No change in fiscal year; applicability of stamp duty extended by 3 months

The finance ministry said the notification pertains to putting in place an efficient mechanism for collection of stamp duty on security market instruments transactions through stock exchanges or clearing corporations authorised by stock exchanges and depositories.

The government has not extended the current 2019-20 fiscal year and it will end as scheduled on March 31, the finance ministry said on Monday.

"There is no extension of the financial year," the finance ministry said.

Officials said a gazette notification issued late on Monday evening pertained to date of applicability of stamp duty

Industry has been demanding extension of fiscal year by three months in view of the economic impact caused by outbreak of Covid1-19.

The Revenue Department on Monday said the provisions of the amended Indian Stamp Act, which was to come into force from April 1, will now be effective from July 1.

To rationalise and harmonise the system of levying stamp duty and help curb tax evasion, the government had through Finance Act 2019 amended the Indian Stamp Act, 1899.

Certain changes were to be effective from April 1, 2020.

Through a notification the Revenue Department said these amended provisions will come into effect from July 1, 2020.

As part of the amendments, it was decided that the stamp duty rates levied by Maharashtra will be taken as a benchmark as it accounts for 70 per cent of the total collection.

It was amended to state that the stamp duty will have to be paid by either the buyer or the seller of a financial security, as against the current practice of levying the duty on both.

Later, in a statement, the finance ministry said the notification pertains to putting in place an efficient mechanism for collection of stamp duty on security market instruments transactions through stock exchanges or clearing corporations authorised by stock exchanges and depositories.

"This change was earlier notified to be implemented from April 1, 2020.

“However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to July 1, 2020," the ministry said.

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