Types Of Stamp Paper Are Used In India

There are various types of stamp paper used in India to legalize the commodity you are using. Stamp papers are used in multiple transactions in india, such as Loan Agreements / Financial Deals. Power of Attorney, Affidavits, Articles of Association, Memorandum of Association. Indemnity Bonds, Declarations, Mortgage, and Gift Deeds. 

People need to understand the characteristics of each stamp paper and when it should be used. Awareness of the stamp papers will help you safeguard yourself while involved in real estate or other transactions mentioned above. This blog will help you understand stamp papers used for specific purposes and their usage. 

What is a stamp paper?

A stamp paper is an official document used to show that a transaction has been completed. It’s a special kind of paper with a stamp duty printed. This stamp, provided by the government, proves that the necessary taxes or duties have been paid. People use stamp paper as evidence for legal agreements, such as buying property, rental contracts, and affidavits.

When someone needs stamp paper, they buy it based on the stamp duty that applies to their specific transaction, which changes depending on how much the transaction is worth. Because stamp duties differ everywhere, the amount needed for stamp paper can vary from state to state.

Types Of Stamp Paper In India

There are five types of stamp paper used in India;

       •  Judicial stamp paper
       •  Non-Judicial Stamp Paper
       •  E-stamp paper
       •  franking 
       •  and revenue stamp paper

Judicial Stamp Paper

Judicial stamp is also referred to as court fees stamp paper. It pays court expenses such as cases, petitions, and other legal documents. It is also used to legalise the validity of documents such as affidavits, bonds, and declarations that must be submitted in court.

Documents executed on these stamp papers are considered more authentic and legally binding, which aids in their admissibility in court. This ensures that the documents are recognised as valid and enforceable in legal proceedings.

Non-Judicial Stamp Paper

Non-judicial stamp paper is an official paper used in India to pay various court and registration fees. You can purchase this type of stamp paper from licensed vendors. It's important because it’s needed for many legal documents, such as business contracts, property transfers, and powers of attorney.

When you use non-judicial stamp paper, it serves as proof that you have paid the required fees. This paper is also accepted in court as legitimate proof of payment. Using this stamp paper ensures that your legal documents are valid and recognised by law.

Non-Judicial Stamp Paper with Watermark

Non-judicial stamp paper often comes with a watermark, a design embedded in the paper. This watermark helps to prevent counterfeiting, making the stamp paper more secure. When you buy stamp paper with a watermark, you can be sure it is genuine and not fake.

This added security is essential, especially in legal matters where the authenticity of documents is crucial. The watermark also makes it easier for authorities to verify the paper's legitimacy, providing peace of mind for those involved in legal transactions.

Non-Judicial e-Stamp Paper

Non-judicial e-stamp paper is the electronic version of the traditional stamp paper. E-stamp paper serves the same purpose as regular stamp paper, allowing you to pay for various fees. One of the main advantages of e-stamp paper is its security; it’s harder to counterfeit than physical stamp paper.

This makes it a safer option for legal documents. Additionally, e-stamp paper is more convenient since you can purchase it from home, eliminating the need to visit a vendor in person.

Franking

Franking is a method of officially stamping legal documents, usually done by banks or franking centres. When you need to franking, you visit an authorised bank, which will stamp your document to show that stamp duty has been paid.

A particular machine called a franking machine is often used for this purpose. The stamped document then serves as proof of payment for the required fees. Alternatively, you can buy printed stamp paper that has already been franked, saving you the extra step of visiting a bank. Franking is essential for ensuring your legal documents are valid and properly stamped.

Revenue Stamps

In India, revenue stamps are another type of stamp paper used primarily to collect fees for court maintenance. These stamps help raise funds for various legal services and processes. According to the Indian Stamp Act of 1899, if you receive more than Rs. 5,000, you must attach a Rs. 1 revenue stamp to your receipt.

This rule applies to receipts that exceed Rs. 5,000, as stated in Section 30 of the Act. The revenue stamp proves the transaction and ensures proper fees are paid. Understanding revenue stamps is crucial for anyone involved in significant financial transactions or legal agreements

Final Words 

Understanding the types of stamp paper in India is essential for ensuring your legal documents are valid and secure. Whether you need judicial or non-judicial stamp paper, e-stamp, franking, or revenue stamps, knowing their uses will help you navigate legal transactions confidently and protect your interests.