Government remits stamp duty on documents for fresh loans

SRINAGAR — In a relief for traders, the Jammu and Kashmir Government on Friday ordered the remitting of stamp duty on documents for fresh and additional loans of the borrowers whose accounts have been restructured due to the unprecedented situation in Kashmir Valley since August 5, 2019.

The Finance Department of J&K UT today issued a notification to remit stamp duty on fresh loans for borrowers whose accounts have been restructured.

“In exercise of the powers conferred by Clause (a) of Section 9 of the Stamps Act, Smvt. 1977 (XL of 1977), the Government hereby directs that there shall be remission of duty chargeable under the said Act in case of instruments/documents executed between the borrowers and the tending Financial Institutions on the fresh/additional loans advanced by such Institutions to the borrowers whose accounts have been restructured upon authorization by Reserve Bank of India (RBI) in terms of RBI’s Master Directions, Dated 17 October, 2018, (on relief measures by banks in areas affected by natural calamities) due to unprecedented situation in Kashmir Valley since 5th August, 2019,” reads the notification issued by Financial Commissioner, Finance, Arun Mehta.

As per the notification, the branch heads of the lending financial institutions shall certify that the loan accounts of the borrowers who are being extended the fresh and additional loans have been restructured in terms of RBI’s Master Directions of October 17, 2018 due to the unprecedented situation in Kashmir Valley.

“A copy of such certificate shall be forwarded to Commissioner, Stamps or the person authorized by Commissioner, Stamps for information,” reads the notification.

The notification has come into force with immediate effect and will be valid for up to one year from the date of issuance.