Indian Stamp Act MCQ Quiz in తెలుగు - Objective Question with Answer for Indian Stamp Act - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is Option 2 

Key Points Section 12(3) of the Indian Stamp Act specifies that cancellation can be done by writing across the stamp with the name or initials of the person or firm, along with the date.

Section 12. Cancellation of adhesive stamps — (1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and
(b) whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3)The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner. 

The correct answer is Option 2

Key Points Section 12(2) of the Indian Stamp Act states that any instrument with an adhesive stamp not properly cancelled will be treated as unstamped with respect to that stamp.

Section 12: Cancellation of Adhesive Stamps

• Obligation to Cancel Adhesive Stamps:

(a) Any person who affixes an adhesive stamp to an instrument chargeable with duty, after it has been executed, must cancel the stamp to ensure it cannot be reused.
(b) Any person executing an instrument on a paper bearing an adhesive stamp must cancel the stamp at the time of execution, unless it has already been cancelled in the required manner.

• Effect of Non-Cancellation:

Any instrument bearing an adhesive stamp that has not been properly cancelled, rendering the stamp unusable again, will be treated as unstamped with respect to that stamp.

• Methods of Cancellation:

The person responsible for cancelling the adhesive stamp under subsection (1) may do so by:

• Writing their name or initials, or the name or initials of their firm, across or on the stamp, along with the correct date, or

Any other effective method that ensures the stamp cannot be reused.

The correct answer is Option 3

Key PointsSection 11: Use of Adhesive Stamps
The following types of instruments may be stamped with adhesive stamps:
(a) Instruments chargeable with a duty not exceeding ten naye paise, except for parts of bills of exchange that are payable otherwise than on demand and drawn in sets;
(b) Bills of exchange and promissory notes that are drawn or made outside India;
(c) Entry as an advocate, vakil, or attorney on the roll of a High Court;
(d) Notarial acts;
(e) Transfers by endorsement of shares in any incorporated company or other body corporate.

The correct answer is Option 2

Key PointsSection 10. Duties how to be paid. — (1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps —
(a) according to the provisions herein contained; or
(b) when no such provision is applicable thereto-as the State Government] may be rule direct.
(2) The rules made under sub-section (1) may, among other matters, regulate, —
(a) in the case of each kind of instrument-the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps-the number of stamps which may
be used;
(c) in the case of bills of exchange or promissory notes the size of the paper on which they are written

The correct answer is Option 3

Key Points As per Section 10(1) of the Indian Stamp Act, duties on instruments are to be paid by means of stamps unless expressly provided otherwise in the Act.
Section 10: Duties - How to be Paid
General Rule for Payment of Duties:
Except as otherwise expressly provided in this Act, all duties chargeable on any instruments shall be paid and indicated on such instruments by means of stamps:
(a) according to the provisions contained in this Act; or
(b) if no specific provision is applicable, as directed by rules prescribed by the State Government.
Regulations under Rules:
The rules made under subsection (1) may regulate, among other matters:
(a) the description of stamps that may be used for each kind of instrument;
(b) the number of stamps permissible for instruments stamped with impressed stamps; and
(c) the size of the paper on which bills of exchange or promissory notes are to be written.

The correct answer is Section 67.

Key Points

• As per Section 67 of the Indian Stamp Act Drawing or executing a bill of exchange (payable other than on demand) or a marine insurance policy in a set of two or more, without simultaneously executing and stamping the entire set.
• The bill or policy should be part of a set, and the whole set must be executed and stamped properly at the same time.
• The person committing this offence can be fined up to ₹1,000.
• The rule ensures proper documentation and compliance with stamp duty requirements for all bills or policies in a set.

The correct answer is The High Court delivers a judgment containing the grounds of the decision

Key Points

• Under Section 59 of the Indian Stamp Act, when a case is heard by the High Court, the court is required to:
  • Decide the questions raised in the case and deliver a judgment that includes the grounds for the decision.
  • After delivering the judgment, the court must send a copy of the judgment to the Revenue-authority that referred the case, which is signed by the Registrar and sealed by the court.
  • Upon receiving the judgment, the Revenue-authority must dispose of the case in accordance with the court's decision.
• Thus, the court provides a detailed judgment and ensures that the case is handled as per the court’s instructions.

The correct answer is All of the above.

Key Points

• Under Section 65 of the Indian Stamp Act, the following actions can lead to a fine of up to ₹100:
  • Refusing or neglecting to give a receipt when required under Section 30 of the Act.
  • Giving a receipt for an amount less than the actual payment made, when the payment exceeds ₹20 (either in money or property), with the intent to evade stamp duty.
  • Separating or dividing the payment to reduce the amount on which duty should be paid.
• These actions are considered fraudulent practices to evade duty, and the law imposes a penalty to ensure compliance with the duty requirements.

The correct answer is Both (a) and (b)

Key Points

• Under Section 66 of the Indian Stamp Act, two specific actions are punishable:
• Failing to execute a duly stamped insurance policy within one month of receiving or taking credit for the premium.
• Executing a policy that is not duly stamped, or paying or allowing money on such a policy, or agreeing to pay money in respect of such a policy.
• Both actions are considered offences and can result in a fine of up to ₹200. The law ensures that insurance policies are properly documented and that the stamp duty is paid in compliance with the Act.

The correct answer is Fine up to ₹200.

Key Points

• Under Section 66 of the Indian Stamp Act, a person involved in the insurance contract has an obligation to make out and execute a duly stamped policy of insurance within one month after receiving or taking credit for the premium or consideration.
• If the person fails to do this within the specified time frame, they are punishable with a fine that can extend up to ₹200. The provision ensures that all insurance policies are properly stamped to comply with legal requirements and to secure the appropriate stamp duty.