Table of Contents
- Why is a stamp paper required?
- E-stamping in India
- E-stamp sample
- How to get your documents e-stamped?
- List of states with e-stamping facility
- How can I pay stamp duty for e-stamping?
- How to pay stamp duty online for e-stamping?
- How to verify an e-stamp?
- Important things to know about e-stamping
- Latest updates about e-stamping
Whether you buy a property or sell it, to successfully complete the transaction, you need to pay a stamp duty on it. Those of you who have been through the process of paying it in the traditional way, will understand how tedious and time consuming it can be. With e-stamping, much of these problems can be solved. In this article, we will tell you everything you need to know about e-stamping in India.
Why is a stamp paper required?
Buying, selling or even leasing your property or creating deeds (in short, all transaction-related activities), require you to pay a stamp duty on property to the central or state authorities. So, how do you pay it? Such payments to the government are done through the purchase of a stamp paper of different values, as decided by the authorities. Once you make the payment, it is proof that the government has been paid the required fee. It also acts as a future reference for you.
Some frequently-asked questions pertaining to stamp duty are:
- Where should I pay the stamp duty?
- Under which jurisdiction does the transaction fall?
- How much stamp duty should I pay?
The process may appear simple but you must know that there are three ways to pay the stamp duty. However, not all states may have all the three facilities listed below:
- Non-judicial stamp paper
- Franking machine
For those of you who are technologically savvy, e-stamping, also called electronic stamping is the simplest process.
Also read our article on franking charges.
E-stamping in India
Starting July 2013, the Indian government, in a bid to reduce instances of counterfeits and errors, introduced the e-stamping facility. The Stock Holding Corporation of India Limited (SHCIL) is the Central Record Keeping Agency (CRA) for all e-stamps used in the country. Be it user registration or administration, from applications for e-stamping to maintaining these records, the SHCIL is authorised to do all of these. It also has authorised collection centres or ACCs (scheduled banks) which then issues certificates to those asking for it.
Courtesy: Be money aware website
How to get your documents e-stamped?
Step 1: Visit the official website of the SHCIL. In case your state allows the e-stamping facility, it will shows on the website. Citizens can pay stamp duty online and print the e-Stamp certificates from the convenience of their home for the NCT of Delhi, Karnataka, Himachal Pradesh, UT of Ladakh and Chandigarh. Due to the COVID-19 pandemic, the SHCIL has reinforced that where the facility is available, citizens should make use of it.
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.
List of states with e-stamping facility
- Andaman and Nicobar Islands
- Andhra Pradesh
- Dadra and Nagar Haveli
- Daman and Diu
- Himachal Pradesh
- Jammu and Kashmir
- Tamil Nadu
- Uttar Pradesh
How can I pay stamp duty for e-stamping?
You can pay the stamp duty by cash, cheque, demand draft, pay order, RTGS, NEFT or even an account to account transfer. At an ACC, you can pay in cash, or use or a cheque or DD.
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.
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’.
Important things to know about e-stamping
- A duplicate copy of an e-stamp certificate will not be issued.
- You can get a refund for an e-stamp request once it is cancelled, only when you approach an SHCIL office.
- In Maharashtra, stamp duty can be paid online not through SHCIL but through electronic secured bank treasury receipt (eSBTR)-an online payment service.
Latest updates about e-stamping
E–stamping to replace franking in Bangalore
Electronic stamping (e–stamping) will be mandatory, if the Karnataka state government goes as per plan. This will put an end to physical franking of documents altogether. Given that all applicants, in case of e–stamping, are given a unique certificate number, chances of fraud are zero. The registration department is of the opinion that revenue in Karnataka can be much higher, if loopholes can be addressed and e-stamping is made mandatory.
E-stamping put on hold in Trivandrum
In Trivandrum, the plan to completely migrate to e-stamping has been put on hold, following glitches due to hasty implementation. As per an order from the taxes secretary, e-stamping was made mandatory starting February 1, 2021. However, the provision to generate e-stamps of denomination below Rs 1 lakh was not updated on the Treasuries Department’s portal, which left vendors and the public dissatisfied. For the past three years, e-stamping has been mandatory in the state for stamp papers worth Rs 1 lakh and above.
E-stamping helps authorities to save on costs in J&K
The Inspector General of Registration, J&K, has confirmed that thanks to the adoption of e-stamping, Rs 35 cores, had been saved since September 18, 2020. This amount was otherwise spent on the printing of stamp papers, besides filling up for leakages and ensuring efficacy and transparency in the stamp duty collection.
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.