How to pay stamp duty in India: e-stamping, SHCIL, franking

Twenty years ago, the only way to pay stamp duty was to buy physical stamp paper, walk back to your advocate's office, and hope the value was high enough. Today most Indian states accept e-stamps issued through SHCIL — the Stock Holding Corporation of India Limited — which removed the entire physical-paper supply chain.

This guide explains the three payment methods, when each one applies, and the practical workflow for the most common case.

Method 1: e-Stamping (through SHCIL)

e-Stamping is the digital replacement for physical stamp paper. SHCIL is the central agency authorised by the Government of India to issue e-stamps; many states have adopted it.

How it works:

1. You (or more commonly your advocate) visit shcilestamp.com or an Authorised Collection Centre (a bank branch or post office empanelled by SHCIL in your state)
2. Fill in the details: parties to the deed, type of document, consideration value, locality
3. Pay the stamp duty amount (online or at the counter)
4. Receive an e-stamp certificate with a Unique Identification Number (UIN) — a six-digit alphanumeric code printed on the certificate
5. The e-stamp certificate is attached to your sale deed, and you take both to the sub-registrar's office for registration

Where it works:Most major states — Delhi, Haryana, Punjab, Karnataka, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, Gujarat, Andhra Pradesh, Telangana, Odisha, Bihar, Jharkhand, Chhattisgarh, Himachal Pradesh, J&K, Assam, and most UTs all accept SHCIL e-stamps.

Where it doesn't: Maharashtra and Madhya Pradesh run their own state e-stamping systems (GRAS in Maharashtra and SAMPADA in MP) rather than SHCIL. The mechanics are similar but the portal is different.

Method 2: State-run e-stamping (Maharashtra, MP)

Maharashtra and MP have their own integrated e-payment + e-stamping platforms.

• Maharashtra — uses GRAS (Government Receipt Accounting System) for e-payment, integrated with the IGR Maharashtra portal for the actual deed registration. You pay through GRAS, generate a challan, and take that to the sub-registrar.
• Madhya Pradesh — uses SAMPADA (Stamps and Management of Property and Documents Application). The MP-specific platform handles e-stamping and e-registration in one integrated workflow.

Method 3: Franking

Franking is the older method — still legal, still used in parts of Maharashtra, Karnataka, and a few other states for smaller-value documents. You print your deed on plain paper, take it to an authorised franking bank, pay the stamp duty, and the bank physically franks (stamps with an inked impression) the document attesting that the duty has been paid.

Franking is cheaper for the bank to operate (no SHCIL fee) but more cumbersome for the buyer — you have to physically carry the deed, wait at the bank, and the bank usually limits franking to lower transaction values. For most property deeds in 2026, e-stamping is the practical default.

Method 4: Physical stamp paper (mostly retired)

Physical, judicial / non-judicial stamp paper — the old purple sheets — has been phased out in most states for property transactions, after the 2002 Telgi fake-stamp-paper scam that defrauded the government of an estimated ₹30,000 crore. A handful of states still issue physical stamp paper for low-value documents (up to ₹500), but for any meaningful property transaction, you will use e-stamping or franking.

The practical workflow (most cases)

For a typical property purchase in Delhi, UP, Karnataka, Tamil Nadu, Rajasthan, Gujarat, or any other SHCIL state:

1. Negotiate the price. Final consideration agreed, deed drafted by your advocate.
2. Look up the locality rate.Open your state's portal (MP Bhulekh / UP Bhulekh / Apna Khata / Banglarbhumi etc.) and find the circle rate / DLC / Jantri / Ready Reckoner for the locality. See Circle rate, guideline value, Jantri, DLC rate: what they are.
3. Calculate the duty.Use the higher of consideration and locality rate. Apply your state's stamp duty rate. Add registration fee. The Stamp Duty Calculator does this with women's concessions and joint-buyer rules applied.
4. Pay the stamp duty. Through SHCIL e-stamping online or at an Authorised Collection Centre. You will receive an e-stamp certificate with a UIN.
5. Book a registration slot. Most states allow online booking of a sub-registrar slot on the IGR portal. Some require walk-in.
6. Visit the sub-registrar's office. Bring both parties (or their PoAs), photo IDs, two witnesses, the e-stamped deed, and the registration fee in the form the office accepts (usually demand draft or online challan). The registrar verifies, photographs and thumbprints the parties, and assigns a registration number.
7. Collect the registered deed. Within a few days to a couple of weeks, depending on the state. Your name is now on the register.

What if I'm short on stamp duty?

If your e-stamp turns out to be insufficient (for example, the locality rate is higher than you initially calculated), the sub-registrar will refuse to register the deed until the deficit is paid. You buy an additional e-stamp for the shortfall and combine the two. The system is designed to make under-payment difficult rather than punishing — you just pay what you owe.

Deliberate under-stamping is a different matter, with penalties ranging from 2 to 10 times the deficit depending on the state. Not worth the gamble for any meaningful transaction.

Refund of stamp duty

If a transaction falls through after you have paid stamp duty (the seller backs out, financing fails, etc.), most states allow a refund if you apply within 6 months. The refund procedure varies — usually you submit a written application to the Collector / IGR with the original e-stamp certificate. Refunds typically deduct a small cancellation fee (1 to 10 percent).

Related

• Stamp duty in India: how it works
• Circle rate, guideline value, Jantri, DLC rate
• Registration fee in India