What is Digital Stamping?
Digital Stamping or eStamping is a method of affixing stamps on documents, contracts & agreements. It is revolutionizing the way India handles document legality and authenticity. This modern alternative to the traditional method of affixing physical stamps to paper employs electronic stamps with unique identifiers, enhancing security and verifiability while being completely tamper-proof.
Is Digital Stamping legal & valid in India?
Yes, digital stamping is legal and valid in India - provided that the process meets certain strict conditions. According to Section 4 of the Information Technology (IT) Act, 2000, an electronic rendition of a document holds the same legal standing as its physical counterpart, provided it remains accessible for future reference. A legally valid digital stamping process must align with this provision, ensuring both the digital and physical versions are identical and properly archived.
You can read in detail about legality of digital stamping in our blog, titled, “Is Digital Stamping legal & valid in India?”
What is Stamp Duty?
Stamp Duty is a tax imposed on documents by the Indian government, essential for legal recognition and enforceability in a court of law. Essentially, paying stamp duty is a way of taxing transactions that requires legal transactions. The process & specifics of stamp duty can vary widely based on state laws and the documents on which stamp paper is needed. Therefore, it is important for individuals and businesses to familiarize themselves with the regulations relevant to their transactions and location.
How to pay Stamp Duty in India?
In India, stamp duty is paid in three different ways:
- Physical Stamping - It is the traditional method where a physical stamp (either an adhesive stamp or a stamp paper) is manually affixed to the document to denote the payment of stamp duty.
- Phygital Stamping - It is a hybrid approach that combines physical and digital elements. Typically phygital stamping involves digital generation of stamp paper accompanied by physical affixture. The “eStamp” system prevalent in many States is a classic example of phygital stamping.
- Digital Stamping - Digital stamping is a method of digitizing stamp papers in a legally compliant way - such that their affixture is digital.
For a comprehensive breakdown of stamp duty payment methods, refer to our extensive blog post, "Stamp Duty in India."
How to digitally stamp a document?
We’ve created BharatStamp - a legally compliant way to use digital stamping in India.
1. Create a Stamp Series: Generate a collection of eStamps from a single State of the same denomination. Leegality then procures this series.
2. Form a Dynamic Stamp Group: Assemble multiple stamp series when a single one isn't sufficient for your document needs.
3. Attach the Digital Stamp: Apply the eStamp to your electronic document with ease.
We have written a detailed blog on how to perform these 3 steps in detail. Check out our Digitally Stamp a document blog to get a step-by-step guide on how to create a stamp series and attaching it on a document.
What are the advantages of using Digital Stamping over Physical Stamping
- Cost Efficiency: Digital Stamping eliminates expenses tied to the procurement, handling, and storage of physical stamps, offering significant savings.
- Unmatched Convenience: Acquire eStamps online at any time, from any location, without the limitations of physical interaction.
- Enhanced Security: Each digital stamp's unique identifier and built-in security features greatly reduce the risk of forgery.
- Instantaneous Verification: The unique identifiers allow for the immediate verification of document authenticity, streamlining legal processes.
- Integration with Digital Workflows: Digital Stamping fits seamlessly into existing digital ecosystems, promoting effortless adoption by businesses.
Digital Stamping for Your Business with Leegality’s BharatStamp
BharatStamp, provided by Leegality, simplifies the digital stamping process for businesses across over 25 Indian states and Union Territories. Simply select your desired state and stamp denomination; Leegality takes care of the rest, sourcing stamp papers from authorized vendors nationwide. Access your eStamps via the Leegality dashboard and integrate them with your eSignatures for fully compliant digital transactions.
For a seamless transition to digital stamping and a deeper dive into its advantages, turn to our full suite of resources at Leegality, where we guide Indian businesses into the future of digital documentation.