Stamp Duty in the Transfer of share:
If the Transfer of shares is lodged with the company, it should be duly signed and the transfer of shares attracts stamp duty under the Indian Stamp Act, 1899. The stamp duty can be levied only by the Central Government on share Transfer.
According to section 56(1), of a company Act, a company cannot Register the transfer of securities until a proper instrument of transfer is duly stamped, dated and executed on behalf of the transferor and the transferee must be delivered to the company along with the certificate related to the securities in question.
The Transferor (seller) of the shares must pay the duty stamp at the rate of Twenty-five paise for consideration of Rs.100 or part thereof is payable.
As per Section 8A od the Indian Stamp Act, 1899, the Electronic share transfer form is provided, and a person can pay stamp duty on the total amount of issuing the securities.