How E-stamping & Fees a New Common?

How E-Stamping Fees: A New Common

Previously, there was only an offline mode of payment of stamp duty. E-stamping is changing the traditional issues related to stamp duty. Let’s find out how.

You must pay stamp duty to complete the transaction for every purchase or selling of property. While earlier buyers made the payment when they physically attended the sub-registrar’s office to register the property, now they can complete the main part of the process online— online stamping or electronic stamping.

The Government of India launched an e-stamping & fees facility in July 2013. The initiative aimed to minimise fraud and errors in the payment of stamp duty.

Stock Holding Corporation of India Limited, abbreviated as SHCIL, the Central Record Keeping Agency (CRA), has the authority to issue e-stamp certificates in India.

Authorised Collection Centers (ACCs) are designated intermediaries, regular banks or post offices responsible for issuing electronic paper stamps instead of the CRA. There are various ACCs from respective governments of states.

What is an e-stamp?

An e-stamp is an online method of paying non-judicial property stamp duty to the government. Online stamping has replaced traditional methods of paying stamp duty, including physical stamp paper and franking. At present several state governments have already adopted the online mechanism.

Stock Holding Corporation of India Limited (SHCIL), the Central Record Keeping Agency (CRA), is responsible for clipping e-stamp certificates in India. SHCIL appoints Authorized Collection Centers (ACCs), which act as intermediaries between the CRA and the stamp payer to issue e-stamp papers. However, there are several authorised ACC centres from respective state governments.

Why do we require e-stamp?

Buying, leasing or selling your property or creating deeds requires you to pay stamp duty to the states as land is a state subject in India. These payments to the government are made through the purchase of stamp paper of various denominations, as decided by the authorities. Once you make a payment, it is proof that the required fee has been paid to the government—also serving as a future reference for you.

E-stamping in India

Starting in July 2013, the Government of India introduced electronic stamping facilities to reduce cases of forgery and errors.

The Stock Holding Corporation of India Limited (SHCIL) is the central agency of record (CRA) for all electronic stamps used in the country.

Be it user registration or administration, from e-stamp applications to maintaining these records, SHCIL is empowered to do it all. It also has authorised collection centres—ACCs (scheduled banks), issuing certificates to those who request them.

Advantages of e-stamping

  • With an electronic stamp, an electronic stamp certificate can be generated in minutes.
  • The e-stamp certificate cannot get tampered with and has a unique identification number (UIN).
  • Inquiry module can help to the authenticity of the e-stamp certificate.
  • No specific denomination is needed for an electronic stamp.

What is SHCIL?

Stock Holding Corporation of India Ltd (SHCIL), India’s leading depository, was incorporated as a public limited company in 1986.

SHCIL, a subsidiary of IFCI Limited, which held a 52.86% stake in the company as of March 31, 2019, is jointly supported and owned by all Indian banks and financial institutions, including IFCI Ltd, LIC, SU-UTI, GIC, and NIA. , NIC, UIC and TOICL.

SHCIL is the “pioneer of Demat services in India” and e-stamping services that have made payments to the government seamless. It also acts as the central agency of record for electronic stamping.

SHCIL’s clients comprise UTI, LIC, GIC, IDBI MF, LIC MF, GIC MF, SBI MF, Shriram MF, Oriental Insurance, National Insurance, New India Assurance, United Insurance and Sundaram MF.

Among the early entrants to depository services, SHCIL has a client base of over 6,50,000 accounts in this segment.

SHCIL e-stamping

SHCIL is the solely Central Record Keeping Agency (CRA) appointed by the Government of India. The central registration agency is responsible for user registration, backup management and the overall e-stamping & fees application operation and maintenance.

Using SHCIL’s e-stamping services, citizens can pay stamp duty online and print e-stamp certificates from the comfort of their homes. SHCIL also appoints Authorized Collection Centers (ACCs) to issue client certificates at their counters.

Understanding ACC

Authorised Collection Centers (ACCs) serve as agents appointed by SHCIL. ACC act as an intermediary between SHCIL and the e-stamping & fees payer. Post Offices and Banks can become ACCs in India.

Coverage of SHCIL Pressing Operations

SHCIL has been designated a Central Registration Agency by the Ministry of Finance and provides electronic stamping (e-stamping) services to 22 states.

Note that e-stamping is a computer application and a secure electronic way of stamping documents. A system of e-stamps is replacing the system of physical stamp papers and franking.

States where e-stamping services can be availed through the SHCIL portal include Delhi, Karnataka, Ladakh, Himachal Pradesh, Chandigarh, Puducherry, Jammu and Kashmir, and Andaman and the Nicobar Islands.

Litigants and advocates can pay e-stamping & fees online and print the e-court fee receipt from the comfort of their homes in Delhi, Himachal Pradesh, Punjab, Chandigarh Ladakh, Bihar, Uttarakhand, Jharkhand, Uttar Pradesh, Chhattisgarh, Tamil Nadu and Puducherry.

Different ways of paying stamp duty in the e-stamp system

The client can pay the stamp duty amount through the following modes:

  • Cash
  • Cheque
  • Demand concept
  • Pay order
  • RTGS
  • OIL
  • Transfer from account to account

How do documents provide an electronic stamp?

Step 1: Visit the official website of SHCIL. Click on “products and services”, select “e-stamp services”, and finally, “e-stamping”.

If your state allows e-stamping & fees, it will be displayed on the website. Currently, an online e-stamp certificate generator tool is available for NCT of Delhi, Gujarat, Chhattisgarh, Karnataka, Himachal Pradesh, Odisha, Tripura, Ladakh, Chandigarh, Jammu and Kashmir, Puducherry and Andaman and the Nicobar Islands.

Given the COVID-19 pandemic, SHCIL has reinforced that citizens should use it wherever the facility is available.

Step 2: Select your state from the drop-down list given states. In the example, we have selected the NCT of Delhi.

Step 3: You will need to fill out an application. On the home page, go to the “Downloads” tab and select the application you need.

Let us assume that the relevant application is one where the stamp duty payment is less than Rs. 501. Just download the form and fill it out carefully.

Step 4: You will have to submit the form along with the payment for the stamp confirmation.

List of states with electronic stamping facilities

  • Andaman and Nicobar Islands
  • Andhra Pradesh
  • Assam
  • Bihar
  • Chhattisgarh
  • Chandigarh
  • Dadra and Nagar Haveli
  • Daman and Diu
  • Delhi
  • Gujarat
  • Himachal Pradesh
  • Jammu and Kashmir
  • Jharkhand
  • Karnataka
  • Odisha
  • Puducherry
  • Punjab
  • Rajasthan
  • Tamil Nadu
  • Tripura
  • Uttar Pradesh
  • Uttarakhand

How can I pay stamp duty for an electronic stamp?

Stamp duties are a one-time upfront commission paid to financial services licensees for their role in raising capital associated with initial public offerings.

The public consultation will enable the Government to make an informed decision on whether to retain, remove or modify the stamp duty exemption.

You can pay stamp duty by cash, cheque, draft, money order, RTGS, NEFT, or account-to-account transfer. You can pay in cash or use a check or DD at ACC.

How to pay stamp duty online for an electronic stamp?

Step 1: New SHCIL users can proceed by clicking on ‘Register Now.

Step 2: Fill in the required information. Choose a user ID, password and security question and fill in your bank account details.

Step 3: After confirmation with the activation link (sent to your registered email address), you can access the services through your User ID and Password.

Step 4: Log in to the online module using your activated user ID and password.

Step 5: Select a state from the drop-down menu. Then select “Nearest SHCIL Branch” and enter the mandatory details like First Party Name, Second Party Name, Article Number, Stamp Duty Paid and Stamp Duty Amount to generate an online confirmation reference number of any amount for payment through Net Banking /Debit Card /NEFT/RTGS/FT.

Step 6: Citizens must have the online confirmation reference number printed and visit the nearest Stock Holding branch to print the final copy of the e-stamping & fees certificate.

How to verify an e-stamp?

On the home page, you will find an option called ‘Verify Electronic Stamp‘. Click on it to continue. Simply enter the State, Certificate Number, Stamp Type, Issue Date and Session ID and click ‘Verify’.

How to verify an e-stamp using a mobile application?

  • Download the e-Stamp verification mobile application from Google Playstore or AppStore. You can scan the electronic stamp or verify it manually.
  • To scan, scan the QR code on the certificate to access all the details. Please note that the scan option will not work for e-stamp certificates generated before February 13, 2019.
  • Click the Manual button for manual verification. Select a state from the drop-down list. Enter the certificate number and certificate issue date and click “Verify”.

How to verify an e-stamp using a mobile application?

  • Download the e-stamping & fees verification mobile app from Google Playstore or AppStore. You can scan the electronic stamp or verify it manually.
  • To scan, scan the QR code on the certificate to access all the details. Please note that the scan option will not work for e-stamp certificates generated before February 13, 2019.
  • Click the Manual button for manual verification. Select a state from the drop-down list. Enter the certificate number and certificate issue date and click “Verify”.
  • You will get all the details, including certificate number, reference amount, unique document link, purchased, document description, consideration price, first side, second side, stamp duty and stamp quantity.

Important things to know about electronic stamping

  • A duplicate electronic stamp certificate will not be issued.
  • After cancellation of the e-stamping & fees application, you can get a refund only by contacting the SHCIL office.
  • In Maharashtra, stamp duty can be paid online through Electronic Secure Bank Receipt (e-SBTR) – an online payment service.

Conclusion

To buy, sell, deed or even rent your property, you need to pay stamp duty on the property to the central or state authorities. Electronic stamping, also known as e-stamp or e-stamping 5, is a way to pay government out-of-court stamp duty electronically.

Previously, stamp duty for property registration had to be paid physically by visiting the sub-register. With the paper-based e-stamp process, most of the process can now be done online.

E-stamping & fees is a process where stamp duty is paid electronically to the government. The government has replaced the traditional and Franklin method of stamping on paper with a digital strategy to ensure a fast and hassle-free payment process.

Presently, this service is extended in 22 states of India, and Maharastra is one of them.

FAQs

How do you get a paper with an electronic stamp?

You can purchase e-mark papers from any SHCIL-approved ACC.

How can you download the e-stamp certificate application form?

You can download the application for the e-stamp certificate form from the official website of SHCIL.

When can you get an e-stamp certificate?

The e-stamp certificate can get obtained immediately after paying for it.

What are the payment techniques for an e-stamp?

The following payment methods can get used to pay for e-stamps:

  • Cash
  • Cheque
  • Demand concept
  • Payment order
  • RTGS
  • NEFT
  • Transfer from account to account

How do verify the authenticity of the e-stamp paper?

You can verify the authenticity of the e-stamp paper on the SHICL website by providing details such as State, Certificate Number (UIN), Stamp Duty Type, Certificate Issue Date, etc.

What are the stamp duty charges?

Stamp duty varies from city to city. In Delhi, it is 6% of property value for men and 4% for women. Whereas in Mumbai, they charge 3% of the property value.

Is the e-stamp mandatory?

The e-stamp is not mandatory, but payment of stamp duty is mandatory under the Indian Stamp Act 1899.

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