Kagaznama

Earnest Money Deposit Receipt

At a glance

Price
Free
Stamp duty
A receipt under Article 53: earnest over Rs 5,000 needs a Re.1 revenue stamp, signed across — same in Punjab/Chandigarh (s.30 lets the payer demand it).
Registration
Not compulsory — a preliminary instrument transfers no ownership (s.54, TPA).
Witnesses
Not required for a preliminary letter.

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Guided questions, full draft on screen, download in Word.

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Also called

  • earnest money receipt
  • property token receipt
  • buyer deposit receipt

When you need it

For money paid/received to show commitment before final sale documents — property, amount, reference, price, governing document, possession status, default consequences. 'Earnest' doesn't make forfeiture automatic (s.74 caps compensation) — payment evidence only, not a shortcut around an agreement to sell.

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A receipt under Article 53: earnest over Rs 5,000 needs a Re.1 revenue stamp, signed across — same in Punjab/Chandigarh (s.30 lets the payer demand it). One fixing price/timetable too may be assessed as an agreement to sell — Chandigarh Item 22 (5%), Punjab Article 5 (tehsil rate). Pay by bank/cheque — cash of Rs 20,000+ as an advance is barred by tax law.

Registration

Not compulsory — a preliminary instrument transfers no ownership (s.54, TPA). The eventual agreement/conveyance is assessed on its own terms.

Notarisation

Not required; doesn't replace stamping or registration where needed.

Witnesses

Not required for a preliminary letter. For a binding term sheet or exclusivity/cost-sharing deal, two witnesses help.

Request Stamp Paper

Sample preview — placeholder answers, not your data

EARNEST MONEY DEPOSIT RECEIPT
1. RECEIPT

On 1 April 2026, Harpreet Singh acknowledges receipt from Aarav Sharma of ₹5,00,000 (Rupees Five Lakh only) toward the proposed purchase of Plot 218, Eco City 1, New Chandigarh, Punjab (Apartment): Residential plot measuring approximately 300 sq yd in Eco City 1..

Proposed total sale consideration recorded for context: ₹2,25,00,000 (Rupees Two Crore Twenty Five Lakh only). Payment mode: Bank transfer. Reference: UTR HDFC2609101122.

2. GOVERNING TERMS

Receipt effect: Receipt acknowledges earnest money under the separately identified transaction terms. Governing transaction-terms reference: Term Sheet dated 10 September 2026

Seller-default treatment: Refund follows the separately agreed transaction terms and reasonable-compensation law. Buyer-default treatment: Forfeiture, if claimed, is subject to the agreed terms and section 74 reasonable-compensation principles.

Section 74 of the Indian Contract Act, 1872 limits recovery under a stipulated sum/penalty clause to reasonable compensation not exceeding the amount stipulated. This receipt therefore does not state that forfeiture is automatically valid merely because the word earnest is used.

3. RERA / POSSESSION

RERA-project position: Covered project transaction; statutory agreement-for-sale requirements must be checked before further advance. For a covered promoter transaction, the statutory agreement-for-sale requirements must be followed before taking an advance beyond the amount permitted by RERA.

Possession: No possession is delivered under this receipt. Refund evidence: By bank/payment reference and written refund acknowledgment.

4. NO CONVEYANCE

This receipt does not transfer ownership. Section 54 of the Transfer of Property Act, 1882 states that a contract for sale does not itself create an interest in or charge on the property.

PERSONAL DATA NOTICE

This notice is given under the Digital Personal Data Protection Act, 2023. Personal data in this document is collected only to record the earnest-money payment, its transaction context and any later refund/forfeiture issue, communicate about that purpose, verify information expressly supplied, and retain an evidentiary record.

The record will be held by Sachdeva Estates and may be shown only to the buyer, seller, authorised broker/agent, advocate, lender, valuer, project promoter, escrow/payment provider or statutory authority directly involved in the stated property transaction or verification.

If the proposed transaction does not proceed, or this document is withdrawn before it takes effect, the personal data will be retained for 90 days from that decision and then erased. If the transaction proceeds, the record will be retained for the term of the transaction plus 12 months and then erased, except for a record that a statute requires to be kept for a longer named period.

Questions about this document

Does the Earnest Money Deposit Receipt need stamp paper or stamp duty in Punjab and Chandigarh?

A receipt under Article 53: earnest over Rs 5,000 needs a Re.1 revenue stamp, signed across — same in Punjab/Chandigarh (s.30 lets the payer demand it).

See the full position on stamp duty, registration and witnesses
Does the Earnest Money Deposit Receipt need registration in Punjab and Chandigarh?

Not compulsory — a preliminary instrument transfers no ownership (s.54, TPA).

See the full position on stamp duty, registration and witnesses
What does the Earnest Money Deposit Receipt cost on Kagaznama?

Free.

Documents are free. Kits are free during our launch.

Does the Earnest Money Deposit Receipt need witnesses?

Often needed with this document

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Earnest Money Deposit Receipt — format | Kagaznama