Just like e-signatures, digital stamping is paving the way for hassle-free contract signing experiences. This move is a part of the government’s initiative to promote paperless transactions and replace them with their digital counterparts, especially when it comes to property registration.
The next time you register a property, you might not need to search for stamp papers and then combine several stamp paper values to equal the whole sum. In actuality, you won't even need stamp papers. Thanks to electronic stamping, you only need a payment certificate from a recognized collection center that might even be your local bank.
E-stamping is computer-based document stamping where the complete database is stored electronically. It is eventually set to completely replace stamp sheets. The government has appointed the Stock Holding Corporation of India (SHCIL) as the record-keeping body for the collection of the stamp duty across different states and Union Territories. This system's ability to issue stamp certificates starting at Re 1 in any value is a significant benefit for those who need to register documents.
The government levies a fee known as "stamp duty" on any recorded transaction for purchasing any document or instrument that stimulates the registration, transfer, change, extension, destruction, or recording of rights and responsibilities to bring money to the state. For example, a conveyance deed, sale deed, power of attorney, etc., may be subject to stamp duty.
Following the Indian Stamp Act of 1899, a document or instrument can only be used as evidence in court once the stamp duty has been paid. Therefore, the sole Central Record Keeping Agency (CRA) designated by the Indian government to manage the E-stamping application is the Stock Holding Corporation of India (SHCIL).
Different states have different stamp duties that are applicable. Each state also pays SHCIL a specific commission based on the amount of the stamp duty after receiving an e-stamp certificate. Twenty-one states and one Union Territory of India provides e-stamping. In Maharashtra, however, the SHCIL does not offer e-stamping services. A new method of online paying stamp duty is through the Electronic Secured Bank Treasury Receipt (eSBTR) payment interface, unveiled in 2013.
In India, the digitalization of stamp duty is available in the following states:
Andaman & Nicobar
Jammu & Kashmir
For the state to register or transfer the property or instrument, the stamp duty must be paid forcibly in accordance with the state's statutory requirements. Therefore, keeping track of the proof that the state's stamp duty was paid in full is essential.
Anyone can use these methods to pay their stamp duty because certain jurisdictions have made the stamp payment facility available online.
Visit the SHCIL website on www.shcilestamp.com from your browser.
Select the state or union territory that the stamp paper is needed for.
You have two options for moving forward: either input your registered user id and password or click on Online Payment on the web page to finish the registration process.
The state of choice should list the different uses for which stamp paper is necessary, such as agreements, affidavits, and conveyance deeds.
After choosing the purpose, you must input all the transaction information, including the parties' names and residences, the amount of the stamp duty, etc.
After saving the filled-out information, you must make an online payment using Net Banking, a debit card, NEFT/RTGS, or cash at a SHCIL branch to obtain the Transaction Reference number.
The stamp certificate can be generated once the transaction is successfully finished.
To purchase stamp paper, stamp duty can be paid both online and offline. To get a stamp certificate, you can print off the stamp paper, fill it out and bring it to the SHCIL office.
The absolute value of the asset or instrument is the only factor used to determine stamp duty valuation. Since the state government sets the standards, they differ from state to state for determining how much a property is worth.
Non-judicial stamp paper, e-stamping, or franking are the three ways to pay stamp duty for the recently purchased property. The third way, franking, involves additional costs required by the government since it is carried out through a franking agency or authorized institutions. Valuation of Stamp Duty usually depends on the following factors:
Status of the Property (New or Old)
The area where the property is situated (Metropolitan, Rural, Urban)
The exact location of the Property (The charges may vary between cities and locations)
Age of the Owner (some states offer rebates for senior citizens)
Gender of the Owner (some states offer refunds to females)
Type of Property based on usage (Commercial or Residential)
Type of Property based on structure (Independent House or Flat)
Stamp Duty Rates Across Various Indian States
To legally obtain the property's ownership, adequate stamp duty must be paid. Only once stamp duty on the total transaction value of the property has been paid is the property registered or transferred to the new owner in the municipality's records. The stamp duty and registration rates differ from state to state in India.
To move the property correctly, it is usually preferable to pay the stamp duty because land-related legal issues are currently relatively widespread.
The regulations governing the payment of enough stamp duty are reasonably rigorous. Although the penalties for not paying adequate stamp duty vary from state to state, they frequently involve paying an extra sum equivalent to 8% to 20% of the actual stamp tax, in line with the Indian Stamps Act of 1908.
India is a booming market for digital businesses today. The following are some of the advantages that businesses can enjoy by digitising their contracts and utilizing digital stamp duties:
Through the SHCIL website, the stamp duty may be paid online, and the e-stamp certificate can be created quickly. This entire process takes only a few minutes instead of the several hours it would take to visit the sub-registrar's office, pay the stamp duty, and obtain the physical stamp certificate.
The tedious and time-consuming task of maintaining mountains of paperwork is no longer necessary. With digitised contracts, businesses can reduce their reliance on paper and create a streamlined, efficient workflow.
Since the e-stamp certificate contains a specific identifying number, it cannot be altered (UIN). As a result, businesses can be assured that their documents are safe and secure and the document trail has not been tampered with.
Using the SHCIL website's inquiry module, it is simple to confirm the validity of the e-stamp certificate. The UIN can be used to verify that the document has not been altered and is, therefore, valid.
There is no need to preserve particular stamp duty denominations when payments may be made online.
Businesses have the option of printing the e-stamp certificate on plain paper or attaching it to the document as a PDF.
Businesses today are increasingly digitising their workflows to save time and improve security. The advantages of digital stamp duties include time-saving, paperless workflow, security, verification, payment flexibility and document portability. By utilising digital stamps, businesses can enjoy a secure and efficient way of conducting transactions. Moreover, electronic agreements are admissible in legal proceedings and are also subject to stamp duty, resulting in increased transparency.
To know more about how digital contract management can help you, learn how ZoopSign can overhaul your operations!
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