{"id":391654,"date":"2026-07-28T16:00:34","date_gmt":"2026-07-28T10:30:34","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=391654"},"modified":"2026-07-28T15:41:21","modified_gmt":"2026-07-28T10:11:21","slug":"maharashtra-stamp-fourth-amendment-act-2026-explained","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/07\/28\/maharashtra-stamp-fourth-amendment-act-2026-explained\/","title":{"rendered":"Maharashtra Stamp Amendment Revises Stamp Duty Structure for Guarantee Instruments"},"content":{"rendered":"
\n

On 22 July 2026, the Maharashtra Government notified the Maharashtra Stamp (Fourth Amendment) Act, 2026<\/span>, prescribing specific stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.<\/p>\n

Key Points:<\/p>\n

    \n
  1. \n

    The amendment revises the Maharashtra Stamp Act, 1958<\/span><\/a> to prescribe stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.<\/p>\n<\/li>\n

  2. \n

    A new Article 34A has been inserted in Schedule I to specifically regulate stamp duty on guarantee instruments.<\/p>\n<\/li>\n

  3. \n

    Article 34A classifies different types of guarantees and prescribes the stamp duty payable on each category.<\/p>\n<\/li>\n

  4. \n

    The applicable stamp duty rates are as follows:<\/p>\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n
    \n

    Category of Guarantee<\/p>\n<\/td>\n

    		\n

    Stamp Duty<\/p>\n<\/td>\n<\/tr>\n

    \n

    Financial or Bank Guarantee where the amount secured does not exceed ₹5 lakh<\/p>\n<\/td>\n

    		\n

    0.1% of the amount secured, subject to a minimum of ₹500<\/p>\n<\/td>\n<\/tr>\n

    \n

    Financial or Bank Guarantee where the amount secured exceeds ₹5 lakh<\/p>\n<\/td>\n

    		\n

    0.3% of the amount secured, subject to a maximum of ₹20 lakh<\/p>\n<\/td>\n<\/tr>\n

    \n

    Guarantee issued in favour of a Government Corporation, Local Authority or Statutory Body for public works or public procurement<\/p>\n<\/td>\n

    		\n

    ₹500<\/p>\n<\/td>\n<\/tr>\n

    \n

    Renewal or extension of an existing financial or bank guarantee without any increase in the guaranteed amount<\/p>\n<\/td>\n

    		\n

    ₹500<\/p>\n<\/td>\n<\/tr>\n

    \n

    Letter of Guarantee (other than financial or bank guarantees covered above)<\/p>\n<\/td>\n

    		\n

    0.25% of the amount secured, subject to a maximum of ₹25,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/li>\n

  5. \n

    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.<\/p>\n<\/li>\n<\/ol>\n

    Also Read: The Cost of Justice? Maharashtra’s Stamp Duty Shake-Up and its Ripple Effect on Arbitration in India<\/a><\/p>\n

    [Maharashtra Stamp (Fourth Amendment) Act, 2026, dated 22-7-2026]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Maharashtra Stamp (Fourth Amendment) Act, 2026 prescribes stamp duty on financial and bank guarantees based on the guaranteed amount and provides concessional rates for public works and procurement-related guarantees.<\/p>\n","protected":false},"author":67525,"featured_media":391655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1193],"tags":[110964,110962,110963,110968,110965,110961,110967,110966,110969,110970],"class_list":["post-391654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-article-34a-maharashtra-stamp-act","tag-bank-guarantee-stamp-duty-maharashtra","tag-financial-guarantee-stamp-duty","tag-guarantee-instruments-maharashtra","tag-letter-of-guarantee-stamp-duty","tag-maharashtra-stamp-fourth-amendment-act-2026","tag-maharashtra-stamp-law-amendment","tag-public-procurement-guarantee-duty","tag-schedule-i-maharashtra-stamp-act","tag-stamp-duty-on-guarantees"],"yoast_head":"\nMaharashtra Stamp (Fourth Amendment) Act, 2026 Explained | SCC Times<\/title>\n<meta name=\"description\" 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