The Kerala Finance Act, 2019 (“Finance Act”), which brought changes in the Kerala Stamp Act, 1959 (“ Act”) for the Financial Year 2018 – 2019, has received assent of the Governor on the 19th July, 2019.
The change has been highlighted in the table below:
| Principal Act | Amendment Act | Implications |
| Section 2 – Definitions
(f) “executed” and “execution” used with reference to instruments, means “signed” and “signature”.
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Section 2 – Definitions
(f) “executed” and “execution” used with reference to instruments, means “signed” and “signature”.
Explanation:- The terms “signed” and “signature” also include attribution of electronic record as per section 11 of the Information Technology Act, 2000 (Central Act 21 of 2000).
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An explanation has been added to the definition which acts as a clarity to the terms “signed” and “signature”. |
| (j) “instrument” includes every document by which any right or liability is, or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt:
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(j) “instrument” includes every document by which any right or liability is, or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt:
Explanation:– The term “document” also includes any electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (Central Act 21 of 2000). |
An explanation has been added to the definition of instrument which acts as a clarity to the terms “document “. |
| 12A. Defacement of e-stamp
(1) Any e-stamp in an instrument shall be defaced through online verification system by the Registering Officer or any other officer authorised by the Government, in such manner as may be prescribed, so that the same cannot be used again.
(2) Any instrument bearing an e-stamp which has not been defaced, so far as such stamp is concerned be deemed to be unstamped.] |
12A. Defacement of e-stamp
(1) Any e-stamp in an instrument shall be defaced through online verification system by the Registering Officer or any other officer authorised by the Government, in such manner as may be prescribed, so that the same cannot be used again.
(2) Any instrument bearing an e-stamp which has not been defaced, so far as such stamp is concerned be deemed to be unstamped.] |
The provision dealing with defacement of e-stamp has been modified. The second provision which is dealing with an instrument bearing an e-stamp which has not been defaced stands omitted. |
| 33A. Recovery of deficit stamp duty in certain cases.–
(1) When through mistake or otherwise any instrument which is not duly stamped is registered under the Registration Act, 1908 (Central Act XVI of 1908), any registering officer may, call for the original instrument from the party and after giving the party an opportunity of being heard and recording the reasons in writing and furnishing a copy thereof to the party, impound it. On failure to produce such original instrument by the party, a true copy of such instrument taken out from the registration record shall, for all purposes of this section, be deemed to be the original of such instrument: |
A new Section dealing with manner of recovery of deficit stamp duty in certain cases have been inserted. | |
| 45D. Stamp duty chargeable with rectification deed.-
Where a deed, which does not create, transfer, limit or extend any right or liability, purports to rectify any error in the description of property as set out in any previous instrument, falling within the purview of sub-section (1) of section 45A, in such a way that such a rectification would cause increase in the fair value of the property transferred, then the amount of duty chargeable on such deed of rectification shall be the duty chargeable on it under the Schedule for the actual nature of transaction less the duty, if any, already paid in respect of such previous instrument.” |
A new section dealing with stamp duty chargeable with rectification deed has been inserted. |
Source: Government of Kerala
