People usually while trying to give assurance to others speak about signing stamp paper. What is stamp paper? Can people use it as a guarantee or assurance? Here, in this, we will clarify all your doubts regarding stamp papers.
What Is Stamp Paper?
A stamp paper is an A4 piece of paper that is pre-printed with a revenue stamp same as the one printed in currency notes or postal stamps. Stamp papers have legal validity through the Indian Stamp Act, 1899.
Stamp duty
Stamp duty is an indirect government tax, which is levied on all legal property transactions. It is used as evidence for the purchase or sale between 2 or more individuals.
Types of stamps
There are two types of stamps: –
- Judicial stamp– When you go to a court you need to pay court fees in a civil case you need to pay 4-5% fees depending upon the state. Court fees are paid in form of stamps. Cash or cheque are not accepted. Stamps used in the court are judicial stamps.
- Non-judicial stamp- While drafting any agreement, gift deed, rent agreement, or any other document regarding any agreement, you need to get a non-judicial stamp.
Why a Document Should Be Drafted on a Stamp Paper?
An agreement between 2 or more people without stamp paper can also be considered valid. But, an agreement on a stamp paper increases its legal value. You have paid the government revenue for the stamp and your name has been registered in the records. Also, the stamp is notarised and the notary person authenticates that you have received the stamp and gone through the procedure.
Difference between notarized documents and registered document
A document is considered notarized when you take a stamp to a notary person and the person notarizes it. Whereas a document is considered registered when you pay the stamp duty at the respective registry office. For example, when you buy a plot, you need to register the documents, and you go to the registry office. There you need to get your to picture taken and pay the stamp duty.
Where to Buy a Stamp Paper?
Stamps are usually available at a shop in any area. It would be mentioned outside the shop the person is a stamp vendor. Or you can get a stamp from nearly any court. You can get many stamp vendors in a court.
While purchasing a stamp: –
- The stamp person will ask for your ID proof.
- You need to pay the price of the stamp.
- The person will mention your name and details regarding the purpose of the stamp in his stamp register.
- You need to mention your purpose for purchasing a stamp and sign in the stamp register.
On the first page of a stamp paper, there is a seal of the Indian government and on the next page, there is a seal where detail regarding the purpose of the stamp and the sign of the stamp vendor is mentioned.
Value of a Stamp Paper
Stamp papers are issues in many values. It can start from Rs 10 and can be more than Rs 2000 depending upon the state. Every state has different stamp values. So, while deciding the value of the stamp of a document or agreement you need to check the stamp value requirement of your state. Every state government releases a notification regarding the minimum value of a stamp paper.
For example, according to the Rajasthan government, the minimum required value of a stamp for a partnership agreement is Rs 500 and if you have made a partnership agreement on a stamp paper of value less than Rs 500 then the agreement won’t have any value in law.
Validity of a Stamp Paper
People usually get confused regarding the validity of a stamp. Some people believe that the stamps get expired in a short period of time. But this is not true. Stamps have validity for a lifetime.
Section 54 of the Indian Stamp Act, 1899 mentions that if you have purchased a stamp but the stamp was left unused by you then if you do not need the stamp then you can return the stamp and get a refund. But you can only get a refund within 6 months of purchasing the stamp.
Can you get a stamp of the back date?
Getting a stamp of back date is illegal. No government authority or stamp vendor can provide you with the stamp of a date that has been gone. The day when you purchase a stamp, it will be recorded in the stamp register as the same date and the stamp vendor will submit the record of stamps sold every month to the government. Therefore, never try to purchase a stamp of backdating.
Conclusion
Stamps are one of the most common things while dealing with any document legally. But many people are unaware of what are stamps and where to use them. The primary purpose of stamps is to collect revenue for state and central governments; Therefore, this blog was to give you detailed information regarding stamps.
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