Section 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 10 of the Indian Stamp Act, 1899 opens Part B of Chapter II, which deals with stamps and the mode of using them. It sets one rule for payment: duties are paid, and the payment is indicated on the instrument, by means of stamps. Where the Act has no provision on the point, the State Government may direct by rule. Sub-section (2) lists matters on which those rules may regulate.
Except where the Act expressly provides otherwise, all duties are paid, and the payment is indicated on the instrument, by means of stamps. Stamps are used (a) according to the provisions of the Act, or (b) where none applies, as the State Government directs by rule. The rules may regulate the description of stamps for each kind of instrument, the number of impressed stamps, and the size of paper for bills of exchange and promissory notes. The rules themselves are not in the text consulted.
How to read this article
This article is based on the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. It explains the central Act only. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State must be checked; section 10 in particular hands the detail of stamps to State rules, which are not in the text consulted. Before a document is signed, an agreement drafting review can confirm that the stamp description and the document match.
This article describes no portal, vendor or online step. The text consulted contains none, and the manner of obtaining stamps is a matter for the State concerned.
Section 10(1): the rule and the two routes
Sub-section (1) reads: "Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps".
Three things come out of that sentence.
- Stamps are the default method. Payment of duty is by means of stamps.
- Payment must be shown on the instrument. The stamp is both the payment and the evidence on the face of the document that duty has been paid. This is why later sections care about how a stamp is affixed, cancelled or written on, and why section 2(11) tests whether an instrument is "duly stamped".
- The Act itself may provide otherwise. The words "Except as otherwise expressly provided in this Act" point to places where the Act lets duty be paid in another way. For example, section 8(1) says bonds, debentures or other securities of a local authority "need not be stamped", and section 9A(2) says the securities instruments it covers "need not be stamped". Those are separate provisions covered in their own articles.
The two routes are set out in the clauses:
- (a) "according to the provisions herein contained"; or
- (b) "when no such provision is applicable thereto—as the State Government may be rule direct".
The copy prints "be rule direct" where "by rule direct" is evidently intended. This is flagged as a printing slip and the sense is "by rule". The footnote shows the words "State Government" were substituted by the A.O. 1950 for "collecting Government".
Section 10(2): what the rules may regulate
Sub-section (2) says the rules made under sub-section (1) "may, among other matters, regulate":
| Clause | Matter | What may be regulated |
|---|---|---|
| (a) | Each kind of instrument | The description of stamps which may be used |
| (b) | Instruments stamped with impressed stamps | The number of stamps which may be used |
| (c) | Bills of exchange or promissory notes | The size of the paper on which they are written |
The words "among other matters" make the list illustrative, not exhaustive. Clause (c) carries a footnote marker showing that words after "promissory notes" were omitted by Act 43 of 1955, section 5, with effect from 1 April 1956. The footnote prints the omitted words, but this article does not describe what they provided.
What section 10 does not say
The text of section 10 does not say what kind of stamps exist, how they are obtained, who may sell them, or what a particular instrument must carry. Those are left to the State rules in clause (b) and sub-section (2), and to other sections of the Act:
- Adhesive stamps and their cancellation are in sections 11 and 12, covered in the article on adhesive stamps and how to cancel them.
- Writing on stamped paper, one instrument to one stamp, and denoting duty are in sections 13 to 16, covered in the article on writing on stamp paper and denoting duty.
- Time of stamping is in sections 17 to 19.
- Sale of stamps and the State's power to make rules on it appear in later sections.
No State rule is reproduced here. A reader who needs the description of stamps for a particular instrument, or the number of impressed stamps allowed, must look at the rules of the State where the instrument is executed. For a general overview of the ways in which documents are stamped, see our note on modes of stamping, and confirm any detail against the rules of the State concerned.
A worked example
Anand Logistics Private Limited signs a transport contract in a State where, under that State's rules, instruments of that kind are stamped in a particular way. Under section 10(1)(a), if the Act itself provides how duty is paid on that instrument, that provision governs. If it does not, section 10(1)(b) sends the company to the State rules on the kind of stamp and the manner of use. The company then writes its contract so that the stamp appears on the face of the instrument and the payment is indicated, as section 10(1) requires, in line with sections 13 and 14. If, say, the contract is also meant to be recorded on a bill or note whose paper size is regulated by the rules under clause (c), the company checks that rule too. At each step the company ends up in the State's rules, which is why the State must be checked first.
Need help getting the stamp and the document to match?
An instrument can be well drafted and still fail for want of the right stamp in the right place. If you want the document and the stamping approach checked before signing, our agreement drafting service can review both against the Act and point you to the State rules that apply.
Key takeaways
- Duties are paid, and the payment is indicated on the instrument, by means of stamps.
- The Act can provide otherwise expressly, and some sections do.
- Where the Act has no provision, the State Government may direct by rule.
- The rules may regulate the description of stamps, the number of impressed stamps, and the size of paper for bills and notes.
- The copy prints "be rule direct"; the sense is "by rule".
- The rules are not in the text consulted.
Read next
- Section 11-12 of the Indian Stamp Act, 1899: adhesive stamps and how to cancel them
- Sections 13-16 of the Indian Stamp Act, 1899: writing on stamp paper, one instrument per stamp and denoting duty
- Section 17 of the Indian Stamp Act, 1899: instruments executed in India stamped before or at execution
- Franking of documents: process and validity
Disclaimer: Based on the consolidated text of the Indian Stamp Act, 1899 published by the Department of Revenue, whose latest amendment shown is Act 13 of 2021, as consulted on 2 October 2026. Only the central text is covered: stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, and State amendments, rules, notifications and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.