On 22 July 2026, the Maharashtra Government notified the Maharashtra Stamp (Fourth Amendment) Act, 2026, prescribing specific stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.
Key Points:
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The amendment revises the Maharashtra Stamp Act, 1958 to prescribe stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.
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A new Article 34A has been inserted in Schedule I to specifically regulate stamp duty on guarantee instruments.
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Article 34A classifies different types of guarantees and prescribes the stamp duty payable on each category.
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The applicable stamp duty rates are as follows:
Category of Guarantee
Stamp Duty
Financial or Bank Guarantee where the amount secured does not exceed ₹5 lakh
0.1% of the amount secured, subject to a minimum of ₹500
Financial or Bank Guarantee where the amount secured exceeds ₹5 lakh
0.3% of the amount secured, subject to a maximum of ₹20 lakh
Guarantee issued in favour of a Government Corporation, Local Authority or Statutory Body for public works or public procurement
₹500
Renewal or extension of an existing financial or bank guarantee without any increase in the guaranteed amount
₹500
Letter of Guarantee (other than financial or bank guarantees covered above)
0.25% of the amount secured, subject to a maximum of ₹25,000
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The amendment deletes the separate entry relating to ‘Letter of Guarantee’ under Article 37 and brings such instruments within the scope of the new Article 34A.
Also Read: The Cost of Justice? Maharashtra’s Stamp Duty Shake-Up and its Ripple Effect on Arbitration in India
[Maharashtra Stamp (Fourth Amendment) Act, 2026, dated 22-7-2026]
