Stamp Paper: What Is It and Why Is It Important?

Jan 02, 2024 - by Flat In Kalyan

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Stamp Paper: What Is It and Why Is It Important?
Stamp paper is a special type of paper that has a revenue stamp printed on it. It is used to create and execute various legal documents in India, such as sale deeds, lease agreements, power of attorney, affidavits, etc. Stamp paper is issued by the government and has a unique watermark and serial number to prevent forgery.

The purpose of using stamp paper is to provide legal validity and enforceability to the documents. It also helps to prevent fraud and disputes, as the terms and conditions of the agreement are binding on both parties. Stamp paper also serves as a proof of payment of stamp duty, which is a tax levied by the government on certain types of transactions.

Types of Stamp Paper
There are two types of stamp paper in India: judicial and non-judicial. Judicial stamp paper is used for court-related documents, such as plaints, petitions, summons, etc. Non-judicial stamp paper is used for non-court-related documents, such as contracts, deeds, agreements, etc.

Non-judicial stamp paper is available in different denominations, ranging from Rs 10 to Rs 25,000. The denomination of stamp paper to be used depends then the stamp paper to be used should be of Rs 50,000 denomination (5% of Rs 10 lakh).

How to Buy Stamp Paper
There are three ways to buy stamp paper in India: physical, e-stamping, and franking.
- Physical stamp paper: This is the traditional way of buying stamp paper from authorized vendors or stamp offices. The buyer has to fill in the details of the document and the parties involved on the stamp paper and sign it. The disadvantage of this method is that it is prone to fraud, shortage, and duplication.
- E-stamping: This is a digital way of buying stamp paper online from authorized banks or service providers. The buyer has to fill in an online application form and pay the stamp duty through electronic mode. The buyer will receive an e-stamp certificate with a unique identification number, which can be printed and used as a stamp paper. The advantage of this method is that it is secure, convenient, and verifiable.
- Franking: This is a process of affixing a stamp impression on the document using a franking machine at authorized banks or institutions. The buyer has to prepare the document on plain paper and pay the stamp duty at the bank. The bank will stamp the document with a franking machine and return it to the buyer. The advantage of this method is that it is fast, easy, and accurate.

How to Use Stamp Paper
Once the stamp paper is bought, the buyer has to use it within six months from the date of purchase, otherwise it will become invalid. The buyer has to write or print the document on the stamp paper and get it signed by all the parties involved. The document should also be witnessed by two or more independent witnesses, who should also sign the document. The document should also be registered with the sub-registrar of the area where the property is located, if applicable.

Stamp paper is an essential requirement for creating and executing legal documents in India. It provides legal validity, enforceability, and proof of payment of stamp duty to the documents. Therefore, it is important to buy and use stamp paper correctly and avoid any legal complications.

Also Read About "Stamp Duty And Registration Prices In Maharashtra In 2023"

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