Stamp Duty is required to be paid for any Document or Instrument by which any right or liability is, or intends to be, created, transferred, limited, extended, extinguished or recorded. The stamp duty pertaining to immovable properties is to be paid on documents such as Conveyance Deed, Sale Deed, Gift Deed, Partition Deed, Power of Attorney,etc.
Execution of the document means the person’s party signing on the instrument.
Any instrument executed outside the state, is liable to duty only on receipt of such instrument in the state, provided it relates to a property situated in the state or matter or thing to be done in the state. Stamp duty is not levied on a transaction, but on an instrument.
Stamp duty is charged on the Market value or the Agreement/ Registration value, whichever is higher.
Stamp duty should be charged on the basis of the contents of the instrument only. If any information that is important for the calculation of stamp duty is missing in the instrument, the valuation officer can call for it. Information such as the area of the flat, number of the floors and year of construction must be mentioned in the agreement for quicker response.
Purchase of non-judicial stamp paper from a licensed vendor was the conventional method of stamp duty payment. Either the details of the transaction is written on the paper or a blank stamp paper is affixed to the agreement documents and signed by the parties, indicating that the stamp paper is an integral part of the documentation. Physical stamp papers can get cumbersome. It may be difficult to get the exact stamp paper if the value is extremely low or very high. One also faces the risk of purchasing counterfeit papers.
In this method, the concerned party submits the agreement details printed on a blank paper with an authorized bank or a franking agency. Once the requisite stamp duty is paid at their counter, the authorized officer can ‘Frank’ the document, i.e. place a special adhesive Stamp, equivalent to the value of stamp duty on the document with the help of a Franking Machine. Post franking, the document is executed. The advantage is that the transaction takes place fast, if the payment is made via cash or Demand Draft. The disadvantage is that not all bank branches have Franking Machines.
E-Stamping is a computer based application and a secured way of paying Non-Judicial stamp duty to the Government. Stock Holding Corporation of India Limited (SHCIL), a public ltd. company, is the official vendor of e-stamps and the only Central Record Keeping Agency (CRA) for all e-stamps used in the country. Payment of Stamp duty for e-Stamping can be made Online (www.shcilestamp.com) through NEFT/RTGS or depositing Cash/DD/ Cheque at SHCIL branch office. Once you pay the required amount of stamp duty, you will get the e-stamp certificate with a unique certificate number (UIN), stamp duty type, issue date and 6 character alphanumeric string mentioned on it. The benefit of e-stamping is that, it is convenient and its authenticity can be verified online using its UID number. SHCIL has also designated authorized collection centres, or ACCs-scheduled banks-that will issue certificates to users.
Electronic-stamping is not available in Maharashtra, as the license for SHCIL was not renewed by the state. But one can use electronic secured bank treasury receipt (eSBTR)- an online payment service.
You can log onto the website of the authorised bank, currently IDBI Bank, click the link for payment of stamp duty/registration fees. Enter the details and pay the duty through your Internet banking account.
You can get the eSBTR on giving a printout of proof of payment online at nominated branches of the bank. The eSBTR is a receipt of duty paid to the government. It is printed on secure stationery issued by banks.
All parties signing the instrument are required to be present at the office of the concerned Sub- Registrar of Assurances, either by themselves or through their constituted attorney under a power of attorney to admit execution of the instrument. A passport size photograph, original power of attorney, personal identification such as passport or income tax, PAN Card, adequate photocopies of the original instrument are some of the essentials required for registration. After lodging an instrument, it is registered, and a seal of the Sub-Registrar is affixed on the instrument, thereafter the original instrument is returned to the parties.
The basic purpose of registration is to record execution of document i.e. the record of the ownership of the property, in case of Sale Deed/any Title Deed execution. As long as the title deeds in your name are not registered or recorded, you are not officially the legal owner of the property.
Registration of documents listed under Section 18 of the Indian Registration Act, 1908 is optional.