§ 1Short title, extent and commencement.
Sections86
LanguageEnglish
The Stamp Act, 1899 governs the imposition and collection of stamp duty on instruments and documents in Bangladesh. It applies to all instruments listed in the Schedule executed, received, or used within Bangladesh, including bills of exchange, promissory notes, insurance policies, conveyances, mortgages, leases, bonds, powers of attorney, and share certificates. The Act sets out duty rates and prescribes how stamps must be affixed and cancelled. Key mechanisms include the requirement for instruments to be stamped before execution; the provision for adhesive, impressed, or electronic stamps; penalties for understamping -- the deficit duty plus up to ten times that amount; and the rule that unstamped instruments are inadmissible in evidence until the deficit and penalty are paid. Notable provisions include the procedure for refunding stamp duty on unused stamps; criminal liability for forging stamps; exemptions for government instruments; the Collector's power to adjudicate proper duty; and the option to stamp instruments executed outside Bangladesh within three months of receipt. The Act remains in force as a significant source of government revenue.
Full text · showing key sections
§ 2Definitions
In this Act, unless there is something repugnant in the subject or context,-
"Banker" (1) “banker” include a bank and any person acting as a banker:
“Bill of exchange” (2) “bill of exchange” means a bill of exchange as defined by the
Negotiable Instruments Act, 1881
, and includes also a hundi, and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money:
“Bill of exchange payable on demand” (3) “bill of exchange payable on demand” includes,-
(a) an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;
(b) an order for the payment of any sum of money weekly, monthly or at any other stated periods; and
(c) a letter of credit, that is to say, any instrument by which one person authorizes another to give credit to the person in whose favour it is drawn:
“Bill of lading” (4) “bill of lading” includes a “through bill of lading,” but does not include a mate's receipt:
“Bond” (5) “bond” includes-
(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;
(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and
(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another:
“Chargeable” (6) “chargeable” means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and, as applied to any other instrument, chargeable under the law in force in Bangladesh when such instrument was executed or, where several persons executed the instrument at different times, first executed:
“Cheque” (7) “cheque” means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand:
(8)[Omitted by the Government of India (Adaptation of Indian Laws) Order, 1937.]
“Collector” (9) “Collector”-
(a) means the collector of a district ; and
(b) includes a Deputy Commissioner and any officer whom the Government may, by notification in the official Gazette, appoint in this behalf:
“Conveyance” (10) “conveyance” includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I
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[* * *]:
“Duly Stamped” (11) “duly stamped”, as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount, and that such stamp has been affixed or used in accordance with the law for the time being in force in Bangladesh:
“Executed” and “Execution” (12) “executed” and “execution”, used with reference to instruments, mean “signed” and “signature”:
“Impressed Stamp” (13) “impressed stamp” includes-
(a) labels affixed an impressed by the proper officer, and
(b) stamps embossed or engraved on stamped paper:
“Instrument” (14) “instrument” includes every documents by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded:
“Instrument of partition” (15) “instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue-authority or any Civil Court and an award by an arbitrator directing a partition:
“Lease” (16) “lease” means a lease of immovable property, and includes also-
(a) a patta;
(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy or pay or delivery rent for immovable property;
(c) any instrument by which tolls of any description are let;
(d) any writing on an application for a lease intended to signify that the application is granted:
“Marketable Security” (16a) “marketable security” means a security of such a description as to be capable of being sold in any stock market in Bangladesh or in the United Kingdom:
“Mortgagee-deed” (17) “mortgagee-deed” includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over or in respect of specified property:
“Paper” (18) “paper” includes vellum, parchment or any other material on which an instrument may be written:
“Policy of Insurance” (19) “policy of insurance” includes-
(a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event;
(b) a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance:
“Policy of sea-insurance” or “Sea-policy” (20) “policy of sea-insurance” or “sea-policy”-
(a) means any insurance made upon any ship or vessel (whether for marine or inland navigation), or upon the machinery tackle or furniture of any ship or vessel, or upon any goods, merchandise or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel; and
(b) includes any insurance of goods, merchandise or property for any transit which includes not only a sea risk within the meaning of clause (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance:
Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for sea-insurance:
“Power of Attorney”
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[(21) “Power of Attorney” means the power of attorney as defined in section-2, clause (1), of the Power of Attorney Act, 2012 (Act No. XXXV of 2012)]:
“Promissory note” (22) “promissory note” means a promissory note defined by the
Negotiable Instruments Act, 1881
; It also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen:
“Receipt” (23) “receipt” includes any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledge-ment,
and whether the same is or is not signed with the name of any person:
“Settlement” (24) “settlement” means any non-testamentary disposition, in writing, of movable or immovable property made-
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose;
and includes an agreement in writing to make such a disposition and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition: and
“Soldier” (25) “Soldier” includes any person below the rank of non-commissioned officer who is enrolled under the
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Army Act, 1952
.
“Collector” (9) “Collector”-
(a) means the collector of a district ; and
(b) includes a Deputy Commissioner and any officer whom the Government may, by notification in the official Gazette, appoint in this behalf:
“Conveyance” (10) “conveyance” includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I
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[* * *]:
“Duly Stamped” (11) “duly stamped”, as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount, and that such stamp has been affixed or used in accordance with the law for the time being in force in Bangladesh:
“Executed” and “Execution” (12) “executed” and “execution”, used with reference to instruments, mean “signed” and “signature”:
“Impressed Stamp” (13) “impressed stamp” includes-
(a) labels affixed an impressed by the proper officer, and
(b) stamps embossed or engraved on stamped paper:
“Instrument” (14) “instrument” includes every documents by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded:
“Instrument of partition” (15) “instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue-authority or any Civil Court and an award by an arbitrator directing a partition:
“Lease” (16) “lease” means a lease of immovable property, and includes also-
(a) a patta;
(b) a kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy or pay or delivery rent for immovable property;
(c) any instrument by which tolls of any description are let;
(d) any writing on an application for a lease intended to signify that the application is granted:
“Marketable Security” (16a) “marketable security” means a security of such a description as to be capable of being sold in any stock market in Bangladesh or in the United Kingdom:
“Mortgagee-deed” (17) “mortgagee-deed” includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over or in respect of specified property:
“Paper” (18) “paper” includes vellum, parchment or any other material on which an instrument may be written:
“Policy of Insurance” (19) “policy of insurance” includes-
(a) any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event;
(b) a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance:
“Policy of sea-insurance” or “Sea-policy” (20) “policy of sea-insurance” or “sea-policy”-
(a) means any insurance made upon any ship or vessel (whether for marine or inland navigation), or upon the machinery tackle or furniture of any ship or vessel, or upon any goods, merchandise or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel; and
(b) includes any insurance of goods, merchandise or property for any transit which includes not only a sea risk within the meaning of clause (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance:
Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for sea-insurance:
“Power of Attorney”
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[(21) “Power of Attorney” means the power of attorney as defined in section-2, clause (1), of the Power of Attorney Act, 2012 (Act No. XXXV of 2012)]:
“Promissory note” (22) “promissory note” means a promissory note defined by the
Negotiable Instruments Act, 1881
; It also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen:
“Receipt” (23) “receipt” includes any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledge-ment,
and whether the same is or is not signed with the name of any person:
“Settlement” (24) “settlement” means any non-testamentary disposition, in writing, of movable or immovable property made-
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose;
and includes an agreement in writing to make such a disposition and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition: and
“Soldier” (25) “Soldier” includes any person below the rank of non-commissioned officer who is enrolled under the
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Army Act, 1952
.
§ 3Instruments chargeable with duty.
Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that schedule as the proper duty therefore, respectively, that is to say-
(a) every instrument mentioned in that schedule which, not, having been previously executed by any person, is executed in Bangladesh on or after the first day of July, 1899;
(b) every bill of exchange payable otherwise than on demand or promissory note drawn or made out of Bangladesh on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred, or otherwise negotiated, in Bangladesh; and
(c) every instrument (other than a bill of exchange or promissory note) mentioned in that schedule, which, not having been previously executed by any person, is executed out of Bangladesh on or after that day relates to any property situate, or to any matter or thing done or to be done, in Bangladesh and is received in Bangladesh:
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Provided also that no duty shall be chargeable in respect of-
(1)any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
(2)any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgagee or otherwise, of any ship or vessel, or any part, interest, share or property
of or in any ship or vessel registered under the
2
[Merchant Shipping Ordinance, 1983 (XXVI of 1983)].
of or in any ship or vessel registered under the
2
[Merchant Shipping Ordinance, 1983 (XXVI of 1983)].
§ 4Several instruments used in single transaction of sale, mortgagee or settlement.
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[(1) Where, in the case of any sale, mortgagee or settlement, several instruments are employed for completing the transaction, the Principal instrument only shall be chargeable with the duty prescribed in Schedule I for the conveyance, mortgagee or settlement, and each of the other instruments shall be chargeable with a duty of
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[three hundred Taka] instead of the duty (if any) prescribed for it in that Schedule.]
(2)The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:
Provided thatthe duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.
§ 5Instruments relating to several distinct matters.
Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.
§ 6Instruments coming within several descriptions in Schedule I.
Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions in Schedule I
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[***] shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties:
Provided thatnothing in this Act contained shall render chargeable with duty exceeding three Taka a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid
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[* * *].
§ 6A[Omitted]
[Omitted by section 3 and 2nd Schedule of the
Bangladesh Laws (Revision And Declaration) Act, 1973
(Act No. VIII of 1973).]
§ 7Policies of sea-insurance.
(1)No contract for sea-insurance
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[* * *] shall be valid unless the same is expressed in a sea-policy.
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[* * *] shall be valid unless the same is expressed in a sea-policy.
(2)No sea-policy made for time shall be made for any time exceeding twelve months.
(3)No sea-policy shall be valid unless it specifies the particular risk or adventure, or the time, for which it is made, the names of the subscribers or underwriters, and the amount or amounts insured.
(4)Where any sea-insurance is made for or upon a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a policy for time.
§ 8Bonds, debentures or other securities issued on loans under Act XI of 1879.
(1)Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the
Local Authorities Loans Act, 1914
, or of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of one per centum on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, subdivision or otherwise.
Local Authorities Loans Act, 1914
, or of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of one per centum on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, subdivision or otherwise.
(2)The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or other securities shall be valid, whether the same are stamped or not:
Provided thatnothing herein contained shall exempt the local authority which has issued such bonds, debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of March, 1897, when such duty has not already been paid or remitted by order issued by the Government.
(3)In the case of wilful neglect to pay the duty required by this section, the local authority shall be liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.
§ 9Power to reduce, remit or compound duties.
The Government may, by rule or order publish in the official Gazette,-
(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its administration, the duties with which any instruments, or any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable, and
(b) provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate of debentures, bonds or other marketable securities.
§ 10Duties how to be paid.
(1)Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps-
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto- as the Government may by rule direct.
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto- as the Government may by rule direct.
(2)The rules made under sub-section (1) may, among other matters, regulate,-
(a) in the case of each kind of instrument – the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps – the number of stamps which may be used;
(c) in the case of bills of exchange or promissory notes written in any Oriental language- the size of the paper on which they are written.
(a) in the case of each kind of instrument – the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps – the number of stamps which may be used;
(c) in the case of bills of exchange or promissory notes written in any Oriental language- the size of the paper on which they are written.
§ 11APayment of stamp duties on insurance policy in certain cases by challan, pay order or Bank draft.
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[11A. Notwithstanding the other provisions of this Act or any other law for the time being in force, the Government may, by notification in the official Gazette, direct that where the stamp duty payable on an insurance policy exceeds the amount specified in the notification, the entire stamp duty shall be paid only by treasury challan or account-payee pay order or account-payee bank draft in the manner prescribed by such notification or by rules.]
§ 11Use of adhesive stamps.
The following instruments may be stamped with adhesive stamps, namely:-
(a) instruments chargeable with the duty of ten poisha or five poisha, except parts of bills of exchange payable otherwise than on demand and drawn in sets;
(b) bills of exchange and promissory notes drawn or made out of Bangladesh;
(c) entry as an
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[advocate on the roll of the Supreme Court]:
(d) notarial acts; and
(e) transfers by endorsement of shares in any incorporated company or other body corporate.
§ 12Cancellation of adhesive stamps.
(1)(a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(2)Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3)The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.
§ 13Instruments stamped with impressed stamps how to be written.
Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.
§ 14Only one instrument to be on same stamp.
No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:
Provided thatnothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.
§ 15Instruments written contrary to section 13 or 14 deemed unstamped.
Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.
§ 16Denoting duty
Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last-mentioned duty shall, if application is made in writing to the Collector for that purpose, and on production of both the instruments, be donated upon such first mentioned instrument, by endorsement under the hand of the Collector or in such other manner (if any) as the Government may by rule prescribe.
§ 17Instruments executed in Bangladesh.
All instruments chargeable with duty and executed by any person in Bangladesh shall be stamped before or at the time of execution.
§ 18Instruments other than bills, and notes executed out of Bangladesh.
(1)Every instrument chargeable with duty executed only out of Bangladesh, and not being a bill of exchange, or promissory note, may be stamped within three months after it has been first received in Bangladesh.
(2)Where any such instrument cannot, with reference to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the Government may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.
§ 19A[Omitted]
[Omitted by section 3 and 2nd Schedule of the
Bangladesh Laws (Revision And Declaration) Act, 1973
(Act No. VIII of 1973).]
§ 19Bills and notes drawn out of Bangladesh.
The first holder in Bangladesh of any bill of exchange payable otherwise than on demand or promissory note drawn or made out of Bangladesh shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in Bangladesh, affix thereto the proper stamp and cancel the same:
Provided that,
(a) if, at the time any such bill of exchange, or note comes into the hands of any holder thereof in Bangladesh, the proper adhesive stamp is affixed thereto and cancelled in manner prescribed by section 12; and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;
(b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.
§ 20Conversion of amount expressed in foreign currencies.
(1)Where an instrument is chargeable with ad volorem duty in respect of any money expressed in any currency other than that of Bangladesh, such duty shall be calculated on the value of such money in the currency of Bangladesh according to the current rate of exchange on the day of the date of the instrument.
(2)The Government may, from time to time, by notification in the official Gazette, prescribe a rate of exchange for the conversion of British or any foreign currency into the currency of Bangladesh for the purposes of calculating stamp-duty, and such rate shall be deemed to be the current rate for the purposes of sub-section (1).
§ 21Stock and marketable securities how to be valued.
Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.
§ 22Effect of statement of rate of exchange or average price.
Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject-matter of such statement, be presumed, until the contrary is proved, to be duly stamped.
§ 23Instruments reserving interest.
Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
§ 23ACertain instruments connected with mortgagees of marketable securities to be chargeable as agreements.
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[23A. (1) Where an instrument (not being a promissory note or bill of exchange)-
(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or
(b) makes redeemable or qualifies duly stamped transfer, intended as a security, of any marketable security,
it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article No. 5(c) of Schedule 1.
(2)A release or discharge of any such instrument shall only be chargeable with the like duty.]
§ 24How transfer in consideration of debt, or subject to future payment, etc., to be charged.
Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or encumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:
Provided thatnothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule 1.
Explanation-In the case of a sale of property subject to a mortgagee or other encumbrance, any unpaid mortgagee-money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:
Provided that, where property subject to a mortgagee is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgagee.
Illustrations
(1)A owes B Taka 1,000. A sells a property to B, the consideration being Taka 500 and the release of the previous debt of Taka 1,000. Stamp duty is payable on Taka 1,500.
(2)A sells a property to B for Taka 500 which is subject to a mortgagee to C for Taka 1,000 and unpaid interest Taka 200. Stamp-duty is payable on Taka 1,700.
(3)A mortgagees a house of the value of Taka 10,000 to B for Taka 5,000. B afterwards, buys the house from A. Stamp duty is payable on Taka 10,000 less the amount of stamp-duty already paid for the mortgagee.
§ 25Valuation in case of annuity, etc.
Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,-
(a) where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained- such total amount;
(b) where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance - the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and
(c) where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance - the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.
§ 26Stamp where value of subject-matter is indeterminate.
Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or (in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp-duty,-
(a) when the lease has been granted by or on behalf of Government, at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to Government under the lease, or,
(b) when the lease has been granted by any other person, at twenty thousand Taka a year;
and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:
Provided also that, where proceedings have been taken in respect of an instrument under section 31 or 41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.
§ 27Facts affecting duty to be set forth in instrument.
The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.
§ 28Direction as to duty in case of certain conveyances.
(1)Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.
(2)Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.
1
[(2A). Notwithstanding anything contained in sub-section (1) and (2), where any property mentioned in any of these sub-sections is conveyed to the same person in parts by separate instruments executed within twelve months, the conveyance of the last part shall be chargeable with such amount of duty as would make up the ad valorem duty with which the conveyance for the whole property would be chargeable had it been conveyed by one instrument.]
1
[(2A). Notwithstanding anything contained in sub-section (1) and (2), where any property mentioned in any of these sub-sections is conveyed to the same person in parts by separate instruments executed within twelve months, the conveyance of the last part shall be chargeable with such amount of duty as would make up the ad valorem duty with which the conveyance for the whole property would be chargeable had it been conveyed by one instrument.]
(3)Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.
(4)Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons, and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers:
Provided thatthe duty on such last-mentioned conveyance shall in no case be less than three Taka.
(5)Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five Taka with a duty of five Taka.
§ 29A[Omitted]
[Omitted by section 3 and 2nd Schedule of the
Bangladesh Laws (Revision And Declaration) Act, 1973
(Act No. VIII of 1973).]
§ 29Duties by whom payable.
In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne,–
(a) in the case of any instrument described in any of the following articles of Schedule I, namely:-
No. 2 (Administration Bond),
No. 6 (Agreement relating to Deposit of Title deeds, Pawn or Pledge),
No. 13 (Bill of Exchange),
No. 15 (Bond),
No. 16 (Bottomry Bond),
No. 26 (Customs Bond),
No. 27 (Debenture),
No. 32 (Further charge),
No. 34 (Indemnity-bond),
No. 40 (Mortgagee deed),
No. 49 (Promissory-note),
No. 55 (Release),
No. 56 (Respondentia Bond),
No. 57 (Security-bond or Mortgagee-deed),
No. 58 (Settlement),
No. 62 (a) (Transfer of shares in an incorporated company or other body corporate),
No. 62(b) (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided for by section 8),
No. 62(c) (Transfer of any interest secured by a bond, mortgagee-deed or policy of insurance),-
by the person drawing, making or executing such instrument:
(b) in the case of a policy of insurance other than fire-insurance - by the person effecting the insurance ;
(bb) in the case of a policy of fire-insurance - by the person issuing the policy:
(c) in the case of a conveyance (including a re-conveyance of mortgaged property) by the grantee: in the case of a lease or agreement to lease - by the lessee or intended lessee:
(d) in the case of a counterpart of a lease - by the lessor:
(e) in the case of an instrument of exchange - by the parties in equal shares:
(f) in the case of a certificate of sale - by the purchaser of the property to which such certificate relates: and
(g) in the case of an instrument of partition - by the parties thereto in proportion to their respective shares in the whole property partitioned, or, when the partition is made in execution of an order passed by a Revenue-authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator directs.
§ 30Obligation to give receipt in certain cases.
Any person receiving any money exceeding
1
[five hundred Taka] in amount, or any bill of exchange, cheque or promissory note for an amount exceeding
2
[five hundred Taka], or receiving in satisfaction or part satisfaction of a debt any movable property exceeding
3
[five hundred Taka] in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same.
Any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall, within one month after receiving or taking credit for such premium or consideration, give a duly stamped receipt for the same.
§ 31Adjudication as to proper stamp.
(1)When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five Taka and not less than fifty poisha as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable.
(2)For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such an application until such abstract and evidence have been furnished accordingly:
Provided that-
(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instrument to which it relates is chargeable; and
(b) every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.
§ 32Certificate by Collector.
(1)When an instrument brought to the Collector under section 31 is, in his opinion, one of a description chargeable with duty, and -
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid,
the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 31, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid,
the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
(2)When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.
(3)Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped:
Provided thatnothing in this section shall authorise the Collector to endorse -
(a) any instrument
1
[* * *] executed or first executed in Bangladesh and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
(b) any instrument executed or first executed out of Bangladesh and brought to him after the expiration of three months after it has been first received in Bangladesh;
(c) any instrument chargeable with the duty of ten poisha or five poisha or any bill of exchange or promissory note, when brought to him, after the drawing or execution thereof, on paper not duly stamped.
2
[* * *]
§ 33Examination and impounding of instruments.
(1)Every person having by law or consent of parties authority to receive evidence, and every person in charge of a public office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the performance of his functions, shall, if it appears to him that such instrument is not duly stamped, impound the same.
(2)For that purpose every such person shall examine every instruments so chargeable and so produced or coming before him in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in Bangladesh when such instrument was executed or first executed:
Provided that,-
(a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the
Code of Criminal Procedure, 1898
;
(b) in the case of a Judge of the High Court Division the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.
(3)For the purposes of this section, in cases of doubt,-
(a) the Government may determine what offices shall be deemed to be public offices; and
(b) the Government may determine who shall be deemed to be persons in charge of public offices.
(a) the Government may determine what offices shall be deemed to be public offices; and
(b) the Government may determine who shall be deemed to be persons in charge of public offices.
§ 34Special provision as to unstamped receipts.
Where any receipt chargeable with a duty of
1
[thirty poisha] is tendered to or produced before any officer unstamped in the course of the audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefor.
§ 35Instruments not duly stamped inadmissible in evidence, etc.
No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped:
Provided that,-
(a) any such instrument not being an instrument chargeable with a duty of ten poisha or five poisha only, or a bill of exchange or promissory note, shall, subject to all just exceptions, be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of five Taka, or, when ten times the amount of the proper duty or deficient portion thereof exceeds five Taka, or a sum equal to ten times such duty or portion;
(b) where any person from whom a stamped receipt could have been demanded, has given an unstamped receipt and such receipt, if stamped, would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one Taka by the person tendering it;
(c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;
(d) nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Chapter XII or Chapter XXXVI of the
Code of Criminal Procedure, 1898
;
(e) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government, or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act.
§ 36Admission of instrument where not to be questioned.
Where an instrument has been admitted in evidence, such admission shall not except as provided in section 61, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
§ 37Admission of improperly stamped instruments.
The Government may make rules providing that, where an instrument bears a stamp of sufficient amount but of improper description, it may on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.
§ 38Instruments impounded how dealt with.
(1)When the person impounding an instrument under section 33 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 35 or of duty as provided by section 37, he shall send to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall sent such amount to the Collector, or to such person as he may appoint in this behalf.
(2)In every other case, the person so impounding an instrument shall send it in original to the Collector.
§ 39Collector’s power to refund penalty paid under section 38, sub-section (1).
(1)When a copy of an instrument is sent to the Collector under section 38, sub-section (1), he may, if he thinks fit, refund any portion of the penalty in excess of five Taka which has been paid in respect of such instrument.
(2)When such instrument has been impounded only because it has been written in contravention of section 13 or section 14, the Collector may refund the whole penalty so paid.
§ 40Collector’s power to stamp instruments impounded.
(1)When the Collector impounds any instrument under section 33, or receives any instrument sent to him under section 38, sub-section (2), not being an instrument chargeable with a duty of ten poisha or five poisha only or a bill of exchange or promissory note, he shall adopt the following procedure:-
(a) if he is of opinion that such 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 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 five Taka or, if he thinks fit, an amount not exceeding ten times the amount of the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five Taka:
(a) if he is of opinion that such 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 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 five Taka or, if he thinks fit, an amount not exceeding ten times the amount of the proper duty or of the deficient portion thereof, whether such amount exceeds or falls short of five Taka:
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 prescribed by this section.
(2)Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be conclusive evidence of the matters stated therein.
(3)Where an instrument has been sent to the Collector under section 38, sub-section (2), the Collector shall, when he has dealt with it as provided by this section, return it to the impounding officer.
§ 41Instruments unduly stamped by accident.
If any instrument chargeable with duty and not duly stamped, not being an instrument chargeable with a duty of ten poisha or five poisha only or a bill of exchange or promissory note, is produced by any person of his own motion before the Collector within one year from the date of its execution or first execution, and such person brings to the notice of the Collector the fact that such instrument is not duly stamped and offers to pay to the Collector the amount of the proper duty, or the amount required to make up the same, and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity, he may, instead of proceeding under sections 33 and 40, receive such amount and proceed as next hereinafter prescribed.
§ 42Endorsement of instruments on which duty has been paid under sections 35, 40 or 41.
(1)When the duty and penalty (if any) leviable in respect of any instrument have been paid under section 35, section 40 or section 41, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them.
(2)Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct:
Provided that-
(a) no instrument which has been admitted in evidence upon payment of duty, and a penalty under section 35, shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate;
(b) nothing in this section shall affect the Order XIII, rule 9 of Schedule I to the
Code of Civil Procedure, 1908
.
§ 43Prosecution for offence against Stamp-law.
The taking of proceedings or the payment of a penalty under this chapter in respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against the Stamp-law in respect of such instrument:
Provided thatno such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.
§ 44Persons paying duty or penalty may recover same in certain cases.
(1)When any duty or penalty has been paid under section 35, section 37, section 40 or section 41, by any person in respect of an instrument, and, by agreement or under the provisions of section 29 or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first-mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
(2)For the purpose of such recovery any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
(3)Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or proceeding to which such persons are parties and in which such instrument has been tendered in evidence. If the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable.
§ 45Power to Revenue-authority to refund penalty or excess duty in certain cases.
(1)Where any penalty is paid under section 35 or section 40, the Chief Revenue authority may, upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.
(2)Where, in the opinion of the Chief Revenue-authority, stamp-duty in excess of that which is legally chargeable has been charged and paid under section 35 or section 40, such authority may, upon application in writing made within three months of the order charging the same, refund the excess.
The Stamp Act, 1899 governs the imposition and collection of stamp duty on instruments and documents in Bangladesh. It applies to all instruments listed in the Schedule executed, received, or used within Bangladesh, including bills of exchange, promissory notes, insurance policies, conveyances, mortgages, leases, bonds, powers of attorney, and share certificates. The Act sets out duty rates and prescribes how stamps must be affixed and cancelled. Key mechanisms include the requirement for instruments to be stamped before execution; the provision for adhesive, impressed, or electronic stamps; penalties for understamping -- the deficit duty plus up to ten times that amount; and the rule that unstamped instruments are inadmissible in evidence until the deficit and penalty are paid. Notable provisions include the procedure for refunding stamp duty on unused stamps; criminal liability for forging stamps; exemptions for government instruments; the Collector's power to adjudicate proper duty; and the option to stamp instruments executed outside Bangladesh within three months of receipt. The Act remains in force as a significant source of government revenue.