The stamp paper refers to a foolscap paper which bears a pre-printed revenue stamp. Stamp papers are not a form of postal stationery. It has been widely used to collect taxes on documents requiring stampings, such as leases, receipts, agreements, and many other court documents. The papers consist of the pre-printed stamp and are bought blank. They are available at lawyer's offices, post offices, and courts according to their local regulations. The parties write their legal business on the paper and place it before the court.
There are three kinds of Stamp Paper, namely:
- Judicial - used for legal and court work
- Non-judicial - used for registration of documents, insurance policies etc.
- Revenue stamp.
Judicial Stamp Paper:
The Judicial stamp papers are known as court fee stamp paper. They are generally used for a legal purpose or court cases. They are used for payment of court fee to avoid cash transactions. Case in court is admitted after the payment of court fees.
Non-Judicial Stamp Paper:
Non-judicial stamp papers are generally used for the execution of documents like sale deed, power of attorney, affidavits, rent agreement, transfer of property like building, mortgage, land, or other relevant agreements.
The value of non-judicial stamp papers at present of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10000, Rs. 15000, Rs. 20000, Rs. 25000 and Rs. 75000 are available in India.
It is always advisable to purchase stamp papers from approved legal stamp vendors by Government. Stamp Duty is paid under the Indian Stamp Act, 1899 with respect of Non-Judicial stamp paper.
In the entire State, the transaction of Rs. 5000 or more of the revenue stamps are signed, and the document has to be executed. The revenue stamp of Rs. 1 value is available. Thus, it is obligatory to use stamp paper for creating the enforceable document; stamps shall be used of specific value as per the guidelines in the Stamp Act.
At present government has sanctioned new way of the stamp, i.e. called e-stamping. The comprehensive system of stamp paper/franking is now replaced by E-stamping system. Stamped papers are still in use; however, electronic versions are being developed to reduce the risk of fraud.
It is a computer-based and a secure way of paying non-judicial stamp duty to the government. Stamping is currently used in below-mentioned states, i.e. Odisha, Maharashtra, Karnataka, Delhi, Tamilnadu, Rajasthan, Himachal Pradesh, etc. also available in some union territories.
All financial institutions and insurance majors are promoting the Stock Holding Corporation of India Limited (SHCIL). It is known for its security, extensive network, integrity and technology. It is the only Central Record Keeping Agency (CRA) appointed by the Government of India. The CRA is responsible for the registration of users, overall E-Stamping application maintenance and operation. CRA will appoint Authorised Collection Centre's who issue certificates to the clients at their counters.
Benefits of E-Stamp
- Can be collected quickly
- Cannot be tampered with
- The authenticity of the E-Stamp certificate can be checked
- Certificate has a Unique Identification Number
- The specific denomination is not needed.
- Anyone on the recommended site can check the e-stamp certificate.
- Indian Stamp Act,1899
- Bombay Stamp Act,1958
- Court Fee Act,1870