Banking · Indian Stamp Act

Which of the following statements correctly explains the stamp duty rules for various documents in India? Statement 1: Stamp duty on documents like Promissory Notes, Bills of Exchange, Share Transfers, Receipts, Letters of Credit, and Policies of Insurance is uniform across all states in India. Statement 2: Stamp duty on documents such as hypothecation agreements, pledge agreements, power of attorney, lease, and mortgage differs from state to state. Statement 3: In case a document is understamped, it may be accepted as evidence only after the payment of the original stamp duty without penalty. Statement 4: Promissory Notes, Bills of Exchange, and other similar documents can be revalidated after payment of stamp duty and penalty if they are found to be understamped, as per Section 35 of the Indian Stamp Act.