Validity of Stamp Paper

Any transaction gets legal validity once it is executed on Stamp paper of proper value. Basically, to bring legal sanctity to any document, it shall be executed on legal stamp paper. However, all documents do not require stamp paper; some documents are exempted from it.

The Indian Stamp Act does not provide any expiration date. However, Section 54 of Indian Stamp Act is only for the purpose of seeking refund of unused stamp paper. It is the duty levied by the state for the purpose of registering a  document. Article 246 of Indian Constitution states that stamp duty is a union as well as state subject.

Types:

1. Judicial/ Court Fee: Case is admitted before the court of law when the court fees have been made.
2. Non-Judicial: It facilitates the execution of documents and agreements.

Expiry Date of Stamp Papers:

According to the Supreme Court’s ruling in Thiruvengada Pillai vs. Navaneethammal and Others, the Indian Stamp Act “prima facie does not stipulate any expiry date for the usage of Stamp Paper and since Section 54 only offers a recourse for refund in case a person does not wish to use the stamp paper within six months of such purchase, there is no obligation on the Purchaser of the Stamp Paper to use the same within six months.”

Validity of Stamp Paper:

While issuing the stamp papers, the authority issuing the stamp paper notes down the name and date of issuance. However, they pay the refund on the unused stamp paper after a minimum deduction of 10% if it is returned without damage within 6 months of issuance.

You have to satisfy the collector about:

1. Purchased the stamp paper for bonafide use
2. Paid full price of the stamp
3. Purchased the stamp paper within 3 months from the date of deposit
4. Stamp vendor may get full amount without any deduction

Section 63 of Rajasthan Stamp Act also mentions the provision of refund of stamp paper.

Purpose must be same for Usage:

Old Stamp Papers can be used for new agreements. Section 29 of Indian Stamp Act allows vendors to make an entry in the records about the purpose for which the stamp paper is purchased. If stamp paper is purchased for gift deed, then the same shall be used only for gift deed and not for any other purpose.

For New Agreement:

You can use the stamp paper for execution of a new agreement and if the new agreement requires the additional stamp duty then extra stamp papers shall be added to the Agreement.

Lead India has a team of expert lawyers, who deal with issues of pensions and can give free legal advice to you in the event of any query.