Calculate the stamp duty payable on the issue or transfer of debentures under the Indian Stamp Act, 1899 as amended with effect from 1 July 2020. These rates are uniform across India — there is no state-wise variation for debentures.
Debenture details
For an issue, use the total value of debentures issued; for a transfer, use the consideration paid.
Stamp duty payable
0.005% on issue, rounded up
Stamp duty at 0.005% on the issue of debentures, rounded up to the next rupee. Uniform across all States.
How debenture stamp duty is calculated
Since 1 July 2020, stamp duty on debentures is governed by the uniform rates in Schedule I of the Indian Stamp Act, 1899 (inserted by the Finance Act, 2019). Unlike most other instruments, the rate is the same in every State and Union Territory — States can no longer set their own rates for debentures.
| Transaction | Stamp duty rate |
|---|---|
| Issue of debentures | 0.005% of the total value |
| Transfer / re-issue of debentures | 0.0001% of the consideration |
The duty on issue is computed on the total value of the debentures issued; the duty on a transfer is computed on the consideration. The result is rounded up to the next whole rupee.
What counts as a “debenture”
The amended definition is wide and covers listed and unlisted debentures, bonds, debenture stock, and other instruments such as certificates of deposit, commercial paper and securitised debt instruments. So these rates apply to a broad range of debt securities, not only traditional company debentures.
Who pays and how it is collected
- For debentures issued or transferred in dematerialised form, the stamp duty is collected through the stock exchange, clearing corporation or depository on one instrument and one side only, and remitted to the State of the buyer’s domicile.
- On issue, the duty is borne by the issuer; on a transfer, by the person delivering the security, subject to the collection mechanism.
- The duty must be paid before or at the time the instrument is executed.
Worked example
Issue of 10,000 debentures of ₹1,000 each:
Total value = 10,000 × ₹1,000 = ₹1,00,00,000
Stamp duty = 0.005% × ₹1,00,00,000 = ₹500
On a later transfer of the same debentures for ₹1,00,00,000, the duty would be 0.0001% = ₹10.
Frequently asked questions
What is the stamp duty on issue of debentures?
What is the stamp duty on transfer of debentures?
Is debenture stamp duty the same in every state?
Which instruments are treated as debentures?
Who pays the stamp duty on debentures?
Built & reviewed by a practising Chartered Accountant. Rates reflect the Indian Stamp Act, 1899 as amended with effect from 1 July 2020.
This calculator and the information here are for general educational purposes only and do not constitute professional, legal, or tax advice. Stamp duty law and procedure can change and may depend on the specific facts. Please verify the current position and consult a qualified professional before acting. See our disclaimer.
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