{"id":31553,"date":"2021-07-22T15:59:22","date_gmt":"2021-07-22T10:29:22","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=31553"},"modified":"2024-03-22T09:50:42","modified_gmt":"2024-03-22T04:20:42","slug":"what-are-the-registration-stamp-duty-charges-in-tamil-nadu","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/what-are-the-registration-stamp-duty-charges-in-tamil-nadu","title":{"rendered":"Stamp Duty and Property Registration Charges In Tamil Nadu"},"content":{"rendered":"

The Chennai office of the land registration department implements the Tamil Nadu land registration charges. From E-stamping in Chennai to stamp duty for partition of property, these legal procedures can now be done in the offices of the registrar or sub-registrar.\u00a0<\/span><\/p>\r\n

The stamp duty and registration charges in Tamil Nadu were the highest out of all the states in India, second only to Bihar. Details of the individual stamp duty in Tamil Nadu for all types of documents have been listed below.\u00a0<\/span><\/p>\r\n

Property Registration Charges in Tamil Nadu<\/h2>\r\n

Stamp duty and registration charges in Tamil Nadu are higher than those in most states. The stamp duty for sales or exchange charges is 7% of the market value whereas, the gift deed registration charges in Tamil Nadu is 4% of the market value of the property.\u00a0<\/span><\/p>\r\n

Mortgaged Property<\/b> – There is a mandatory requirement that property under mortgage must also be registered. Stamp duty charges in Tamil Nadu on property under a simple mortgage is 1% of the borrowed amount subject to a limit of \u20b940,000. Registration charges of property under a simple mortgage is also 1% of the loan amount but up to a maximum of \u20b910000. The stamp duty on a mortgage of the property which the owner has in his or her possession is higher at 4% of the borrowed capital. The corresponding registration charges 1% of the loan amount up to a maximum of \u20b9 2 lakhs.<\/span><\/p>\r\n

Property under the Agreement <\/b>– There are different rates of stamp duty charges in Tamil Nadu along with registration charges for agreements. For a sale agreement, the registration charge is 1% of the token money given for the agreement. The house registration charges are 1% of the total consideration amount if possession of the property has already been given. For agreements relating to constructing a building on a plot, the stamp duty and registration charges are both 1% of the higher value out of the cost of construction or the cost of consideration made in the document. The stamp duty and registration charge on any type of cancellation document are \u20b950 each.<\/span><\/p>\r\n

Property under Partition <\/b>– The stamp duty in Tamil Nadu and registration charge are the applied charges for individual registration of property after partition. For a split of property between members of a family, the rate is 1% of the market value of the property for both. Though, there is a maximum limit of \u20b925,000 stamp duty for each partition and a maximum limit of \u20b94,000 registration fee for each unit of partition of the property. For partition among people who are not related, however, the stamp duty charges in Tamil Nadu is 4% of the present valuation of separated shares and the registration fee is 1% of the market value of the separated shares.<\/span><\/p>\r\n

Property with the Power of Attorney <\/b>– There are different stamp duty and registration charges for property under a power of attorney. In the case of a general power of attorney for the sale of immovable property, stamp duty is \u20b9100 and the registration fee \u20b910,000. In the case of a general power of attorney for immovable property given to a member of the family, the stamp duty remains \u20b9100 but the registration fee is \u20b91,000. In the case of a general power of attorney given for selling mobile property not considered immovable and for other purposes, stamp duty on this document is \u20b9100 and the registration charge \u20b950. There is a fourth type of power of attorney which is given for the purpose of considering action on a property. The stamp duty on this is 4% of the consideration amount and a registration fee of 1% up to a maximum of \u20b910,000.\u00a0\u00a0\u00a0<\/span><\/p>\r\n

Settlement Deed Stamp Duty in Tamil Nadu<\/h2>\r\n

The next set of documents are settlements. For registration of a document of settlement among family members, the settlement deed stamp duty in Tamil Nadu is 1% of the market value of the property up to a maximum of \u20b925,000. The registration fee is 1% of the market value but up to a maximum limit of \u20b94,000 only. Documents of settlement in other cases attract a stamp duty of 7% of the market value of the property while the registration fee is 4% of the property\u2019s market value.\u00a0<\/span><\/p>\r\n

Sale Deed Registration Charges in Tamil Nadu<\/h2>\r\n

The stamp duty on partnership deeds is \u20b9300 and the registration fee 1% of the capital invested. If a memorandum of title deeds is to be registered, the required stamp duty is 0.5% of the loan amount up to a maximum of \u20b930,000. The registration fee on the memorandum is 1% of the loan amount up to a maximum of \u20b96,000.\u00a0<\/span><\/p>\r\n

Release <\/b>\u2013 There are two kinds of release documents: those among family members and those among non-family members. In the case of release among family members who are coparceners to the property, the stamp duty and registration charge are both 1% of the market value of the property though with a limit of \u20b925,000 on the stamp duty and \u20b94,000 on the registration fee. In documents of release among members who are not related by family, stamp duty is 7% and registration fee 1% of the total market value of the property.<\/span><\/p>\r\n

Lease Documents <\/b>– Lease agreements of different types need to be registered and so requires the payment of stamp duty and registration charge. The stamp duty and registration fee are both 1% of the rent, fines and premium though there is a limit of \u20b920000 on the registration fee. For leases up to 99 years, the registration fee remains at 1% of the rent with a cap of \u20b920000 while the stamp duty is 4% of the rent plus any premium or fine. For lease agreements beyond 99 years, also known as perpetual leave, the registration fee is again 1% with a limit of \u20b920000 while the stamp duty is 7% of the rent and any advance or premium. Moreover, if your renting a property then you need to obtain a rent agreement<\/a>, which is the legal document allowing the individual to rent a property.\u00a0<\/span><\/p>\r\n

Stamp Duty in Tamil Nadu for Men & Women<\/h2>\r\n

The stamp duty on properties owned by Municipal Limit\u2019s have now been revised in terms of its stamp duty charges which is different for men and women. For men, it is 7% of stamp duty imposed to be paid. Whereas, for females it is 5% for the stamp duty on property. But if the property is owned jointly by both male and female, then the stamp duty charge is 6% cumulatively.\u00a0<\/span><\/p>\r\n

For properties which are not under Municipal Limits in Tamil Nadu, the stamp duty charge for male is 5% and 3% for females. Similarly, if there is a joint property ownership of male and female, the stamp duty rates will be applied at 4%. Thereby, the stamp duty registration charges is Rs. 15,000 as per the stamp duty value of property above Rs. 25,00,000.<\/span><\/p>\r\n

How to Calculate Registration Charges and Stamp Duty in Tamil Nadu?<\/h2>\r\n

The calculation is an easy task once you have the in-depth understanding. Basically, the stamp duty value of property is decided under property consideration value. It may also consider the guidelines value tf hat particular property. The prime rule is to pick the highest value of the market. The stamp duty calculator<\/a> will help you calculate the Stamp Duty Charge in Tamil Nadu.<\/span><\/p>\r\n

If the value on papers for a plot or a house is RS. 60,00,000 and the guideline value is estimated\u00a0 to be Rs. 50,00,000, then the stamp duty on property will be Rs. 60,00,000.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Guideline Value<\/b><\/td>\r\n\u20b9 50 lakhs<\/b><\/td>\r\n<\/tr>\r\n
Stamp Duty Charges<\/span><\/td>\r\n7% of \u20b9 50 lakhs = \u20b9 3,50,000<\/span><\/td>\r\n<\/tr>\r\n
Registration Fee<\/span><\/td>\r\n4% of \u20b9 50 lakhs = \u20b9 2,00,000<\/span><\/td>\r\n<\/tr>\r\n
Total Amount<\/span><\/td>\r\n(50,00,000+3,50,000+2,00,000)= \u20b9 5,550,000<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

Tamil Nadu Land Registration Fee and its Impact<\/h2>\r\n

Let us calculate the effect of stamp duty and the cost of registration on the price of a property. If a person is buying a property that has a market value of \u20b950 lakhs, the stamp duty at 7% of the market value works out to \u20b93.5 lakhs. The registration charge of this property at 4% works out to \u20b92 lakhs.\u00a0<\/span><\/p>\r\n

The total cost of stamp duty and registration charge is \u20b95.5 lakhs. Thus, the impact seen on the land registration charges in Tamil Nadu gets a hike of 11%\u00a0 in the actual cost of the land.\u00a0<\/span><\/p>\r\n

Tamil Nadu Land Registration Fee for Resale Property<\/h2>\r\n

The flat registration charges for a resale property amount to 1% of either the market value of the property or the sale agreement value. The stamp duty remains the same at 7%.\u00a0<\/span><\/p>\r\n

Stamp Duty and Registration Charges in Other States<\/h3>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Maharashtra<\/td>\r\nStamp Duty in Maharashtra<\/a><\/td>\r\n<\/tr>\r\n
Gujarat<\/td>\r\nStamp Duty in Gujarat<\/a><\/td>\r\n<\/tr>\r\n
Uttar Pradesh<\/td>\r\nStamp Duty in Uttar Pradesh<\/a><\/td>\r\n<\/tr>\r\n
West Bengal<\/td>\r\nStamp Duty in West Bengal<\/a><\/td>\r\n<\/tr>\r\n
Delhi<\/td>\r\nStamp Duty in Delhi<\/a><\/td>\r\n<\/tr>\r\n
Haryana<\/td>\r\nStamp Duty in Haryana<\/a><\/td>\r\n<\/tr>\r\n
Rajasthan<\/td>\r\nStamp Duty in Rajasthan<\/a><\/td>\r\n<\/tr>\r\n
Bangalore<\/td>\r\nStamp Duty in Bangalore<\/a><\/td>\r\n<\/tr>\r\n
Gurgaon<\/td>\r\nStamp Duty in Gurgaon<\/a><\/td>\r\n<\/tr>\r\n
Pune<\/td>\r\nStamp Duty in Pune<\/a><\/td>\r\n<\/tr>\r\n
Punjab<\/td>\r\nStamp Duty in Punjab<\/a><\/td>\r\n<\/tr>\r\n
Odisha<\/td>\r\nStamp Duty in Odisha<\/a><\/td>\r\n<\/tr>\r\n
Karnataka<\/td>\r\nStamp Duty in Karnataka<\/a><\/td>\r\n<\/tr>\r\n
Madhya Pradesh<\/td>\r\nStamp Duty in Madhya Pradesh<\/a><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

Stamp Duty and Registration Charges in Tamil Nadu<\/h2>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Documents<\/strong><\/td>\r\nStamp Duty\u00a0\u00a0\u00a0<\/strong><\/td>\r\nRegistration Charges<\/strong><\/td>\r\n<\/tr>\r\n
Sale Deed<\/td>\r\n7% on the property\u2019s market value<\/td>\r\n4% on the property\u2019s market value<\/td>\r\n<\/tr>\r\n
Gift Deed<\/td>\r\n7% on the property\u2019s market value<\/td>\r\n4% on the property\u2019s market value.<\/td>\r\n<\/tr>\r\n
Exchange Deed<\/td>\r\n7% on the property\u2019s greater market value<\/td>\r\n4% on the property\u2019s greater market value.<\/td>\r\n<\/tr>\r\n
General Mortgage<\/td>\r\n1% of the loan amount, based on max. limit of INR 40,000\/-<\/td>\r\n1% of the loan amount based on a max. limit of INR 10,000\/-<\/td>\r\n<\/tr>\r\n
Mortgage with a possession<\/td>\r\n4% of loan Amt.<\/td>\r\n1% based on max. limit of INR 2,00,000\/-<\/td>\r\n<\/tr>\r\n
Sale Agreement<\/td>\r\nINR 20<\/td>\r\n1% – money advanced, if possession is given.<\/td>\r\n<\/tr>\r\n
Building Construction Agreement<\/td>\r\n1 % on the proposed construction cost or consideration mentioned in agreement, if its value is higher.<\/td>\r\n1 % on the proposed construction cost or consideration mentioned in agreement, if its value is higher<\/td>\r\n<\/tr>\r\n
Cancellation Charge<\/td>\r\nINR 50<\/td>\r\nINR 50<\/td>\r\n<\/tr>\r\n
Partition among family\/non-family members<\/td>\r\n<\/tr>\r\n
i) family member<\/td>\r\n1% on the property\u2019s market value based on max. limit of INR 25,000\/- for every share<\/td>\r\n1% based on max. limit of INR 4,000\/- for every share.<\/td>\r\n<\/tr>\r\n
ii) Non-family members<\/td>\r\n4% on the property\u2019s market value for the separated shares<\/td>\r\n1% on the property\u2019s market value for the separated shares<\/td>\r\n<\/tr>\r\n
Power of Attorney<\/td>\r\n<\/tr>\r\n
i)\u00a0 Immovable property<\/td>\r\nINR\u00a0 100<\/td>\r\nINR 10,000<\/td>\r\n<\/tr>\r\n
ii) Immovable property (If power is transferred to family member)<\/td>\r\nINR\u00a0 100<\/td>\r\nINR 1,000<\/td>\r\n<\/tr>\r\n
iii) Movable property and other purposes<\/td>\r\nINR\u00a0 100<\/td>\r\nINR 50<\/td>\r\n<\/tr>\r\n
iv) Power of Attorney transferred for consideration<\/td>\r\n4% on consideration<\/td>\r\n1% on consideration or INR 10,000\/- whichever value is higher<\/td>\r\n<\/tr>\r\n
Settlement<\/td>\r\n<\/tr>\r\n
I) In favor of family members<\/td>\r\n1% on the property\u2019s market value with a limit of INR 25,000\/-<\/td>\r\n1% on the property\u2019s market value with a limit of INR 4,000\/-<\/td>\r\n<\/tr>\r\n
ii) Other Cases<\/td>\r\n7% on the property\u2019s market value<\/td>\r\n4% on the property\u2019s market value<\/td>\r\n<\/tr>\r\n
Partnership deed<\/td>\r\n<\/tr>\r\n
i) with a capital less than INR 500<\/td>\r\nINR\u00a0 50<\/td>\r\n1% on the invested capital<\/td>\r\n<\/tr>\r\n
ii) Other Cases<\/td>\r\nINR\u00a0 300<\/td>\r\n1% on the invested capital<\/td>\r\n<\/tr>\r\n
Memoradum of Title Deeds\u2019 Deposits<\/td>\r\n0.5% on the loan Amt.with a limit of INR 30,000\/-<\/td>\r\n1% on the loan Amt.with a max. limit of INR 6,000\/-<\/td>\r\n<\/tr>\r\n
Release<\/td>\r\n<\/tr>\r\n
i) \u00a0family members (co – parceners)<\/td>\r\n1% on the property\u2019s market value with a limit of INR 25000\/-<\/td>\r\n1% on the property\u2019s market value with a limit of INR 4000\/-<\/td>\r\n<\/tr>\r\n
ii) \u00a0Non-family participants for co – owners & benami release<\/td>\r\n7% on the property\u2019s market value<\/td>\r\n1% on the property\u2019s market value<\/td>\r\n<\/tr>\r\n
Lease<\/td>\r\n<\/tr>\r\n
< 30 yrs.<\/td>\r\n1 percent on the final Amt.of premium, rent, and fine.<\/td>\r\n1% based on the max. limit of INR 20000\/-<\/td>\r\n<\/tr>\r\n
Till 99 yrs.<\/td>\r\n4 percent on the final Amt.of premium, rent, and fine.<\/td>\r\n1% based on the max. limit of INR 20000\/-<\/td>\r\n<\/tr>\r\n
Above 99 yrs.<\/td>\r\n7 percent of\u00a0 the final Amt.of premium, rent, and fine (if necessarily required)<\/td>\r\n1% based on the max. limit of INR 20000\/-<\/td>\r\n<\/tr>\r\n
Trust Declaration\u00a0 (current property considered as a part of sale)<\/td>\r\nINR\u00a0 180<\/td>\r\n1% of the total Amt.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

Tamil Nadu Stamp Paper<\/h2>\r\n

The government of Tamil Nadu obtains stamp duty for validating the registration agreement. A registration document having a stamp paper acts as a legal piece of paper for providing the property\u2019s ownership in the court. It is critically important for you to pay stamp duty, else you cannot claim your property\u2019s ownership legally.<\/span><\/p>\r\n

Quick Tip: If you’re ordering a stamp paper for the Tamil Nadu State, then you\u2019ll get a Non-Judicial Stamp paper delivered, the state of Tamil nadu doesn\u2019t provide an e-Stamp paper.<\/span><\/p>\r\n

Latest Updates on Stamp duty in Tamil Nadu<\/h2>\r\n

Tamil Nadu may Make Registration Compulsory for Joint Ventures<\/h3>\r\n

The fee for registration for joint ventures in Tamil Nadu is high at the rate of 7% of the market value of the joint venture. As registration of joint ventures was not compulsory in Tamil Nadu, most of the commercial and residential projects are joint ventures. These projects remained unregistered due to the high registration cost.<\/span><\/p>\r\n

The Tamil Nadu government is debating whether to reduce the registration fee to 2% down from 11% while making registration of joint ventures mandatory. This will help reduce unauthorized construction and help revenue collection for the Tamil Nadu Government.<\/span><\/p>\r\n

Property Registrations in Chennai amid COVID-19<\/h3>\r\n

There was a dip in property registration due to the crippling effects of the COVID-induced lockdown. There was an increase in property registration during August 2020 after the easing of restrictions. Additionally, 17,000 more properties were registered in Chennai alone as compared to August 2019.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\r\n

Record High Registrations – October 2020<\/h3>\r\n

The day of October 29, 2020, was a memorable day for the Tamil Nadu land registration charges department. On that one day alone, a record collection of \u20b9123.35 crores was collected in the form of stamp duty and registration charges.<\/span><\/p>\r\n

The 575 offices of sub registrars across the state of Tamil Nadu together achieved 20,307 registrations for the month. This looked like a good recovery, and no one thought a devastating second wave would cripple the progress a few months later.<\/span><\/p>\r\n

Will the State Reduce the Stamp Duty in Tamil Nadu?<\/h3>\r\n

The deputy chief minister of the state of Tamil Nadu had a meeting with the Association of Real Estate Developers in India to reduce the combined 11% stamp duty and registration charge to 6%. This move is being sought as a relief for the people of Tamil Nadu who have still not recovered from the devastating effects of the floods in 2015 and the pandemic-driven lockdowns during 2020 and 2021. There had also been a request to keep the total stamp duty and registration charge down to 5% as an interim measure of relief till the end of March 2021. This was reportedly accepted and implemented by the government of Tamil Nadu.<\/span><\/p>\r\n

The Government of Tamil Nadu gave relief to MSMEs by exempting the 0.5% stamp duty on loans availed under the Pradhan Mantri Atma Nirbhar Bharat scheme. There has been a proposal for providing 20% provisional loan to units with outstanding loans due to loss of operations on account of the lockdowns caused by COVID-19.<\/span><\/p>\r\n

As of December 2021, stamp duty for registration of property in Tamil Nadu is 7% of the market value of the property and registration fee at 1%. The rate is presently prevailing for both urban as well as rural property.<\/span><\/p>\r\n

FAQ’s about Stamp Duty in Tamil Nadu<\/h2>\r\n\t\t\n\t\t\t\t

Q1. How to calculate registry charges in Tamil Nadu?<\/h3>\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\r\n\r\n\r\n

The charges for registering a property in Tamil Nadu are as follows:<\/p>\r\n\r\n\r\n\r\n

\u00b7 7% stamp duty of the property\u2019s market value<\/p>\r\n\r\n\r\n\r\n

\u00b7 1% registration fee of the property\u2019s market value<\/p>\r\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Q2. How much is stamp duty in Tamil Nadu?<\/h3>\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\r\n\r\n\r\n

Stamp duty and registration charges in Tamil Nadu are higher than those in most states. The stamp duty for sales or exchange charges is 7% of the property\u2019s market value.<\/p>\r\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Q3. What is gift deed stamp duty in Tamil Nadu?<\/h3>\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\r\n\r\n\r\n

The stamp duty charged for a gift deed registration in Tamil Nadu is 7% of the market value of the property.<\/p>\r\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t

Q4. What stamp duty is payable on house purchase in Tamil Nadu?<\/h3>\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\r\n\r\n\r\n

7% stamp duty is payable on a house purchase in Tamil Nadu.<\/p>\r\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/section>\n\t\t\n