Section 32 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 32 is the second half of the adjudication process. Once the Collector has determined the duty under section 31 and the duty has been made up, he certifies it by endorsement on the instrument. The certificate changes the status of the instrument, but it can be given only within the time limits in the proviso.
After section 31, the Collector certifies by endorsement that the full duty, stating the amount, has been paid; or, if the instrument is not chargeable, that it is not so chargeable. An endorsed instrument is deemed to be duly stamped or not chargeable with duty, and if chargeable it is receivable in evidence or otherwise and may be acted upon and registered as if originally duly stamped. He may not endorse an instrument executed in India and brought after one month from execution, or one executed out of India and brought after three months from first receipt in India, or certain small-duty instruments, bills and notes on paper not duly stamped.
Context
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 13 of 2021); later amendments should be checked. Stamp duty on most instruments is fixed by the law and schedule of the State where the instrument is executed, so the State of execution must be checked. This article explains the central Act only. The certificate states the duty the Collector has determined; it does not itself fix a rate. If a document may be short of time or of stamp, our legal due diligence service can check where it stands before any application is made.
Section 32 applies only to "an instrument brought to the Collector under section 31". The route is described in Section 31. The site's shorter guides are when to approach the Collector and how to get the Collector's opinion.
Sub-section (1): the certificate that full duty is paid
When an instrument brought under section 31 is, in the Collector's opinion, "one of a description chargeable with duty", and either of two conditions is met, he "shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid". The conditions are:
- (a) the Collector determines that the instrument is already fully stamped; or
- (b) the duty determined under section 31, "or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined", has been paid.
So there are two paths. If the stamp already on the instrument is enough, he certifies. If it is short, the shortfall is paid and then he certifies. The certificate must state the amount of the full duty.
Sub-section (2): the certificate of non-chargeability
When the instrument "is, in his opinion, not chargeable with duty", the Collector "shall certify in manner aforesaid that such instrument is not so chargeable". The endorsement is again made on the instrument. This is the outcome promised by the words "if any" in section 31(1).
Sub-section (3): the effect of the endorsement
"Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be." If it is chargeable with duty, it:
- shall be receivable in evidence or otherwise;
- may be acted upon; and
- may be registered,
"as if it had been originally duly stamped". These are the same consequences that section 35 denies to an instrument not duly stamped (admission in evidence, acting upon, registration and authentication). Section 32(3) is therefore the way to remove that bar before the instrument is used. For the registration side, see our article on the time limit for registering documents under section 23 of the Registration Act, 1908, and for the bar itself see Section 35.
Section 40(2) also makes a Collector's certificate that an impounded instrument is duly stamped or not chargeable conclusive evidence of the matters stated; see Section 40. Section 32 does not say in terms that the certificate is conclusive, so the text of sub-section (3) is what to rely on here.
The proviso: what the Collector may not endorse
"Provided that nothing in this section shall authorize the Collector to endorse" any of three kinds of instrument.
| Clause | Instrument the Collector may not endorse | Limit |
|---|---|---|
| (a) | An instrument executed or first executed in India | Brought to him after the expiration of one month from the date of its execution or first execution |
| (b) | An instrument executed or first executed out of India | Brought to him after the expiration of three months after it has first been received in India |
| (c) | An instrument chargeable with a duty not exceeding ten nayepaise, or any bill of exchange or promissory note | When brought to him, after the drawing or execution, on paper not duly stamped |
Some points on the wording.
- The clock runs from execution or first execution, not from the date of the application. A document that has been lying unstamped for six weeks has missed clause (a). The Collector's route under section 32 is then closed, and the document must be dealt with through the impounding and penalty provisions of Chapter IV. The foreign-executed limit connects with Section 18, which also gives three months from first receipt in India.
- "India" is printed in clauses (a) and (b); the footnote says it was substituted for "the States" by Act 43 of 1955, s. 2 (w.e.f. 1-4-1956). The copy defines "India" in section 2(13A) with a reference to the State of Jammu and Kashmir that does not match the footnote to section 1(2). That inconsistency is flagged in the article on definitions and is not reconciled here. Check the current law.
- Clause (c) names three things in one breath: instruments with a duty not exceeding ten nayepaise, bills of exchange and promissory notes, each when brought on paper not duly stamped. The amount of ten nayepaise is quoted as printed.
Worked example
Vikram Rao signs a deed in Pune on 3 March and discovers on 10 April that the stamp is short. He applies on 10 April. More than one month has passed since execution, so clause (a) of the proviso stops the Collector endorsing it under section 32. Had he applied on 20 March, the Collector could have determined the duty under section 31 and, once the shortfall was paid, certified it. If, instead, Vikram's deed was signed in London on 3 March and first received in India on 20 March, the three months run from 20 March and clause (b) applies. These dates are only an illustration of the counting.
What section 32 does not do
- It does not say what happens to an instrument that misses the limits. Chapter IV provides the other route: impounding by the officer before whom it is produced, and payment of the duty with a penalty. See Section 33.
- It does not mention any form of certificate or any fee. The fee under section 31(1) is separate.
- It does not remove the need to comply with the other law that applies to the instrument.
Need help with an under-stamped document?
Time matters under section 32, because the one-month and three-month limits run from execution or first receipt in India. Our team can check dates, stamps and the route available through our legal due diligence service.
Key takeaways
- The Collector certifies by endorsement that the full duty (stating the amount) has been paid, or that the instrument is not chargeable.
- An endorsed instrument is deemed duly stamped or not chargeable, and may be received in evidence, acted upon and registered.
- He may not endorse an instrument executed in India after one month from execution, or one executed out of India after three months from first receipt in India.
- Instruments of ten nayepaise or less, bills of exchange and promissory notes brought on paper not duly stamped are also excluded.
- The duty that is certified is the duty under the law and schedule that apply to the instrument.
Read next
- Section 31 of the Indian Stamp Act, 1899: adjudication of proper stamp duty by the Collector
- Section 33 of the Indian Stamp Act, 1899: examination and impounding
- Section 18 of the Indian Stamp Act, 1899: instruments executed outside India
- Instruments not duly stamped: inadmissible as evidence
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.