Multiple Choice Questions on the Indian Stamp Act, 1899

Multiple Choice Questions on the Indian Stamp Act, 1899: Chapter-I and Chapter-II

Chapter-I: Preliminary

  1. What is the primary objective of the Indian Stamp Act, 1899?
    A. To regulate the execution of legal instruments
    B. To enforce property laws
    C. To collect revenue through stamp duties
    D. To control land transactions
    Answer: C

  2. In the Indian Stamp Act, 1899, an 'instrument' is defined as a document that:
    A. Transfers property from one person to another
    B. Records a legal or financial obligation
    C. Is used for taxation purposes only
    D. Has no legal implications
    Answer: B

  3. Which of the following is not included in the definition of 'instrument' under the Act?
    A. Deed of mortgage
    B. A promissory note
    C. A will
    D. A lease deed
    Answer: C

  4. The term 'Stamp' under the Indian Stamp Act, 1899, includes:
    A. Impressed stamps only
    B. Adhesive stamps only
    C. Both impressed and adhesive stamps
    D. None of the above
    Answer: C

  5. The Indian Stamp Act, 1899, extends to:
    A. The whole of India
    B. All states except Jammu & Kashmir
    C. All states except Union Territories
    D. Only Central Government territories
    Answer: A

Chapter-II: Stamp Duties

  1. Under Section 3, stamp duty is levied on:
    A. Transactions only
    B. Instruments only
    C. Both transactions and instruments
    D. None of the above
    Answer: B

  2. What happens if an instrument is executed outside India but is brought to India for use?
    A. No duty is payable
    B. Duty must be paid immediately
    C. Duty must be paid within three months
    D. Duty must be paid within one month
    Answer: C

  3. If a single instrument relates to multiple distinct matters, the duty is payable:
    A. On the total value of the instrument
    B. Separately for each distinct matter
    C. Only for the highest-value matter
    D. Duty is not payable for multiple matters
    Answer: B

  4. Which instrument is chargeable with full duty when several instruments are executed for a single transaction?
    A. All instruments equally
    B. The principal instrument
    C. The first executed instrument
    D. None of the instruments
    Answer: B

  5. What happens when an instrument falls under multiple descriptions in Schedule I?
    A. The lower duty is applicable
    B. No duty is payable
    C. The higher duty is applicable
    D. The average of the duties is payable
    Answer: C

  6. The Central or State Government has the power to remit or reduce stamp duties under:
    A. Section 4
    B. Section 9
    C. Section 5
    D. Section 10
    Answer: B

  7. What type of stamp is used under the Indian Stamp Act?
    A. Impressed stamps
    B. Adhesive stamps
    C. E-stamps
    D. All of the above
    Answer: D

  8. Instruments executed by the Central or State Government are:
    A. Fully chargeable with stamp duty
    B. Exempt from stamp duty
    C. Partially chargeable with stamp duty
    D. Subject to state-specific rules
    Answer: B

  9. Which section of the Act deals with the mode of payment of stamp duty?
    A. Section 3
    B. Section 10
    C. Section 7
    D. Section 5
    Answer: B

  10. Policies of insurance are covered under which section of Chapter-II?
    A. Section 4
    B. Section 6
    C. Section 7
    D. Section 8
    Answer: C

  11. What is the primary purpose of stamp duty?
    A. To generate government revenue
    B. To validate transactions only
    C. To prevent fraudulent practices
    D. Both A and C
    Answer: D

  12. Which of the following is true for unstamped instruments?
    A. They are valid in court.
    B. They are inadmissible until duty and penalty are paid.
    C. They are automatically void.
    D. They do not attract penalties.
    Answer: B

These MCQs provide a comprehensive overview of Chapter-I and Chapter-II of the Indian Stamp Act, 1899, covering key definitions, provisions, and principles.


Multiple Choice Questions on Chapter-VI: Reference and Revision (Indian Stamp Act, 1899)

  1. What is the primary role of the Chief Controlling Revenue Authority (CCRA) under Chapter-VI?
    A. To enforce payment of stamp duty
    B. To hear disputes and provide binding decisions on stamp duty matters
    C. To levy penalties for non-payment of stamp duty
    D. To directly refer all disputes to the High Court
    Answer: B
  1. Under Section 56, who can request the Collector to refer a case to the Chief Controlling Revenue Authority?
    A. The aggrieved party only
    B. The government only
    C. Either the Collector or the aggrieved party
    D. Only the judiciary
    Answer: C
  1. Which of the following is true about the decision of the Chief Controlling Revenue Authority under Section 56?
    A. It is advisory and not binding.
    B. It can be overruled by the Collector.
    C. It is binding unless revised by the High Court.
    D. It cannot be challenged in any court.
    Answer: C
  1. Section 57 empowers the Chief Controlling Revenue Authority to refer cases to:
    A. The Supreme Court
    B. The High Court
    C. The State Revenue Department
    D. The Collector
    Answer: B
  1. What type of questions can the Chief Controlling Revenue Authority refer to the High Court under Section 57?
    A. Factual questions only
    B. Questions related to penalties only
    C. Substantial questions of law
    D. Questions about tax exemptions
    Answer: C
  1. What is the High Court required to consider when a case is referred to it under Section 57?
    A. Only the financial implications of stamp duty
    B. The legality and interpretation of the law
    C. The administrative decisions of the Collector
    D. The constitutional validity of the Indian Stamp Act
    Answer: B
  1. Under Section 58, the Collector can revise their decisions:
    A. At any time without restrictions
    B. Only if new evidence is presented or an error is found
    C. Only with prior approval from the High Court
    D. After consulting the aggrieved party
    Answer: B
  1. Before revising a decision under Section 58, the Collector must:
    A. Refer the matter to the Chief Controlling Revenue Authority
    B. Obtain approval from the State Government
    C. Provide an opportunity to the affected parties to present their case
    D. Issue a public notice in the Official Gazette
    Answer: C
  1. Which section empowers the High Court to call for additional evidence in cases referred under Chapter-VI?
    A. Section 56
    B. Section 57
    C. Section 58
    D. Section 59
    Answer: D
  1. What happens after the High Court makes a decision on a referred case?
    A. The case is sent back to the Chief Controlling Revenue Authority for further consideration.
    B. The decision is binding on all parties, including the Collector and the CCRA.
    C. The matter is referred to the Supreme Court for final adjudication.
    D. The Collector has the discretion to ignore the decision.
    Answer: B
  1. Which authority is responsible for drafting the statement of the case when referring it to the High Court under Section 57?
    A. The Collector
    B. The Chief Controlling Revenue Authority
    C. The State Government
    D. The affected party
    Answer: B
  1. What is the purpose of the High Court seeking additional information under Section 59?
    A. To ensure compliance with administrative rules
    B. To clarify factual or legal ambiguities in the case
    C. To reassess the duty amount directly
    D. To penalize the affected parties
    Answer: B
  1. What is the time frame for referring cases from the Collector to the Chief Controlling Revenue Authority?
    A. No specific time frame is provided in the Act.
    B. Within 30 days of the decision by the Collector.
    C. Within 60 days of the execution of the instrument.
    D. Within 90 days of the payment of stamp duty.
    Answer: A
  1. If an aggrieved person is dissatisfied with the CCRA’s decision, they can:
    A. Directly approach the High Court under Section 57.
    B. Appeal to the Supreme Court.
    C. Request a revision by the Collector under Section 58.
    D. File a complaint with the State Revenue Authority.
    Answer: A
  1. What is the overarching purpose of Chapter-VI of the Indian Stamp Act?
    A. To prevent evasion of stamp duty.
    B. To provide a mechanism for resolving disputes regarding stamp duty.
    C. To enhance the administrative powers of the Collector.
    D. To revise and reduce the applicable stamp duties.
    Answer: B

These MCQs test understanding of the procedural and legal aspects of Chapter-VI, focusing on references, revisions, and the role of various authorities.

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