Non Judicial physical stamp paper will stop 1st october
The stamp paper looks like a foolscap size blank paper. It is found printed with revenue stamp as seen imprinted in currency notes or on postal stamps of notified value such as Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and even more, and is issued by the Government across the world.
Every stamp paper carries a monetary value, but neither it is a negotiable instrument nor it can be exchanged like currency notes. These papers are used for endorsing authenticity to official agreements and documents. Almost all documents / agreements with legal implications including transactions like Lease Agreement, Buying and Selling of Property, Business / Contract Agreements, Loan Agreements / Financial Deals, Power of Attorney, Affidavits, Articles of Association, Memorandum of Association, Indemnity Bond, Declaration, Mortgage, Gift Deed, etc. are executed on stamp papers to make them legitimate and legally enforceable.
Regardless you are documenting daily business transaction or you are going to execute an agreement for some upcoming projects, etc., you need to use a Stamp Paper. Irrespective of the modus operandi of an agreement in order to make it legally valid, a stamp paper has to be used to add legal sanction to this agreement done.
Stamp papers have been widely used around the world to collect taxes on various documents. The papers are always bought blank and are available from licensed stamp vendors, post offices, Government Treasury offices and courts according to local regulations. The concerned persons then write their mutual terms of contract on the paper and lodge it with the court or concerned authority for legal validation.
This is an efficient as well as legal way of collecting taxes by government. This is a passive way to get stamping documents legalized and authenticated without the obligation of submitting them to a responsible and authorized government authority.