Is Franking and Stamping Same?
When dealing with documents and payment instruments, two commonly misunderstood terms stamping and franking need to be clarified to the fullest extent possible. The key distinction between the two is that whereas franking is a process that shows any fees or taxes, including the stamp duty on those documents, have been paid, stamp duty is a form of payment that denotes the documents are official and legitimate.
What is Franking and Stamping?
The fundamental distinction between stamping and franking is that stamping is the payment of a duty that certifies the validity of your property paperwork, whereas franking is a document that certifies the home buyer has paid any applicable stamping-related duties.
Stamping
When you stamp your property documents during a home purchase, you pay the government the tax necessary for them to be approved. A sale deed, mortgage papers, or a transfer of assets or properties are common examples of these documents. To make your property acquisition legitimate, you must pay stamp duty and registration fees as part of the stamping process. You receive a stamp on your sale agreement as soon as you complete it. Property documents with a stamp paper are valid.
Nature of the fees
The tax you pay to legalize your real estate documents is called stamp duty. It verifies the validity of your property paperwork.
Fees amount
The complete cost of your property is taken into account when calculating stamp duty and registration fees. Stamp duty typically ranges from 3 to 10% of the value of the property. The answer relies on a number of variables, including the state in which the transaction takes place, the property's status, the age and gender of the home buyer, etc.
Who authorizes the charge?
You must go to the sub-registrar's office in the region where your residence is located to pay the stamp duty. On the site for your state, you can also pay it online.
Franking
Franking is an alternative of paying the stamp duty to the government. The person is required to visit the sub-registrar with his/her documents which needs to be legalised. The sub-registrar prints the stamp on it to pay the stamp duty.
Nature of the fees
The payments paid to finish stamping your property documents are known as a franking charge. It verifies that you have paid your stamp duty.
Fees amount
State-to-state variations are also present. It can frequently be done for no charge. You can also choose to have the franking fee included in the stamp duty itself.
Who authorizes the charge?
Official franking can only be done by authorized banks or government-approved representatives. Plan your visit appropriately because franking is only available at banks for a certain number of hours each working day.
Conclusion
In this era of Franking and Stamping now there is another way of e stamping where everything is done Online. Through Online portals you can actually prepare your e stamp paper and other documents as well. The most recent type of stamping, known as "E-stamping," has greatly improved the convenience of the stamping process. For e-stamping in India, Stock Holding Corporation of India Limited (SHCIL) has been designated as the Central Record Keeping Agency. Now even there are Online portals where you can get your legal documents prepared and delivered on shipping address.