Property & Real Estate#063

Understanding Stamp duty payment — e-Stamp / franking

Pay stamp duty before executing any property deed; the amount is computed on the property value.

At a glance

Jurisdiction

India (state-specific; procedure and rates vary by state — Maharashtra, Karnataka, Delhi, Tamil Nadu patterns described)

Who applies

Any person or entity intending to execute a registrable instrument (sale deed, gift deed, mortgage, lease, etc.) who must pay stamp duty before or at the time of registration

Typical time

Same day (e-Stamp certificate generated instantly online; franking takes 30 minutes to 2 hours at authorised bank/franking centre)

Fee

Stamp duty: 3%–8% of property market value or circle rate (whichever is higher), varies by state and buyer category. e-Stamp certificate: no extra fee via SHCIL portal; franking charges: Rs 1–6 per Rs 1,000 of duty paid (varies by state)

Who should use this process

✓Any individual, HUF, company, or trust executing a registrable instrument
✓Stamp duty must be paid before execution of the instrument or on the day of execution
✓e-Stamp facility available in states connected to SHCIL (Stock Holding Corporation of India Ltd) — currently 21+ states
✓Franking available through Reserve Bank of India-authorised banks and licensed franking centres
✓First-time women buyers get concession (1%–2% rebate) in states like Maharashtra, Rajasthan, UP, Delhi
✓Properties purchased under affordable housing or PMAY may attract concessional duty

Who does NOT need to apply

✕Instruments executed outside India are not eligible for domestic e-Stamp payment through SHCIL (separate process applies)
✕Some instruments (e.g., power of attorney for family members, wills) may attract nominal or zero stamp duty — check state schedule
✕Stamp duty exemptions for gift deeds between blood relatives in certain states (Karnataka, Delhi) — verify state rules
✕Properties in cantonment areas may have different duty structures under the Cantonments Act

Documents required

#	Document	Type needed	Purpose
1	Draft / executed instrument (sale deed, gift deed, mortgage deed, etc.)	Soft copy (PDF)	Required to determine the type of instrument and the applicable stamp duty head
2	Property market value / circle rate assessment	Download / Print	Used to compute stamp duty — duty is payable on the higher of consideration or government circle rate
3	PAN card of buyer and seller	Self-attested Copy	Mandatory for transactions above Rs 10 lakh under Income Tax Act; also required by SHCIL portal
4	Aadhaar card / any valid ID proof	Self-attested Copy	Identity verification at the e-Stamp generation or franking counter
5	Property details — survey number, CTS number, plot number, address	Soft copy (PDF)	Required for filling in the e-Stamp certificate / franking request form to identify the property
6	Existing title document (previous sale deed / title deed)(optional)	Self-attested Copy	Needed to verify chain of title and confirm the instrument type for stamp duty categorisation

Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.

Step-by-step guide

1
Calculate applicable stamp duty
Online
Visit the state revenue or registration department website to find the applicable stamp duty rate for the instrument type (sale, gift, mortgage, etc.) and buyer category. Use the online stamp duty calculator if available. The duty is levied on the higher of the agreement value or the ready reckoner / circle rate for the area.
State revenue portal; Maharashtra: igrmaharashtra.gov.in; Karnataka: karigr.gov.in; Delhi: doris.delhigovt.nic.in; UP: igrsup.gov.in
2
Choose payment mode — e-Stamp or Franking
Both
Decide between (a) e-Stamp via SHCIL portal (shcilestamp.com) where a certificate bearing a unique identifier is issued and pasted on the instrument, or (b) Franking through an authorised bank or franking centre where a physical impression is stamped on the instrument. e-Stamp is preferred as it is instant, forgery-proof, and verifiable online.
3
Generate e-Stamp certificate via SHCIL (online route)
Online
Log in to shcilestamp.com or the state-specific e-Stamp portal. Select the state, instrument type, first party, second party, property details, and duty amount. Make payment via NEFT/RTGS/debit card/credit card/net banking. On successful payment the e-Stamp certificate (with a unique certificate number and QR code) is generated immediately and can be downloaded as a PDF.
15–30 minuteshttps://www.shcilestamp.com
4
Alternatively — pay stamp duty via franking
Offline
Visit an authorised franking bank branch or licensed franking centre. Fill the franking request form with instrument details and duty amount. Pay the duty in cash/cheque/DD. The bank officer will frank (impress a stamp) on the instrument or issue a franking certificate. Collect the franked instrument / certificate.
30 minutes to 2 hours (queue-dependent)Authorised bank official / franking agent
5
Attach e-Stamp certificate / franked impression to the instrument
Offline
Print the e-Stamp certificate and paste it on the first page of the instrument, or note the e-Stamp certificate number on the instrument as per state practice. For franked instruments, the impression appears directly on the document. Both parties and witnesses should sign after stamp payment.
6
Verify e-Stamp certificate authenticity (optional but recommended)
Online
Use the SHCIL verification portal (shcilestamp.com/verify) or the state IGRS portal to verify the unique certificate number and confirm authenticity before proceeding to registration.
https://www.shcilestamp.com
7
Proceed to Sub-Registrar office for deed registration
Offline
Stamp duty payment is a prerequisite to registration. Take the stamped/franked instrument to the Sub-Registrar's office within the validity period (usually 6 months from stamp duty payment date) to complete registration.
Sub-Registrar

Government officers involved

Sub-Registrar

State Registration and Stamps Department

Deed registration stage (after stamp duty payment)

Accepts the stamped instrument for registration; verifies stamp duty adequacy; can impound under-stamped instruments

Collector of Stamps / District Registrar

State Revenue / Stamps Department

When stamp duty is disputed or instrument is impounded

Adjudicates stamp duty disputes; issues orders for recovery of deficit stamp duty with penalty

Authorised Bank Official / Franking Agent

RBI-authorised bank / licensed franking centre

Franking route — at time of payment

Collects stamp duty amount and operates franking machine to impress stamp on the instrument

Government portals

SHCIL e-Stamp Portal

https://www.shcilestamp.com

Generating and verifying e-Stamp certificates across participating states

Maharashtra IGR (igrmaharashtra)

https://igrmaharashtra.gov.in

Maharashtra stamp duty calculator, e-ASR (Annual Statement of Rates), and online payment

Delhi DORIS

https://doris.delhigovt.nic.in

Delhi stamp duty rates, circle rates lookup, and online appointment

UP IGRS Portal

https://igrsup.gov.in

Uttar Pradesh stamp duty payment, property valuation, and deed registration

Karnataka Kaveri Online Services

https://karigr.gov.in

Karnataka stamp duty e-payment and deed registration scheduling

Things to watch out for

Under-stamping attracts heavy penalty

If stamp duty is paid on a value lower than the circle rate, the Sub-Registrar can impound the instrument. Penalty can be up to 10 times the deficit duty amount. Always verify the circle rate for the specific locality before computing duty.

e-Stamp validity period

An e-Stamp certificate is typically valid for 6 months from the date of issue. If registration is not completed within this period, the instrument may need fresh stamping. Check state-specific validity rules.

Stamp duty is a state subject — rates differ significantly

Stamp duty ranges from about 3% (Delhi for women) to 8% (Maharashtra for men in some areas). Registration charges (1%–2%) are payable separately. Always check the current rates on the state revenue portal before proceeding.

Franking machines can malfunction or run out of ink

Franked impressions that are unclear or incomplete can cause rejection at the Sub-Registrar's office. Always inspect the franking impression carefully before leaving the bank counter.

PAN mandatory above Rs 10 lakh

Under Section 269SS/269T of the Income Tax Act, payment of stamp duty for property transactions above Rs 10 lakh requires both parties' PAN to be quoted. Failure to quote PAN can attract TDS and IT scrutiny.

Stamp duty refund is cumbersome

If a deal falls through after stamp duty is paid, getting a refund requires filing a refund application with the Collector of Stamps, who may deduct a retention amount (typically 10% of duty paid). The refund process can take several months.