Finance Bill, 2020 proposes amendments to the Indian Stamp Act, 1899; no duty to be charged w.r.t instruments of transaction in stock exchanges and depositories established in any International Financial Services Centres

In a Gazette Notification dated 1st February, 2020, the Finance Bill, 2020 (“Bill”) has been issued in order to give effect to the financial proposals of the Central Government for the financial year 2020-2021.

The Bill proposes amendments to the Indian Stamp Act, 1899 (“Act”). The amendments will come into force on 1st April, 2020.

The Bill proposes to insert a new proviso to section 9A of the Act which deals with “Instruments chargeable with duty for transactions in stock exchanges and depositories.”

The amendment proposes that no duty will be charged with respect to instruments of transaction in stock exchanges and depositories established in any International Financial Services Centre (set up under the provisions of the Special Economic Zones Act, 2005).

Source: Lok Sabha Page 43

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