Cheques are referred to in Section 2(7) of the Indian Stamp Act, 1899 …

Question

Cheques are referred to in Section 2(7) of the Indian Stamp Act, 1899 as "a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand". According to Lesson 14, are cheques subject to stamp duty in India?

Accepted Answer

D. {'text': 'No — Entry 21 in the Schedule levying duty on cheque was deleted by Act 5 of 1927, so cheques are no longer subject to stamp duty', 'label': 'D'}

1. Lesson 14, in the entry on "Cheque", states the rule expressly.
2. "In India, cheques are no longer subject to stamp duty. **Entry 21 in the Schedule levying duty on cheque was deleted by Act 5 of 1927**."
3. The definition under Section 2(7) is retained because other provisions of the Stamp Act and related statutes refer to it.
4. The other options invent thresholds and amounts not in the Act.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'Yes — every cheque drawn in India for any amount above one crore rupees is subject to stamp duty under any provision of any law in force in any State of India regardless of any other consideration', 'label': 'A'}

Answer

{'text': 'Yes — every cheque drawn in India is subject to stamp duty under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'B'}

Answer

{'text': 'Yes — every cheque drawn in India for any amount above one lakh rupees is subject to stamp duty under any provision of any law in force in any State of India regardless of any other consideration', 'label': 'C'}