Notification/Circular No. – DPAL 17 SHASANA 2025
Document Date – April 7, 2025
Applicable Act/Rule – Karnataka Stamp Act, 1957
Applicable Section/Rule – Sections 2 and 10
Background and Rationale
The Karnataka Stamp (Amendment) Act, 2025 (Karnataka Act No. 30 of 2025), aims to modernise the state’s stamp duty framework by recognising electronic documentation, digital signatures, and e-stamp technologies. As more transactions move online and paperless systems gain traction, the amendment ensures that the Karnataka Stamp Act aligns with digital advancements and national IT laws.
Detailed Comparison of Provisions
Provision | Before Amendment | After Amendment (2025) |
Section 2(e) | Recognised only impressed stamp | Now includes “digital e-stamp” |
Section 2(f) | “Executed” meant only physical signature | Includes electronic signatures as per IT Act, 2000 |
Section 2(h)(ii) | Recognised physical endorsement | Now includes “electronically generated with digital signature” |
Section 10(4) (newly added) | No provision for e-payment of stamp duty | State Government may prescribe e-payment procedures |
Amendments and Their Implementation
The key changes introduced include:
The Act will come into force on a date to be notified by the State Government via Gazette notification.
Implications and Future Prospects
The amendments align the Karnataka Stamp Act with the Information Technology Act, 2000 and national digitalisation goals. This update will benefit fintechs, legal professionals, and businesses engaged in electronic documentation. It also lays the foundation for end-to-end e-governance in stamp-related services.
Further developments may include integration with DigiLocker, eSign services, and blockchain-based stamp validations.
Conclusion
The Karnataka Stamp (Amendment) Act, 2025 significantly reforms the traditional stamping process, bringing it in line with modern digital practices. By recognising e-stamps and electronic signatures, Karnataka strengthens its legal infrastructure for a digital economy, ensuring convenience,compliance, and credibility.
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