Letter No. 49375/C2/2019, Digital e-Stamping for Certain Instruments, 2020
The Tamil Nadu Registration Department, through Letter No. 49375/C2/2019 dated 14 September 2020, communicates the Commercial Taxes and Registration (J1) Department administrative order, Letter (Ms) No. 127 dated 4 August 2020. It permits National e-Governance Services Limited to use Stock Holding Corporation of India Limited for digital e-Stamping of 17 listed instruments, particularly lending documents that are not compulsorily registrable.
What the document does
The Tamil Nadu Registration Department Letter No. 49375/C2/2019 dated 14 September 2020 sends Stock Holding Corporation of India Limited the administrative approval issued by the Commercial Taxes and Registration (J1) Department in Letter (Ms) No. 127 dated 4 August 2020. The approval allows National e-Governance Services Limited to use Stock Holding Corporation of India Limited to issue e-Stamps in digital form for specified instruments.
The government had already appointed Stock Holding Corporation of India Limited as the implementing agency for e-Stamping. The new permission covers dematerialised documents maintained electronically and signed electronically.
Who may be affected
The permission may affect banks, finance companies, lenders and parties using the listed financial or security documents. Property buyers, owners and professionals may encounter it when dealing with deposits of title deeds, mortgages without possession, powers of attorney relating to movable property, reconveyance of mortgages relating to movable property, or leases for less than one year.
The Commercial Taxes and Registration (J1) Department records that documents which are compulsorily registrable, or which a party chooses to register, must be presented to the registering officer in person and in physical form within four months from execution. It also states that a document not intended to be registered may be maintained in dematerialised form where registration is not compulsory. The viability of dematerialised stamping for compulsorily registrable documents was left for later consideration.
Instruments covered
Digital e-Stamping is permitted for:
- Acknowledgement and affidavit.
- Loan repayment agreements involving a bank or finance company.
- Documents concerning deposit of title deeds, pawn or pledge relating to movable property.
- Bank guarantee, letter of credit, bond and composition deed.
- Further charge relating to movable property and indemnity bond.
- Letter of licence.
- Mortgage deed without possession or hypothecation deed relating to movable property.
- Power of attorney relating to movable property.
- Reconveyance of mortgage relating to movable property.
- Respondentia bond, security bond and debenture.
- Lease for less than one year.
Practical point
The administrative approval concerns the method of paying stamp duty and maintaining eligible instruments electronically. It does not state that every listed document is exempt from registration. Whether a document must be physically presented depends on whether it is compulsorily registrable or is voluntarily submitted for registration.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can I use digital e-Stamping for a deposit of title deeds document?
Deposit of title deeds is included in the list of 17 instruments. However, the source notes that deposit of title deeds may not fall within the generally optional category, and compulsorily registrable or voluntarily registered documents must be presented physically.
Does digital e-Stamping remove the need to register a document?
No. The approval concerns digital payment of stamp duty and electronic maintenance of documents. A document that is compulsorily registrable, or that a party chooses to register, must still be presented to the registering officer in person and in physical form.
Are property mortgages covered by the permission?
The list includes mortgage deeds without possession or hypothecation deeds relating to movable property, and reconveyance of mortgages relating to movable property. The document does not give a general approval for every type of property mortgage.
Which organisation issues the digital e-Stamp?
National e-Governance Services Limited is permitted to use the services of Stock Holding Corporation of India Limited, the implementing agency for e-Stamping, to issue digital e-Stamps for the listed instruments.
