When and why a revenue stamp should be used while making a payment? Is it when payment exceeds Rs 5000/- or any other case? I saw that that stamp is being used in the money receipt while making a payment, but don't know why it is used and when it is used.
29 June 2012
As per the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act:“Receipt” include any note, memorandum or writing-
a)whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or d) which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.
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