Best answer: What is the use of stamp paper in India?

Traditional stamp paper or non-judicial stamp paper is used for sale deeds, transfer of immovable property, affidavits, agreements, deeds, wills, etc. for executing the said documents in States across India. Stamp paper can be purchased by visiting and purchasing stamp paper from any licensed stamp vendor.

What is the use of a stamp paper?

Uses. Stamped paper has been widely used around the world to collect taxes on documents requiring stamping, such as leases, agreements, receipts, court documents and many others.

What is the importance of stamp paper in India?

Stamping of agreements and documents is desirable as it ensures legality and validity, enforceability and admissibility in court since such agreements can be registered under the Indian Registration Act, 1908, which in turn ensures its enforceability.

Is stamp paper legal in India?

The only restriction for a stamp paper is prescribed under section 54 of the Indian Stamp Act. Section 54 provides that an allowance for stamp paper, which is not spoilt or rendered useless or unfit but is not in the immediate use of its purchaser, may be sought for by the purchaser within six months of its purchase.

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What is the use of 50 RS stamp paper?

Stamp Paper of Rs. 50 for General Power of Attorney/Agreement. Stamp Paper of Rs. 100 for Indemnity Bond, Guarantee Bond.

What is the use of 500 RS stamp paper?

Judicial Stamp Papers are used for transactions with judiciary in Civil and Criminal Courts. Their denominations can be Rs. 20, 50, 100, 500, 1000, 5000, and 25,000. Non-Judicial Stamp Papers are used for paying tax or any transactions concerning taxes.

What is the use of 20 RS stamp paper?

Stamp Paper of Rs. 20 for Special Power of Attorney. Stamp Paper of Rs. 50 for General Power of Attorney/Agreement.

Why do we need to stamp agreement?

Why is stamping your contract important? The purpose of stamping your contract is to provide protection to the people who signed the agreement, as the document is now admissible for the court in case of a dispute. … Without a stamp, your contract cannot be submitted to the court as evidence.

What is the value of 10 RS stamp paper?

First of all any agreement is valid on stamp paper of rupees fifty . Agreement on rupees ten is not valid. Rupees ten stamp paper is for affidavits and declarations only.

Should will be on stamp paper?

Once registered, the Will becomes a strong legal evidence. … The Will has to be signed by its executor and has to be attested by at least two witnesses. Also, no stamp duty is payable on a Will, hence it need not be written on stamp papers.

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Can a stamp paper be used after 6 months?

Validity and expiry of old stamp paper:

(see here), it was held by the Supreme Court that a stamp paper, even if it is more than six months old, is valid to be used. Section 54 just bars taking refund after six months of purchase, but it does not restrict the use of such old stamp paper for an agreement.

Is stamp compulsory in bill of exchange?

In case of bills of exchange drawn on the importer, stamp duty is payable for usance period beyond 90 days. It is not payable on bills of exchange with usance period of up to 90 days. … Stamp duty on bills of exchange drawn on banks is not payable <i>vide<p> Central Government Order S.O.

Can stamp paper be sent outside India?

The Indian stamp paper is not valid outside India and any signature made on the Indian stamp paper outside India is not recognised as legally valid signature. You can give a power of attorney deed in your wife’s favor who can sign on your behalf too on the basis of the POA deed on her name.

Can we use a 100 RS stamp in a money agreement?

Agreements made on white paper are valid. so an agreement made on 100 rupees stamp paper can surely be valid if it fulfills all other conditions under the law and as per the law. But, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law.

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What is the value of Rs stamp paper?

A stamp paper is an A4 (foolscap) piece of paper that is pre-printed with a revenue stamp same as the one printed in currency notes or postal stamps. These stamp papers are generally issued by the Government and usually carry the certain value of Rs. 10, Rs.

How many types of stamp paper are there in India?

The denominations available for these Stamp Papers are Rs. 20, 50, 100, 500, 1000, 5000, 10000, 15000, 20000, 25000. The circulation of Stamp Papers is spiralling downwards as today we are equipped with better a tool, which is the e-Stamp Paper.