ACT XXIX OF 2021

An Act to amend the Stamp Act, 1899.

[Gazette of Punjab, Extraordinary, 1st October, 2021]

No. PAP/Legis-2(128)/2021/2638. The Stamp (Amendment) Bill 2021, having been passed by the Provincial Assembly of the Punjab on September 27, 2021, and assented to by the Governor of the Punjab on October 01, 2021, is hereby published as an Act of the Provincial Assembly of the Punjab.

It is necessary to amend the Stamp Act, 1899 (II of 1899) for purposes hereinafter appearing.

Be it enacted by Provincial Assembly of the Punjab as follows:

Short title and commencement.–(1) This Act may be cited as the Stamp (Amendment) Act, 2021.

(2) This Act shall come into force at once.

Amendment of Act II of 1899.–In the Stamp Act, 1899 (II of 1899), for brevity referred to as ‘the Act’, for the words “Provincial Government” wherever appearing, the word “Government” shall be substituted, except in Schedute-I, in article 57, in column 2. in paragraph (b), under the heading “Exemption”.
Amendment of Section 1 of Act II of 1899.–In the Act, in Section 1, in sub-section (2), for the word “Pakistan”, the words “the Punjab” shall be substituted.
Amendment of Section 2 of Act II of 1899.–In the Act, in Section 2:

(a) after clause (4), the following clause (4A) shall be inserted:

“(4A) “Board of Revenue” means the Board of Revenue established under the Punjab Board of Revenue Act, 1957 (XI of 1957);”;

(b) for the omitted clause (8), the following shall be substituted:

“(8) “Chief Revenue Authority” means the Senior Member of the Board of Revenue;”;

(c) existing clause (11-A) shall be renumbered as clause
(11-B), and the following new clause (11-A) shall be inserted before that clause (11-B):

“(11-A) “electronic” includes .electrical, digital, magnetic, optical, biometric, electrochemical, wireless or electromagnetic technology;”;

(d) for the omitted clause (12A), the following shall be substituted: “(12A) “Government” means Government of the Punjab;”;

(e) The following clause (17A) shall be inserted after clause 17:

“(17A) “multi-storey” means a building having more than three storeys including basement;”;

(f) for clause (22-A), the following shall be substituted:

“(22A) “public office” includes an office of the Government, a local government, a statutory corporation or a similar body set up by the Federal Government or the Government, a commercial or industrial concern whether singly owned or run through partnership having more than twenty employees, a development authority, a private housing scheme or a housing authority, a cooperative housing society, a real estate developer or a real estate broker, a banking company and any other entity whether registered or unregistered under any law for the being in force;”;

(g) after clause (23), the following clause (23A) shall be inserted:

“(23A) “service charge” means such amount as may be notified by the Finance Department of the Government to be charged from the purchaser by a bank, other than the Bank of Punjab, for issuance of e-Stamp by using online facility;”;

(h) after clause (25), the following clause (25A) shall be inserted:

“(25A) “transferring or attesting authority” includes the principal executive officer of relevant public offices registering the transaction of transfer of right, title or interest in an immoveable property in its record;”; and

(i) in clause 26, for sub-clause (d), the following shall be substituted:

“(d) an area defined as an urban area in the Punjab Local Government Act, 2019 (XIII of 2019) or an area developed by a development authority, housing authority, statutory body, cooperative housing society or a real estate company or developer.”.

Amendment of Section 4 of Act II of 1899.–In the Act, in Section 4, in sub-section (1), for the word “four”, the words “five hundred” shall be substituted.
Amendment of Section 6 of Act II of 1899.–In the Act, in Section 6, in the proviso, for the word “four”, the words “five hundred” shall be substituted.
Amendment of Section 11 of Act II of 1899.–In the Act, in Section 11, in clause (a), for the expression “twenty-five paisa”, the words “one hundred rupees” shall be substituted.
Amendment of Section 27-A of Act II of 1899.–In the Act, in Section 27-A:

(a) in sub-section (1), for the expression “23, 27-A, 31, 33, 48(b), 48 (bb), 63 or 63-A”, the expression “23, 27-A, 31, 33, 35 (1)(b), 48 (b), 48 (bb), 55(b), 63 and 63-A,” shall be substituted.

(b) for sub-section (2), the following shall be substituted:

“(2) Where an instrument mentioned in sub-section (1) relates to an immovable property consisting of land and structure including a multi¬storey building, such instrument shall state the value of the land and structure separately, and stamp duty on the structure shall be calculated as per the covered area or the area of the structure mentioned in the instrument whichever is higher, and in case there is no approved building plan, two percent duty of the value of land in addition to payable duty shall be charged.”.

Amendment of Section 28 of Act II of 1899.–In the Act, in Section 28:

(a) in sub-section (4), for the colon (:) appearing after the words “paid by the purchasers”, a full stop (.) shall be substituted, and, the proviso shall be omitted; and

(b) in sub-section (5), for the word “five wherever appearing”, the words “five hundred” shall be substituted.

Amendment of Section 31 of Act II of 1899.–In the Act, in Section 31, for sub-section (1), the following shall be substituted:

“(1) When any instrument, whether executed or not and whether previously stamped or not is brought to the Collector, and the person bringing the instrument applies to have the opinion of the Collector as to the duty, if any, with which it is chargeable, and pays a fee of one thousand rupees, the Collector shall determine the. duty, if any, with which in his judgment the instrument is chargeable.”.

Amendment of Section 32 of Act II of 1899.–In the Act, in Section 32, in sub-section (3), in the proviso, in clause (c), for the words “twenty-five paisa”, the words “five hundred rupees” shall be substituted.
Amendment of Section 34 of Act II of 1899.–In the Act, in Section 34, for the words twenty-five paisa”, the words “fifty rupees” shall be substituted.
Amendment of Section 35 of Act II of 1899.–In the Act, in Section 35, in the proviso:

(a) in clause (a), for the words “twenty-five paisa” and the words “five rupees wherever appearing”, the words “fifty rupees” and “five hundred rupees” shall be substituted respectively; and

(b) in clause (b), for the words “one rupee”, the words “five rupees” shall be substituted.

Amendment of Section 39 of Act II of 1899.–In the Act, in Section 39, in sub-section (1), for the word “five”, the words “five hundred” shall be substituted.
Amendment of Section 40 of Act II of 1899.–In the Act, in Section 40, for sub-section (1), the following shall be substituted:

“(1) When the Collector impounds any instrument under Section 33, or receives any instruments sent to him under sub-section (2) of Section 38, he shall adopt the following procedure:

(a) if he is of the opinion that the instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;

(b) if he is of the opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the proper duty or the amount required to make up the same, together with a penalty of maximum ten times the amount of the proper duty or the deficient amount thereof but not less than two times of the amount due:

Provided that when such instrument has been impounded only because it has been written in contravention of Section 13 or Section 14, the Collector may, if he thinks fit, remit the whole penalty provided under this section:

Provided further that in case of any purported transfer of right, title or interest in an immoveable property effected by a relevant public office in its record under an instrument which is not registered under the Registration Act, 1908 (XVII of 1908), such instrument shall be chargeable with duty which shall be ten times the amount of the deficient duty.”.

Amendment of Section 41 of Act II 1899.–In the Act, in Section 41, for the words “twenty-five paisa”, the words “fifty rupees” shall be substituted.
Substitution of Section 47 of Act II 1899.–In the Act, for Section 47, the following shall be substituted:

“47. Power of payer to stamp bills and promissory notes received by him unstamped.–When any Bill of Exchange or promissory note is presented for payment unstamped, the person to whom it is so presented may affix thereon the necessary adhesive stamp, and upon cancelling the same in the manner hereinbefore provided, may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill or note shall, so far as respects the duty be deemed good and valid:

Provided that nothing herein contained shall relieve any person of any penalty or proceeding to which he may be liable in relation to such bill or note.”.

Insertion of Section 48-A in Act II of 1899.–In the Act, after Section 48, the following Section 48-A shall be inserted:

“48-A. Power of Collector to seal premises.–(1) When a transferring or attesting authority fails to comply with the provisions of this Act, the Collector may seal such public office including the premises thereof after affording the transferring or attesting authority an opportunity of being heard.

(2) If the transferring or attesting authority is aggrieved by an order under sub-section (1), he may within a period of thirty days of the order, apply to the Chief Revenue Authority, or any officer authorized by it in this behalf, for de- sealing of the public office.

(3) An application under sub-section (2) shall not be entertained unless the applicant pays the deficient amount of the duty together with the penalty under this Act.”.

Amendment of Section 62 of Act II of 1899.–In the Act, in Section 62, in sub-section (1), for the words “may extend to one thousand rupees” the words “shall be equal to two times of the unpaid duty” shall be substituted.
Amendment of Section 63 of Act II of 1899.–In the Act, in Section 63, for the words “two hundred” the words “five hundred” shall be substituted.
Substitution of Section 64 of Act II 1899.–In the Act, for Section 64, the following shall be substituted:
Penalty or omission to comply with provisions of Section 27.–Any person who, with intent to defraud the Government–

(a) executes any instrument in which all the facts and circumstances required by Section 27 to be set forth in such instrument are not fully and truly set forth; or

(b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all such facts and circumstances;

shall be punishable with fine which may extend to one hundred thousand rupees; or

(c) does any other act calculated to deprive the Government of any duty or penalty under this Act shall be punishable with fine equal to five times the amount of duty or penalty but shall not be less than one hundred thousand rupees.”.

Insertion of Section 64-A in Act II of 1899.–In the Act, after Section 64, the following Section 64-A shall be inserted:

“64-A. Punishment for omission to comply with the provision of the Act.–Any transferring or attesting authority which willfully and dishonestly fails to comply with any of the provisions of the Act shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five hundred thousand rupees, or with both.”.

Amendment of Section 65 of Act II of 1899.–In the Act, in Section 65, for the words two hundred” the words “five hundred” shall be substituted.
Amendment of Section 66 of Act II of 1899.–In the Act, in Section 66, for the words four hundred” the words “one thousand” shall be substituted.
Amendment of Section 67 of Act II of 1899.–In the Act, in Section 67, for the words “two thousand” the words “five thousand” shall be substituted.
Amendment of Section 68 of Act II of 1899.–In the Act, in Section 68, for the words “may extend to two thousand rupees” the words “shall be equal to five times the amount of the unpaid duty subject to a minimum of twenty five thousand rupees” shall be substituted.
Amendment of Section 69 of Act II of 1899.–In the Act, in Section 69, for clause (b), the following shall be substituted:

“(b) any person, not so appointed, who sells or offers for sale any stampl shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one hundred thousand rupees.”.

Substitution of Section 71 of Act II of 1899.–In the Act, for Section 71, the following shall be substituted:

“71. Jurisdiction of Magistrates.–A Magistrate of competent jurisdiction shall try an offence under this Act”.

Amendment of Section 73 of Act II of 1899.–In the Act, in Section 73, the existing text shall be numbered as sub-section (2), and before sub-section (2), the following sub-section (1) shall be inserted:

“(1) Every public officer shall, whenever his business involves an instrument chargeable with duty under this Act, keep and maintain such registers, books, records, papers, documents or proceedings relating to payment of that duty in such form as prescribed by the Board of Revenue and furnish a monthly statement of payment to the Collector.”.

Amendment of Section 74 of Act II of 1899.–In the Act, in Section 74, in clause (c), for the colon (:) appearing after the words “such persons”, a full stop (.) shall be substituted, and, the proviso shall be omitted.
Substitution of Section 75 of Act II of 1899.–In the Act, for Section 75, the following shall be substituted:

“75. Power to make rules.–The Government may make rules to carry out the purposes of this Act.”.

Amendment of Section 78 of Act II of 1899.–In the Act, in Section 78, for the word “Every” the word “The” shall be substituted.
Amendment of Schedule-I of Act II of 1899.–In the Act, in Schedule-I:

(1) In Article 2, in column 2, clauses (a) and (b), and in column 3, the expression “The same duty as on a Bond No. (15) for such amount” shall be omitted.

(2) In Article 4, in column 3, for the words “Fifty rupees” the words “One hundred rupees” shall be substituted.

(3) In Article 5:

(a) in clause (b), in column 3, after the words “subject to a maximum of one hundred rupees”, the words “but shall not be less than one hundred rupees” shall be inserted;

(b) in clause (ccc), in column 3, after the words “of the amount of contract”, the words “but shall not be less than one hundred rupees” shall be inserted; and

(4) In Article 6, in sub-article (2), in clauses (a) and (b), in sub-clauses (i) and (ii), in column 3, after the word “rupees” and the word “amount” respectively, the words “but shall not be less than one hundred rupees” shall be inserted.

(5) In Article 7, in clause (a), in column 3, for the word “Fifty” the words, “One hundred” shall be substituted.

(6) In Article 8, in column 2, clauses (a) and (b), and in column 3, the expression “Three rupees for every One hundred rupees or part thereof.” shall be omitted.

(7) In Article 13, in column 3, after the word “Bill”, wherever appearing, the words “but shall not be less than one hundred rupees” shall be inserted.

(8) in Article 14, in column 3, for the word “Ten”, the words “One hundred” shall be substituted.

(9) In Article 15, in column 3, after the words “Fifteen rupees”, wherever appearing, the words “but shall not be less than one hundred rupees” shall be inserted.

(10) In Article 20, in column 3, for the word “Ten”, the words, “one hundred” shall be substituted.

(11) In Article 22-A, in column 2, for the expression “Federal”, the expression “Federal Government” shall be substituted.

(12) In Article 23:

(a) in column 2, clause (c) shall be omitted;

(b) in column 3, the words “one hundred rupees” shall be omitted.

Note: This provision shall be deemed to have been in force from 1st of July 2012.

(13) In Article 25, in column 2, clauses (a) and (b), and in column 3, the words “Fifty rupees” shall be omitted.

(14) In Article 26, in column 2, clauses (a) and clause (b), and in column 3, the expression “The same duty as on a Bond No. (15) for such amount” shall be omitted.

(15) In Article 27, in column 3, after the word, “rupees”, the words, “but shall not be less than one hundred rupees” shall be inserted.

(16) For Article 31, the following shall be substituted:

31.	EXCHANGE of immovable property:
	(a) in case of immovable property in an urban area;	One percent of the value of each immovable property
	(b) in case of immovable property in rural area;	Three percent of the value of each immovable property
	(c) in case of exchange between urban and rural property.	One percent of the value of urban immovable property and three percent of the value of rural immovable property Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) five hundred rupees if the amount of consideration does not exceed five hundred thousand rupees; and (b) one thousand rupees if the amount of consideration exceeds five hundred thousand rupees.

(17) For Article 35, the following shall be substituted:

35.	LEASE, including an under lease or sub-lease and any agreement to let or sub-let: (1) whereby such lease the rent is fixed and no premium is paid or delivered:
	(a) Where the lease purports to be for a term of less than twenty years:	3.25 percent of the average annual rent of the lease.
	(b) Where the lease purports to be for a term of twenty years or above or in perpetuity:
	(i) In case of immovable property in an urban area;	Two percent of the value of the immovable property or rental values whichever is higher
	(ii) in any other case	Three percent of the value of the immovable property or rental value whichever is higher. Note: An additional stamp duty shall be charged as under: (a) Rs.500/-, if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-.
	(c) where the lease is granted for advance money and where no rent is reserved:
	(i) in case of immovable property in an urban area; and	Two percent of the consideration equal to the amount of advance as set forth in the lease. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-, if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-.
	(ii) in any other case	Three percent of the consideration equal to the amount of advance as set forth in the lease. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-,if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-,if the amount of consideration exceeds Rs.500,000/-
	(d) where the lease is granted for a fine or premium and where no rent is reserved:
	(i) in case of immovable property in an urban area; and	Two percent of the consideration equal to the amount of a fine or premium as set forth in the lease. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-, if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-.
	(ii) in any other case	Three percent of the consideration equal to the amount of advance as set forth in the lease. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-, if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-.
	(2) (a) where the lease is granted for money advanced in addition to the rent reserved:
	(i) in case of immovable property in an urban area; and	Two percent of the consideration equal to the amount of advance as set forth in the lease, in addition to the duty which would have been payable on such lease, if no advance had been paid or delivered. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-,if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-.
	(ii) in any other case	Three percent of the consideration equal to the amount of advance as set forth in the lease, in addition to the duty which would have been payable on such lease, if no advance had been paid or delivered. Note: In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/-, if the amount of. Consideration does not exceeds Rs.500,000 /-; and (b) Rs.1000/-, if amount of consideration exceeds Rs.500,000/-
	(b) where the lease is granted for a fine or premium in addition to the rent reserved
	(i) in case of immovable property in an urban area; and	Two percent of the consideration equal to the amount of advance as set forth in the lease, in addition to the duty which would have been payable on such lease, if no advance had been paid or delivered. Note. In case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/- if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/- if amount of consideration exceeds Rs.500,000/-
	(ii) in any other case	Three percent of the consideration equal to the amount of advance as set forth in the lease, in addition to the duty which would have been payable on such lease, if no advance had been paid or delivered. Note: in case of registration of the instrument, an additional stamp duty shall be charged as under: (a) Rs.500/- if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/- if amount of consideration exceeds Rs.500,000/-.”

(18) In Article 38, in column3, for the word “Fifty” the words “One hundred” shall be substituted.

(19) For Article 41, the following shall be substituted.

41.	MORTGAGE OF A CROP, including any instrument evidencing an agreement to secure the repayment of a loan made upon any mortgage of a crop, whether the crop is or is not in existence at the time of mortgage-
	(a) When the loan is repayable, not more than three months from the date of the instrument.	0.5 percent of the loan amount subject to a minimum of one hundred rupees.
	(b) When the loan is repayable more than three months, but not more than eighteen months from the date of the instrument.	2 percent of the loan amount subject to a minimum of one hundred rupees.”

(20) In Article 44, in column 3, for the word “Five”, the words, “One hundred” shall be substituted.

(21) In Article 48, in column 3, in clause (c), for the word “Ten”, the words, “One hundred” shall be substituted.

(22) In Article 51, in column 3, for the word “Ten”, the words “One hundred” shall be substituted. ‘

(23) In Article 54, in column 2, clauses (a) and (b), and in column 3, the words “Thirty rupees” shall be omitted.

(24) For Article 55, the following shall be substituted:

55.	RELEASE, that is to say any instrument not being such a release as is provided for by section 23A whereby a person renounces a claim on another person or against any specified property.
	(a) When executed between spouses or between one wife or widow of the same husband or between father, mother, son, daughter, grandparents, grandchildren, or sibling.
	(i) In case of immovable property in an urban area.	1 percent of the value of the share of the immovable property over which the claim is renounced.
	(ii) In case of immovable property in rural area	3 percent of the value of the share of the immovable property over which the claim is renounced.
	(b) In any other case.
	(i) In case of immovable property in an urban area.	1 percent of the value of the share of the immovable property over which the claim is renounced.
	(ii) In case of immovable property in rural area	3 percent of the value of the share of the immovable property over which the claim is renounced. Note: In case of registration of the instrument: (a) Rs.500/-, if the amount of consideration does not exceed Rs.500,000/-; and (b) Rs.1000/-, if the amount of consideration exceeds Rs.500,000/-.”

(25) In Article 61, in column 2, clauses (a) and (b), and in column 3, the words ‘The duty with which lease is chargeable” shall be omitted

(26) In Article 62:

(a) in clause (c), in sub-clause (ii) in column 3, for the word “Fifty” the words, “One hundred” shall be substituted.

(b) in clause (d), in column 3, for the word “Fifty” the words “One hundred” shall be substituted.

(c) in clause (e), in column 3, for the words “Twenty rupees or such smaller amount as may be chargeable under clauses (a) to (c) of this article”, the words “One hundred rupees” shall be substituted.

(27) In Article 63-A, in column 2, for the existing provisions the following shall be substituted:

63-A. TRANSFER OF A RIGHT OR INTEREST RESLATING TO AN IMMOVABLE PROPERTY, that is to say:

(i) An instrument of transfer of a right or interest relating to an immovable property or an acknowledgement of such transfer, by a development authority, housing authority or a statutory body.

Explanation-I.- In cases where allotment is to be made consequent upon payment of the installments or transfer of a right or interest is made by original allottee before the payment of the last installment, stamp duty shall be charged at the time of transfer whichever is earlier.

Explanation-II.- Transfer or allotment made through auction by a development authority is not entitled to an exemption from the payment of stamp duty.

(ii) An instrument of transfer of right or interest relating to an immovable property or an acknowledgment of such transfer by a cooperative housing society.

Explanation-I.- First time allotment is exempted from the payment of stamp duty. However, transfer/ allotment made through open auction is not entitled to the exemption from the payment of stamp duty.

Explanation-II.- Transfer of a right or interest includes transfer made through electronic form and open transfer letter.”

STAMP (AMENDMENT) ACT, 2021

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