What is e-stamping? What are its benefits?

For registration of all deeds related to change of ownership in property documents, the person concerned must pay stamp duty to the state government through the sub-registrar office (SRO). In India, the payment of this duty is done through the purchase of stamp papers of the required value. While earlier one had to buy stamp papers of the required value in the physical form, e-stamping has been launched by various states in the country to offer virtual stamp paper, through a process known as e-stamping.

E-stamping: Meaning

E-stamping is the online method of paying non-judicial stamp duty to a state government. A computer-based application that serves as a secure electronic way of stamping documents, this facility has eliminated the need to buy physical stamp papers.  These charges are always applicable on deed registrations of all kinds — rent, lease, sale, gift, will, relinquishment, etc. Also called electronic stamping, the e-stamping facility in India is not available nation-wide yet. Only some states in the country have launched this facility.

Legal framework

E-stamping in India is governed by the Indian Stamp Act of 1899, which provides the legal foundation for imposing stamp duties on various instruments. The Act has been amended over time to accommodate technological advancements, including the introduction of electronic stamping. While the central government establishes the overarching legal framework, individual states can modify certain provisions and set specific stamp duty rates to address local requirements. This decentralised approach allows states to implement e-stamping systems tailored to their unique administrative and economic contexts.

 

Applicability

E-stamping applies to a wide range of documents that require stamp duty payment under the Indian Stamp Act of 1899. These documents include, but are not limited to:

• Agreements: Contracts such as partnership deeds, service agreements, and indemnity bonds.

• Affidavits: Sworn statements used in legal proceedings.

• Property Transactions: Documents related to the sale, transfer, lease, or mortgage of immovable property.

• Powers of attorney: Authorizations granting legal powers to individuals to act on behalf of others.

Loan agreements: Documents outlining the terms and conditions of loans between parties.

What is an e-stamp?

When the entire process of purchasing the stamp paper is conducted online and there is no physical stamp paper involved, the stamp is known as e stamp.

E-stamp sample

Courtesy: Be money aware website

E-stamp paper sample

Launch of e-stamping in India

In a bid to reduce instances of counterfeits and errors, the government in In July 2013 introduced the e-stamping facility through Stock Holding Corporation of India Limited (SHCIL). It is the government’s Central Record Keeping Agency (CRA) for all e-stamps used in the country. From user registration to administration, and from applications for e-stamping to maintaining these records, SHCIL is the authority. It also has authorised collection centres or Authorised Collection Centers (ACCs). ACCSs are agents appointed by SHCIL and act as the intermediary between the SHCIL and stamp duty payer. Scheduled banks and post offices can become ACCs in India.

List of states with e-stamping facility

SHCIL has been designated the central record keeping agency by the Finance Ministry and provides electronic stamping (e-stamping) services to 26 states. These include:

• Andaman and Nicobar Islands
• Andhra Pradesh
• Assam
• Bihar
• Chhattisgarh
• Chandigarh
• Dadra and Nagar Haveli
• Daman and Diu
• Delhi
• Gujarat
• Himachal Pradesh
• Jammu and Kashmir
• Jharkhand
• Karnataka
• Odisha
• Puducherry
• Punjab
• Rajasthan
• Tamil Nadu
• Tripura
• Uttar Pradesh
• Uttarakhand
• Arunachal Pradesh
• Ladakh
• Manipur
• Meghalaya

See also: Stamp duty and registration charges in Mumbai

Modes of payment for e-stamping 

Client can pay stamp duty amount through the following modes:

1. Cash
2. Cheque
3. Demand draft
4. Pay order
5. RTGS
6. NEFT
7. Account to account transfer

How to get your documents e-stamped?

Step 1: Visit the official website of the SHCIL at  https://www.stockholding.com/. Click on ‘products and services’, choose ‘e-Stamp services’ and finally select ‘e-Stamping’.

 

 

In case your state allows the e-stamping facility, it will show on the website. 

 

 

Step 2: Select the state from the dropdown list. In the example, we have selected NCT of Delhi.

Step 3: You will need to fill an application. On the homepage, go to the ‘Downloads’ tab and select the application that you require. Suppose, the relevant application is the one where the stamp duty payment is less than Rs 501. Simply download the form and fill it.

 

 

 

Step 4: You will need to submit this form along with the payment, for the stamp certificate.

How to pay stamp duty online for e-stamping?

Step 1: New users of SHCIL can click on ‘Register Now’ to proceed.

 

 

Step 2: Fill in the required information. Choose a User ID, password, security question and fill in your bank account details.

 

 

Step 3: Upon confirmation through an activation link sent to your registered email address, you can use your user ID and password to access the services.

 

 

Step 4: Login to the online module by using your activated User ID and Password.

Step 5: Select the state (for example, ‘Delhi’) from the drop-down menu. Then select ‘Nearest SHCIL Branch’ option and provide mandatory details like First Party Name, Second Party Name, Article No, Stamp Duty Paid By and Stamp Duty Amount, to generate an Online Reference Acknowledgement No. of any amount for payment through Net Banking/Debit Card/NEFT/RTGS/FT.

Step 6: Citizens are required to carry a print out of the Online Reference Acknowledgement No. and visit the nearest Stock Holding Branch to take a final print out of the e-stamp certificate.

Note: Citizens have to bear the actual bank and payment gateway charges.

Note that citizens can pay stamp duty online and print the e-Stamp certificate from the convenience of their home for NCT of Delhi, Karnataka, Himachal Pradesh, UT of Ladakh, Chandigarh, Jammu and Kashmir, Puducherry and Andaman & Nicobar. Also, litigants / advocates can pay e-court fee online and print e-court fee receipt from the convenience of their home for NCT of Delhi, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Chhattisgarh, Tamil Nadu, UT of Ladakh, Bihar (Patna High Court), Uttarakhand, Jharkhand and Puducherry.

How to verify an e-stamp?

On the homepage, you will find an option called ‘Verify e-stamp’. Click on it to continue. Simply enter the state, certificate number, type of stamp duty, date of issuance and session ID and click on ‘Verify’.

 

 

How to verify an e-stamp using a mobile app?

Download the e-Stamp verification mobile app from Google Playstore or the AppStore. You can scan or manually verify the e-Stamp.

For scanning, scan the QR code on the certificate and you will get access to all the details. Note that the scan option will not work for e-Stamp certificates that have been generated before  February 13, 2019.

To manually verify, click on the manual button. Select the state from the drop-down box. Enter the certificate number, certificate issued date and click on ‘Verify’.

 

 

You will get all the details, including the certificate number, certificate issued date, amount reference, unique doc reference, purchased by, description of document, consideration price, first party, second party, stamp duty paid by and the stamp duty amount.

How to generate a duplicate copy if an e-stamp is lost?

You can re-generate the lost e-stamp by providing the following details on the official SHCIL website:

Benefits of e-stamping

Highly efficient

With e-stamping, the e-stamp certificate can be generated in a few minutes. This leads to a great deal of time and energy saving.

Higher security

An e-stamp cannot be tampered with since a has unique identification number (UIN).

Easy verification

Using the inquiry module, you can verify the genuineness of an e-stamp certificate.

Flexibility

Unlike the traditional stamp, an e-stamp does not carry a specific denomination. This makes e-stamps a more flexible option.

No duplicate copy available

A duplicate copy of an e-stamp certificate will not be issued. This further curbs any chances of tampering.

Physical visit for refund

You can get a refund for an e-stamp request once it is cancelled, only when you approach an SHCIL office. This plugs a big loophole and lowers chances of wrongful refund.

Cost Efficiency

E-stamping eliminates expenses for procuring, handling, and storing physical stamp papers. By digitising the stamping process, organisations can significantly reduce administrative costs, including transportation and storage.

 

Environmental Impact

Transitioning to e-stamping reduces the demand for paper, thereby conserving natural resources and decreasing environmental degradation. By minimising paper consumption, e-stamping contributes to a greener environment and promotes sustainable practices.

When is e-stamping used by businesses?

Businesses across various sectors utilise e-stamping for numerous purposes, such as:

• Loan or finance agreements
• Certifying the legality of official contracts
• Property purchase and sale transactions
• Vendor onboarding processes
• Lease agreements
• Human resource (HR) activities
• Affidavits
• Sale deeds
• Other business agreements

E-stamping: Things to keep in mind

When using e-stamping, consider the following key points:

• Safeguard Your Verification Certificate: Keep a copy of your verification certificate safe, as duplicate copies will not be issued. Ensure you have a backup in case the original document is lost or misplaced.

• Refund Process: To apply for a refund on a cancelled e-stamp, you must visit the Stock Holding Corporation of India office.

• Payment Methods in Maharashtra: In Maharashtra, e-stamp fees can only be paid online. 

• Alternative Payment Method: The ‘Electronic Secured Bank Treasury Receipt’ (e-SBTR) is a secure and reliable online payment method for e-stamping, ensuring timely payment of e-stamp charges.

 

Housing.com POV

E-stamping has revolutionised the process of paying non-judicial stamp duty in India, offering a convenient, secure, and efficient alternative to traditional physical stamp papers. It aims to reduce instances of counterfeiting and streamline the documentation process for various transactions. The system is operational in 26 states, with SHCIL serving as the Central Record Keeping Agency. The e-stamp certificate can be generated quickly and is resistant to tampering, ensuring a higher degree of reliability. Overall, e-stamping is a significant advancement in the realm of legal and financial documentation in India, making the process more streamlined and secure for individuals and businesses alike.

 

FAQs

Is e-stamping economical?

Yes, e-stamping is economical. For example, you may end up purchasing stamp paper of a higher denomination and an additional charge is levied by banks for the service. If you opt for e-stamping, there is no additional charge.

How can I receive a stamp certificate?

Citizens will receive an e-stamp certificate through courier, within two working days.

Is user registration free on SHCIL?

Yes, it is completely free.

What is e-stamping?

An e-stamp is an electronic copy of a stamp paper. This digital copy of the stamp paper has the same value and legal status as a traditional stamp paper.

When was e-stamping introduced in India?

e-stamping introduced in India in July, 2013.

How will I get an e-stamp paper?

You can buy e-stamp papers from any ACC approved by SHCIL.

How can I download the application form for e-stamp certificate?

You can download the application form for e-stamp certificate on SHCIL official website.

When can I get the e-stamp certificate?

One can get the e-stamp certificate right after they have paid for it.

What are the modes of payment for e-stamp?

The following modes of payments can be used to pay for e-stamps: 1. Cash 2. Cheque 3. Demand Draft 4. Pay Order 5. RTGS 6. NEFT 7. Account to account transfer

How to verify the authenticity of e-stamp paper?

You can verify the authenticity of the e-Stamp paper on the SHICL website by providing details like state, certificate number (UIN), stamp duty type, certificate issue date, etc.

What is the difference between e-stamping and franking?

Stamp duty is a tax you pay to your state to buy a property. Franking on the other hand is the process to stamp property documents. Using franking, authorised banks stamp your document or affix a denomination on it, which acts as a proof that the stamp duty for the transaction has been paid.

What is SHCIL and what does it do?

Stock Holding Corporation of India Ltd (SHCIL), India's leading depository participant, was incorporated as a public limited company in 1986. A subsidiary of IFCI Limited, which held a 52.86% stake in the company as on March 31, 2019, SHCIL is jointly promoted and owned by all the Indian banks and financial institutions, including IFCI Ltd, LIC, SU-UTI, GIC, NIA, NIC, UIC and TOICL. SHCIL has ‘pioneered the Demat services in India’ and e-Stamping services that have made payments to the government hassle-free. It also acts as a central record-keeping agency for e-stamping.

What is SHCIL contact information?

Stock Holding Corporation of India Limited Registered office - 301, Center Point, Dr Babasaheb Ambedkar Road, Parel, Mumbai- 400 012 CIN number: U67190MH1986GOI040506 E-Stamping operations office: SHCIL House, Plot No, P-51, TTC Industrial Area, MIDC, Mahape, Navi Mumbai - 400710 Maharashtra, India Phone: 022 61778100-09

How many states offer e-stamping facilities?

E-stamping is available in 26 states of India through the SHCIL portal. These include Delhi, Karnataka, Himachal Pradesh, Ladakh, Chandigarh, Jammu and Kashmir, Puducherry and Andaman & Nicobar Islands. Litigants and advocates can pay e-court fee online and print the e-court fee receipt from the convenience of their homes in Delhi, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Chhattisgarh, Tamil Nadu, Ladakh, Bihar, Uttarakhand, Jharkhand and Puducherry.

 

(With additional inputs by Dhwani Meharchandani)

 

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com