In the case of real estate, one is required to make payments towards stamp duty at the time of the purchase or renting out of a property. While, you have the option of using the traditional method for paying the stamp duty, you can also use an e-Stamp Paper to make the necessary payments. Read on to discover what an E-Stamp paper is and its importance in real estate stamp duty payment.
What is an E-Stamp Paper?
An E-Stamp Paper is essentially a computerized system for making stamp duty payments to the governmental authorities. The existing method of Non-Judicial payment of stamp duty has recently been replaced by the Central Government with the E-Stamp Paper method of payment. This method of payment is way more reliable and secure when compared to the traditional method of stamp duty payment. By introducing the E-Stamp Paper method of payment, the government has eliminated the chances of fraud or fake practices and the applicants can easily buy the E-Stamp Paper in a safe and secure manner.
The Need for an E-Stamp Paper
The E-Stamp Paper is used to pay stamp duty towards property to the Indian government. The stamp duty, in essence, is a type of tax, similar to that of Income or Sales tax. An individual is required to pay the stamp duty on time and in full to the governmental authorities. When there is a delay in the payment of the stamp duty, then the government imposes penalty on the applicant.
E-Stamping Generation
As far as E-stamping is concerned, the SHCIL or the Stock Holding Corporation of India (SHCIL) is basically the nodal agency which is responsible for implementing and maintaining the records pertaining to e-stamping. In India, the facility of e-stamping can be accessed in states such as Delhi & NCR region, Karnataka, Maharashtra, Gujarat, Tamil Nadu and Assam. The SHCIL has collaborated with numerous banks that function as the authorized centres for collection of stamp duty. One can pay stamp duty either in cheque, cash, NEFT or bank draft. Only in cases where the payments are made through NEFT or cheque, the stamp certification is acquired when the SHCIL gets the money. After the bank realizes the payment, the applicant is provided with a copy for previewing the e-stamp. It is crucial that you check the particulars of the e-Stamp carefully since a cancellation may result in a 10% of stamp duty amount. The e-stamp is finally issued to the applicant after he/she signs the copy provided for previewing.
Thus, E-Stamp Paper has two distinct features that are not present in the franking method of payment. This includes the article number as well as the property description. While, property description requires the applicant to mention the address clearly, article number represents the transaction towards which you are making the stamp duty payment. Apart from this, every E-stamping comes with a UIN or a Unique Identification Number that is crucial for the purpose of 3rd party verification. In case someone wants to verify e-stamping details, they can do the same by simply logging in as well as providing the UIN number, date of issue of the certificate, type of stamp duty as well as the session code.
Conclusion
The E-stamping method of payment is hassle-free and inexpensive. For instance, when it comes to buying a stamp paper, we tend to purchase a stamp paper with a higher value or denomination, especially when the exact denomination is not available. Even though one can pay the exact value through the franking method, but again the bank levies an extra charge for providing the service. On the contrary, when you choose the e-stamping method, you are required to make stamp duty payments only i.e. without the need to pay any additional charges.
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