Non-judicial stamp duty only via A-challan from July 1, dual system for a year

From July 1 next year, payment of all kinds of non-judicial stamp duty through the government's A-challan system has been made mandatory. However, to make the transition to the new digital system easier for service recipients and others concerned, the dual facility of the A-challan system alongside the conventional practice will remain in force until June 30, 2027.

The details of the special notification recently issued by the Internal Resources Division of the Ministry of Finance were presented in a press release of the National Board of Revenue (NBR) on Tuesday (November 10).

The notification says the decision to introduce the universal A-challan system for collecting non-judicial stamp duty was taken under the powers of Section 11A of the Stamp Act, 1899, and Section 2(1) of the Stamp Duties Act, 1974.

Service recipients have been urged to use the government's designated A-challan website, www.achallan.gov.bd, for this purpose.

According to the directive, after paying the duty through A-challan, ordinary cartridge paper must be used to prepare any registrable deed. Later, at the time of formally presenting the deed for registration at the sub-registrar's office, a printed copy of the A-challan receipt must be attached as proof of duty payment, and the challan number must be clearly mentioned on the first page of the deed.

Similarly, a rule has been made for stamp duty applicable on insurance policies to be deposited through A-challan, with the printed receipt attached to the original policy documents. In the case of insurance, the receipt must carry the specific identification number of the policy concerned, and the challan reference number must be written on the first page of the insurance deed.

Specific instructions have also been given for cases where stamp duty is paid jointly on behalf of several persons or organisations at the institutional level at once. In such cases, the name of each person in whose favour the money is deposited must be mentioned, along with the Tax Identification Number (TIN), National Identity Card number, Business Identification Number (BIN) or updated trade licence number, as applicable.

The National Board of Revenue expects that once the automated A-challan system is fully effective in non-judicial stamp management, the government's long-term expenditure on printing, storing and distributing paper stamps across the country will fall substantially.

In addition, the huge sales commission that had to be paid for selling and distributing stamps at the local level will decline, ensuring large savings for the state exchequer.

For service recipients, the biggest change under the new system is that after the deadline, the A-challan receipt — rather than a paper stamp — will be the proof of duty payment. Keeping the receipt safe and mentioning the challan number correctly will therefore become essential for deed registration or insurance policies.