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The The Indian Stamp Act, 1899 was in place in the Indian sub-continent which was later amended by the Government through the Finance Act, 2019 where the levying of stamp duty and the curb on tax evasion was rationalized. The state of Maharashtra accounts to 70 percent of total stamp collection which has been set as a benchmark for the new provisions under the Act. Also, it has been amended that the stamp duty will have to be paid by either the buyer or the seller of financial security against the earlier practice of levying the duty on both.
On late Monday evening, the Ministry of Finance said a Gazette notification was issued regarding the amendments done in the Indian Stamp Act(ISA), where the date of applicability of stamp duty was extended from 1st April, 2020 to 1st July, 2020. The amendments were issued by the Department of Revenue to have an effective mechanism of collection of stamp duty on Security Market Instruments transactions through stock exchanges or Clearing Corporation authorized by stock exchange depositories. This change was earlier notified on 1st January, 2020 which was to be implemented in 1st April but was later postponed.
The one section of media covering this news had misrepresented and misquoted the provisions of this new Act, which led to a confusion and created 'fake news' of extending the fiscal year to 1st July, 2020, making it 15 months of a year, stating it would help in the fiscal year's annual report of 2019-2020, considering the outbreak of the Covid-19 outbreak.
Finance minister Nirmala Sitharaman released a press note stating that "there is no extension of fiscal year" and that the media covering the new Act had misquoted certain provisions of the same. Adding to what she said that the fiscal year for the year 2019-2020 will end on 31st March, 2020 and the new fiscal year for 2019-2020 will start on the 1st April.
Concluding this, it was added that the industry demanding for an extension to have a better economy or fiscal year, in view of this pandemic outbreak, no granting of the same is provided and will not be provided.
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