OFFICE OF THE DIVISIONAL COMMISSIONER, REVENUE DEPARTMENT

STAMP AND REGISTRATION BRANCH, ROOM NO 204 & 205, B BLOCK

5-SHAM NATH MARG, DELHI-110054

No. F10(166)/COS(HQ)/STAMP.BR/2025/93

Dated : 29/07/2025

 

CIRCULAR

Sub: Rate of stamp duty in terms of Article 19 of the Schedule I-A of Indian Stamp Act, 1899 as applicable to NCT of Delhi, on certificate or other document, evidencing the right or title to any shares, scrip or stock of any incorporated company.

It is hereby informed to all companies having their registered office situated in the National Capital Territory (NCT) of Delhi, in accordance with Article 19 of Schedule 1A of the Indian Stamp Act, 1899, stamp duty is required to be paid on the issuance of shares @ 0.1% of the value of shares as applicable to the NCT of Delhi. The pertinent legal provisions are detailed below:

Constitutional Provisions: Item 91 of the Union List grants the Central Government the authority to prescribe and levy stamp duty on in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts. On the other hand, Item 63 empowers the States to determine and prescribe stamp duty rates of stamp duty in respect of documents other than those specified in the provisions of List I with regard to rates of stamp duty. Consequently, the Indian Constitution confirms the jurisdiction of State Governments to impose and collect stamp duty on certificates or other documents that evidence the right or title to shares, scrip, or stock in any incorporated company.

Schedule IA and Schedule I: Under Schedule IA of the Indian Stamp Act, 1899, with certain amendments specific to the NCT of Delhi, and in accordance with Section 3 of the aforementioned Act, Article 19 prescribes a stamp duty rate of 0.1% of the value of shares. In light of the constitutional provisions discussed above, the stamp duty rate prescribed in Schedule I does not apply to certificates or other documents that evidence the right or title to shares, scrip, or stock in any incorporated company falling within the jurisdiction of NCT of Delhi.

Accordingly, all listed/unlisted Companies having their registered office situated in the National Capital Territory (NCT) of Delhi are directed to apply for adjudication of stamp duty for issuance of shares as per article-19 of Schedule 1A of the Indian Stamp Act, 1899 irrespective of whether such certificates or documents are executed in physical or DEMAT/digital form along with supporting documents with the stipulated time as per the provisions of the Indian Stamp Act, 1899, failure to comply may attract penalties under the relevant provisions. This circular is issued for strict compliance by all concerned entities.

This issues with the prior approval of Competent Authority.

(RAKESH KUMAR)

Additional District Magistrate/Collector of Stamps (HQ)

Stamp duty on share certificates required in NCT of Delhi; companies must seek adjudication and comply. The circular directs that stamp duty under Article 19 of Schedule I-A of the Indian Stamp Act, 1899 is payable on certificates or other documents evidencing title to shares for companies registered in the NCT of Delhi at a rate of 0.1% of the value of shares. All listed and unlisted companies with registered offices in the NCT of Delhi must apply for adjudication of stamp duty for issuance of shares, including physical and DEMAT/digital forms, submit supporting documents within prescribed timeframes, and note that noncompliance may attract penalties.