Section 9 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 9 of the Indian Stamp Act, 1899 gives "the Government" the power to reduce or remit the duty on instruments, and to provide for the composition or consolidation of duties on certain instruments. Sub-section (2) then says which Government that is: the Central Government for the instruments it lists, and the State Government for everything else.
Under section 9(1), the Government may by rule or order published in the Official Gazette reduce or remit duties, prospectively or retrospectively, and provide for composition or consolidation of duties on policies of insurance and on issues or transfers of debentures, bonds or other marketable securities. Under section 9(2), "the Government" is the Central Government for bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, and the State Government for the rest.
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; this section is the place in the Act where that division is made. The text consulted contains no rule, order or notification made under section 9, so none is described. If you think a remission may apply to your document, a legal consultation can help you find the right instrument of relief and the right Government to check.
Section 9(1): the power
Sub-section (1) begins "The Government may, by rule or order published in the Official Gazette". The footnotes show the section was re-numbered as sub-section (1) by the A.O. 1950, and that the opening words were adapted by the A.O. 1937 and the A.O. 1950. Two powers follow.
Clause (a): reduce or remit
The Government may "reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its administration, the duties with which any instruments or any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable".
Breaking this down:
- How: reduce (lower) or remit (give up) the duty.
- When: prospectively (from now on) or retrospectively (for the past).
- Where: in the whole or any part of the territories under the Government's administration. The words "the territories under its administration" were inserted by Act 23 of 2004, section 117, as the footnote shows.
- What: any instruments, a class of instruments, or particular instruments of a class, or instruments executed by or in favour of a particular class of persons or members of such class.
Clause (b): composition or consolidation
The Government may "provide for the composition or consolidation of duties of policies of insurance and in the case of issues by any incorporated company or other body corporate or of transfers (where there is a single transferee, whether incorporated or not) of debentures, bonds or other marketable securities".
The footnotes credit the words "of policies of insurance and" to Act 32 of 1994, section 99 (with effect from 13 September 1994), and the words about transfers with a single transferee to the A.O. 1950. Composition and consolidation are ways of settling duty in a lump or combined form rather than instrument by instrument. The text consulted does not say how a composition is worked out, so none is described.
Section 9(2): which Government?
Sub-section (2) reads (as printed): "In this section the expression 'the Government' means,—(a) in relation to stamp-duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts, and in relation to any other stamp-duty chargeable under this Act and falling within entry 96 in List I in the Seventh Schedule to the Constitution, expect the subject matters referred to in clause (b) of sub-section (1); the Central Government; (b) Save as aforesaid, the State Government."
| Instrument or duty | "The Government" for section 9 |
|---|---|
| Bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies, receipts | Central Government |
| Any other stamp-duty under this Act that falls within "entry 96 in List I", as printed | Central Government |
| All else ("save as aforesaid") | State Government |
Two printing points are flagged and not corrected. First, the copy reads "expect the subject matters", which reads like "except". Second, it refers to "entry 96 in List I" here, while section 1(2) refers to "Entry 91 of List I". The copy prints each as shown and this article does not reconcile them. The footnotes to this sub-section are also out of step on the page, with one footnote crediting Act 21 of 2006, section 69 (with effect from 18 April 2006) with a substitution for the words "Seventh Schedule to the Constitution". The official text should be checked.
What this means for the amounts you see
Our article on section 1 and the Union-State split gives the wider picture of who levies what. Our general note on stamp duty exemptions lists the exemptions separately.
For the instruments in the first row of the table, 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 everything else, including sale deeds, leases, mortgages, gifts and powers of attorney, the duty actually payable is fixed by the law and schedule of the State where the instrument is executed. Many amounts in the central Schedule are still in annas and naye paise, and they are not the figures a reader pays today for State instruments.
A worked example
Lakshmi Agro Producers, a society of small farmers, wants to know whether duty on its receipts and on its lease of a godown can be reduced. Section 9 shows two different paths. Receipts are among the instruments for which the Central Government is "the Government", so any reduction or remission for receipts would come from a rule or order of the Central Government published in the Official Gazette. The lease of a godown is not named, so the State Government is "the Government" for it, and the relevant order would be one by the State where the lease is executed. Because clause (a) allows reduction for instruments "executed by or in favour of any particular class of persons", a relief could be framed by reference to who the parties are, but only if the Government concerned has made such a rule or order. Section 9 gives the power; it does not itself give any relief. The society should look for the actual rule or order.
Need help finding out whether a relief applies?
Section 9 only creates the power. Whether a reduction, remission or composition exists for your document depends on a rule or order made by the right Government and published in the Official Gazette. A legal consultation can help you identify which Government to check and what to look for before you sign.
Key takeaways
- Section 9(1) lets the Government reduce or remit duty, prospectively or retrospectively, by rule or order in the Official Gazette.
- It also allows composition or consolidation of duties on policies of insurance and on issues or transfers of debentures, bonds or other marketable securities.
- Section 9(2) makes the Central Government "the Government" for the named instruments and the State Government for the rest.
- The copy prints "expect" and "entry 96", and section 1(2) says "Entry 91": flagged, not corrected.
- No rule or order under section 9 is in the text consulted.
Read next
- Section 1 of the Indian Stamp Act, 1899: short title, extent, commencement and the Union-State split
- Section 9A of the Indian Stamp Act, 1899: stamp duty on sale, transfer and issue of securities
- Sections 8E to 8G of the Indian Stamp Act, 1899
- Stamp duty exemptions: when no duty is payable
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.