The government will make payment of all non-judicial stamp duties through the electronic challan (e-challan) system mandatory from 1 July 2027, covering land transactions, deed registration and other purposes, regardless of the amount payable.
The existing option of paying through paper stamps or e-challan will remain available until 30 June 2027. After that, purchasing paper stamps to pay the duties will no longer be allowed.
The Internal Resources Division of the Finance Ministry recently issued a notification announcing the change.
The government took the decision under Section 11A of the Stamp Act, 1899, and Section 2(1) of the Stamp Duties (Additional Modes of Payment) Act, 1974.
The National Board of Revenue (NBR) disclosed the details in a press release on Tuesday.
Under the notification, stamp duties on land transactions and other registrable deeds must be paid through e-challan. Such deeds must be prepared on cartridge paper instead of the prescribed-value non-judicial stamp paper traditionally used for writing deeds or attaching stamps. The duty must be deposited directly into the government treasury.
When submitting a deed to the sub-registrar’s office for registration, applicants must provide a printed copy of the e-challan receipt as proof of payment. The e-challan number must also appear on the first page of the deed to facilitate verification of the duty paid.
The same system will apply to stamp duties on insurance policies. A printed copy of the e-challan receipt must be attached to the policy, with the relevant policy identification number included in the receipt. The e-challan number must also appear on the policy’s first page.
The notification also sets out requirements for joint payments of stamp duties on behalf of multiple individuals or organisations. The e-challan must include the name and identification number of each person or organisation. Depending on the type of taxpayer, the information must include a Taxpayer Identification Number (TIN), National Identity Card (NID) number, Business Identification Number (BIN) or trade licence number.
The government expects the new system to reduce the costs of printing, storing and distributing paper stamps, as well as commissions paid on stamp sales. It also expects the system to curb the production and sale of counterfeit stamps and increase government revenue.
