FAQ - STAMP DUTY

FREQUENT ASK QUESTION ON STAMP DUTY

The Indian Stamp Act, 1899 was enacted to consolidate and amend the law relating to stamps. It extended to the whole of India, except the State of Jammu and Kashmir. The Indian Stamp Act, 1899 is Central Enactment and state have power to adopt the Indian Stamp Act, 1899 with amendment to same to suit the transaction peculiar to each state. Certain state's have introduce Schedule I to the Indian Stamp Act, 1899 being the stamp duty payable in the state. State such as Maharashtra ( The Bombay Stamp Act, 1958.), Gujarat (The Gujarat Stamp Act. 1958), Karnataka (The Karnataka Stamp Act, 1957), Kerala (The Kerala Stamp Act 1959) and Rajasthan (The Rajasthan Stamp Act, 1998) have their separate Stamp Act, while many state's follows The Indian Stamp Act, 1899.



The Maharashtra (Bombay) Stamp Act, 1958 comes into force on 16th February, 1959 and is applicable in the State of Maharashtra. This Act is intended to levy Stamp duty on certain types of documents executed in the State or brought from outside for acting upon the same in the State. The various instruments/documents are broadly covered under different article 62 listed in Schedule-I appended to the Act. The rates at which Stamp Duty is levied on those documents are mentioned in Schedule I of The Maharashtra (Bombay) Stamp Act, levies Stamp duty on documents / instruments by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded. The stamp duty is payable on instrument and not on the transactions.

The stamps are generally categorized as Postal stamps and Non-Postal stamps. Postal stamps are used for transaction with Post Offices and related functions.

The following types of Stamps come under Non-Postal Stamp category.

01. Judicial Stamp Paper
02. Non - Judicial Stamp Paper
03. Impressed Stamp / Special Adhesive Stamp (Labels)
04. Court Fee Stamp
05. Revenue Stamp
06. Notarial Stamp
07. Foreign Bill Stamp
08. Brokers Note
09. Insurance Policy Stamp
10. Share Transfer Stamp
11. Hundi
12. Insurance Agency Stamp

The features of each of the different stamps are enumerated bellow;
The New Stamp Papers are printed on special security paper with special security inks and printing techniques, Modern stamp issues include fluorescent markings.These are used to sort the deter forgery.
Non-Judicial Stamps Papers which are commonly used through out the country.


01. Judicial Stamp

judical stamp

Judicial Stamp Paper are used for transactions with judiciary.

Denominations: Rs.20, 50, 100, 500, 1000, 5000 and 25000/-.

Usage: Payment of Stamp duty in respect of Transactions with Civil and Criminal Courts.


02. Non Judicial Stamp


non judical stamp

Non Judicial Stamp Paper are used for paying tax on transactions.


Denomination: Rs. 20, 50, 100, 500, 1000, 5000, 10000, 15000, 20000, 25000

Usage: Agreements, Sale Deed, Affidavits, Bond, Undertaking, Declaration, etc.


03. Impressed Stamp / Special Adhesive Stamp (Label)


Two kinds of stamp for indicating the payment of Stamp Duty.

a) Impressed Stamp



i. Labels affixed and impressed by the proper officer.


ii. Stamps embossed or engraved on stamped paper.


iii. Impressions by Franking Machines.



iii. Impressions by Franking Machines.

franking

w.e.f. 19/05/1995 :- Franking of Documents was started at Genral Stamp Office, Mumbai.
FRANKING is an alternative to pay stamp duty, due to no availability of Non Judicial Stamp Papers. A mark applied instead of stamps to indicate that the amount of tax has been paid, Impressions by franking machines, is in RED INK. A special security ink is used to print stamps this can be detected with a Fluorescent UV Lamp. When you shine the light on the stamp, the security marks on paper will glow in red fluorescence color these are used to sort the forgery.

b) Special Adhesive Stamps


special adhesive stamp

iii. Special Adhesive Stamp are label.







04. Court Fee Stamps

court fee stamp

Court Fee Stamps are generally used by public and other departments for correspondence with Government Departments / Offices, Registration Office, Police Station, Revenue Offices, etc.
Denomination: ₹ 2, 5, 10, 20,
Usage: Application for Index II, Certified Copy, etc.

05. Revenue Stamps

revenue stamp

Revenue stamps are widely used by all section of the society especially involving payment of money.
Denomination: Re. 1.00


Usage: Receipt of payment of Money

The are two types of Stamps Papers which are mainly used in India
1. Judicial Stamps Paper
Judicial stamp are used for transactions with judiciary.
Usage: Payment of Stamp duty in respect of Transactions with Civil and Criminal Courts.

2. Non Judicial Stamp paper
Stamp Papers which would be used for execution of documents are called Non Judicial Stamp Papers. Non-Judicial Stamps which are commonly used through out the country to register the contracts, agreements, deeds, wills, etc.

Usage: Agreements, Sale Deed, Affidavits, Bond, Undertaking, Declaration, etc.

It is a type of tax which has to be paid for the transaction performed by way of document or instrument under the provisions of Bombay Stamp Act, 1958 and Indian Stamp Act, 1899.

Stamp duty is payable on instruments and not on transactions. The definition of the term instrument is very wide.

Instrument means any document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.

As defined in The Indian Evidence Act, 1872, document means only matter expressed or described upon substance by means of letters, figures or marks or by more than any of those means intended to be used or which may used for the purpose of recording that matter.

The payment of proper Stamp duty on instruments bestows legality on them. Such instruments get evidential value and are admitted in evidence in Court of law. The instruments which are not properly stamped are not admitted in evidence.

The following Articles of The Indian Stamp Act, 1899 attract Stamp duty in the state of Maharashtra

The following Articles of The Indian Stamp Act, 1899 attract Stamp duty in the state of Maharashtra.

As per the Article 5(h) on Rs.5/- Adhesive Stamp or Stamp Paper.

If not then at the time of Possession or under the Article 25 (d) of schedule I of Bombay Stamp Act, 1958 at the time of Conveyance.

If the Sale Deed or Agreement for sale was executed before 10/12/1985, taxation (stamp duty) was applicable as per the article 5(h) of Bombay Stamp Act, 1958 wasn't treated as a section Conveyance and provision for assortment of taxation wasn't applicable at that point.

However it should be noted that once ever you proceed to obtain the Conveyance you'd be vulnerable to pay the complete taxation (stamp duty) on this (current) market price of your Property as applicable under the rules.

Before 04-08-1980 it was on Agreement Value.

After 04-08-1980 it was as per Market Value (which has to be decided).

Before and up to 10.12.1985 it was Optional.

After 10.12.85 it was Compulsory as per Market Value or as per Ready Reckoner.

LETTER

No. 5 / Stamp Duty 06 / Letter. No. 58/06/1224
Inspector General at Registration & Stamp
Maharashtra State, Pune Office, Pune.

Date : 10/08/2006

To,
The Superintendent of Stamps,
Mumbai.


Sub : Levy of Stamp Duty on the Deeds of Agreements made prior to 10/12/1985
Reference : Your Letter No.BOM/5064/06 dated 03/08/2006
Referring to the points raised in the above letter we explain as follows;

On the Sale Agreements executed before 10/12/1985, Stamp Duty applicable was as per the article 5(h) of Bombay Stamp Duty Act, 1958 and not as per Article 25 of the Act. This is as per the judgment given by Honorable Mumbai High Court in the case of Padma Nair V/S Dy. Collector, Stamps & Adjudication and others.

If the State Agreements executed before 10/12/1985 are submitted under Article 31, the Collector of Stamps cannot give any remark on such Agreements under Article 32 C (A) & (B).

Instead of issuing any order, under Article 33 or Amnesty Scheme you can issue a letter in following format to concerned persons who have submitted such Documents.

“Your Sale Agreement Deed is executed before 10/12/1985.

At the time of execution of your Sale Deed, the Agreement for sale was not treated as a Part Conveyance and provision for collection of stamp duty was not applicable at that time. As such the Agreement is considered properly stamped under the article 5 (h). However it must be noted that when ever you proceed to procure the Conveyance you would be liable to pay the full Stamp Duty on the Current Market Value of your Property as applicable under the rules.

Inspector General of Registration and Controller of Stamps
Maharashtra State, Pune

As per Article 62 articles of Schedule I of Bombay Stamp Act, 1958 are grouped in three categories.

Category 1) Articles whose amount of Stamp Duty is fixed irrespective of the value mentioned in the Document / Instrument.
( Viz. Administration Bond, Adoption Deed, Affidavit, Divorce, Appointment in Execution of Power , Apprenticeship Deed, Article of Clerkship, Award, Cancellation Deed, Charter Party, Duplicate, Copy of Extracts, Entry of Memorandum of Marriage, Indemnity Bond, Letter of License, Memorandum of Association of a Company, Notarial Act, Power of Attorney, etc.)

Category 2) Articles where depending upon the value mentioned in the document, the amount of stamp duty is varied. (Viz. Agreement relating to Deposit of Title Deeds, Pawn, Pledge or Hypothecation, Clearance List, Lease, Article of Association, Mortgage Deed, Security Bond, etc.)

Category 3) Articles which attracts Stamp Duty on the consideration mentioned in the document or True Market Value, whichever is higher.
( Viz. Conveyance, Agreement for Sale, Gift, Exchange, Partnership Deed, Partition, Development Agreement, Transfer, Trust, etc.)

For category 1 and 2 types of instruments the Stamp duty payable can be ascertained by referring to the Schedule I; but to ascertain the Stamp duty on the instruments mentioned in Category 3, the Professional Expertise in Valuation is required. The True Market Value is determined as per the provision of the Bombay Stamp ( Determination of True market value of the property ) Rules, 1995.

The Section 17 & 18 of the Bombay Stamp Act, 1899 states the time of payment stamp duty. Generally all the instruments executed in the state shall be stamped before or at the time of execution or immediately thereafter or on the next working day following the day of execution. Similarly, the instruments which is executed out of the state and within three months from its receipt in the state, shall be stamped.

Earlier the Stamp Duty was calculated by the Town Planing and Valuation Department, Government of Maharashtra.
w.e.f. 01/03/1990 The Government of Maharashtra introduce the concept of True Market Value by publishing (Annual Statement Rate / Bazar Mulaykant Takta / Ready Reckoner for charging Stamp Duty. True Market Value means the values of the property in the Open Market or the amount of consideration mentioned in the document whichever is higher.

Stamp Duty has to be paid on True Market Value or on the amount of consideration mentioned in the document whichever is higher.

The Sub Registrar in whose jurisdiction is said property is located has to be contacted to ascertain the True Market Value.

The parties can ask the Sub Registrar to refer their case to the Collector of the district for determination of true market value and it is binding on the Sub Registrar to do so.

The collector issues notices to the parties, allows them to produce evidence, grants them hearing, some time he even does site inspection and finally devised the True Market Value of the property which is accordingly informed to the parties.

The parties can go in appeal to the Deputy IGR (Deputy Inspector General of Registration ) and Dy. Controller of Stamps of the region u/s 32B of the Bombay Stamp Act 1958.

Decision given by the DIG is binding on the parties. There is no provision of appeal or application for revision against this order.



Stamp Duty can be paid by
1. Using Stamp Paper
2. Using Adhesive Stamps
3. Franking
4. EBSTR
5. On Line Challan

As per the provisions of Section 30 the onus of payment of Stamp duty in the absence of an agreement to the contrary, shall be borne by the executing in the manner provided their with respect of certain kinds of documents viz. Mortgage deed, release, security bond, settlement, bond etc. in the case of conveyance, the grantee and lease the lessee shall pay the stamp duty in the case of exchange of property, both the parties in equal share shall pay stamp duty. In case of partition, the parties thereto in proportion to their respective shares should pay stamp duty.

Under Section 31, of Bombay Stamp Act, 1958. deals with the adjudication of the instruments. Adjudication means determining the charge ability of stamps duty on instruments.

The authority to be approached is the Collector of Stamps appointed in each District.

Amount of Fees is Rs. 100/- as adjudication fee.

Application for adjudication should be accompanied by true copy or an abstract of the instrument and also with such affidavit or other evidence as may be necessary to prove that all facts affecting the charge ability of the instrument have been truly set forth in the instrument along with the proof of payment. Adjudication can be done both for signed as well as unsigned documents.

The Document which is chargeable with Stamp duty can be prepared on the non-judicial Stamp paper of appropriate value. unexecuted document can be got franked with special adhesive Stamps by Franking Machine intended for stamping such documents, by tendering required amount in the office of collector of Stamps wherever this facility is available. When documents is lodged for adjudication, on receiving intimation as to the amount of Stamp duty payable by tendering appropriate amount equal to the amount of Stamp duty and penalty if any, the Collector of Stamp shall certify the document as to the payment of proper duty.

w.e.f. 01/12/1989 the validity of stamp paper is 6 months only.
As per the provisions of Section 52-B, the stamps which are purchased and not used within six months shall be rendered invalid thereafter. The stamps purchased and not used for intended purpose are entitled for refund after deduction of certain charges, if lodged for refund within six months from the date of purchase and on fulfilling the conditions stipulated in Chapter V of the Bombay Stamp Act, 1958.

The documents if not duly stamped, shall not be admissible in evidence in the court of law. As per the provision of Section 59, any person who, with the intention to evade the Stamp duty, executes or signs any instruments chargeable with stamp duty, without the same being duly stamped, shall on conviction, be punished with rigorous imprisonment for term which shall not be less than one month but which may be extended up to six months and fine up to Rs. Five Thousand. The Section 67 and 68 empowers the authorities to enter upon any premises and to inspect and impound/seize the documents which are not duly stamped and burden is casted upon every public officer to assist the authorities in detection of evasion. The documents impounded for want of proper duty, attracts penalty @ 4 % per month (w.e.f : 27/04/2015) from the date of execution of such document miscellaneous.

w.e.f. 01/05/1994 The stamps are required to be purchased in the name of one of executors signing the instrument.

Such instruments are not admitted in evidence, for any purpose. These instruments are also treated as not properly stamped. These instruments are liable to be impounded and sent to the Collector of Stamps for recovery of proper stamp duty.



The rates of stamp duty on instruments relating to transfer of immovable property vary from place to place. The rates are specified in Article 25 of Schedule I of the Bombay Stamp Act, 1958. However, (w.e.f : 25/04/2012) Article 25 (b)(d) which deals with the instruments of transfer of residential premises in Co-operative Housing Society or where the provisions of Maharashtra Ownership Flats Act 1963 and the Maharashtra Apartment Ownership Act, 1970. In areas, where the provisions of the aforesaid Acts. Instruments relating to the transfer of land, residential, (commercial) office, Shop and Industrial premises of market value or agreement value attract stamp duty for values as applicable in that area. Such normal rates are 5 %, 4%, and 3 %. depending on where the property is situated.

In addition to recovery of deficit Stamp duty in such cases, the concerned party is required to pay penalty of Rs. 250/- plus 15 % interest for each year or part of the year on the deficit amount from the date of presentation of instrument before the Sub-Registrar.

The parties can go in appeal to the Chief Controlling Revenue Authority, Maharashtra State, Pune. Under section 32 B of Bombay Stamp Act, 1958.

The charge-ability of stamp duty on the instrument as determined by the Collector of Stamps is not final. The person affected by the order of the Collector of Stamps can go in appeal to the Chief Controlling Revenue Authority, Maharashtra State, Pune as provided in section 53 of the Bombay Stamp Act, 1958, limit prescribed for the filing of an appeal is within 60 days.

Under Section 28 of the Bombay Stamp Act, 1958 casts the duty on the executants to disclose and truly set forth relevant facts and circumstances in the instruments. This helps in finding out the types of transactions involved in the instruments which in turn helps in the determination of proper stamp duty payable on such instruments. Duty is not payable on the title or the heading given on the top of the instrument but on the recitals as stated in the instruments.

Yes, Refund can be claimed u/s 47 of The Bombay Stamp Act 1958. However such claim can be made to the collector of Stamps within a period of 6 months from the date of purchase of Stamps

Every person having by law or consent of parties’ authority to receive evidence and every person in charge of ? public office before whom any instrument chargeable with stamp duty is produced or comes in the performance of his functions. Shall if it appears to him that instrument is not duly stamped, impound the same, irrespective whether the instrument is not valid in law. Such impounded document is required to be forwarded to the Collector of Stamps for recovery of deficit stamp duty in addition to penalty at the rate of 4 % per month.

The Stamp Duty as is leviable on a Conveyance under clause (a), (b), (c) or (d) as the case may be, of Article 25 on the True Market Value of the property which is subject matter of the Gift.

w.e.f. 24/04/2015. Stamp Duty payable on instrument of Gift Deed, as per Article 34 of Schedule I of Bombay Stamp Act, 1958.

If the residential and agricultural property is gifted to husband, wife, son, daughter, grandson, grand-daughter, wife of deceased son, the amount of duty chargeable shall be 200/- (Rupees : Two Hundred Only)

If other then (residential or agricultural land) property is gifted to husband, wife, son, daughter, grandson, grand-daughter, wife of deceased son, the amount of duty chargeable shall be 2% on the True Market Value.

If the property is gifted within family members being Father, Mother, Son, Daughter, Husband, Wife, of the Donor or to any Lineal Ascendant or Descendant of the Donor.

If gifted to other then family members then 5 % Stamp Duty is applicable on the True Market Value of the Property as per Article 34 read with Article 25 of Schedule I of Bombay Stamp Act, 1958.

To read Recent Amendment on Gift Deed Click Here

DISCLAIMER: e-stampdutyreadyreckoner.com will not be responsible for any claim arising out of the use of any of the mentioned information’s provided on this site. The FAQ column and the contents of this website are for general purpose and mere use and not constitute as a legal advice or remedies. We advise our users to take proper legal helps from Solicitor or an Advocate or with concern department.



How to calculate Market Value

We have explained in details how to calculate Market value of Property.

How To Pay Stamp Duty And Registration Fee

Maharashtra State Government has provided various types of facilities to the public for the payment of Stamp Duty through various types of mode and has appointed Nationalized Banks, Schedule Banks, Private Banks and the Co-operative Banks which are authorized by Reserve Bank of India. With view that the facility of payment of stamp duty is made easily available to the public therefore different arrangements are in force.

Online Leave and License Registration

The Department of Registration and Stamp, Maharashtra State Government had appointed Authorised Service Providers to register Leave and License Agreement in Maharashtra.

Important Timeline of Maharashtra State

We have provided the Timeline Events of Registration and Stamp Department, Maharashtra State.