For every time transaction that occurs concerning property purchase, or sale, you have to pay stamp duty. It is a step to completing your transactions! Earlier, buyers were in charge of paying for the process physically by reaching the sub-registrar’s office to register their property. But, with time and digitalisation, everything seems quick and seamless.
This major part of property registration has now completely turned online, making people wonder how it is done. Undoubtedly, the online payment method is the easiest way compared to other traditional modes, but people doubt the procedure of e-stamping. If you are wondering how to pay stamp duty online? This guide will help you in detail understand the process.
The process differs statewide and requires different sets of documentation too. Knowing what you need to do and how to do it is crucial. This online method allows buyers to pay government non-judicial stamp duty electronically. One thing to learn is that Maharashtra has its way of paying the stamp duty. Let’s find out how to pay your stamp duty online in Maharastra.
Understanding stamp duty
Stamp Duty is a tax that the government levies during the need of certain authority of documents. The state government usually levies the taxes in India and is in charge of collecting stamp duty too. It is a sort of tax payable by the property buyer to the respective state authority. This way, you have legal proof of the purchase or sale of the respective property with the stamp on it.
The rate of stamp duty payment differs based on the location and allows homebuyers to make the payment online too.
Under Section 3 of the Indian Stamp Duty Act, 1899, homebuyers must pay the stamp duty, with one-time registration charges. After the sale deeds are executed, you are required to pay the amount.
What if you don’t pay stamp duty?
Before you ask the question, how to pay stamp duty online? Let’s see, what if you don’t pay it? It will adversely affect you if you don’t emphasise paying the stamp duty. Wondering what would be the legal challenges? Here’s what you can go through:
- You don’t have a legal document to prove the authority of your property ownership, and the court or any other authority won’t be able to accept the documents.
- Authority can not act upon, register or authorise the document, preventing people from relying on the documents to secure legal remedies. For example, the sub-registrar can not register an unstamped document.
- If you don’t pay on time, you might have to pay extra with a specific cost. If you decide to do it later after the desired date, you might be liable to pay ten times the amount prescribed earlier.
- The person receiving the document as evidence can reject or impound it since it is not legal in their eye because of non-payment.
- Sometimes, the concerned person may go through legal or criminal charges for not paying the money.
What is e-stamping?
Online stamping has replaced traditional payment methods, including the most popular ones, physical stamp paper and franking. Several State governments have already considered adopting the online procedure because of the convenience.
Homebuyers must log in to the SHCIL website (Stock Holding Corporation of India). Although, this online procedure is not applicable in all states, and let’s look at the states in India that have adopted the online procedures.
- Andaman and Nicobar Islands
- Andhra Pradesh
- Dadra and Nagar Haveli
- Daman and Diu
- Himachal Pradesh
- Jammu and Kashmir
- Tamil Nadu
- Uttar Pradesh
The benefits of paying stamp duty online include:
- Pay anytime, as per your convenience and comfort
- Generating the stamp paper merely takes a few minutes
- No further fees or additional charges
- It is valid evidence, making your document authentic since it carries a unique identification number.
- SHCIL E-stamping makes data storage tamper-proof.
- Using the inquiry model, anyone can perform its verification
How to pay stamp duty online?
The whole process for e-stamping is pretty easy and quick. Still wondering how to pay stamp duty online? You simply need to follow the given steps mentioned below:
- First, reach out to the e-Stamping website
- If you’re a first-time user, you must register, so choose “Register Now”. (Registration is a mandatory process, and it is free of cost)
- Once registered, submit a proper, working and valid email ID and a mobile number to get notifications easily.
- Put all the necessary credentials to have a unique ID and password. It will allow you to log in and out anytime you desire.
- After completing the registration process, you’ll receive an activation link to your email ID or mobile number. Click the activation click to initiate the procedure.
- During the further stages, you will have to go through selecting states. There will be many options for states to choose from. Ensure that your state follows e-stamping procedures.
- Further, you have to pick a “Nearest SHCIL Branch”.
- Later, fill in the details, including the first party and second party names—The article number, stamp duty paid and the amount etc.
- Once all the necessary details are updated, you will receive an Online Reference Acknowledgement Number.
- You can move further and print out the Online Reference Acknowledgement Number, when all the above steps are completed.
- You can furthermore on and visit the nearest Stock Holding Branch to take a final printout of the e-Stamp Certificate.
There are many ways you can proceed to pay the stamp duty charges, it includes Cash, Cheque, Demand Draft, Pay Order, RTGS, NEFT and Account to Account transfer.
Points to remember:
You should reach out to the nearest e-Stamping centre. Before you proceed with any Electronic fund transfer, bare in mind that ask the centre which mode is convenient. You may have to deal with Bank/Payment gateway charges.
Paying Stamp Duty Online in Maharashtra
How to pay stamp duty online in Maharashtra? The general e-stamping procedure is not applicable in Maharashtra since Maharashtra follows their electronic stamp duty payment method.
The State government 2013 developed a new and alternative option for paying to stamp documents online. This platform is – Electronic Secured Bank Treasury Receipt (eSBTR). Process for the payment through these steps is straightforward and quick!
- Visit and log on to the website of the authorised bank
- Choose the link that states Payment of stamp duty/registration fees
- Enter the necessary details needed and
- Pay the duty online
In Maharashtra, the process involves paying the stamp duty through an authorised participating bank. It requires payment of the stamp duty through a virtual treasury. That’s when you will receive an e-challan. It is a unique identification number that helps add authenticity to the certificate. The “Challan Identification Number” and a “Government Reference Number” will be generated through it.
The e-challan, once generated, will be forwarded to the authorised participating bank within 6 months. Once the bank receives it, they will further issue an E-SBTR (Electronic Secure Bank and Treasury Receipt). It is an important part and will further be printed on secure government-issued stationery.
This E-SBTR is considered as “impressed stamps”, as discussed above.
What are the different types of stamp duty?
Stamps include two categories:
1. Adhesive stamps
Once paid the stamp duty, the stamp gets stuck onto the instrument. These are adhesive stamps, and it is quite common. Many people use these vividly and are further classified into postal and non-postal stamps.
Postal stamps are something that many people already know, and it is very common too.
It is used majorly for all transaction that happens in the post office. While talking about non-postal ones, they are used differently. You will see it in transactions at court places, insurance companies, notaries, brokers and foreign offices.
2. Impressed stamps
These are fixed, final stamps or engraved on the registered instruments. It requires help from an officer.
Now, it will include all the impressions rendered on instruments performed through franking machines, and it happens only when the stamp duty is paid.
What options are there in India for paying stamp duty?
Now that you know how to pay stamp duty online, the question is the payment options. Your stamp duty is being paid is proved when you insert the stamp paper on the top page of the instruments. People often use stamp paper and stamp duty interchangeable since both are the same.
Stamp papers prove that the required stamp duty is paid as expected for a given instrument. The various legal ways to pay stamp duty. Now, it can broadly get divided into three categories:
- Physical stamping
- Phygital stamping
- Digital stamping
To conclude, it’s compulsory to pay mandatory stamp duty charges whenever you buy or sell a property in India. With digitalising and technology growing, the government developed the e-stamping procedure for the comfort of all. This electronic platform took over the traditional payment method and is far more convenient than ever. It also tends to reduce errors and make the documents’ authorisation clear.
Following the procedure mentioned in this article will help you pay at your convenience. Now that you know everything about stamp duty, e-stamping, the benefits and its process. You also know how to pay stamp duty online and its simple procedures. It is time to make the right move and consider doing it yourself. The online process is very simple and quick, it won’t take much of your time, and the result will be quick. Anyone can pay in the comfort of their home and get the documents at their doorstep.
How can one verify the authenticity of the e-stamp?
Just a few required details will be needed online to check the stamp's authenticity. These details include:
- State of registration
- Certificate number
- Unique Identification Number (UIN)
- Type of Stamp Duty
- Certificate issue date
- An alphanumeric string containing six characters
What are the different modes of payment for e-stamping?
You can choose from various options, including cash, cheque, DD, pay order, RTGS, NEFT or even an account-to-account transfer.
Who are the parties involved in the e-stamp paper?
It is the first and second party, where the first party is the owner of the property, and the second party will be the buyer, the transferee of the property.
What’s SHCIL, and how does it help?
A. SHCIL is a Stock Holding Corporation in India. They are the corporate stockbroker in charge of handling or running an e-stamping system.
Is e-stamping more affordable than traditional?
The e-stamping is pretty affordable. In online payment, you don’t have to deal with additional charges.
How to receive a stamp certificate?
The stamping certificate will be received through courier and will take around two working days to get delivered to your doorstep.
How to verify an e-stamp using a mobile app?
SHCIL has introduced a mobile application for all related to E-stamping. It allows the user to scan the QE code mentioned on the e-stamp paper, and it will further help prove the authenticity, even without the internet.
Are stamp duty and registration charges covered by a home loan?
Stamp duty and its registration fees are not usually a part of the house loan approved by a lender.