Section 23 of The Indian Stamp Act, 1899 in hindi
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.
Summary
- Mentioning interest in a document does not increase the amount of stamp duty owed.
- The tax is calculated as if the document did not mention interest at all.
- This rule applies when interest is clearly stated as payable within the document's terms.
Practical examples
FAQ
1. Does paying interest on a loan increase the stamp duty under Section 23 of The Indian Stamp Act, 1899?
No, under Section 23 of the Act, if a document says interest must be paid, the tax is the same as if interest was not mentioned.
2. How is tax calculated for documents with interest under the Indian Stamp Act?
According to Section 23 of the Indian Stamp Act, 1899, the tax is calculated based on the main amount without adding the value of the interest.
3. Does Section 23 of the Indian Stamp Act, 1899 apply to all documents that mention interest?
Yes, Section 23 states that any document where interest is clearly made payable is taxed the same as if it had no mention of interest.
Test yourself
Q1.Under Section 23 of The Indian Stamp Act, 1899, if a document clearly states that interest is payable, what happens to the stamp duty?
Q2.Under Section 23 of The Indian Stamp Act, 1899, if a 1,000 rupee loan document adds a clause for 5% interest, how much higher is the tax compared to a document without the clause?
Q3.Under Section 23 of The Indian Stamp Act, 1899, what must be "expressly made payable" for this provision to apply?
Q4.Does the Indian Stamp Act, 1899 tax interest as part of the principal value under Section 23?