Stamp Duty and Property Registration Charges In Tamilnadu

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.

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.

Property Registration Charges in Tamil Nadu

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.

Mortgaged Property – 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 ₹40,000. Registration charges of property under a simple mortgage is also 1% of the loan amount but up to a maximum of ₹10000. 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 ₹ 2 lakhs.

Property under the Agreement – 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 ₹50 each.

Property under Partition – 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 ₹25,000 stamp duty for each partition and a maximum limit of ₹4,000 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.

Property with the Power of Attorney – 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 ₹100 and the registration fee ₹10,000. In the case of a general power of attorney for immovable property given to a member of the family, the stamp duty remains ₹100 but the registration fee is ₹1,000. 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 ₹100 and the registration charge ₹50. 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 ₹10,000.

Settlement Deed Stamp Duty in Tamil Nadu

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 ₹25,000. The registration fee is 1% of the market value but up to a maximum limit of ₹4,000 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’s market value.

Sale Deed Registration Charges in Tamil Nadu

The stamp duty on partnership deeds is ₹300 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 ₹30,000. The registration fee on the memorandum is 1% of the loan amount up to a maximum of ₹6,000.

Release – 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 ₹25,000 on the stamp duty and ₹4,000 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.

Lease Documents – 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 ₹20000 on the registration fee. For leases up to 99 years, the registration fee remains at 1% of the rent with a cap of ₹20000 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 ₹20000 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, which is the legal document allowing the individual to rent a property.

Stamp Duty in Tamil Nadu for Men & Women

The stamp duty on properties owned by Municipal Limit’s 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.

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.

How to Calculate Registration Charges and Stamp Duty in Tamil Nadu?

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 will help you calculate the Stamp Duty Charge in Tamil Nadu.

If the value on papers for a plot or a house is RS. 60,00,000 and the guideline value is estimated to be Rs. 50,00,000, then the stamp duty on property will be Rs. 60,00,000.

Guideline Value	₹ 50 lakhs
Stamp Duty Charges	7% of ₹ 50 lakhs = ₹ 3,50,000
Registration Fee	4% of ₹ 50 lakhs = ₹ 2,00,000
Total Amount	(50,00,000+3,50,000+2,00,000)= ₹ 5,550,000

Tamil Nadu Land Registration Fee and its Impact

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 ₹50 lakhs, the stamp duty at 7% of the market value works out to ₹3.5 lakhs. The registration charge of this property at 4% works out to ₹2 lakhs.

The total cost of stamp duty and registration charge is ₹5.5 lakhs. Thus, the impact seen on the land registration charges in Tamil Nadu gets a hike of 11% in the actual cost of the land.

Tamil Nadu Land Registration Fee for Resale Property

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%.

Stamp Duty and Registration Charges in Other States

Maharashtra	Stamp Duty in Maharashtra
Gujarat	Stamp Duty in Gujarat
Uttar Pradesh	Stamp Duty in Uttar Pradesh
West Bengal	Stamp Duty in West Bengal
Delhi	Stamp Duty in Delhi
Haryana	Stamp Duty in Haryana
Rajasthan	Stamp Duty in Rajasthan
Bangalore	Stamp Duty in Bangalore
Gurgaon	Stamp Duty in Gurgaon
Pune	Stamp Duty in Pune
Punjab	Stamp Duty in Punjab
Odisha	Stamp Duty in Odisha
Karnataka	Stamp Duty in Karnataka
Madhya Pradesh	Stamp Duty in Madhya Pradesh

Stamp Duty and Registration Charges in Tamil Nadu

Documents	Stamp Duty	Registration Charges
Sale Deed	7% on the property’s market value	4% on the property’s market value
Gift Deed	7% on the property’s market value	4% on the property’s market value.
Exchange Deed	7% on the property’s greater market value	4% on the property’s greater market value.
General Mortgage	1% of the loan amount, based on max. limit of INR 40,000/-	1% of the loan amount based on a max. limit of INR 10,000/-
Mortgage with a possession	4% of loan Amt.	1% based on max. limit of INR 2,00,000/-
Sale Agreement	INR 20	1% – money advanced, if possession is given.
Building Construction Agreement	1 % on the proposed construction cost or consideration mentioned in agreement, if its value is higher.	1 % on the proposed construction cost or consideration mentioned in agreement, if its value is higher
Cancellation Charge	INR 50	INR 50
Partition among family/non-family members
i) family member	1% on the property’s market value based on max. limit of INR 25,000/- for every share	1% based on max. limit of INR 4,000/- for every share.
ii) Non-family members	4% on the property’s market value for the separated shares	1% on the property’s market value for the separated shares
Power of Attorney
i) Immovable property	INR 100	INR 10,000
ii) Immovable property (If power is transferred to family member)	INR 100	INR 1,000
iii) Movable property and other purposes	INR 100	INR 50
iv) Power of Attorney transferred for consideration	4% on consideration	1% on consideration or INR 10,000/- whichever value is higher
Settlement
I) In favor of family members	1% on the property’s market value with a limit of INR 25,000/-	1% on the property’s market value with a limit of INR 4,000/-
ii) Other Cases	7% on the property’s market value	4% on the property’s market value
Partnership deed
i) with a capital less than INR 500	INR 50	1% on the invested capital
ii) Other Cases	INR 300	1% on the invested capital
Memoradum of Title Deeds’ Deposits	0.5% on the loan Amt.with a limit of INR 30,000/-	1% on the loan Amt.with a max. limit of INR 6,000/-
Release
i) family members (co – parceners)	1% on the property’s market value with a limit of INR 25000/-	1% on the property’s market value with a limit of INR 4000/-
ii) Non-family participants for co – owners & benami release	7% on the property’s market value	1% on the property’s market value
Lease
< 30 yrs.	1 percent on the final Amt.of premium, rent, and fine.	1% based on the max. limit of INR 20000/-
Till 99 yrs.	4 percent on the final Amt.of premium, rent, and fine.	1% based on the max. limit of INR 20000/-
Above 99 yrs.	7 percent of the final Amt.of premium, rent, and fine (if necessarily required)	1% based on the max. limit of INR 20000/-
Trust Declaration (current property considered as a part of sale)	INR 180	1% of the total Amt.

Tamil Nadu Stamp Paper

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’s ownership in the court. It is critically important for you to pay stamp duty, else you cannot claim your property’s ownership legally.

Quick Tip: If you’re ordering a stamp paper for the Tamil Nadu State, then you’ll get a Non-Judicial Stamp paper delivered, the state of Tamil nadu doesn’t provide an e-Stamp paper.

Latest Updates on Stamp duty in Tamil Nadu

Tamil Nadu may Make Registration Compulsory for Joint Ventures

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.

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.

Property Registrations in Chennai amid COVID-19

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.

Record High Registrations – October 2020

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 ₹123.35 crores was collected in the form of stamp duty and registration charges.

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.

Will the State Reduce the Stamp Duty in Tamil Nadu?

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.

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.

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.

FAQ’s about Stamp Duty in Tamil Nadu

Q1. How to calculate registry charges in Tamil Nadu?

The charges for registering a property in Tamil Nadu are as follows:

· 7% stamp duty of the property’s market value

· 1% registration fee of the property’s market value

Q2. How much is stamp duty in Tamil Nadu?

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’s market value.