, puts the cost of a policy of insurance other than fire insurance on "the person effecting the insurance". Clause (bb) puts the cost of a policy of fire insurance on "the person issuing the policy". The two clauses are printed inside one bracket, and the split between them is the whole rule.
Clause (c): conveyance and lease
For a conveyance, "including re-conveyance of mortgaged property", the cost falls on the grantee. For a lease or an agreement to lease, it falls on the lessee or intended lessee. The grantee in a sale deed is the buyer, and the lessee is the tenant. This is the reason that, on the face of the Act, a buyer is the one who ordinarily bears the stamp on a sale deed unless the contract says otherwise.
Clauses (d) to (g): counterpart, exchange, certificate of sale, partition
- (d) A counterpart of a lease: borne by the lessor.
- (e) An instrument of exchange, "including swap" (words inserted by Act 7 of 2019): borne "by the parties in equal shares".
- (f) A certificate of sale: borne by the purchaser of the property to which it relates. The word "and" after clause (f) was omitted by the same Act.
- (g) An instrument of partition: borne "by the parties thereto in proportion to their respective shares in the whole property partitioned". When the partition is made in execution of an order of a Revenue-authority, a Civil Court or an arbitrator, the proportion is the one that authority, Court or arbitrator directs.
Example. Two brothers, Naveen and Rajesh, partition a family house in which Naveen holds three parts and Rajesh two. Unless they agree otherwise, the stamp cost is borne by them in the ratio of their shares, three to two.
Clauses (h) to (m): securities and the residue
These clauses were inserted by Act 7 of 2019, s. 17 (w.e.f. 1-7-2020, with the earlier notification dates in the footnote).
| Clause | Transaction | Who bears the expense |
|---|---|---|
| (h) | Sale of security through a stock exchange | The buyer |
| (i) | Sale of security otherwise than through a stock exchange | The seller |
| (j) | Transfer of security through a depository | The transferor |
| (k) | Transfer of security otherwise than through a stock exchange or depository | The transferor |
| (l) | Issue of security, whether through a stock exchange or a depository or otherwise | The issuer |
| (m) | Any other instrument not specified in the section | The person making, drawing or executing it |
Clause (m) is the catch-all and catches any instrument not named earlier. The collection of duty on securities is dealt with in Section 9A and Section 9B.
Using section 29 in a contract
- Read the agreement first. The section applies only in its absence.
- Name the party who bears the cost of the stamp and any shortfall or penalty.
- Remember that the party who is liable to the State may differ from the party who ultimately bears the cost. The right of recovery in section 44 depends on who was bound to bear it.
- For the allocation clause in a deed of sale, see stamp duty on a sale deed.
Need help allocating the cost in a contract?
Disputes about the stamp usually start because the contract is silent. Our team can add a clear cost clause to a sale deed, lease, partition deed or security document through our agreement drafting support, and check it against the State where the instrument will be executed.
Key takeaways
- Section 29 applies only "in the absence of an agreement to the contrary".
- The person drawing, making or executing bears the cost of the listed Articles; the grantee bears it for a conveyance; the lessee for a lease; the lessor for a counterpart.
- An exchange, including a swap, is borne by the parties in equal shares; a partition in proportion to their shares unless an authority directs otherwise.
- Clauses (h) to (m), from Act 7 of 2019, deal with securities and give a residual rule for any other instrument.
- The amount of duty comes from the schedule of the State where the instrument is executed.
Read next
- Sections 43 to 45 of the Indian Stamp Act, 1899: prosecution, recovery from the person liable and refund of penalty
- Section 28 of the Indian Stamp Act, 1899: conveyances in parts and to sub-purchasers
- Section 9A of the Indian Stamp Act, 1899: duty on securities sold through an exchange or depository
- Who is liable to pay stamp duty, buyer or seller
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.