Sections 47-48 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 47 gives a practical remedy to the person who is asked to pay an unstamped bill of exchange or promissory note of a small duty: he may stamp it himself and pass the cost on. Section 48 closes Chapter IV by saying how the Collector recovers duties, penalties and other sums due under the chapter.
Section 47: when a bill of exchange or promissory note chargeable with a duty not exceeding ten nayepaise is presented for payment unstamped, the person to whom it is presented may affix the necessary adhesive stamp, cancel it as the Act provides, pay the sum, and charge the duty against the person who ought to have paid it or deduct it from the sum payable. The instrument is then deemed good and valid so far as the duty is concerned, but no one is relieved from any penalty or proceeding. Section 48: all duties, penalties and other sums required to be paid under Chapter IV may be recovered by the Collector by distress and sale of the movable property of the person from whom they are due, or by any other process for recovering arrears of land-revenue.
Where the sections sit
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. Bills of exchange and promissory notes are among the instruments for which section 9(2)(a) names the Central Government; even so, this article does not state any present rate. The ten nayepaise in section 47 is an amount quoted as printed. If a bill or note is presented to your business unstamped, our legal dispute resolution team can advise on the position before you pay it.
Both sections come at the end of Chapter IV. Section 47 follows the refund rule in Sections 43 to 45, and section 48 is the last section of Chapter IV.
Section 47: power of the payer to stamp bills and promissory notes
The text in parts
"When any bill of exchange chargeable is presented for payment unstamped, the person to whom it is so presented, may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill , and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill , shall, so far as respects the duty, be deemed good and valid."
The bracketed words are printed as insertions in the copy. Taking the section part by part:
| Part of the section | What it means |
|---|---|
| "chargeable with a duty not exceeding ten nayepaise" | The remedy is limited to a bill or note of that small duty. The amount is quoted as printed |
| "presented for payment unstamped" | The bill or note reaches the payer without a stamp |
| "may affix thereto the necessary adhesive stamp" | The payer is at liberty to put on the stamp himself |
| "upon cancelling the same in manner hereinbefore provided" | The stamp must be cancelled as section 12 requires |
| "may pay the sum payable" | He may then pay the bill or note |
| "may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable" | He recovers the cost either by charging it or by deducting it |
| "deemed good and valid" | So far as respects the duty, the bill or note is treated as valid |
The adhesive stamp and its cancellation
The words "in manner hereinbefore provided" refer to the cancellation rule. Section 12 explains how an adhesive stamp is cancelled so that it cannot be used again, and says an uncancelled stamp is treated as if the instrument were unstamped. See Sections 11 and 12. Failure to cancel a stamp as section 12 requires is itself punishable under section 63; see Sections 63 and 64.
The proviso: penalty is not removed
"Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill, ." The payer's act of stamping the instrument cures the duty. It does not cure any offence. Section 62(1)(a), for example, penalises a person who accepts, pays or receives payment of a bill or note without its being duly stamped; the proviso keeps that liability alive. See Section 62.
Example
Ritu Arora, a trader, receives a bill drawn on her for presentation, and the bill is of the small duty described and is unstamped. She affixes the necessary adhesive stamp, cancels it as section 12 provides, and pays the bill. She may charge the cost of the stamp against the drawer, who ought to have paid it, or deduct it from the sum she pays. As far as the duty is concerned, the bill is deemed good and valid. Whether Ritu or anyone else is liable to a penalty or a proceeding in relation to the bill is untouched by section 47.
Points to note
- The section speaks of the person to whom the bill is presented for payment. It does not apply to a holder presenting the bill.
- The remedy is limited by the ten-nayepaise ceiling. Larger duties are outside it.
- The section deals with the stamp only. The terms of the bill and the rights of the parties are for the law of negotiable instruments; see our article on bills of exchange under section 5 of the Negotiable Instruments Act, 1881 for that Act.
- For the site's guide to the duty on these instruments, see stamp duty on promissory note and bill of exchange.
Section 48: recovery of duties and penalties
The text
"All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land-revenue."
What it covers
- Which sums. "All duties, penalties and other sums required to be paid under this Chapter", that is, Chapter IV. It reaches the duty and penalty required under sections 35 and 40 and any other sum the chapter makes payable.
- Who recovers. The Collector.
- How. Two ways are named: (i) distress and sale of the movable property of the person from whom the sums are due; or (ii) any other process for the time being in force for the recovery of arrears of land-revenue.
The text does not describe any of these processes. They are the processes that exist for the recovery of arrears of land-revenue at the time. The text consulted contains no State rules on the recovery process, and none is described here.
Relationship with other sections
Section 48 recovers sums due to the Government. Section 44 is the separate right of a person who paid to recover from another person; see Section 44. The two should not be mixed up.
Need help with unstamped bills or recovery proceedings?
If a bill or note has reached you unstamped, or a demand has come from the Collector, the safer course is to check the position before you act. Our legal dispute resolution team can review the document and the demand.
Key takeaways
- A person to whom an unstamped bill or note of a duty not exceeding ten nayepaise is presented for payment may affix and cancel the adhesive stamp, pay, and charge or deduct the duty.
- The bill or note is deemed good and valid so far as respects the duty.
- Section 47 does not relieve anyone from any penalty or proceeding.
- Section 48 lets the Collector recover duties, penalties and other sums due under Chapter IV by distress and sale of movable property or by any process for recovering arrears of land-revenue.
- The processes themselves are not set out in the text consulted.
Read next
- Sections 43 to 45 of the Indian Stamp Act, 1899: prosecution, recovery and refund
- Sections 11 and 12 of the Indian Stamp Act, 1899: adhesive stamps and how to cancel them
- Section 49 of the Indian Stamp Act, 1899: allowance for spoiled stamps
- Stamp duty on promissory note and bill of exchange
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.