Stamp Paper and E-Stamp: How Stamp Duty Works for Documents
Stamp duty is a tax on documents. It is set by each State, payable before or at the time of signing, and an unstamped document cannot be used in evidence until the duty and a penalty are paid. This site never states duty amounts, because they vary by State and change.
Key rules
| Rule | Source |
|---|---|
| Instruments executed in India must be stamped before or at the time of execution. | Indian Stamp Act, 1899, section 17 |
| An instrument executed only outside India may be stamped within three months after it is first received in India. | Indian Stamp Act, section 18 |
| An instrument chargeable with duty that is not duly stamped is not admissible in evidence, unless duty and penalty are paid. | Indian Stamp Act, section 35 |
| Rates are set by each State; States can modify provisions. | State stamp laws |
Stamp paper, e-stamp and franking
- Non-judicial stamp paper: pre-printed paper sold by licensed vendors. Still used in some States.
- E-stamp certificate: stamp duty paid online or at an authorised centre; SHCIL is the central record keeping agency. Available in many but not all States.
- Franking: some banks and centres frank documents to show duty paid, where the State allows.
How to find the right amount
- Identify the documentPower of attorney (and type), affidavit, rent agreement, partnership deed, sale deed, gift deed.
- Open your State’s scheduleOn the State registration and stamps department website, or the e-stamp portal’s calculator.
- Check the basisFixed amount, or a percentage of rent, consideration or market value.
- Buy in the correct nameUsually the first party or executant.
Frequently asked questions
Does an affidavit need stamp paper?
It depends on the State and the office. Some accept plain paper.
Is a document on the wrong value stamp paper invalid?
It may be treated as insufficiently stamped and require payment of the deficit and penalty before it can be used in evidence.
Please note: these templates are for general information and are not legal advice. Laws, stamp duty, notarisation and registration rules vary by State. Consult an advocate for your case. This is an independent website, not a law firm and not a government office.