Stamp duty is payable under section 3 of The Bombay Stamp Act, 1958. A different amount is payable for different types of document as per Schedule-I of The Bombay Stamp Act, 1958.

Stamp duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty paid document is considered a proper and legal document and as such gets evidentiary value and is admitted as evidence in court. Document not properly stamped, is not admitted as evidence by the court.



 New procedure

Nowadays instead of physical stamps or stamp papers, the stamp duty franking machine is used to affix stamp duty by way of impression on blank paper. Further stamp duty can also be paid directly to the collector of stamps who affixes his seal and stamp for the amount received after a procedure called adjudication and hence the same is called adjudication certificate.


Specified norms

Stamp duty is payable on the document and not on transactions. Stamp duty should be charged on the basis of the contents of the document only. If any information essential for working out stamp duty is missing in the document, the stamp duty valuation officer can ask for the same.

Information such as the carpet or built-up area of the flat, number of floors in the building, year of construction, name of Division/Village and C.S./C.T.S. number of plot of land on which property is situated must be mentioned in the agreement.


Where applicable?

Except transfer by will and by nomination in a co-operative housing society all transfer documents including agreement to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and licence agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration etc have to be properly stamped before registration.



 Who pays?

In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty. In case of exchange of properties, both parties have to bear stamp duty equality.


When payable?


Stamp duty is payable either before execution of the document or on the day of execution of document or on the next working day of executing such a document. Execution of a document means putting signatures on the document by the persons who are party to the document. However it is advisable to pay stamp duty before executing the document, for all practical purposes.