What Is E-Stamp and Everything You Need To Know?

18-Apr-2023

Stamp duty is payable to the government on the purchase, sale, or renting of any immovable property. This is nothing but a tax imposed by the state government and payable under section 3 of the Indian Stamp Act.

Earlier, the property buyers had to physically visit the concerned sub- registrar's office to make the stamp duty payment. But now, this process can be completed online through electronic stamping, commonly known as e-stamping. As there is no requirement for any physical document, the stamp is called E-stamp. It serves as legal proof of making the requisite payment to the government.

Introduction of E-Stamping in India

E-stamping was introduced in India in July 2013. The primary objective behind this move was to curb fraudulent transactions and minimize the errors in stamp duty payment. It also ensures a convenient & hassle-free method of making payments.

The authority to issue E-stamp papers in India vests with the Stock Holding Corporation of India Ltd (SHCIL). This entity is the central record-keeping agency that is responsible for the entire E-stamping process. SHCIL appoints several authorized collection centers (banks/post offices) across the country to issue the certificates.

What are the Benefits of the E-Stamping Facility?

E-stamping offers several benefits over the traditional method:

• E-stamping enables faster payments, and the certificate can be generated within a few minutes.
• It is a safe and convenient method of making payments. The advanced security features reduce the possibility of counterfeiting.
• E-stamping significantly reduces physical documentation and record keeping. This helps in cutting down costs.
• The authenticity of the certificate can be easily verified online through the inquiry module.
• The E-stamp certificate has a unique identification number (UIN) which makes it difficult to tamper with.
• There is no requirement for any specific denomination in the case of E-stamping.
• The SHCIL database on E-stamping is useful for records & reference. SHCIL does not charge any fee for E-stamping services.

What is the Procedure for E-Stamping of Documents?

E-stamping of documents is a simple exercise. You can now make the stamp duty payment online and download the certificate. The step-by-step procedure is given below:

• Step 1: Visit the official website of SHCIL. On the home page, click on 'Products & Services.' Go to 'e-Stamp Services' and click on 'e-Stamping.
• Step 2: Select the state where the stamp duty payment is to be made. The charges vary across states.
• Step 3: Fill up the application form and then click 'Download.' If the stamp duty amount is less than Rs.501, the form can be downloaded without any payment.
• Step 4: Once you click 'Download,' you will get the stamp certificate.

How to Pay the Stamp Duty for E-Stamping?

The stamp duty payment can be made through cash, cheque, DD, RTGS, NEFT, or an account transfer. You can pay through cash, cheque, or DD at an authorized collection center.

How to Pay the Stamp Duty Online through SHCIL?

• Step 1: New users should click on 'Register Now.'
• Step 2: Provide the required information. Enter the user ID, password, security question, and bank account details.
• Step 3: An activation link is sent to your registered email ID for confirmation. Please confirm the same and use the user ID and password to avail of the services.
• Step 4: Log in using the activated user ID and password.
• Step 5: Select the state where the stamp duty has to be paid.
• Step 6: Select the 'Nearest SHCIL Branch' option. Provide all the mandatory details such as the First Party Name, Second Party Name, Article Number, Stamp Duty Payable, and the Stamp Duty Amount.
• Step 7: An online acknowledgment reference number will be generated. Produce this at the nearest SHCIL branch to get the final printout of the e-stamp certificate.

Note:

(i) Bank & payment gateway charges have to be paid by the citizens only

(ii) Citizens of Delhi NCT, Karnataka, Himachal Pradesh, UT of Ladakh, Chandigarh, J&K, Puducherry, and Andaman can pay the stamp duty online and print the e-Stamp certificate from their homes

What is the Procedure to Verify an e-Stamp?

Step 1: On the home page, click on 'Verify e-Stamp' to proceed

Step 2: Now enter the details of your state, certificate number, type of stamp duty, date of issuance, and session ID. Click on 'Verify'

How to Verify an e-Stamp Using a Mobile App?

Download the app called 'e-Stamping' from Google Play Store or the App Store. The app has two verification options.

(i) You can scan the QR code on the certificate, and all the details shall be displayed. Please note that the scan option will not work for certificates generated before February 13, 2019 (ii) For manual verification, click on the manual button. Select the state. Then enter the certificate number and certificate issued to date. Click on 'Verify'

Which are the States that Provide e-Stamping Services?

The SHCIL offers e-Stamping services in 21 states and union territories (UT). The list is as follows:

1. Andaman & Nicobar 2. Andhra Pradesh 3. Bihar 4. Chhattisgarh 5. Chandigarh (UT) 6. Dadra & Nagar Haveli and Daman & Diu (UT) 7. Delhi 8. Gujarat 9. Himachal Pradesh 10. Jammu and Kashmir 11. Karnataka 12. Ladakh (UT) 13. Meghalaya 14. Odisha 15. Puducherry 16. Punjab 17. Rajasthan 18. Tamil Nadu 19. Tripura 20. Uttar Pradesh 21. Uttarakhand

Note: SHCIL does not provide e-Stamping services in the state of Maharashtra. The state provides another facility to its citizens called the Electronic Secured Bank Treasury Receipt (e-SBTR).

What is the Fee Payable for e-Stamping Services?

Only the applicable stamp duty charges are payable. No fee is required to be paid to SHCIL for e-Stamping services.

Can I Get a Duplicate e-Stamp Certificate?

No. You cannot get a duplicate e-Stamp certificate if you lose the original one.

How Can I Verify an e-Stamp Paper?

You can easily verify whether an e-Stamp paper is authentic or not. Visit the SHCIL website and provide the relevant details like the state, certificate number, certificate issue date, etc.

Conclusion

Payment of stamp duty is mandatory on the purchase or sale of immovable properties in India. The e-Stamping services provide a secure and convenient method to make the stamp duty payment. It has also contributed significantly to reducing counterfeiting and errors in transactions.