The Karnataka State Government introduced the e-stamping system in the state in 2008. The system was launched to tackle and prevent fraudulent practices in stamp paper-based registrations and transactions. The e-stamping system was launched in association with Stock Holding Corporation of India Ltd (SHCIL).
What is the e-stamping system?
E-stamping is a computer based stamp duty collection application. It offers a secure electronic method to stamp documents and prevents leakage of government revenue. The e-stamping system enables the storage of information in a protected electronic form and creates a central data bank for easy verification. With the e-stamping system, the Karnataka State Government and the public can generate online Management Information System (MIS) reports.
One of the reasons of the state government for launching the e-stamping system in Karnataka was to simplify the process of payment of stamp duty and make it glitch free.
Role of SHCIL in the e-stamping system
The SHCIL is the central record keeping agency for all e-stamps used in the country. It has been authorised by the Central Government of India. The responsibilities of SHCIL include everything related to the e-stamping project, right from user registration to administration, managing e-stamping application operations and record maintenance. The agency also designates authorised collection centres or ACCs-scheduled banks that can issue certificates to users.
Implementation of e-stamping in Karnataka
The Karnataka State Government started working on the e-stamping project in 2006. It finally launched the project after 2 years with a pilot at Gandhinagar sub-registrar office. It was a welcome move on part of the state government to take this initiative and make efforts to control the menace of counterfeit stamp papers that were damaging the economy.
Uses of e-stamps
E-stamps can be used in regard to all instruments on which stamp duty is payable. Such instruments include all transfer documents such as sale agreement, mortgage deed, conveyance deed, exchange deed, gift deed, power of attorney, agreement of tenancy, deed of partition, lease deeds, leave and license agreement, etc.
How to get e-stamping done in Karnataka
- Open the SHCIL website shcilestamp.com and check whether your transaction requires stamp duty. The website provides information about the type of transactions that require stamping. It also has addresses of collection centres. For details about Karnataka, click on the link http://shcilestamp.com/estamp_statekarnataka.html.
- Fill up an application form at one of the ACCs. The application form must have the details of the parties involved in the transaction and the purpose for which the e-stamp certificate is to be used.
- Submit the form along with the necessary payment for the stamp certificate. The payment can be done via cash, cheque, or demand draft if it is done at an ACC. For online payments, one can use credit cards, debit cards, RTGS, NEFT, pay orders, or make payment through account-to-account transfer.
Advantages of using e-stamps
The e-stamping system offers multi-level security. One of the main benefits of using e-stamps is that these stamps can be generated within minutes and are tamper-proof. Once an e-stamp certificate is issued, it cannot be copied. The likelihood of duplication of the stamp certificate is eliminated through the use of an optical watermarking.
All data associated with the stamps is saved by SHCIL. But the greatest advantage of using e-stamps is that its authenticity can be verified online. Each e-stamp paper comes with a unique identification number (UIN) which can be used to verify its authenticity on the e-stamping website www.shcilestamp.com.
Drawbacks of using e-stamps
A big drawback of e-stamps is that if the certificate is misplaced, a duplicate copy cannot be issued. Moreover, if someone wishes to cancel their e-stamp request and want a refund, it has to be done only at SHCIL offices. ACC that issued the certificate cannot offer a refund to the user.
How to verify the authenticity of e-stamp paper
Verification of an e-stamp certificate is an easy task, which can be completed in a few steps:
Step 1: Open the website www.shcilestamp.com
Step 2: Click on ‘Verify e-stamp certificate’
Step 3: Fill in the required details
- State (Name of the state)
- Certificate Number (UIN)
- Stamp Duty Type (Description of document)
- Certificate Issued Date
- Enter the given alphanumeric string for verification
Step 4: Click ‘Verify’
Step 1: Scan Bar Code
Step 2: Enter the given alphanumeric string for verification
Step 3: Click ‘Verify’
The e-stamping system is not only a secured and easy process, it is also an important process that helps to streamline the stamp-duty segment. The Karnataka State Government has opened many e-stamp vending centres across the state to facilitate the sale of e-stamps and help the general public to avail the benefits of this secure system.