eStamping makes the work effortless, consumes very less time and no chance of any tampering happens. So know about eStamping, it’s fee, states that are allowing it, advantages and disadvantages followed by complete registration process for e Stamping…
The e Stamping system was introduced in India in 2007, starting with the state of Maharashtra. Since then, it has been implemented in various other states, such as Gujarat, Tamil Nadu, and Delhi.
The system allows for the payment of stamp duty through electronic means, such as online through authorized banks or state government websites.
What is eStamping
eStamping is a digital process for paying the non-judicial stamping fee to the government. Before the introduction of eStamping all the non-judicial stamping fee has to be paid by a physical process which is very time-killing process.
With the help of e Stamping, everyone can pay their nonjudicial stamping fee through online or another different payment mode. This will be discussed below. Also, eStamping is very fast. We don’t have to wait for hours in the registration offices for the payment of the non-judicial stamping fees. But what is this stamping fee?
Stamping fee
Stamping fee is a fee imposed by the state governments for different types of business transactions. For example, if you buy a land from another person to recognize the land officially there will be registration process for the process of registration there are non-judicial stamps, which are used for agreements, for all these processes governments impose stamping fee.
In which states eStamping available
Currently eStamping facility is available in the states like Odisha, Haryana, Gujarat, Karnataka, NCR Delhi, Bihar, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh, Andhra Pradesh, Uttar Pradesh, West Bengal, Chhattisgarh, Uttarakhand. Also in the union territories of Dadra & Nagar Haveli, Daman & Diu Puducherry, Jharkhand.
Uses of eStamping
Another main use of e-stamping is that it is more secure than the traditional system. The e Stamp paper system uses encryption and digital signatures to ensure that e Stamp duty certificate is genuine and cannot tampered with. This reduces the risk of fraud and ensures that the payment of stamp duty is accurate and secure.
E-stamping also helps in reducing corruption. In the traditional system, there was risk that authorized vendors would charge more than the correct amount of stamp duty. Or that officials would accept bribes to overlook non-payment of stamp duty. With e Stamping, the payment of stamp duty is done online. The e Stamp duty certificate is generated automatically, reducing the scope for corruption.
Advantages of e Stamping
- Elimination of physical stamp paper: E-stamping eliminates the need for physical stamp paper and makes the process of paying stamp duty much faster.
- Increased security: The e-stamping system uses encryption and digital signatures to ensure that the e-stamp duty certificate is genuine and cannot be tampered with.
- Increased efficiency: E-stamping eliminates the need for users to physically visit authorized vendors to purchase stamp paper, and instead allows for payment to be made online.
- Convenience: Users can view and download their e-stamp duty certificate online, making it easily accessible.
- Reduction of corruption: E-stamping reduces the scope for corruption by eliminating the need for intermediaries and ensuring that the payment of stamp duty is done online.
Disadvantages of e Stamp Paper
- Limited acceptance: e Stamp is only valid in the state where it is issued. Therefore, e-stamp duty certificates issued in one state may not be valid in another state.
- Technical issues: There may be technical issues with the e-stamping system, such as system downtime or server errors, which can cause delays and inconvenience for users.
- Limited access: Not all users may have access to the internet or the necessary technical knowledge to use the e-stamping system.
- Limited penetration: E-stamping may not be fully implemented in all states in India, which may limit its effectiveness.
Steps to follow for e Stamping
The process for e Stamping in India typically involves the following steps:
- Obtain the necessary documents
- Choose an authorized bank or e-stamping platform
- Calculate the stamp duty
- Pay the stamp duty
- Obtain the e-stamp duty certificate
- Attach the e-stamp duty certificate to the relevant legal document
Complete procedure for e Stamp
Obtain the necessary documents: To pay stamp duty through e-stamping, you will need to have the relevant legal documents, such as property deeds or transfer of shares, that require stamp duty to be paid.
Choose an authorized bank or e Stamping platform: In most states, e-stamping can be done through authorized banks or through state government websites. You will need to choose an authorized bank or e-stamping platform that is approved by the state government.
Calculate the stamp duty: The stamp duty is usually a percentage of the value of the transaction. You will need to calculate the stamp duty using the relevant rules and regulations for the state.
Pay the stamp duty: You can then pay the stamp duty online through the chosen bank or e-stamping platform. This can typically be done using a credit or debit card, or through internet banking.
Obtain the e-stamp duty certificate: After the payment of stamp duty, an e-stamp duty certificate will be generated. The certificate will have a unique number and will serve as proof of payment of stamp duty.
Attach the e-stamp duty certificate to the relevant legal document: You will then need to attach the e-stamp duty certificate to the relevant legal document. This is typically done by taking a printout of the certificate and affixing it to the document.
Is e-stamping mandatory in all states?
E-stamping is mandatory in some states and optional in others. It is important to check the rules and regulations of the state government before the process.
How do I know if my e-stamp duty certificate is genuine?
E Stamp system uses encryption and digital signatures to ensure that the e Stamp duty certificate is genuine and cannot be tampered with. You can check the validity of the e Stamp duty certificate on the official website of the state government.
Is e-stamping more expensive than traditional stamping?
The cost of e Stamping and traditional stamping may vary depending on the state and the type of legal document. It’s important to check the rules and regulations of the respective states.
What are the documents required for e-stamping?
The documents required for e-stamping will vary depending on the type of legal document and the state in which it is being registered. Typically, you will need the legal document that requires stamp duty to be paid, and any other supporting documents that may be required by the state government.