What is E Stamp UP, And How To Apply it?

To complete transactions involving real estate, you must pay stamp duty. Buyers used to have to pay in person when they went to sub-office registrars for property registration. Now, buyers can do a large part of the process online, so they don’t have to go to the office. This method is called “e-stamping” or “online stamping.” This article will provide all the information you require concerning e-stamping in India.

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Why is it Necessary to Use Stamp Paper?

e stamp up — Source: Photo by Cytonn Photography on Unsplash

You must pay stamp duty when you buy, sell, or lease real estate in India and create a new deed for the property. This is because the land is regarded as a state subject in India. The question now is: how do you pay for it? These kinds of contributions to the government are made through the purchase of stamp papers with varying face values, which are determined by the relevant authorities. After making the payment, you will have provided evidence that the necessary fee has been paid to the government. In addition, it might be a reference for you in the future.

What Exactly is a Digital Stamp?

To describe an electronic stamp, the entire transaction is done online, and no actual stamp paper is involved.

E stamping in India

The Indian government first used the electronic stamping facility in July 2013 to reduce errors and counterfeits. The CRA for all electronic stamps used in India is the Stock Holding Corporation of India Limited (SHCIL). The SHCIL is authorized to carry out all of these tasks, including user registration and administration, applications for electronic stamping, and the upkeep of these data. In addition, it possesses authorized collecting centers, also known as ACCs (scheduled banks), responsible for issuing certificates to people who request them.

Advantages of e stamping

It takes a few minutes to generate an electronic stamp certificate when using e-stamping.
The digital certificate is not altered and comes with its identifying number (UIN).
You can verify the authenticity of a digital signature by using the inquiry module.
There is no requirement for a particular denomination when it comes to e-stamping.

What Exactly is the SHCIL, and what are its Functions?

In 1986, the Stock Holding Corporation of India Ltd., also known as SHCIL, became India’s most prominent member of the country’s depository system after being established as a public limited corporation.

SHCIL is a subsidiary of IFCI Limited, which as of March 31, 2019, held a stake in the company equal to 52.86 percent. Indian banks and financial institutions, including LIC, SU-UTI, and the GIC, were all involved in the combined promotion and ownership of SHCIL. IFCI Limited owns SHCIL, which is a subsidiary of the group.

SHCIL is credited with “pioneering the Demat services in India,” as well as the e-Stamping services that have simplified the government payments process. In addition, It serves as a centralized repository for electronic stamping records.

Indian organizations such as IDBI MF (LIC Mutual Funds), SBI Mutual Funds (LIC Mutual Funds), Sundaram Mutual Fund (Sundaram Mutual Fund), and UTI (United Insurance) are among the clients of SHCIL. Other clients include United Insurance, National Insurance, and United Insurance. SHCIL was one of the early companies to enter the market for depository services, and it currently has a client base that comprises more than 6,50,000 accounts in the market.

SHCIL e stamping

For the first time in Indian history, SHCIL has been appointed as the country’s sole central record-keeping agency (CRA). User registration, management of imprest balances, and general operations and maintenance of the e-Stamping program are all the agencies responsible for central record keeping.

When individuals use the e-stamping services SHCIL, They don’t have to leave their homes to pay stamp duty online or print e-Stamp certificates. Additionally, SHCIL will appoint Authorized Collection Centres (ACCs), who will hand out certificates to customers at their respective counters.

What Accurately is an ACC?

Stamp duty payers and SHCIL are served via authorized collection centers (ACCs), which SHCIL appoints as intermediaries between the two parties. Authorized Collection Centers are the official name for these companies. Scheduled banks and post offices in India are allowed to become ACCs by the government.

SHCIL e stamping Operations Coverage

Electronic stamping, also known as e-stamping, is a service that SHCIL offers in 22 states. The Finance Ministry has designated SHCIL as the central record-keeping agency. An electronic stamping application, also called an e-stamping application, is a safe and secure way of stamping documents electronically. Electronic stamping is progressively replacing traditional stamp materials and franking devices.

Electronic stamping services are available to inhabitants of the following states via the SHCIL portal: Delhi; Karnataka; Himachal Pradesh; Ladakh; Chandigarh; Jammu & Kashmir; Puducherry; and the Andaman and Nicobar Islands. Litigants and advocates in the following states and union territories can pay the e-court charge online and print the e-court fee receipt from the convenience of their own homes: Uttar Pradesh, Chhattisgarh, Tamil Nadu; Ladakh; Bihar; Uttarakhand; Jharkhand; and Puducherry. There are various ways to pay stamp duty inside the e Stamping system.

e stamping operations — Source: Photo by Leon Dewiwje on Unsplash

There are Various Ways to Pay Stamp Duty Inside the e-Stamping System – The following methods are available to the customer for the payment of stamp duty:

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

How to Acquire an Electronic Stamp on Your Documents

Step 1: Please go to https://www.stockholding.com/ to view SHCIL’s official website. After clicking on the “products and services” tab, choose the “e-Stamp services” option and then select the “e-Stamping” option. Your state’s availability for electronic stamping can be found on the website. The National Capital Territory of Delhi, the conditions of Gujarat, Chhattisgarh, Karnataka, Himachal Pradesh, Odisha.

Other states like Tripura, Chandigarh, Ladakh, Jammu and Kashmir, Puducherry, the Andaman and Nicobar Islands, etc. All these places generate e-stamp certificates online at this time. To combat the COVID-19 pandemic, a new emphasis has been placed on the necessity to access healthcare facilities whenever and wherever they are available.

Step 2: Pick the state you live in from the list that drops down. In this example, we will use the National Capital Territory of Delhi.

Step 3: Requires you to fill out an application. You can find the application you need by going to the ‘Downloads’ link on the homepage. For example, let’s say that the application in question is the one in which the total amount of stamp duty paid is less than 501. Save the form to your computer, then fill it out.

Step 4: You must hand in this form and the appropriate fee to obtain the stamp certificate.

List of States with e-stamping Facility

Andhra Pradesh
Bihar
Assam
Andaman and Nicobar Islands
Chandigarh
Chhattisgarh
Dadra and Nagar Haveli
Daman and Diu
Gujarat
Jammu and Kashmir
Delhi
Himachal Pradesh
Karnataka
Jharkhand

What are my Options for Paying Stamp Duty While Using e-stamping?

RTGS and NEFT are two electronic payment methods that you can use to pay your stamp duty. You can also transfer money from one bank account to another to make your stamp duty payment. You can pay with cash, a check, or money order at an ACC.

How can I make an Online Payment for the Stamp Duty Required for e-stamping?

Clicking on “Register Now” will take first-time users of SHCIL to the next step in the process.

Once you have confirmed your email address by clicking on an activation link that was delivered to your registered email address, you will be able to access the services using your user ID and password.

Activate your User ID and Password, and log in to the online module using those credentials.

From the drop-down menu, choose the name of the state (for example, “Delhi”) you are in. For example, to generate an Online Reference Acknowledgement Number for any amount that can be paid using a debit card or net banking, NEFT or RTGS, or FT, select “Nearest SHCIL Branch,” then provide the necessary information, including the First Party Name, the Second Party Name, the Article Number, the Person Who Paid the Stamp Duty, and the amount of the Stamp Duty.

Requires citizens to bring a printout of the Online Reference Acknowledgement No. And go to the nearest Stock Holding Branch to get a final printout of the e-stamp certificate.

Please note that citizens are responsible for paying any bank or payment gateway fees. You can now pay your stamp duty online and print your e-Stamp certificate from your home in the NCT of Delhi, the UT of Ladakh, Chandigarh, Jammu and Kashmir Puducherry, and Andaman & Nicobar Islands.

Andaman & Nicobar Islands are also affected by this. In addition, litigants and advocates in the National Capital Territory of Delhi, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Chhattisgarh, Tamil Nadu, the Union Territory of Ladakh, Bihar (Patna High Court), Uttarakhand, Jharkhand, and Puducherry can pay the e-court fee online and print the e-court fee receipt from the comfort of their homes.

How can an Electronic Stamp be Validated?

On the homepage, there is a menu option that you can select that is labelled “Verify e-stamp.” To proceed, please click on it. After providing the necessary information (the state, certificate number, kind of stamp duty, date of issuance, and session ID), you can click the “Verify” button.

How can an Electronic Stamp be Validated by Utilising a Mobile App?

You can get the e-Stamp verification app from AppStore or Google Playstore. Manually confirming the e-Stamp or scanning are the two methods available. Scanning the QR code on the certificate will give you access to the data it contains. For example, scannable e-Stamp certificates issued before February 13, 2019, will not have this feature available.

Click the “manual” button to verify the information manually. Select your current state from the drop-down menu. Verify your certificate by entering its number and the date it was issued. Everything you need to know is included in the certificate number and date of issue, as well as the unique doc reference, which is a unique identifier for each document. You’ll also be able to see who paid stamp duty, who was the first and second parties, and the amount of stamp duty.

Some Essential Information Regarding the Use of Electronic Stamps

It is impossible to obtain a second copy of an electronic stamp certificate. If you cancel an e-stamp request after it has been processed, the only way to receive a refund for the fee is to visit a SHCIL office. Stamp duty can be paid online in Maharashtra; however, not through SHCIL but through an electronic secured bank treasury receipt (BTR), an online payment service.

E–Stamping to Replace Franking in Bangalore

If all goes according to the plan, electronic stamping, also known as e–stamping, would require all businesses in Karnataka. This will result in the complete elimination of the practice of physically franking documents. Since electronic stamping assigns a one-of-a-kind certificate number to each applicant, there is no possibility of fraud occurring in this process. However, the registration department in Karnatakalis believes that revenue may significantly increase in the state. This is possible only if loopholes are closed, and e-stamping is mandated for all transactions.

E-stamping Was Put on Hold in Trivandrum

As a result of problems caused by the rapid installation of the new system, the intention to switch over to e-stamping in Trivandrum has been put on pause. Beginning on February 1, 2021, electronic stamps are now required due to an order issued by the secretary of taxation. However, the capability of the Treasuries Department didn’t update the portal to print e-stamps with a denomination of less than one lakh rupees. It resulted in vendors and the general public becoming displeased. In addition, stamp papers with a face value of one lakh rupees or more have been required to have an electronic stamp applied in the state since the beginning of the last three years.

E-stamping Helps Authorities to Save on Costs in J&K

There has been a total savings of Rs 35 crore since September 18, 2020, according to the Inspector General of Registration for the state of J&K. In addition to ensuring that the stamp duty collection process was efficient and transparent. This money was used to print stamp papers.s.