Non-judicial stamp duty to be paid only through A-challan from July

From 1 July next year, all non-judicial stamp duty must be paid through A-challan. However, to ease the transition to the new system, stamp duty can still be paid through the conventional method alongside A-challan until 30 June 2027.

The National Board of Revenue (NBR) announced this in a press statement on Tuesday (10 November). The statement said the Internal Resources Division of the Ministry of Finance recently issued a gazette notification on the matter.

Under the notification, the A-challan system for paying stamp duty was introduced using the powers given in section 11A of the Stamp Act, 1899, and section 2(1) of the Stamp Duties Act, 1974. People have been asked to use the government A-challan website, www.achallan.gov.bd.

According to the notification, cartridge paper must be used to prepare a registrable deed after paying stamp duty through A-challan.

When presenting the deed to the sub-registrar for registration, a printed copy of the A-challan receipt must be attached as proof of payment of the duty. The A-challan number for the stamp duty payment must also be mentioned on the first page of the deed.

For stamp duty applicable to an insurance policy, if it is paid through A-challan, a printed copy of the receipt must be attached to the policy. The receipt must mention the identification number of the insurance policy concerned, and the A-challan number for the stamp duty payment must be written on the first page of the policy.

The notification also sets conditions for bulk payment of stamp duty on behalf of several people or organisations at once. In such cases, the name and identification number of each person on whose behalf the duty is paid must be mentioned.

Where applicable, the TIN, national identity card number, BIN or trade licence number must be given.

The NBR believes the introduction of the A-challan system for paying non-judicial stamp duty will reduce the costs of printing, storing and distributing stamps.

The NBR also believes the government can save on the commission paid for selling and distributing stamps.