The Government of Madhya Pradesh on December 17, 2025, enacted the Indian Stamp (Madhya Pradesh Second Amendment) Act, 2025, which received the assent of the President on December 10, 2025 and was published in the Madhya Pradesh Gazette (Extra-ordinary) on December 17, 2025, thereby bringing the Act into force from the date of publication.
The Act amends the Indian Stamp Act, 1899, in its application to the State of Madhya Pradesh, with a view to rationalising procedures relating to inadmissibility, impounding, and regularisation of insufficiently stamped instruments. Key amendments have been carried out to Sections 35, 40 and 41 of the principal Act, governing the admission of instruments in evidence and the powers of authorities to deal with deficient stamp duty.
Notably, Section 35 has been amended to provide that an insufficiently stamped instrument may be admitted in evidence, registered, or authenticated upon payment of the deficient stamp duty along with a penalty calculated at one percent of the deficient portion per month or part thereof from the date of execution, subject to the prescribed statutory limits. These amendments aim to introduce a more structured and proportionate penalty regime, enhance compliance, and streamline stamp duty administration within the State.
[Act No. 26 of 2025]
