Important types of stamp papers used in India

The non-judicial stamp papers, in the form of engraved, embossed or franked on papers have been used to pay the stamp duty under Indian Stamp Act 1899. Nowadays maximum usage of stamp papers is in the form of e-stamping in lieu of prevalent engraved stamp papers, embossed stamp papers and franked stamp papers.  The e-stamping for the purpose of payment of non-judicial stamps are currently operational in the states of  Uttar Pradesh, Uttarakhand, Himachal Pradesh, Karantaka, Maharatra, Gujarat, NCR Delhi, Assam, Tamil Nadu, Rajasthan, and the union territories of Puducherry (Pondicherry)  Dadra & Nagar Haveli, Daman & Diu. In the state of Delhi, payment of stamp duty is possible only in the form of e-stamping.

The mechanism of e-stamping method of stamp duty payment is simple. The Government of India appointed the Stock Holding Corporation of India Limited (SHCIL) as the sole central record keeping agency (CRA) for all e-stamps used in the country. The SHCIL- CRA is responsible for User Registration, Imp rest Balance Administration and overall e-Stamping application operations and maintenance. The applicant for e-stamp shall fill in an application with the details of the parties involved and the transaction for which it is to be used. The filled in application to be submitted at the designated Associated Collection Centre (ACC) of SHCIL or authorized bank branches with the payment of stamp duty. The ACC or authorized bank branches would issue e-stamp certificate at their counters. The payment can be in in cash, cheque or using debit cards/credit cards, RTGS/NEFT etc. The Certificate can be generated in minutes with security features like 2 dimensional barcode, water mark, micro-digiting and same is saved by SHCL. The advantages of e-stamps are that such stamps are tamper proof, the 2-D barcode feature in the certificate captures all data and whoever tries to fudge original certificate will only get copies of it which shows on the certificate that is ‘a copy’.  E-stamps have a Unique Identification number which can be checked through recommended site to confirm that the stamp papers bought is genuine.

Engraved stamp papers:

Engraved stamp papers are printed by Government of India at various security presses and supplied to State Governments according to their requirements. The top part of the papers engraved with distinctive feature of the stamp like Ashoka Pillar, ‘Satyameva Jayathe’ in Devanagari, ‘Non-Judicial’ in English and other security water marks. Besides these paper bear the amount of the stamp paper engraved on it  in the denomination starting from  Rs.10/- to Rs.100000/-.  The licensed stamp venders appointed by the state Government sell these stamp papers, entering their license number, serial number of the stamp and date, name of the person purchased the stamp on the back side of the stamp paper.

Embossing of Stamp Duty:

Any person including financial institutions desirous to get their printed document (unsigned) embossed will make an application showing the requirement in challan and pay cash at the counter at the treasury.  The money received will be noted down in a register the document to be stamped will be sent to the Government Printing press where the embossing machine is located. The embossment of stamp is made ready on the first page of the documents and return to the Deputy Director of Stamps, who will attest the embossed impression and also affix a counter embossing seal. The document will then be returned to the applicant.

Franking of stamp duty:

Franking machines with frank stamps up to certain denominations installed in many sub-registrar offices for payment of stamp duty. The required denomination is franked on the unexecuted printed or typed documents and return to the purchaser. The applicant has to submit an application indicating the amount to be franked along with the payment of stamp duty in cash.

Related article : on adjudication of stamp paper, impounding of stamp paper, refund of stamp duty etc.

3 categories of Stamp duties in India