Sections 63-64 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.
Two short penal sections sit side by side in Chapter VII. Section 63 fines a person who is required to cancel an adhesive stamp and fails to do so in the way the Act prescribes. Section 64 fines a person who, with intent to defraud the Government, leaves out or misstates the facts that section 27 requires to be set out in an instrument.
Section 63: any person required by section 12 to cancel an adhesive stamp, and failing to cancel it in the manner prescribed by that section, is punishable with a fine which may extend to one hundred rupees. Section 64: any person who, with intent to defraud the Government, (a) executes an instrument in which the facts required by section 27 are not fully and truly set forth, (b) being employed or concerned in or about the preparation of an instrument, neglects or omits to set them forth, or (c) does any other act calculated to deprive the Government of any duty or penalty under the Act, is punishable with a fine which may extend to five thousand rupees.
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 two fines are quoted as printed. Neither section fixes the duty; each penalises a failure connected with it. If you are responsible for how deeds are prepared and stamped in your business, our legal dispute resolution team can advise on the risks.
Section 63 depends on Sections 11 and 12, and section 64 on Section 27. The other penalty for instruments not duly stamped is in Section 62.
Section 63: failure to cancel an adhesive stamp
The text
"Any person required by section 12 to cancel an adhesive stamp, and failing to cancel such stamp in manner prescribed by that section, shall be punishable with fine which may extend to one hundred rupees."
Reading it
- Who. "Any person required by section 12 to cancel an adhesive stamp". Section 12(1) puts the duty on two persons: (a) whoever affixes an adhesive stamp to an instrument chargeable with duty which has been executed, who must cancel it when affixing it; and (b) whoever executes an instrument on paper bearing an adhesive stamp, who must cancel it at the time of execution unless it has already been cancelled. Section 12(3) says how the stamp may be cancelled: by writing across it his name or initials, or those of his firm, with the true date, or in any other effectual manner.
- What. Failing to cancel the stamp "in manner prescribed by that section". It covers both not cancelling at all and cancelling in a way section 12 does not allow.
- Punishment. A fine which may extend to one hundred rupees. No imprisonment is mentioned.
Why cancellation matters
Under section 12(2), an instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again is, so far as that stamp is concerned, deemed to be unstamped. The penalty in section 63 is on top of that consequence. So an uncancelled stamp carries two risks: the instrument may be treated as unstamped for evidence and other purposes under the Act, and the person who should have cancelled it may be fined. For the cancellation rules, see the article on Sections 11 and 12. A payer who affixes a stamp to a small-duty bill under section 47 must cancel it as section 12 provides.
Example
Aarav Mehta signs a receipt written on paper that bears an adhesive stamp, and does not cancel the stamp at the time of execution although it has not already been cancelled. He is a person required by section 12(1)(b) to cancel it and has failed to do so. Section 63 allows a fine that may extend to one hundred rupees. The receipt is also at risk of being treated as unstamped.
Section 64: omission to comply with section 27
The text
"Any person who, with intent to defraud the Government,––
(a) executes any instrument in which all the facts and circumstances required by section 27 to be set forth in such instrument are not fully and truly set forth; or
(b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all such facts and circumstances; or
(c) does any other act calculated to deprive the Government of any duty or penalty under this Act;
shall be punishable with fine which may extend to five thousand rupees."
The three limbs
| Clause | Person | Conduct |
|---|---|---|
| (a) | A person who executes the instrument | Executes it although the facts and circumstances required by section 27 are not fully and truly set forth |
| (b) | A person employed or concerned in or about the preparation of the instrument | Neglects or omits fully and truly to set forth those facts and circumstances |
| (c) | Any person | Does any other act calculated to deprive the Government of any duty or penalty under the Act |
All three are governed by the opening words: "with intent to defraud the Government". That intent is part of the offence. An honest error in an instrument, or an omission without that intent, is not within the section as printed. The facts that must be set forth are those in section 27: the consideration (if any) and all other facts and circumstances affecting the chargeability of the instrument with duty, or the amount of duty.
Clause (b): the drafter
Clause (b) reaches a person "employed or concerned in or about the preparation of any instrument". That is wider than the signatory. A lawyer, accountant, clerk or advisor who prepares a deed is within the words if the intent to defraud is present. The text does not name any profession.
Clause (c): any other act
The residuary clause covers "any other act calculated to deprive the Government of any duty or penalty". It is not limited to instruments, but to acts calculated to deprive the Government of duty or penalty under the Act.
The fine
Up to five thousand rupees, as printed. The text does not provide for imprisonment under section 64.
Relief through section 31
Section 31(2) lets the Collector call for an affidavit or other evidence that the facts are fully and truly set forth. Proviso (b) there says a person who furnishes such evidence, on payment of the full duty, is relieved from any penalty he may have incurred under the Act by reason of the omission to state truly in the instrument any of the facts or circumstances. The route is explained in Section 31. It is the route written into the Act for correcting a misstatement.
Example
Siddharth Rao and Kamini Das agree a price for a transfer, but the deed states a lower price. The adviser who drafts the deed knows the true price and that the lower figure has been put in to reduce the duty. If the intent to defraud the Government is present, clause (a) can apply to the person who executes the deed and clause (b) to the adviser. If the parties had instead stated the true price in the deed, section 27 would have been met and section 64 would not arise.
Prosecution and related provisions
- Section 43 says that taking proceedings or paying a penalty under Chapter IV does not bar prosecution for an offence against the Stamp-law. See Sections 43 to 45.
- Section 61(4) lets the Collector prosecute after a court's declaration; see Section 61.
- Sanction for prosecution, compounding and the place of trial are dealt with in Sections 70 to 72.
Practical points
- Cancel every adhesive stamp in the manner section 12 prescribes, at the time the stamp is used.
- State the true consideration and every fact that affects duty in the instrument itself.
- Keep drafting notes that show how the consideration in the deed was fixed.
- If a misstatement is discovered, the Act's own route for correction is the Collector's adjudication under section 31.
Need help with how your deeds are stamped?
The risks in sections 63 and 64 are avoided by careful drafting and stamping. Our legal dispute resolution team can advise if a deed has been prepared with a doubtful consideration or an uncancelled stamp.
Key takeaways
- Section 63 fines a person required by section 12 to cancel an adhesive stamp who fails to do so in the prescribed manner, up to one hundred rupees.
- Section 64 requires intent to defraud the Government and covers executing an instrument without the section 27 facts, omitting them in preparing it, or any other act calculated to deprive the Government of duty or penalty.
- The fine under section 64 may extend to five thousand rupees.
- Persons employed or concerned in the preparation of an instrument are within clause (b).
- Section 31 provides a route to correct a misstatement and obtain relief from penalty on paying the full duty.
Read next
- Section 62 of the Indian Stamp Act, 1899: penalty for executing an instrument not duly stamped
- Sections 66 to 68 of the Indian Stamp Act, 1899: penalties on insurance policies, bills in sets and post-dated bills
- Section 27 of the Indian Stamp Act, 1899: consideration and facts affecting duty
- Consequences of not paying stamp duty
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.