Stamp Act, 1899 — section 23

23. Instruments reserving interest..—Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein. 4 [23A. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements.—(1) Where an instrument (not being a promissory note or bill of exchange.)

(a)is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or 1 The word “cheque” rep. by the Indian Finance Act, 1927 (Act No. V of 1927), s.5. 2 Subs. by the Central Laws (Statute Reform) Ordinance, 1960 (Ordinance No. XXI of 1960), s. 3 and 2nd Sch. (with effect from the 14th October, 1955), for “the Provinces and the Capital of the Federation” which had been subs. by A.O., 1949, Arts. 3(2) and 4, for “British India”. 3 Sub. Section 2 Omitted by the Federal Laws (Revision and Declaration) Ordinance, 1981 (Ordinance No. XXVII of 1981) s. 5 and Sch. IV (Only to the extent of Islamabad Capital Territory). 4 Ins. by the Indian Stamp (Amendment) Act, 1904 (Act No. XV of 1904), s. 3.

(b)makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security, it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under l [Article No.5 (c)] of Schedule I.

(2)A release or discharge of any such instrument shall only be chargeable with the like duty.]