Frequently asked questions
Answers to frequent questions about paying stamp duty electronically and completing stamped agreements digitally in India.
What is e-stamping and how is it different from physical stamp paper?
E-stamping is a way of paying stamp duty electronically and receiving a tamper-evident e-stamp certificate instead of buying traditional physical stamp paper. The certificate carries a unique identifier that can be checked against a central record, which makes it harder to forge and easier to verify. In many states the Stock Holding Corporation of India acts as the central record-keeping agency for e-stamping.
Do I need to e-stamp a rent agreement?
Rent and leave-and-licence agreements are among the documents that commonly attract stamp duty, and e-stamping is a convenient way to pay it where the facility is available. Whether stamping is required, and at what value, depends on your state's rules and the terms of the agreement. It is best to confirm your state's current requirements before finalising the document.
How is stamp duty calculated for an agreement?
Stamp duty is set by each state, so both the rate and the method of calculation vary depending on where the document is executed and what kind of document it is. For some instruments the duty is a fixed amount, while for others it is linked to the value involved. Because these rules and amounts change over time, you should check the duty applicable in your own state rather than assume a single national figure.
Can an e-stamped agreement be signed digitally?
Yes, once an agreement has been stamped it can be signed using a Digital Signature Certificate rather than with ink on paper. This lets parties in different locations complete and sign the same document without meeting in person. The combination of an e-stamp certificate and a digital signature can make the whole process considerably faster.
How can I verify that an e-stamp certificate is genuine?
Each e-stamp certificate carries a unique identification number that is linked to a central record created when the duty was paid. Genuine certificates can be checked against that record so that the details on the paper match what was actually issued. Verifying this before relying on an agreement helps protect against counterfeit or altered certificates.