The State Government of Karnataka vide its notification dated 4th March 2022 has published the Karnataka Stamp (Amendment) Act, 2022 to further amend the Karnataka Stamp Act, 1957.
As per the amendment, the definition for the term stamp has been substituted as follows:
“Stamp” means impressed stamp or digital e-stamp which is generated electronically and “Stamp paper” means a paper bearing the impressed stamp.”
Further through the amendment under section 9 which deals with Power to reduce, remit or compound duties, the following proviso has been inserted:
The State Government may, by rule or order published in the Official Gazette,— (a) reduce upto fifty percent in the whole or any part of the [State of Karnataka], if in the opinion of the State Government it is necessary in public interest so to do, the duties with which any particular class of instruments, or any of the instruments belonging to such class, or instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable; and
“Provided that the State Government may, in public interest, by notification, remit, during the policy period of five years from the date of 04-11-2019 or till a new policy is announced, stamp duty payable on the instruments to be specified therein, executed by or in favour of the eligible enterprises, in connection with the Karnataka New Textile and Garment Policy, 2019-24, or specified by the State Government from time to time subject to production of certificate to that effect from the Prescribed Authority.