What Is Stamp Duty?
Stamp Duty is the tax levied on the execution of documents, affidavits and agreements. Stamp Duty also serves as a legal acknowledgment to certify the authenticity and validity of a document. It is mandatory to pay stamp duty to the Central or State Government when certain transactions take place that are financial or legal in nature. The value of stamp duty is in some cases at a fixed rate. The value of property or instrument may cause the value of stamp duty payable to vary. The amount of stamp duty to be paid for any agreement’s monetary transaction will differ from state to state. Lease agreements, buying or selling of property, business agreements, loan agreements, power of attorney, affidavits, AOA, MOA, Indemnity Bond, Mortgage, Gift Deed are all examples of such transactions. Stamp Duty must be paid in full and in advance to the respective State or Central Government. Penalties are imposed under the circumstances of a delay in payment of stamp duty.
Non Judicial e-Stamp Paper
e-Stamp Paper is a computer based system, the objective of which is to pay the mandatory Stamp Duty directly and securely to the Government. The e-Stamp Paper system has replaced the prevailing system of Non-Judicial Stamp paper by Central Government. This system is said to be far more reliable and secure compared to the previous system of Non-Judicial Stamp Paper. This transition from Non-Judicial Stamp Paper to e-Stamp Paper leaves no chance of fraud or malpractice.
Procedure Involved in Getting Non Judicial e-Stamp Paper Online
Anyone can get an non judicial e-Stamp Paper online easily through various platforms. The provided steps must be followed for getting e-Stamp Paper:
- The first step is to acquire non judicial e-Stamp Paper online. The applicant must go on to a website that facilitates e-Stamp Paper and click on the link for Non-Judicial e-Stamp Paper. He or she will then be directed to the e-Stamp Paper, where the applicant has the option to save or download the document.
- The next step is to fill in the necessary details into the non judicial e-Stamp Paper. The initial details are to do with the first party, which refers to the person, institution or organisation in whose behalf the stamp paper is being drawn out and stamp duty is paid. The state, name and property address of the first party are to be filled in.
- After filling out the details of the first party, the details of the buyer who is purchasing the non judicial e-Stamp Paper will have to fill in his or her name. The individual must then fill in the second party details i.e. the person, institution or organisation in whose name the e-Stamp Paper is in favour of.
- The penultimate step in the process of getting an non judicial e-Stamp Paper online is to choose the type of Stamp Duty under the ‘Description of Document’. The different types of Stamp Duty include gift deeds, indemnity bonds, guarantee bonds and so on. It is important to note that any number of non judicial Stamp Papers can be selected and purchased based on an individual’s requirements.
- The form must then be reviewed for any errors or mistakes. If there are no problems with the non judicial e-Stamp Paper and the individual is satisfied with the details filled in and the value of the paper, then he or she can proceed to make the payment for the same online.
Other Methods of Paying Stamp Duty
The purpose of all the methods of paying stamp duty is the same, which is to make a document enforceable and legally valid. There are several different ways of paying stamp duty in India. A few of these methods are listed below:
- Buying non judicial Stamp Papers
Traditional stamp papers or Physical stamp papers can be purchased from any authorizes stamp vendors. Such Stamp Papers are Non-Judicial and are purchased as a way to pay Stamp Duty to the government. The details one may be asked to provide while buying a stamp paper include the first party name, the second party name, the address, the document name and of course, the stamp paper value.
Franking machines are found to be installed in many Sub-Registrar offices.The method of franking refers to a practice wherein a mark is made on a document indicating that the stamp duty for that particular transaction has been paid. These machines frank up to a denomination of 999 rupees. An application indicating the amount of duty, to be frank, is made to the proper officer authorised under the rules along with the unexecuted typed or printed documents. The necessary amount is paid in cash to the proper officer and the required denomination is franked on the document and then returned to the applicant.
- Adhesive Stamps
Adhesive stamps are labels that can be pasted on documents signifying that one has paid the stamp duty. There are adhesive stamps for postal and non-postal usage. Postal stamps cannot be affixed on legal documents nor does postal stamps make a document legally valid.