Types of Stamp Paper (Know About All Different Options)

Registering or legalising any document in India or any other country requires the usage of a stamp paper that holds a legal nature. Stamp paper is an A4 size sheet that has a revenue stamp printed on it. The government issues this stamp paper with a monetary value of Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and value above it.

Even though each stamp paper holds a monetary value, it cannot be exchanged for currency notes or used as a negotiable instrument. Relevant documents such as lease agreements, financial offers, sale of goods, loan agreements, indemnity bonds, organisational notes, affidavits, gift deeds, power of attorney, etc., are executed through stamp papers, making these documents legally and legitimately enforceable.

Using stamp paper is mandatory to document any business deed or legal project. Using stamp paper for any crucial document offers it a legal sanction.

Types of stamp paper

There are two major types of stamp paper: judicial stamp paper and non-judicial stamp paper.

Judicial stamp paper

Also known as court fee stamp paper, judicial stamp paper is used for legal purposes. This type of stamp paper is used for court cases and legal procedures. The fee for court proceedings of both civil and criminal cases are paid through stamp papers rather than cash or cheques. The denominations of judicial stamp papers start from Rs. 20 and range to Rs 25,000.

Non-judicial stamp papers

The non-judicial stamp papers are usually used for contracts, agreements, paying taxes, or other tax-related transactions. This type of stamp paper acts as proof in case either party fails or denies paying their duty. The non-judicial stamp papers are used for documents such as affidavits, power of attorney, mortgages, loan agreements, etc.

The value of non-judicial stamp papers starts from Rs.5 and ranges to Rs. 25,000 and more. Some major kinds of non-judicial stamp papers include traditional, revenue, and impressed stamp papers.

• Traditional stamp papers– This type of stamp paper was once widely used in Maharashtra, majorly for registering rental contracts. However, today, traditional stamp papers have been replaced by e-stamp papers.
• Impressed stamp paper– Also known as special adhesive stamp paper, it is used for financial transactions, collection of taxes, cheques, etc.
• Revenue stamp– Revenue stamp designates fees or taxes collected on medicines, alcoholic drinks, licences, firearm registrations and many more. The common public uses this type of stamp paper for several monetary transactions.

Conclusion

Thus, a stamp paper is a piece of paper that carries monetary value and legal sanctions. It is used for important documents, business transactions, financial agreements, etc. The typology of stamp paper is of two major types: judicial stamp papers and non-judicial stamp papers. While judicial stamp papers are used as court fees in court proceedings, non-judicial stamp papers are used for tax payments.