Stamping, Digital Stamping and Franking: How The Stamp Papers Compare

Stamping, Digital Stamping, and Franking – Contrasts In Stamp Paper Duty

Different Types Of Stamp Papers

Today, stamp papers are an essential part of any commercial transaction. When a document is properly stamped, it becomes legally valid and accepted as evidence in a court of law.

At the moment, stamp duty can be paid in three major ways:

  • Traditional Stamp Paper
  • Franking
  • Online Stamp Duty Payment or eStamping

Stamp duty can additionally be paid online using eGras, eSBTR, and e-Challans. However, not all states in the country offer all of the alternatives, and only a few states allow stamp duty payments to be made online.

What is Stamping?

Stamp duty is a levy imposed on single-property transactions or papers. Before the document was legally effective, a physical revenue stamp had to be applied to or imprinted upon it to prove that stamp duty had been paid. A stamp is no longer required in more current versions of the tax.

The stamped paper has long been used to collect taxes on documents that require stamping, such as leases, agreements, receipts, court filings, and other similar documents. Apart from the pre-printed stamp, the papers can be purchased blank from stationers, lawyers’ offices, post offices, and courts, depending on local restrictions.

The parties to the case then write their legal business on the paper and file it with the court or another party who is interested. This is a quick and easy way to collect taxes and stamp papers without having to go to a different government stamp office.

An even quicker way to pay stamp duty would be eStamping or digital stamping.

What is e-Stamping?

E-stamping is an online means of paying the government non-judicial stamp duty on agreements, contracts, and other instruments. The stamp duty and franking process has become much more convenient as a result of this.

Although e-stamping is widely regarded as the most convenient means of paying stamp duty, many individuals remain skeptical of the operation and its safety. However, this method is preferable over the traditional method because it makes stamp duty payment easier, faster, and more efficient.

An e-stamp paper or certificate is required, which can be obtained by completing an application form and having the certificate generated by the Stock-Holding Corporation of India Limited (SHCIL), the Central Record Keeping Agency (CRA). The application form can be simply downloaded from SHCIL’s official website.

Payment for stamp duty can also be made in a number of ways. Payments can be made via check, cash, demand draft, pay order, NEFT, or account to account transfer.

What is Franking?

The procedure of actually getting the documents stamped is known as franking. This procedure entails having the documents marked or stamped, indicating that they are lawful and that any stamp duty owed has been paid.

To accomplish this, businesses must first prepare the necessary documentation. After that, the documents are taken to a bank or franking center. The center will mark the documents to show that the stamp duty has been paid once it has been paid. This is referred to as franking. After franking the documents, they must be signed.

Alternatively, printed stamp papers can be purchased. These are documents that have already gone through the franking procedure. The cost of the documents includes the stamp duty that must be paid.

Stamping and eStamping: The Key Differences

There are numerous advantages to adopting e-stamps. It can be generated in minutes, is tamper-proof, and SHCIL saves all data. Furthermore, because each e-stamp generates a unique identification number, the authenticity of an e-stamp may be checked online using the website’s enquiry module or via QR code.

Additionally, digital stamping improves business efficiency by providing teams with customizable templates for bulk document creation, eSign integrations for instant document execution, and activity tracking for businesses to estimate TAT for eStamping and stay on top of documentation procedures.

This isn’t to say the system is without flaws. The most serious fault is that if an e-stamp certificate is misplaced, a replica cannot be issued. In addition, you can only revoke your request for an e-stamp for a refund at SHCIL offices, not at the ACC that provided the certificate.

How Is Franking Different From eStamping?

When it comes to paperwork and financial instruments, stamping and franking are two commonly misunderstood terms that need to be clarified. The major distinction is that stamp duty is a form of tax that certifies that the documents are official and lawful, whereas franking is a process that certifies that any charges or taxes, such as stamp duty, have been paid on those documents.

Stamp duty is a levy paid on legal documents that are often used in asset or property transfers. Some contracts, real estate transactions, mortgage deeds, and other legal documents in India require stamping to be legally legitimate. For example, any property sold by an individual on the basis of a written contract without any stamp duty paid or franked does not have legal validity and is not legally binding.

The Sale Deed must be executed on stamp paper in order to be valid. Stamp duties are a type of transaction tax that generates income for the government. In most cases, a physical stamp is required to prove the document’s legal legitimacy.

Stamp duty is normally paid to the stamp paper vendor while purchasing stamp papers, at the sub-office, registrar’s or online in real-time in the event of eStamping in the setting of agencies.

Franking fees, on the other hand, are paid at authorized franking agencies/banks. Only certain banks or agencies with approval from the government can affix the franking stamp to documents.

Is Franking Preferable To eStamping?

If a consumer pays with cash or a Demand Draft (DD), the franking charges can be paid swiftly. However, franking laws differ from state to state and are not standard. Only franking should be used if the customer is paying with cash.

Customers can also buy printed stamp papers or eStamp paper that has already been franked online. The stamp papers’ price includes stamp duty, so all the consumer needs to do is register and sign them. This, however, can only be employed in specific circumstances.

The fact that each bank has a limited quota is a disadvantage of franking. Customers who require a denomination that exceeds the bank’s quota must notify the bank in advance in order to complete the transaction.

Digital stamping is the most secure and tamper-proof method of paying stamp duty. E-stamp paper can only be generated electronically by approved banks; regular citizens are not permitted to do so. Customers can easily conduct business online using net banking or by submitting a bank challan.

Manual stamp duty payments and physical stamp duty payments are not always convenient. They’re a long process involving numerous steps that take 5-10 days to complete and are rife with risks of errors, document loss, and efficiency loss. Digital stamping is a more cost-effective and convenient alternative.

Uploading the document to be stamped using a digital stamping solution, selecting the amount, denomination, state, and other data relevant to the stamp papers required, paying stamp duty, and downloading the stamped document are all simple steps in the eStamping process.

Digital Stamping: The Alternative to Manual Stamp Duty Payments

SignDesk’s includes a Digital Stamping solution with an integrated eSign workflow solution.

With, businesses can leverage India’s top digital stamping solution to documentation turnaround time from days to minutes.

Digital stamping enables:

  • Scalable digitization of organizational templates
  • Streamlining stamp duty payments
  • On-the-go bulk signatures for vendor and distributor agreements
  • Remote agreement execution
  • Creating fast-paced documentation workflows

Contract and agreement paperwork for various industry segments and business teams is made easier with the use of digital stamping and an eSign workflow solution.

Create documents online, pay stamp duty online, and have the signatories eSign the documents to make them legally enforceable. You can now generate & execute contracts in as little as 5-10 minutes using


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