Page 32 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

Under the Indian Stamp Act, 1899, a policy of insurance shall

be chargeable with stamp duty under Article 47. Division D of

Schedule I of the Act.

The instruments which are chargeable with duty when

executed in India and the amount of duty are indicated in

Schedule 1 of the Act.

The stamp duty payable on insurance contracts is twenty paise

for every sum insured of Rs.1000 or part thereof in excess of

Rs. 1000.

All instruments chargeable with duty and executed in India

shall be stamped before or at the time of execution.

In case of ambiguity on whether stamp duty is to be paid and

if yes , then in case of ambiguity on amount to he paid, the

matter may be referred to the Collector.