Buying Stamp Papers
Traditional Stamp Papers
In all these ways, the purpose is the same, i.e., to pay stamp duty to the government to make a document legally enforceable.
Stamp Duty is the tax levied on the legal acknowledgement of documents. According to the law, it is mandatory to pay stamp duty to the Central/State Government when certain transactions happen. Such transactions include lease agreement, buying and selling of property, business agreements, loan agreements, power of attorney, affidavits, AOA, MOA, Indemnity Bond, Mortgage, Gift Deed, etc.
The value of stamp duty is either fixed or varies with the value of property/instrument under question. The amount of stamp duty to be paid for a particular transaction differs from state to state. The Indian Stamp Act, 1899, is applicable for states which do not have their own Stamp Act.
There are 3 different ways of paying stamp duty, which include-