What is e stamping and how is it done?

[ecis2016.org] Here is how to access the e-stamping facility in your state

For every transaction of property purchase or sale, you need to pay a stamp duty, to successfully complete the transaction. While, earlier, buyers had to make the payment when they physically presented themselves at the sub-registrar’s office for the property registration, they can now complete a major part of the process online. This process is known as online stamping or e stamping. In this article, we tell you everything you need to know about e stamping in India.

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Why is a stamp paper required?

Buying, selling or leasing your property or creating deeds, require you to pay a stamp duty on property to states, since land is a state subject in India. So, how do you pay it? Such payments to the government are done through the purchase of a stamp paper of different values, as decided by the authorities. Once you make the payment, it is proof that the government has been paid the required fee. It also acts as a future reference for you.

Some frequently-asked questions pertaining to stamp duty are:

Where should I pay the stamp duty?
Under which jurisdiction does the transaction fall?
How much stamp duty should I pay?

The process may appear simple but you must know that there are three ways to pay the stamp duty. However, not all states may have all the three facilities listed below:

E-stamping
Non-judicial stamp paper
Franking machine

For those of you who are technologically savvy, e-stamping, also called electronic stamping is the simplest process.

Also read our article on franking charges.

What is an e stamp?

When the entire process of purchasing the stamp paper is conducted online and there is no physical stamp paper involved, the stamp is known as e stamp.

E stamp

E-stamp sample

Courtesy: Be money aware website

E stamping in India

Starting July 2013, the Indian government, in a bid to reduce instances of counterfeits and errors, introduced the e-stamping facility. The Stock Holding Corporation of India Limited (SHCIL) is the Central Record Keeping Agency (CRA) for all e-stamps used in the country. Be it user registration or administration, from applications for e-stamping to maintaining these records, the SHCIL is authorised to do all of these. It also has authorised collection centres or ACCs (scheduled banks) which then issues certificates to those asking for it.

Advantages of e stamping

With e-stamping, the e-stamp certificate can be generated in a few minutes.
The e-stamp certificate cannot be tampered with and a has unique identification number (UIN).
Using the inquiry module, you can verify the genuineness of the e-stamp certificate.
For e-etamping, a specific denomination is not needed.

What is SHCIL and what does it do?

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

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

SHCIL has ‘pioneered the Demat services in India’ and e-Stamping services that have made payments to the government hassle-free. It also acts as a central record-keeping agency for e-stamping.

SHCIL’s clients include UTI, LIC, GIC, Oriental Insurance, New India Assurance, National Insurance, United Insurance, IDBI MF, LIC MF, GIC MF, SBI MF, Shriram MF and Sundaram MF. Among the early entrants in depository services, SHCIL has a client base of over 6,50,000 accounts in the segment.

SHCIL e stamping

SHCIL is the only central record keeping agency (CRA) appointed by the government of India. The central record keeping agency is responsible for user registration, imprest balance administration and overall e-Stamping application operations and maintenance.

Using the SHCIL e-stamping services, citizens can pay stamp duty online and print e-Stamp certificates from the convenience of their homes. SHCIL also appoints Authorised Collection Centres (ACCs), which issue certificates to the clients at their counters.

What is an ACC?

Authorised Collection Centers (ACCs) are agents appointed by SHCIL and act as the intermediary between the SHCIL and stamp duty payer. Scheduled banks and post offices can become ACCs in India.

Related read:

SHCIL e stamping operations coverage

SHCIL has been designated the central record keeping agency by the Finance Ministry and provides electronic stamping (e-stamping) services to 22 states.

Note that e-stamping is a computer-based application and a secure electronic way of stamping documents. The system of physical stamp papers and franking are being replaced by the e-stamping system.

States where e-stamping services can be used through the SHCIL portal include Delhi, Karnataka, Himachal Pradesh, Ladakh, Chandigarh, Jammu and Kashmir, Puducherry and Andaman & Nicobar Islands. Litigants and advocates can pay e-court fee online and print the e-court fee receipt from the convenience of their homes in Delhi, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Chhattisgarh, Tamil Nadu, Ladakh, Bihar, Uttarakhand, Jharkhand and Puducherry.

Different modes of paying stamp duty in e Stamping system

Client can pay stamp duty amount through the following modes:

Cash
Cheque
Demand draft
Pay order
RTGS
NEFT
Account to account transfer

How to get your documents e-stamped?

Step 1: Visit the official website of the SHCIL at https://www.stockholding.com/. Click on ‘products and services’, choose ‘e-Stamp services’ and finally select ‘e-Stamping’.

What is e-stamping and how is it done?

In case your state allows the e-stamping facility, it will show on the website. Presently, the online facility for e-stamp certificate to be generated, is available for the NCT Delhi, Gujarat, Chhattisgarh, Karnataka, Himachal Pradesh, Odisha, Tripura, Ladakh, Chandigarh, Jammu & Kashmir, Puducherry and Andaman & Nicobar Islands. Due to the COVID-19 pandemic, the SHCIL has reinforced that wherever the facility is available, citizens should make use of it.

What is e-stamping

Step 2: Select the state from the dropdown list. In the example, we have selected NCT of Delhi.

Step 3: You will need to fill an application. On the homepage, go to the ‘Downloads’ tab and select the application that you require. Suppose, the relevant application is the one where the stamp duty payment is less than Rs 501. Simply download the form and fill it.

e-stamp paper

e-stamping in real estate

Step 4: You will need to submit this form along with the payment, for the stamp certificate.

List of states with e-stamping facility

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

[ecis2016.org] Stamp duty and registration charges in Mumbai

How can I pay stamp duty for e-stamping?

You can pay the stamp duty by cash, cheque, demand draft, pay order, RTGS, NEFT or even an account to account transfer. At an ACC, you can pay in cash, or use or a cheque or DD.

How to pay stamp duty online for e-stamping?

Step 1: New users of SHCIL can click on ‘Register Now’ to proceed.

Stamp duty online payment

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

Stock Holding Corporation of India Ltd

Step 3: Upon confirmation through an activation link sent to your registered email address, you can use your user ID and password to access the services.

SHCIL

Step 4: Login to the online module by using your activated User ID and Password.

Step 5: Select the state (for example, ‘Delhi’) from the drop-down menu. Then select ‘Nearest SHCIL Branch’ option and provide mandatory details like First Party Name, Second Party Name, Article No, Stamp Duty Paid By and Stamp Duty Amount, to generate an Online Reference Acknowledgement No. of any amount for payment through Net Banking/Debit Card/NEFT/RTGS/FT.

Step 6: Citizens are required to carry a print out of the Online Reference Acknowledgement No. and visit the nearest Stock Holding Branch to take a final print out of the e-stamp certificate.

Note: Citizens have to bear the actual bank and payment gateway charges.

Note that citizens can pay stamp duty online and print the e-Stamp certificate from the convenience of their home for NCT of Delhi, Karnataka, Himachal Pradesh, UT of Ladakh, Chandigarh, Jammu and Kashmir, Puducherry and Andaman & Nicobar. Also, litigants / advocates can pay e-court fee online and print e-court fee receipt from the convenience of their home for NCT of Delhi, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Chhattisgarh, Tamil Nadu, UT of Ladakh, Bihar (Patna High Court), Uttarakhand, Jharkhand and Puducherry.

How to verify an e-stamp?

On the homepage, you will find an option called ‘Verify e-stamp’. Click on it to continue. Simply enter the state, certificate number, type of stamp duty, date of issuance and session ID and click on ‘Verify’.

What is e-stamping and is it legal?

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

Download the e-Stamp verification mobile app from Google Playstore or the AppStore. You can scan or manually verify the e-Stamp.

For scanning, scan the QR code on the certificate and you will get access to all the details. Note that the scan option will not work for e-Stamp certificates that have been generated before February 13, 2019.

To manually verify, click on the manual button. Select the state from the drop-down box. Enter the certificate number, certificate issued date and click on ‘Verify’.

What is e-stamping and how is it done?

You will get all the details, including the certificate number, certificate issued date, amount reference, unique doc reference, purchased by, description of document, consideration price, first party, second party, stamp duty paid by and the stamp duty amount.

Important things to know about e-stamping

A duplicate copy of an e-stamp certificate will not be issued.
You can get a refund for an e-stamp request once it is cancelled, only when you approach an SHCIL office.
In Maharashtra, stamp duty can be paid online not through SHCIL but through electronic secured bank treasury receipt (eSBTR)-an online payment service.

SHCIL contact information

Stock Holding Corporation of India Limited

Registered office – 301, Center Point,

Dr Babasaheb Ambedkar Road, Parel,

Mumbai- 400 012

CIN number: U67190MH1986GOI040506

E-Stamping operations office:

SHCIL House,

Plot No, P-51, TTC Industrial Area,

MIDC, Mahape,

Navi Mumbai – 400710

Maharashtra, India

Phone : 022 61778100-09

Latest updates about e-stamping

E–stamping to replace franking in Bangalore

Electronic stamping (e–stamping) will be mandatory, if the Karnataka state government goes as per plan. This will put an end to physical franking of documents altogether. Given that all applicants, in case of e–stamping, are given a unique certificate number, chances of fraud are zero. The registration department is of the opinion that revenue in Karnataka can be much higher, if loopholes can be addressed and e-stamping is made mandatory.

E-stamping put on hold in Trivandrum

In Trivandrum, the plan to completely migrate to e-stamping has been put on hold, following glitches due to hasty implementation. As per an order from the taxes secretary, e-stamping was made mandatory starting February 1, 2021. However, the provision to generate e-stamps of denomination below Rs 1 lakh was not updated on the Treasuries Department’s portal, which left vendors and the public dissatisfied. For the past three years, e-stamping has been mandatory in the state for stamp papers worth Rs 1 lakh and above.

E-stamping helps authorities to save on costs in J&K

The Inspector General of Registration, J&K, has confirmed that thanks to the adoption of e-stamping, Rs 35 cores, had been saved since September 18, 2020. This amount was otherwise spent on the printing of stamp papers, besides filling up for leakages and ensuring efficacy and transparency in the stamp duty collection.

FAQs

Is e-stamping economical?

Yes, e-stamping is economical. For example, you may end up purchasing stamp paper of a higher denomination and an additional charge is levied by banks for the service. If you opt for e-stamping, there is no additional charge.

How can I receive a stamp certificate?

Citizens will receive an e-stamp certificate through courier, within two working days.

Is user registration free on SHCIL?

Yes, it is completely free.

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Source: https://ecis2016.org
Category: Lifestyle

Debora BertiMay 6, 2022