CRIMINAL OFFENCES AND PROCEDURECentral

Section 62A of The Indian Stamp Act, 1899 in hindi

1[62A. Penalty for failure to comply with provisions of section 9A.---(1) Any person who,--

(a)being required under sub-section (1) of section 9A to collect duty, fails to collect the same; or
(b)being required under sub-section (4) of section 9A to transfer the duty to the State Government within fifteen days of the expiry of the time specified therein, fails to transfer within such time, shall be punishable with fine which shall not be less than one lakh rupees, but which may extend up to one per cent. of the collection or transfer so defaulted.

(2)Any person who,--
1. (a)being required under sub-section (5) of section 9A to submit details of transactions to the Government, fails to submit the same; or
2. (b)submits a document or makes a declaration which is false or which such person knows or believes to be false, shall be punishable with fine of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less.]

Summary

Creates harsh penalties for failing to collect or transfer stamp duty related to stock market and depository transactions.
Punishes entities that are required to collect tax but fail to do so.
Imposes a fine of at least one lakh rupees for failing to transfer collected taxes to the State Government within the time limit.
Penalizes the failure to submit required transaction details to the government.
The rule sets a daily fine of one lakh rupees for continued failure to submit reports or for providing false information.
The total fine for reporting failures can go as high as one crore rupees.

Practical examples

1In July 2025, a stock clearing corporation fails to collect the required stamp duty from buyers during a busy trading week. Because they missed this duty under section 9A, they are hit with a massive fine of 2 lakh rupees under section 62A.

2A depository collects stamp duty but forgets to send it to the state treasury for a month. Under the Indian Stamp rules, they are fined 1 lakh rupees per day for every day they are late beyond the legal deadline.

FAQ

1. What is the minimum fine for failing to transfer stamp duty under Section 62A of the Indian Stamp Act, 1899?

Section 62A of the Indian Stamp Act, 1899 sets a minimum fine of one lakh rupees for failing to transfer collected duty to the State Government.

2. What is the penalty for submitting false transaction details under Section 62A of the Stamp Act?

Under Section 62A of the Stamp Act, providing false information can result in a fine of one lakh rupees per day, up to a total of one crore rupees.

3. How does Section 62A of the 1899 Stamp Act penalize the failure to collect duty?

Under Section 62A of the 1899 Stamp Act, failing to collect duty as required by section 9A leads to a fine that can be as high as one percent of the collection defaulted.

Test yourself

Q1.Under Section 62A of the Indian Stamp Act, 1899, what is the maximum fine for failing to submit transaction details to the government?

Q2.If a person fails to transfer collected duty within 15 days of the deadline, what is the minimum fine under Section 62A of the Indian Stamp Act, 1899?

Q3.Which other section of the Act must a person be complying with to avoid penalties under Section 62A of the Indian Stamp Act, 1899?

Q4.Under Section 62A of the Indian Stamp Act, 1899, what is the maximum fine for failing to collect duty, expressed as a percentage?

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