Section 2 (12) of the Stamp Act defines the terms “executed” and “execution,” which are also expanded by the most recent amendment[4] to take into account the allocation of electronic records. It says that the way businesses are business has evolved with the development of technology. Today, business and business contracts are most often executed electronically to save time and costs. However, it also raises concerns about the applicability of electronic agreements in court and the impact of stamp duty on these agreements. In this article, we have tried to discuss in detail the acceptance of electronic agreements as evidence in court and the impact of stamp duty on such agreements. In the situation of the COVID-19 pandemic, it is important that the documents can be executed and at the same time be valid in court. It goes without saying that electronic agreements are valid in the courts and are also responsible for stamp duty. E-contracts encourage different parties around the world to enter into a contract while being legally valid. E-stamping helps reduce corruption and improve transparency. Nevertheless, there could be technical failures for parties executing an agreement using an electronic stamp, which could be a major challenge for the implementation of an agreement.

National legislation can be flexible for collecting late payment fees. There are also some states that need to be more important for e-treaties and electronic stamps. And in rural areas, people still do not have sufficient knowledge of technology, which is why it would be difficult in rural areas to adapt to this electronic footprint. It could also be a challenge for legislators and government agencies. Executing online agreements is the alternative. An agreement applies when a valid offer and acceptance by the parties are available. A valid contract that is enforceable is a contract. Please read what makes an agreement a valid one.

The Income Tax Appellate Tribunal , Mumbai in DDDIT (IT) 3 (1), Mumbai v. Gujrat Pipavav Port Ltd, Mumbai, Empty Order of 10-02-2017, discussed the validity of the Shrink Wrap agreement: However, with regard to late payment, the Maharash Stamp Act is flexible. Under Section 17 of the Maharashtra Stamp Act, stamp duty may be paid the day after execution. Parties who enter into an agreement have little consequence. The three stamp methods above are attracted by the consequences of non-payment of stamps under stamp laws. For example, instruments that are not properly stamped cannot be considered evidence under Section 35 of the Indian Stamp Act. Documents of financial interest that have not been stamped are not considered evidence of the Court of Justice. The validity of these electronic agreements is maintained by Section 10A of the Information Technology Act, 2000 (“IT Act”) and section 85A of the Indian Evidence Act, 1872.

The Information Technology Act does not require the performance of a physical copy of the contract, unless such a clause is a mandatory provision of the contract for it to enter into force. However, some reservations remain about the validity of transactions and documents relating to substantive issues within the meaning of the first timetable[2] of the Information Technology Act.