Gone are the days of standing in long queues and dealing with cumbersome paperwork. In today's digital era, paying stamp duty has become incredibly convenient and efficient through online platforms. In this step-by-step guide, we will help you with the question of how to pay stamp duty online, allowing you to complete this important legal obligation from the comfort of your own home.
Stamp duty is a tax paid by the buyer to the State government for buying or owning a document that is related to business, property, or any other contracts. It is a significant source of revenue for the State government. Under the Indian Stamp Act, of 1899 all the States in India charge their own rates, have their own payment processes, laws, and instructions.
Why Is Stamp Duty important?
As stamp duty is mandatory in the registration of any document, there are significant benefits for the buyer or owners of the document.
Paying the stamp duty makes a document legal and valid, making it more enforceable in a court of law.
This has become an important revenue generation for the state government and these funds are utilized on various projects such as health care, education, and welfare programs.
As the document is authenticated while paying Stamp Duty, it gives credibility and protection to both parties.
It acts as evidence and prevents fraudulently
Stamp duty plays a more significant role in property transactions. It's levied as sales deeds, conveyance deeds, leases and mortgage agreements. It is essential in changing ownership and registration.
It helps to maintain a public record that is maintained by the government.
Types of transactions for Stamp Duty
Stamp Duty payment in India has various types of transactions and legal documents. In each State, the specific transaction and the rates may vary depending upon the stamp duty laws.
Some transactions must be registered for Stamp Duty. The list of such types of transactions is as follows.
Stamp Duty is levied on property-related transactions such as deeds, agreements, and mortgages.
Mutual agreement by two parties such as a Memorandum of Understanding (MoU)
Transfer of a company's shares
Borrowing money as a loan agreement
Granting authority to an individual as power of attorney
Insurance policy options as such health insurance, and life insurance.
To secure against potential laws with Indemnity Bonds
To acknowledge a promise to pay or debt.
Gift deeds, lease agreements, conveyance deeds, partnership deeds, and trust deeds
Rates Of Stamp Duty
Stamp Duty is levied at different rates in each state in India and it also depends upon the type of the transaction.
A few states' stamp duty rates are given below.
| States | Stamp Duty Rates |
|---|---|
| Andhra Pradesh | 5% |
| Arunachal Pradesh | 6% |
| Assam | 8.25% |
| Bihar | Male to Female - 5.7% |
| Female to Male - 6.3% | |
| Other cases - 6% | |
| Chhattisgarh | 5% |
| Goa | Upto Rs 50 lakh - 3.5% |
| Rs 50 - Rs 75 lakh - 4% | |
| Rs 75 - Rs 1 crore - 4.5% | |
| Over Rs 1 crore - 5% | |
| Gujarat | 4.90% |
| Haryana | For males - 7% in urban areas |
| For females - 5% in urban areas | |
| Himachal Pradesh | 5% |
| Jammu and Kashmir | 5% |
| Jharkhand | 4% |
| Karnataka | 5% (above Rs 45 lakh) |
| 3% (Rs 21-45 lakh) | |
| 2% (Less than Rs 20 lakh) | |
| Kerala | 8% |
| Madhya Pradesh | 7.50% |
| Maharashtra | 6% for male |
| 5% for female | |
| Manipur | 7% |
| Meghalaya | 9.90% |
| Mizoram | 9% |
| Nagaland | 8.25% |
| Odisha | 5% (Male) |
| 4% (Female) | |
| Punjab | 7% (Male) |
| 5% (Female) | |
| Rajasthan | 5% (Male) |
| 4% (Female) | |
| Sikkim | 4% + 1% (in case of Sikkimese origin) |
| 9% + 1% (for others) | |
| Tamil Nadu | 7% |
| Telangana | 5% |
| Tripura | 5% |
| Uttar Pradesh | Male - 7% |
| Female - 7%-Rs 10,000 | |
| Uttarakhand | Male - 5% |
| Female - 3.75% | |
| West Bengal | Upto Rs 1 crore - 6% |
| Above Rs 1 crore - 7% |
Useful read: Stamp Duty and Registration in Mumbai Stamp duty on rental agreement in Delhi
How To Calculate Stamp Duty?
Let's see an example of calculation for your understanding.
The first thing is to determine the current market value of the property and check for the stamp Duty rate by the state government.
Let's assume the property you want to buy is Rs. 50 lakhs in Mumbai within the urban area. The Stamp Duty for women is 5% of the property value here.
Stamp Duty = Market value × Stamp Duty rate
Which is Rs. 50 lakhs with a stamp duty rate of 5% will be Rs. 2.5 lakhs.
You can use our stamp duty calculator to easily compute the stamp duty applicable on your commercial property in India.
Stamp Duty on Commercial Property in India
Stamp duty on commercial property is applicable under various circumstances:
Sale or Purchase: Stamp duty on commercial property is levied when it is bought or sold. It is based on the transaction value or the consideration mentioned in the agreement, whichever is higher.
Lease or Rent: Stamp duty is applicable when entering into a lease or rental agreement for a commercial property. The stamp duty is usually calculated based on the total rent payable over the lease term or as a percentage of the lease value.
Gift: If a commercial property is gifted, stamp duty is payable on the market value of the property at the time of the gift.
Exchange: In the case of an exchange of commercial properties, where one property is given in exchange for another, stamp duty is applicable based on the market value of the properties being exchanged.
Mortgage or Loan: Stamp duty may be applicable when creating a mortgage or hypothecation of a commercial property to secure a loan. The stamp duty is generally calculated based on the loan amount or the market value of the property.
Development Agreement: In cases where a commercial property undergoes redevelopment or joint development, stamp duty is applicable on the value of the development rights or the consideration involved.
Lease Premium: If a commercial property lease involves the payment of a lease premium or upfront consideration, stamp duty is typically applicable on the premium amount.
Transfer of Shares: In certain cases, where the transfer of shares of a company owning a commercial property takes place, stamp duty may be applicable on the market value of the property.
It's important to note that the applicability of stamp duty on commercial property may vary based on the state-specific regulations and the nature of the transaction. The rates and exemptions can also differ from state to state.
If you want to invest in commercial property in India, check out our offerings here.
A step-by-step guide: How to pay Stamp Duty Online
Paying stamp duty online is an easy and convenient process. It saves time, effort and can be done from anywhere! Here’s how to pay stamp duty online:
Step 1: Visit the Authorized Portal To begin the process of paying stamp duty online in India, visit the authorized portal designated by the respective state government. Each state may have its own dedicated portal for stamp duty payment.
Step 2: Create an Account If you don't already have an account on the portal, create one by providing the required details such as your name, email address, and mobile number. Follow the instructions to verify your account through an OTP (One-Time Password) sent to your registered mobile number.
Step 3: Provide Property Details Once you have successfully logged in to your account, navigate to the section specifically designated for stamp duty payment. Enter the relevant details of the property for which you are paying stamp duty. This includes information such as property location, type, area, and ownership details.
Step 4: Calculate Stamp Duty After providing the property details, the portal will calculate the stamp duty payable based on the prevailing rates set by the state government. The stamp duty amount is generally determined by factors like property value, property type, and location.
Step 5: Upload Documents Next, you will need to upload the necessary documents as prescribed by the portal. These typically include property-related documents such as a sale deed, agreement to sell, or any other document as required by the state government.
Step 6: Verify and Validate Carefully review the details you have provided, including the stamp duty amount, property details, and uploaded documents. Make sure all the information is accurate and up to date. If any corrections are needed, make them at this stage.
Step 7: Make Payment Once you have verified the details, proceed to make the payment of the calculated stamp duty amount. The online portal will provide various payment options such as net banking, debit card, credit card, or digital wallets. Select the preferred payment method and follow the instructions to complete the transaction securely.
Step 8: Acknowledgment and Receipt After the successful payment of stamp duty, the online portal will generate an acknowledgment or stamp duty receipt. This document serves as proof of payment and should be downloaded and saved for future reference.
Step 9: Stamp Duty Certificate In some states, a stamp duty certificate is issued online after the payment is completed. This certificate acts as evidence that the stamp duty for the property has been paid. Download and keep this certificate for your records.
How to generate Stamp Duty Payment Slip?
You can generate stamp duty payment slip or stamp duty receipt online after you have made the stamp duty payment. You can download or print this receipt for future reference.
Benefits of paying Stamp Duty Online
1. Convenience and Time Saving
It saves the time and long waiting process of traditional procurement. This paperless method deciphers the high volume of physical documentation.
2. Secure and Efficient Payment Process
This online stamp duty paying process optimizes the procedure with laws and gives a unique identification number and QR code. The online transaction made it more transparent. It saves you from the extra amount as charges, storage, inventory, and transport cost of stamps. This will save your operational charges up to 50%.
3. Accessible From Anywhere And Anytime
As the payment is done online mode, it is more convenient for you to stay at your Convenience and register the stamp duty. For the registration of another state, it is also possible for you to stay in a different state.
Tips For Smooth Online Stamp Duty Payment
Online Stamp Duty Payment is easy to access for everyone, additionally, if you know these tips it would make your work more hassle-free.
Make sure with your Internet connection to avoid unnecessary buffering on the payment time.
Double-check your transaction details and the amount to be paid with the details you have given for getting the accurate legal document.
Don't forget to keep the transaction records and the Stamp Duty Receipt for your documentation process.
FAQs About Online Stamp Duty Payment
Q.1. Is online Stamp duty payment available in all regions? A.1. Yes, As this is an online payment option, you can access it from all regions.
Q.2. What are the accepted payment methods?
A.2. The methods of payment accepted are net banking, credit or debit cards, pay orders, account to account transfer, NEFT, RTGS, or DD.
Q.3. How long does it take for the payment to reflect in records? A.3. Usually it reflects two days after making the payment.
Q. 4. What if there are errors or discrepancies in the payment process? A.4. To avoid errors it is always advised to double-check your information. If any errors or discrepancies occur, you can contact the customer support team and seek their assistance. In these cases, you can request a refund or corrections regarding your documents. Follow up regularly until your issue is resolved m
Q.5. How can I pay stamp duty online in India? A.5. You can pay your stamp duty by visiting the official website of the respective states' stamp and register department's e-stamping portal. By adding all the necessary documents and giving your details you can ensure the stamp duty charges and make the online payment then.
Q.6. Can I pay stamp duty through a credit card in India? A.6. Yes, the majority of the states in India accept credit card payments for stamp duty payments.
Q.7. How to pay stamp duty through banks? A.7. To do so, the bank should be authorized by the state government for stamp duty payment. After visiting the bank, you can download the stamp duty payment challan and fill in the necessary information, property details and transaction information, and stamp duty amount. After submission the bank will give you an acknowledgment receipt, keeping it safe for the proof of your payment.
Q8. What is the validity of the stamp duty challan? A.8. The validity varies in the state government. Approximately it is 3- 6 months.
Q9. How can I pay Stamp Duty in Maharashtra? A.9. The online transaction of stamp duty payment is quite the same procedure but for Maharashtra, you need to visit the official website of the Maharashtra Government Departments of Registration and Stamps. Other than this the other steps to fill out your documents and payment are all the same.
Q10. How can I pay stamp duty online in Delhi? A10. To pay stamp duty online in Delhi visit the official website of the Department of Revenue, Delhi government. Create an account or log in if you already have one. Provide the required property details and upload the necessary documents. Verify the information and calculate the stamp duty amount using the portal's provided tools. Make the payment using the available options such as net banking, debit card, credit card, or digital wallets.
Q11. How can I pay stamp duty online in Delhi NCR? A.11. The Stamp Duty rate for the Delhi NCR areas is 5.5% for males, 3.5% for females, and 4.5% for joint ownership. You can make the online payment of your stamp duty by visiting the official website of the Delhi Online Department of Registration and Stamps and filling out all the property details and personal information along with the Stamp Duty transaction details.
Conclusion
The online world has made everything easy for us. We may not even know what was happening in the payment process and why it took 1-2 weeks of the waiting period in the traditional payment methods before digitalization.
Now it is as transparent as a mirror, you can see your work happening in front of your eyes. By paying your stamp duty online you will get more clarity about your payment. This secure transaction method involves no stress as we are already familiar with the payment process.
