The Government of Maharashtra, on July 22, 2026, notified the Maharashtra Stamp (Fourth Amendment) Act, 2026, amending the Maharashtra Stamp Act, 1958. The amendment inserts a new Article 34A in Schedule I to prescribe stamp duty on financial and bank guarantee instruments executed in the State.
The newly inserted Article 34A prescribes stamp duty at 0.1% of the guaranteed amount (subject to a minimum of ₹500) where the secured amount does not exceed ₹5 lakh, and 0.3% of the guaranteed amount (subject to a maximum of ₹20 lakh) in all other cases. Guarantees issued in favour of Government Corporations, Local Authorities or Statutory Bodies for public works or public procurement attract a fixed stamp duty of ₹500, while renewal or extension of an existing financial or bank guarantee without an increase in the guaranteed amount is chargeable at 0.25%, subject to a maximum of ₹20,500.
The Act also amends Article 37 of Schedule I by deleting the reference to "Letter of Guarantee", as such instruments are now specifically covered under the newly inserted Article 34A, thereby providing a separate and comprehensive stamp duty framework for financial and bank guarantees.
[Act No. XLII of 2026]
