The Finance Act, 2019 enumerates certain amendments to the Indian Stamp Act, 1899 to overhaul the structure of levy and collection of stamp duty on securities issued and/or transferred in the country. The said amendments are effective form 01st day of April, 2020. The key reform includes:
- Simplified stamp duty collection on issue and transfer of securities through one agency, viz., through stock exchanges or its clearing corporations or depositories.
- Distribution of such stamp duty appropriately with respective State Governments based on state of domicile of the buyer.
- Levy of stamp duty on transfer of securities in dematerialised form, which was earlier exempt.
- Wider definition of the term ‘Securities’, ‘Instrument’ and ‘Debenture and ‘Market Value’