All you wanted to know about Stamp Duty

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Stamp Duty, in simple terms, is nothing but a type of tax collected by the government under its jurisdiction for transaction of a property. The duty is levied in every state in India but the rates vary. Different types of non-postal stamps are available for making legal recognition of the documents of the property. And different types of non-postal stamps are used for different types of dealings. Every state has one point of distribution, and non-postal stamps are distributed to other districts from this point only. In Ahmedabad, such stamps are available at the office of M.S. Building in Lal Darwaja. While this particular office is declared as the ‘Nodal Point’ for non-postal stamps, the head of the Nodal Point is known as the Superintendent of Stamps. This non-postal stamp stock is received from the India Security Press at Nasik, and thereafter it is distributed to the different district treasuries across the state. The duty is levied on sale deeds on non-judicial stamp papers and it is as per the rates determined by the state government. Moreover, for agreements, affidavits, loan security, and such other dealings, non-judicial stamp paper is needed. The non-judicial stamp papers are available in different denominations starting from Rs. 5 to Rs. 25,000. Franking print: There are government authorized stamp vending offices. These offices have stamp machines. You only have to submit your document and a franking print of the necessary amount is impressed and given to you. In case a bank or any other financial institution needs it, special adhesive stamps franking licenses are issued by the Superintendent of Stamps- Gandhinagar, Gujarat. The range of the denominations of franking print is from Re. 1 to Rs. 5,000. E-stamping: The state government has made e-stamping available through the Stock Holding Corporation of India Ltd. This facility is available in all the Districts and Taluka Head Quarters at the office of the Sub-Registrar throughout the state. Notary Stamps: It is necessary to notarise documents (such as affidavit, power of attorney, etc.) from the Executive Magistrate or a government appointed Notary. The Notary stamps are available for Rs. 5. Revenue Stamps: For transactions worth Rs. 5,000 or more, revenue stamps are pasted and the document is executed. The revenue stamps worth Re. 1 are available at all post offices around the state. Agreement Stamps: In the case of marriage registration, the duty agreement stamp as determined by the government has to be affixed and recovered. An Agreement of Rs. 10 or Rs. 100 is available. Insurance Stamps: The insurance stamps are used by the insurance companies wherein the companies affix these stamps after selling the insurance policies. However, the franking of the insurance stamps is also possible. The value of the insurance stamps ranges between Re. 1 and Rs. 1,000. Share Transfer Stamps: Whether you sell, purchase or transfer a share, you will need a Share Transfer Stamp. These stamps are available in price range of Re. 1 to Rs. 200. Foreign Bill Stamps: When any Indian private company is dealing with any overseas company, Foreign Bill Stamps are used in making agreements. These stamps are available in denominations of Re. 1 to Rs. 100. Brokers Note – Stamp & Hundi Papers: In Cabala Document dealings the Brokers Note stamps are used. Many decades ago, as promisory notes, Hundi papers were used. These have now been replaced by adhesive stamps. The Broker Note stamps are available from Re. 1 to Rs. 500. And for Hundi papers, adhesive stamps worth Re. 1 to Rs. 10 are available. Judicial Stamp Paper and Court Fees Stamp label: Judicial Stamp Papers are to be affixed while making applications before the court, collector, and additional collector. For this purpose, stamps are available from 25 paisa to Rs. 20. On the other hand, in court proceedings, the Court Fees Stamp Papers are used. These are available from Rs. 50 to Rs. 25,000.