Stamp Duty In Punjab: What, Why And How?
What Is Stamp Duty?
Stamp duty is the duty levied (in the form of tax) on certain documents that have a monetary exchange to a transaction while executing such documents. Stamp duty is paid to the respective Central Government and Punjab State Government depending on the type of deed executed. This is the third highest source of income for the State of Punjab. Stamp duty is charged on the execution of deeds such as affidavits, wills, deeds, certificates, bonds, gifts, lease, adoption, etc.
Stamp papers have different stamp values and each type of document/deed has to be executed on a stamp paper of a stipulated value based on the type of document, location (State) and/or value of the transaction/ property to make the said document legally valid and enforceable in a court of law. To help calculate the value of stamp paper required, LegalDesk.com offers a stamp duty calculator which serves as a stamp duty guide that will calculate the stamp duty payable on the lease and rent of properties in Punjab or anywhere else in India. By using our ‘create a rental agreement document’ service, you can create your own personalized rental agreement from anywhere in India.
Laws Relating To Stamp Duty In Punjab
The Indian Stamp Act of 1889 was used as the State Stamp Act of Punjab at the same time. Over the last century, there have been several changes, rules and amendments made to the Punjab Stamp Act. The Punjab Stamp Rules of 1934 which included the refund, renewal and disposal Rules for stamps in Punjab, audit control, supply of stamps and accounts, etc. were the first significant Rules issued immediately followed by The Punjab Stamp Losses and Defalcation Rules, 1935.
Certain amendments were made in 1922, 1985, 2005 (Indian Stamp (Punjab Amendment Ordinance) Act), 2013 (Indian Stamp (Punjab Amendment) Act), 2014 (Punjab e-Stamp Rules) and 2016.
Some significant changes made in the Indian Stamp (Punjab Amendment) Act of 2016 include:
- Abolishment of stamp duty which was at 2%, levied on immovable property.
- Stamp Duty on General Power of Attorney (GPA) is Rs 1000 and Special Power of Attorney (SPA) Rs 500 irrespective of the market value.
- Tillers cultivating Government land for at least 20 years are entitled to allotment at discounted rates (from collector rates).
- Stamp duty is collected in Punjab by the respective State Government to authenticate the registration of any instrument and/or property with a value of more than INR 100.
- Stamp duty is paid to record and certify the transfer or sale of said instrument or property by the Center and State under Section 17 of the Registration Act, 1908.
- Failure to execute a document properly, example: without paying stamp duty or by applying the wrong stamp, then you will be liable to pay a penalty of 200% on the said document.
Modes To Pay Stamp Duty In Punjab
Stamp Duty in Punjab can be paid in the following ways:
| Sr. No | Mode | Availability | Value |
| 1 | Traditional Stamp Paper | Yes | Less than Rs 1000 |
| 2 | e-Stamp Paper | Yes | Rs 1000 and above |
| 3 | Franking | Yes | |
| 4 | Adhesive Stamps | Yes | |
| 5 | GRAS | Yes | |
| 6 | Notary Stamp | Yes | |
| 7 | Revenue Stamps | Yes | |
| 8 | Agreement Stamps | Yes |
e-Challan
e-Stamping (a form of e-challan) is the automated supply of stamp paper online for the State of Punjab, which is a project by the Board of Revenue and Punjab Information Technology Board (partnered with the Bank of Punjab).
You can generate a challan online (Form 32) through a mobile verification process to pay stamp duty, CVT and/or registration fees online followed by downloading the registered document. Past dues can be viewed and cleared, and the amount of duty payable can be calculated on this portal as well.
Stamp Duty Charges In Punjab
| Sr. No. | Type of Deed | Stamp Duty Payable | Registration Fees | Pasting Fees |
| 1 | Sale Deed | 3-7% | Rs. 100-15,000 | Rs. 3 |
| 2 | Simple Mortgage | 1.50% | Rs. 100-15,000 | – |
| 3 | Mortgage with possession | 5% | Rs. 100-15,000 | Rs. 3 |
| 4 | Equitable Mortgage | 0.25% | Rs. 100-15,000 | Rs. 3 |
| 5 | Gift | 5% | Rs. 100-15,000 | Rs. 3 |
| 6 | Lease | 3% | Rs. 100-15,000 | Rs. 3 |
| 7 | Will | – | Rs. 200 | Rs. 3 |
| 8 | General Power of Attorney | Rs. 300 | Rs. 100 | Rs. 3 |
| 9 | Special Power of Attorney | Rs. 100 | Rs. 100 | Rs. 3 |
| 10 | Conveyance | 5-7% | Rs. 100-15,000 | Rs. 3 |
| 11 | Exchange of Property | 6-8% | Rs. 100-15,000 | Rs. 3 |
| 12 | Tatima | Rs. 100 | Rs.100 | Rs. 3 |
| 13 | Agreement | Rs. 100 | Rs. 100-15,000 | Rs. 3 |
| 14 | Adoption | Rs. 40 | Rs. 100 | Rs. 3 |
| 15 | Trust | Rs. 50 | Rs. 100 | Rs. 3 |
| 16 | Release | Rs. 15 | Rs. 50 | Rs. 3 |
Please Note: The range of Registration (100-15,000) charges
| Sr. No | Range | Amount |
| 1 | Rs. 1-50000 | Rs. 100 |
| 2 | Rs. 50001 to 100000 | Rs. 500 |
| 3 | Rs. 100001 to 500000 | Rs. 1000 |
| 4 | Rs. 500001 to 1000000 | Rs. 5000 |
| 5 | Rs. 1000001 to 2000000 | Rs. 10000 |
| 6 | Rs. 2000001 to 2500000 | Rs. 12500 |
| 7 | Above Rs. 25 Lacs | Rs. 15000 |
How Can LegalDesk Help?
LegalDesk.com is your go-to solution provider for all your legal, administrative and registration needs. We have also introduced an API for stamp duty payment that can be used by companies and individuals alike, in Punjab or any other State in India. We can help with drafting documents such as affidavits, partnership agreements, rental agreements, wills, trust, adoption deeds, power of attorney, gift deeds, and several other documents as well. Require a service? Request one now.
