Consider the following statements regarding “Stamp Duty”: 1. It is payable under Section 3 of the Indian Stamp Act, 1899. 2. No penalty is attracted if there is any delay in payment of stamp duty. Which of the statements given above is/are correct? |ForumIAS

Q. Consider the following statements regarding “Stamp Duty”:
1.It is payable under Section 3 of the Indian Stamp Act, 1899.
2.No penalty is attracted if there is any delay in payment of stamp duty.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

Explanation: Stamp Duty is a tax, like income tax, collected by the government. Stamp duty is payable under Section 3 of the Indian Stamp Act, 1899.

Stamp Duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts a penalty.
A stamp duty paid instrument / document is considered a proper and legal instrument / document and has evidentiary value and is admitted as evidence in courts.
Document not properly stamped, is not admitted as evidence by the court.

Source: FORUMIAS

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