NCT of Delhi Clarifies 0.1% Stamp Duty Rate for Share Certificates and DEMAT Shares:

NCT of Delhi Clarifies 0.1% Stamp Duty Rate for Share Certificates and DEMAT Shares The Office of the Divisional Commissioner, Revenue Department (Stamp and Registration Branch), Government of NCT of Delhi, has recently issued an official communication (No.F.10(166)/COS(HQ)/Stamp Br./2025/181), dated September 29, 2025, addressed to the General Manager of NSDL (National Securities Depository Limited), Mumbai and the General Manager of CDSL (Central Depository Services (India) Limited), Mumbai. The communication is regarding the rate of stamp duty that must be charged on certificates or documents showing ownership of shares (like share certificates or demat shares) in companies incorporated or registered in Delhi.

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This rate is decided as per Article 19 of Schedule I-A of the Indian Stamp Act, 1899, which applies specifically to the National Capital Territory (NCT) of Delhi. The Office of Divisional Commissioner had earlier issued a circular (No. F.10(166)/COS(HQ)/Stamp.Br./2025/93), dated July 29, 2025. This circular clarified that the applicable stamp duty rate should apply in Delhi on such share-related documents in terms of Article 19 of Schedule I-A of the Indian Stamp Act, 1899. Copies of that circular were already sent to both NSDL and CDSL by email on July 29, 2025. During the recent meeting held with CSDL officers, the Delhi government noticed that the NSDL and CDSL are currently applying a stamp duty rate of 0.005% on the issuance of shares in terms of Schedule I of the Central Indian Stamp Act, 1899 (the Central law). But the CDSL failed to display any official letter or order that gives them the authority to collect stamp duty at 0.005% on behalf of the Government of NCT of Delhi.

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According to the circular discussed above, the correct stamp duty rate for companies registered or incorporated in Delhi is 0.1% of the value of such shares, as stated in Article 19 of Schedule I-A of the Indian Stamp Act, 1899. This rate does not depend on the fact that such share certificates are issued in physical or DEMAT/digital form. This communication is also a reminder to NSDL and CDSL that paying stamp duty on the issue of shares is a legal requirement under the State Stamp Acts. If this duty is not paid or delayed, it can lead to severe consequences such as penalties, interest, and others under the Stamp Act, 1899. If a delay is made in collecting and remitting this duty, it causes financial loss to the Delhi government, as stamp duty is a significant part of the government's revenue. Refer to the official circular for complete information. Download Official Circular