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Section 6: Instruments coming within several descriptions in Schedule I

Indian Stamp Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1899
Section 5 All 78 Sections Schedule I (Arts 1–65) Section 7

Legal Commentary & Landmark Judgments: Section 6

Section 6 of the Indian Stamp Act, 1899 provides the statutory rule of priority and highest rate assessment when an instrument is so framed as to come within two or more descriptions in Schedule I, ensuring the revenue collects the maximum chargeable rate while protecting duplicates and counterparts under its proviso.

  • Highest Rate Rule for Overlapping Classifications: Where an instrument is so framed as to come within two or more descriptions in Schedule I, and the duties chargeable thereunder are different, the instrument is chargeable only with the highest of such duties, preventing evasive drafting intended to pigeonhole transactions into lower duty entries.
  • Distinction from Section 5 (Distinct Matters): Establishes a critical boundary against Section 5: whereas Section 5 applies where an instrument comprises distinct, independent transactions/matters requiring cumulative aggregate duties, Section 6 governs a single unified transaction that simultaneously satisfies multiple statutory descriptions, imposing only the single highest applicable rate.
  • Statutory Protection for Counterparts and Duplicates: The proviso explicitly restricts duty on counterparts or duplicates to the prescribed ceiling (one rupee or state-amended nominal fee), provided the principal instrument has been duly stamped at the highest applicable rate and proof of such payment is demonstrated under Section 16.
Key Landmark Precedents:
  • Chief Controlling Revenue Authority v. Maharashtra Sugar Mills Ltd. AIR 1950 SC 218: The Supreme Court established that where an instrument contains covenants that fit both a mortgage deed and a deed of indemnity, Section 6 mandates that duty is chargeable on the single entry bearing the higher duty rate, rather than aggregating them under Section 5, because the covenants form part of a single transaction.
  • Member, Board of Revenue v. Arthur Paul Benthall AIR 1956 SC 35: The Constitution Bench held that while Section 5 deals with an instrument comprising distinct subjects or matters, Section 6 applies where a single instrument dealing with one matter falls under more than one description, mandating chargeability solely at the highest duty.
Courtroom Practice & Strategic Litigation Guidance:

When drafting hybrid commercial instruments (e.g., mortgage-cum-indemnity, development agreement-cum-general power of attorney), calculate stamp duty based on the entry attracting the highest tariff to prevent impounding under Section 33. In response to audit demand notices seeking aggregate duties under Section 5, plead Section 6 unity of transaction to cap liability at the single highest entry rate.

Section 5 All 78 Sections Schedule I (Arts 1–65) Section 7