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The Government of Maharashtra, by gazette notification dated 22.07.2026, has notified the Maharashtra Stamp (Fourth Amendment) Act, 2026 (“Stamp Amendment”)1 amending the Maharashtra Stamp Act, 1958 (“Stamp Act”).
Under Schedule I appended to the Stamp Act, the Stamp Amendment has inserted an additional article, numbered 34A and titled “Guarantee”, to provide for stamp duty payable for financial or bank guarantee and letter of guarantee.
In accordance with the Stamp Amendment, the stamp duties payable for financial or bank guarantee and letter of guarantee are as follows:
- Financial or bank guarantee
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- If the guarantee amount secured by such deed does not exceed INR 5 lakhs: 0.1% of the amount secured by such deed, subject to a minimum of INR 500/-;
- In any other case: 0.3% of the amount secured by such deed, subject to a maximum of INR 20 lakhs;
- Where the guarantee is issued in favour of a government corporation, local authority or statutory body in respect of public works or public procurement: INR 500/-; and
- Renewal or extension of an existing financial or bank guarantee without increase in the guaranteed amount: 0.25% of the amount secured by such deed, subject to a maximum of INR 25,000/-
- Letter of Guarantee
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- Any letter of guarantee except any instrument stated above under financial or bank guarantee: INR 500/.
- Further, the Stamp Amendment has also removed the unnumbered entry of letter of guarantee de-linking it from the stamp duty payable for an agreement under Article 5 of the Stamp Act.
Footnote
1 Maharashtra Stamp (Fourth Amendment) Act, 2026
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