Maharashtra Stamp Fourth Amendment Act 2026 Prescribes Stamp Duty on Financial Guarantees

• The Maharashtra Stamp (Fourth Amendment) Act, 2026 revises the stamp duty structure for guarantee instruments.
• Stamp duty on financial and bank guarantees will be based on the guaranteed amount.
• Concessional rates are provided for public works and procurement-related guarantees.
• Lawyers should ensure compliance with the new regulations when drafting or reviewing financial and bank guarantees in Maharashtra.

The revised stamp duty structure is likely to have a significant impact on the cost of providing and accepting financial and bank guarantees in Maharashtra.

The Maharashtra government has introduced the Maharashtra Stamp (Fourth Amendment) Act, 2026, which revises the stamp duty structure for guarantee instruments. The new law prescribes stamp duty on financial and bank guarantees based on the guaranteed amount. This means that parties involved in providing or accepting financial and bank guarantees will need to pay a certain percentage of the guaranteed amount as stamp duty. The rates are expected to vary depending on the type of guarantee and the amount involved.

The amendment also provides for concessional rates for public works and procurement-related guarantees. This is likely to benefit government agencies and contractors who frequently use these types of guarantees in their projects.

The Maharashtra Stamp Act, 1958, governs the imposition of stamp duty on various documents, including guarantee instruments. The new amendment revises Section 3 of the Act to prescribe the revised stamp duty structure for financial and bank guarantees. The rates have been notified by the state government. It is worth noting that the amendment does not affect the existing exemptions or concessions available under the Act.

The revised stamp duty structure is likely to have a significant impact on the cost of providing and accepting financial and bank guarantees in Maharashtra. Lawyers and professionals involved in drafting or reviewing these documents should be aware of the new rates and ensure compliance with the regulations.

The revised stamp duty structure for guarantee instruments is a significant development that affects various stakeholders, including banks, financial institutions, government agencies, and contractors. The new law aims to increase revenue for the state government while also ensuring that parties involved in providing or accepting guarantees comply with the regulations.

Lawyers should ensure compliance with the revised stamp duty structure and the new regulations, particularly when drafting or reviewing financial and bank guarantees in Maharashtra. This is crucial to avoid any potential penalties or disputes arising from non-compliance.

Lawyers should watch for the revised stamp duty structure to ensure compliance with the new regulations, particularly when drafting or reviewing financial and bank guarantees in Maharashtra.

Source: Original reporting via SCC Times