Sections 9A and 62A 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.
Once a stock exchange, clearing corporation or depository has collected stamp duty on securities under section 9A(1), the Act says what must happen next. Section 9A(4) requires the money to be handed to the right State within three weeks of the end of each month. Section 9A(5) requires details of the transactions to be submitted to the Government. Section 62A then lays down fines for failing to collect, failing to transfer, failing to report, or filing false details.
The collected duty must be transferred within three weeks of the end of each month to the State where the buyer resides (or, in the cases the sub-section lists, to another State), after deducting facilitation charges at a percentage the rules fix. Section 62A fines a person who fails to collect or to transfer not less than one lakh rupees, up to one per cent of the amount defaulted, and fines failure to report or a false declaration one lakh rupees a day or one crore rupees, whichever is less. The rules are not in the text consulted.
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 anything outside the securities rules. Sub-sections (1) to (3) of section 9A are in the sibling article on stamp duty on sale, transfer and issue of securities. If you run or advise an entity that collects or reports such duty, a legal consultation can help you map the duties and the dates.
Several matters are left by the Act to rules of the Central Government, made in consultation with the State Government. The rules are not in the text consulted, and the percentage of the facilitation charges is not printed anywhere in it, so none of that is stated here.
Section 9A(4): transfer to the State Government
The sub-section says that the stock exchange, or the clearing corporation authorised by it, or the depository, as the case may be, "shall, within three weeks of the end of each month and in accordance with the rules made in this behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty collected under this section to the State Government" located as follows:
| Situation | Which State Government receives the duty |
|---|---|
| Buyer resident in India | The State where the residence of the buyer is located |
| Buyer located outside India | The State having the registered office of the trading member or broker of such buyer |
| No such trading member of the buyer | The State having the registered office of the participant |
The Explanation says "participant" has the meaning in clause (g) of section 2 of the Depositories Act, 1996 (22 of 1996). The terms "clearing corporation" and "depository" are defined in section 2 and explained in our securities definitions article.
Two details of the text are worth noting. The time limit is three weeks from the end of the month, not from the date of collection. And the destination is decided by where the buyer is located, not by where the exchange or depository is.
The proviso: facilitation charges
The proviso says that before such transfer, the stock exchange, the clearing corporation authorised by it, or the depository "shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as may be specified in such rules". The percentage is not in the text consulted, so no figure is given here.
Section 9A(5): details to the Government
Sub-section (5) says every stock exchange or the clearing corporation authorised by it and depository "shall submit to the Government details of the transactions referred to in sub-section (1) in such manner as the Central Government may, by rules, provide". The sub-section says "the Government", not "the Central Government" or "the State Government", and the copy does not say which Government is meant in this sub-section. The manner of reporting is left to rules, which are not in the text consulted.
Section 62A: the fines
The copy prints section 62A in square brackets, headed "Penalty for failure to comply with provisions of section 9A", and prints no footnote naming the Act that inserted it, so no amending Act is attributed to it here.
Section 62A(1): failure to collect or to transfer
Any person who:
- (a) being required under section 9A(1) to collect duty, fails to collect it; or
- (b) being required under section 9A(4) to transfer the duty to the State Government "within fifteen days of the expiry of the time specified therein", fails to transfer within such time,
"shall be punishable with fine which shall not be less than one lakh rupees, but which may extend up to one per cent. of the collection or transfer so defaulted".
Read clause (b) carefully: the fine bites if the transfer is not made within fifteen days after the three-week period in section 9A(4) has expired. So the sequence is the end of the month, then three weeks, then a further fifteen days.
Section 62A(2): failure to report and false declarations
Any person who:
- (a) being required under section 9A(5) to submit details of transactions to the Government, fails to submit them; or
- (b) submits a document or makes a declaration which is false or which such person knows or believes to be false,
"shall be punishable with fine of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less".
The text consulted does not say who imposes the fine or how it is recovered, so this article describes no procedure.
The penalties at a glance
| Default | Fine as printed |
|---|---|
| Failure to collect under s.9A(1) | Not less than one lakh rupees; may extend up to one per cent. of the collection defaulted |
| Failure to transfer within fifteen days after the s.9A(4) time | Not less than one lakh rupees; may extend up to one per cent. of the transfer defaulted |
| Failure to submit details under s.9A(5) | One lakh rupees for each day of failure, or one crore rupees, whichever is less |
| False document or declaration | Same as above |
A worked example using the printed figures
A clearing corporation authorised by an exchange collects Rs 50 crore of duty from buyers in one month and does not transfer it to the States. Under section 62A(1)(b), the fine cannot be less than Rs 1 lakh and may go up to one per cent of the transfer defaulted, which is Rs 50 lakh. Separately, it fails to submit the transaction details required by section 9A(5) for 40 days. The fine is one lakh rupees a day, so Rs 40 lakh after 40 days, and the cap of Rs 1 crore is reached on the 100th day of continued failure, since the fine is the lesser of the daily total and one crore rupees. These sums are worked only from the figures printed in the section.
Need help with compliance calendars for securities duty?
Dates, destinations and reporting duties like these are easy to miss when the rules sit outside the Act. A legal consultation can help you set out what the Act requires, what is left to rules, and what to check in the current rules before you rely on any date.
Key takeaways
- Collected duty must be transferred within three weeks of the end of each month, to the State identified by the buyer's location.
- Facilitation charges may be deducted at a percentage fixed by rules that are not in the text consulted.
- Every exchange, clearing corporation and depository must submit transaction details as the rules provide.
- Section 62A fines failure to collect or transfer (one lakh rupees minimum, up to one per cent) and failure to report or false filings (one lakh rupees a day, up to one crore rupees).
- The transfer fine runs from fifteen days after the s.9A(4) time expires.
Read next
- Section 9A of the Indian Stamp Act, 1899: stamp duty on sale, transfer and issue of securities
- Section 9B of the Indian Stamp Act, 1899: stamp duty on issue and off-market transfer of securities
- Section 62 of the Indian Stamp Act, 1899: penalty for executing an instrument not duly stamped
- Section 2 of the Indian Stamp Act, 1899: securities, stock exchange, depository and market value
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.