Indian Stamp Act MCQ Quiz - Objective Question with Answer for Indian Stamp Act - Download Free PDF

The correct answer is Option 2

Key Points The sanction requirement under Section 70 of the Indian Stamp Act is intended to ensure that prosecutions are conducted under proper administrative control. This safeguard helps prevent arbitrary or unjust legal actions by requiring oversight from designated officials.

The correct answer is Option 2

Key PointsSection 70 requires that no prosecution for an offence under the Act can be initiated without the sanction of the Collector or another officer authorized by the State Government. This safeguard ensures that prosecutions are conducted with proper administrative oversight, and it also allows for the possibility to stay or compound offences by the Chief Controlling Revenue-authority.

The correct answer is Option 2

Key Points Section 75 of the Indian Stamp Act empowers the State Government to make rules for carrying out the purposes of the Act and to prescribe fines for breaches, provided that such fines do not exceed five hundred rupees.

The correct answer is Option 3

Key Points Section 41 of the Indian Stamp Act provides that if a person, within one year of the instrument's execution, brings it to the Collector’s notice along with an offer to pay the appropriate duty, and the Collector is satisfied that the failure to duly stamp was due to accident, mistake, or urgent necessity, then instead of proceeding under Sections 33 and 40, the Collector may simply accept the required payment and process the instrument accordingly. This option ensures a remedy for inadvertent omissions while maintaining compliance with the Act.

The correct answer is Option 3

Key Points Section 10 of the Indian Stamp Act mandates that, except as expressly provided, all duties on instruments must be paid by affixing stamps. This can be done either according to the provisions laid out in the Act or, when no specific provision exists, as directed by the State Government. Additionally, the rules under this section regulate aspects like the description and number of stamps, as well as the paper size for bills of exchange or promissory notes.

The correct answer is Option 2

Key PointsAs per Section 5, if a single instrument covers several distinct matters, the duty is calculated as if there were separate instruments for each matter.
This means the total duty is the aggregate sum of the duties chargeable on each matter separately.

The correct answer is Option 3

Key Points Section 10 of the Indian Stamp Act mandates that, except as expressly provided, all duties on instruments must be paid by affixing stamps. This can be done either according to the provisions laid out in the Act or, when no specific provision exists, as directed by the State Government. Additionally, the rules under this section regulate aspects like the description and number of stamps, as well as the paper size for bills of exchange or promissory notes.

The correct answer is Option 2

Key PointsSection 48. Recovery of duties and penalties.

All duties, penalties and other sums required to be paid under this Chapter may be recovered by the Collector by distress and sale of the movable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land-revenue.

The correct answer is Option 2

Key Points The sanction requirement under Section 70 of the Indian Stamp Act is intended to ensure that prosecutions are conducted under proper administrative control. This safeguard helps prevent arbitrary or unjust legal actions by requiring oversight from designated officials.

The correct answer is Option 2

Key PointsSection 70 requires that no prosecution for an offence under the Act can be initiated without the sanction of the Collector or another officer authorized by the State Government. This safeguard ensures that prosecutions are conducted with proper administrative oversight, and it also allows for the possibility to stay or compound offences by the Chief Controlling Revenue-authority.

The correct answer is Option 2

Key Points Section 75 of the Indian Stamp Act empowers the State Government to make rules for carrying out the purposes of the Act and to prescribe fines for breaches, provided that such fines do not exceed five hundred rupees.

The correct answer is Option 3

Key Points Section 41 of the Indian Stamp Act provides that if a person, within one year of the instrument's execution, brings it to the Collector’s notice along with an offer to pay the appropriate duty, and the Collector is satisfied that the failure to duly stamp was due to accident, mistake, or urgent necessity, then instead of proceeding under Sections 33 and 40, the Collector may simply accept the required payment and process the instrument accordingly. This option ensures a remedy for inadvertent omissions while maintaining compliance with the Act.

The correct answer is Option 2

Key Points

• Section 9 of the Indian Stamp Act empowers the Government to reduce, remit, or compound stamp duties either prospectively or retrospectively.
• This authority extends to a wide range of instruments and classes thereof, such as bills of exchange, cheques, promissory notes, and more.
• Additionally, it allows for the composition or consolidation of duties in certain cases, including those involving policies of insurance, issues by incorporated companies, or transfers of debentures, bonds, and other marketable securities.
• The Act also specifies that for stamp duties on instruments like bills of exchange and related items, the Central Government is responsible, while for other matters the State Government has the power.
• This comprehensive power under Section 9 is a significant feature of the Indian Stamp Act.

The correct answer is Option 1

Key Points Section 11 of the Indian Stamp Act allows adhesive stamps to be used on certain instruments, including:

• Instruments with duty not exceeding ten naye paise.
• Bills of exchange and promissory notes drawn outside India.
• Entry as an advocate, vakil, or attorney in a High Court.
• Notarial acts.
• Transfers of shares by endorsement.

The correct answer is Option 3

Key Points As per Section 10(1) of the Indian Stamp Act, stamp duty must be paid using stamps, unless stated otherwise in the Act.
Section 10(2) allows rules to regulate:
The type of stamps used.
The number of stamps required for certain instruments.
The size of paper for bills of exchange or promissory notes.
The State Government can issue rules if the Act does not provide specific guidelines.