Stamp Paper Value for
Every Type of Agreement
India 2025-26 — Complete Reference

Technically, No. Under the Indian Stamp Act 1899 Schedule I, NDAs, MoUs, Service Agreements, Consultancy Agreements, and most commercial contracts are NOT specifically listed as instruments requiring mandatory stamp duty. Legally, they can be executed on plain paper and are valid contracts under the Indian Contract Act 1872. However, an unstamped document cannot be admitted as evidence in court under Section 35 of the Stamp Act. This is why virtually everyone puts such agreements on ₹50–₹100 stamp paper as a practical precaution — to ensure the document can be produced in court if a dispute arises. The ₹50 stamp paper (in Delhi) effectively "clears" the document for court admissibility. This is not strictly required by law but is universally recommended practice. If you want absolute safety — stamp it.

They are the same thing expressed differently. The "stamp paper value" or "stamp paper denomination" (₹10, ₹50, ₹100, ₹500) IS the stamp duty amount — it's the tax you pay to make the document legally valid. For fixed-duty instruments (affidavit = ₹10, GPA = ₹50), you buy a stamp paper of exactly that denomination. For ad valorem instruments (sale deed = 6% of property value), you calculate the duty amount (say ₹4,20,000 on a ₹70L property) and buy an e-stamp certificate of exactly ₹4,20,000 — there's no physical stamp paper in a fixed denomination for this. With e-stamping (mandatory from July 2025), you can buy e-stamps of any exact value rather than being limited to standard denominations (₹10, ₹20, ₹50, ₹100, ₹200, ₹500, ₹1,000) that physical stamp papers came in.

Special Power of Attorney (SPA): ₹20 stamp paper in Delhi. Used for authorizing someone for a specific single transaction. General Power of Attorney (GPA): ₹50 stamp paper in Delhi. For general authorization across multiple transactions. GPA to sell property: This is different — when a GPA authorizes someone to sell immovable property, stamp duty is typically 5% of the market value of the property involved (similar to a sale deed). In Delhi, this would be calculated on circle rate. Company Board Resolution authorizing POA: ₹100. Maharashtra POA rates may differ — check IGR Maharashtra. All POAs must be registered if they relate to immovable property.

Employment agreements and offer letters are not listed in Schedule I of the Indian Stamp Act — there is no mandatory stamp duty. They are valid on plain company letterhead or signed paper. However, as common practice, many companies execute employment agreements on ₹50–₹100 stamp paper (in Delhi) to ensure court admissibility. Specific attachments like confidentiality agreements (NDA), stock option grant letters, or non-compete agreements may be executed on ₹50 stamp paper separately. A ₹50 stamp paper in Delhi covers "any type of agreement" — so for employment agreements, ₹50 is the conventional choice if you choose to stamp it. There is no legal requirement to use a higher denomination for employment contracts regardless of the salary amount.

Under Section 35 and 40 of the Indian Stamp Act: (1) The document is inadmissible as evidence in court unless the deficiency is paid. (2) The deficiency (difference between actual stamp duty and what was paid) must be paid. (3) A penalty of up to 10 times the deficient stamp duty is levied in addition to the deficiency. Courts and Sub-Registrars are empowered to impound insufficiently stamped documents under Section 33 and refer them to the Collector of Stamps for adjudication. The ₹5,000 penalty under the July 2025 e-stamp rules specifically targets non-digitally-stamped new agreements — separate from the Section 35 penalty which is 10× deficiency. For very low-value mistakes (say ₹30 deficiency on a ₹50 agreement instead of ₹100), the penalty is still technically 10×, though practical enforcement varies.

For property-related instruments (sale deed, gift deed, lease deed, mortgage): stamp duty is paid in the state where the property is situated, regardless of where you sign the agreement. This is because property stamp duty is a state tax on property within that state. For non-property agreements (business contracts, employment agreements, NDA, loan agreements between companies): stamp duty is paid in the state where the agreement is executed / first signed. If a Delhi company and a Mumbai company sign an agreement in Delhi, Delhi stamp duty applies. The stamp paper must also be purchased from the state where the document is executed — using a Delhi stamp paper for a document executed in Maharashtra is not valid (except for central instruments like bills of exchange). With e-stamping, you select the state while generating the e-stamp certificate.