Government broadens pertinence of stamp duty by 3 months from 1st April 2020 to 1st July 2020
The administration has not broadened the current 2019-20 financial year and it will end as planned on March 31, the finance minister said on 30th March 2020.
Press Trust of India incorrectly revealed that the new financial year will begin from July 1. The news alert and the related story have been pulled back.
“There is no spreading out of the budgetary year,” the finance minister said.
Authorities said a gazette notice issued late on Monday evening related to the date of applicability of stamp duty which has been changed from April 1 to July 1.
The industry has been requesting amplification of the financial year by a quarter of a year taking into account the economic effect brought about by episode of Covid1-19.
The finance minister in an announcement said corrections have been made to the Indian Stamp Act (ISA) by conceding the compelling date of relevance from April 1 to July 1, 2020.
To excuse and blend the arrangement of exacting stamp duty and tax control with exhausting avoidance, the legislature had through the Finance Act, 2019, corrected the Indian Stamp Act, 1899. Certain progressions were to be powerful from April 1, 2020.
Through a notification, the revenue division said these altered arrangements will become effective from July 1, 2020.
As a component of the revisions, it was concluded that the stamp duty rates demanded by Maharashtra will be taken as a benchmark as it represents 70 percent of the all-out assortment.
It was revised to express that the stamp duty should be paid by either the purchaser or the dealer of a money related security, as against the present act of collecting the duty on both.
“It relates to setting up a fabrication system for an assortment of stamp duty on security market instruments transactions through stock trades or clearing organization approved by stock trade and depositories. This alteration was before informed to be actualized from April 1, 2020. In any case, because of the overall circumstance, it has been concluded that the date of execution will currently be delayed to July 1, 2020.”