Stamp duty
Added Last checked against India Code
A tax paid on documents such as sale deeds, leases, gifts and powers of attorney. A document that should carry it but does not cannot be used as evidence until the duty and penalty are paid.
- Main law
- Indian Stamp Act, 1899 and state laws
- When to pay
- Before or at execution
- Rate set by
- Each state
- If unstamped
- Inadmissible until duty and penalty paid
What brings you here?
Pick one and the page points you to the right next step. We remember it on other glossary pages, on this device only.
I am buying, selling, renting or gifting property
Check the title chain and the encumbrance record before you pay anything, and register the document where the law requires it.
I am in a property dispute
Collect every document that shows ownership or possession, such as the deed, tax receipts and utility bills. Time limits apply to most property suits.
I am a law student or judiciary aspirant
BNS, BNSS and BSA are now part of judiciary exam syllabi. Practise on full-length mock tests and track exam dates on Law Maker, our sister site.
What it means
Section 3 of the Indian Stamp Act, 1899 makes the instruments listed in Schedule I chargeable with duty. The schedule covers documents such as agreements (Article 5), conveyances including sale deeds (Article 23), gifts (Article 33), leases (Article 35) and powers of attorney (Article 48). The rate on most of these is set by each state, and several states have their own Stamp Acts or have amended the 1899 Act.
Section 17 says an instrument chargeable with duty and executed in India must be stamped before or at the time it is executed. Section 29 says who pays when the parties have not agreed otherwise. For a conveyance, for example, it is the grantee, that is the buyer.
If a document is not duly stamped, Section 33 requires the court or officer before whom it is produced to impound it, and Section 35 says it cannot be admitted in evidence for any purpose. The defect can be cured by paying the missing duty with a penalty. In the central text of Section 35 that penalty is Rs 5 or ten times the missing duty, whichever is more, and states have changed the figures. The Collector can also stamp an impounded document on payment of the proper duty together with a penalty of Rs 5 or, if the Collector thinks fit, up to ten times the duty (Section 40).
In December 2023 a seven judge bench of the Supreme Court, in In re Interplay between Arbitration Agreements under the Arbitration and Conciliation Act, 1996 and the Indian Stamp Act, 1899, held that an unstamped or insufficiently stamped agreement is inadmissible in evidence but not void, and that the defect is curable.
The law
| Current provision | Replaced |
|---|---|
| Sections 3, 17 and 29, Indian Stamp Act, 1899Which documents carry duty, when to stamp, and who pays | Still in force; not renumbered |
| Sections 33, 35 and 40, Indian Stamp Act, 1899Impounding, inadmissibility of unstamped documents, and the Collector's power to stamp them | Still in force; not renumbered |
| Schedule I, Indian Stamp Act, 1899 (with state amendments and state Stamp Acts)Duty by type of document | Still in force; not renumbered |
When it matters
- You are buying property and want to know what you must pay before the sale deed is registered.
- You signed a rent agreement or other contract on plain paper and the other side now disputes it.
- A court or registration office has impounded your document for being under stamped.
- You are drafting a gift deed, lease or power of attorney and need to know which stamp applies.
Example
Anil and his landlord signed a rent agreement on plain paper. When a dispute reaches court, Anil produces the agreement, and the court impounds it because it is not duly stamped. Anil pays the missing duty and penalty, and only then can the agreement be admitted in evidence.
Watch out for
- Stamp duty rates are set state by state and change through state notifications. Always check the current rate for the state where the document is executed or the property lies.
- Paying stamp duty is not the same as registering a document. A sale deed must be both duly stamped and registered.
- Some states charge duty on a market value fixed by the government rather than the price written in the deed, and can demand more if they think the property is undervalued. Check the rules of your state.
- An unstamped document is not void, but the penalty for producing it later can be several times the duty itself. It is cheaper to stamp at the start.
Common questions
Is an unstamped agreement void?
No. In December 2023 a seven judge bench of the Supreme Court held that an unstamped or insufficiently stamped agreement is not void. It cannot be admitted in evidence until the proper duty and penalty are paid, and that defect is curable.
Who pays stamp duty on a property purchase?
Under Section 29(c) of the Indian Stamp Act, 1899, the duty on a conveyance is paid by the grantee, that is the buyer, unless the parties agree otherwise. The rate is set by the state.
When must a document be stamped?
Section 17 of the Indian Stamp Act says an instrument chargeable with duty and executed in India must be stamped before or at the time of execution.
Dealing in property?
A property lawyer can check the title before you commit.
In a property dispute?
Speak to a lawyer before the limitation period runs out.
Preparing for a judiciary exam?
Mock tests, mentors and exam dates in one place.
Free tools for this
Draft the document
Read the step-by-step guide
Preparing for a judiciary exam? Practise with full-length mock tests, find a mentor and track exam dates.
Related terms
Read next on LegalFirms
Last checked against the official text on India Code on 10 Nov 2026. This is general information on Indian law, not legal advice for your situation. Laws and court rulings change; a lawyer can tell you how they apply to your facts.