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Stamp Duty and Property/Flat Registration Charges in Tamil Nadu
Registration fees and stamp duty play a vital role in property ownership. During property registration, the state government imposes a charge and stamp duty on the property. These expenses vary from state to state.
If you are about to purchase a property in Tami Nadu, you are on the right page. This article gives you an insight into the property charges in Tamil Nadu.
What Are the Stamp Duty Rates in Tamil Nadu?
Stamp duty is a tax charged by the state government when a person buys a property. It is a compulsory charge under the Indian Stamp Act, 1899. Similarly, a buyer pays a registration fee to get his/her name registered with the property. Without registration, ownership of property will be considered void under Registration Act, 1908.
Tamil Nadu is known to charge a higher stamp duty than other states in India. People who are looking for stamp duty in Tamil Nadu should understand the details of these mandatory charges.
Read more about what's covered in Property Insurance policy by Digit?
What Are the Present Stamp Duty and Registration Charges in Tamil Nadu?
Registration fees and stamp duty charges in Tamil Nadu are different for different types of property purchases. The list below elaborates on the details.
[1]
|
Document Category |
Stamp Duty |
Registration Charges |
|
Gift |
5% of the market value of property |
2% on the market value of property |
|
Exchange |
5% on the market value of the greater value |
2% on the market value of the greater value property |
|
Conveyance/Sale |
5% of property market value |
4% on the properties market value |
|
Simple Mortgage |
1% on the loan amount that is subjected to a maximum of ₹40000 |
1% on the loan amount that is subjected to a maximum of ₹10000 |
|
Mortgage with possession |
4% on the loan amount |
1% on the loan amount that is subjected to a maximum of ₹200000 |
|
Sale Agreement |
₹ 20 |
1% on the Advance money (If possession is given than 1% on total amount is considered) |
|
Agreement relating to building construction |
1% of the value of construction or the consideration specified in the agreement whichever is higher |
1% of the value of construction or the consideration specified in the agreement whichever is higher |
|
Cancellation |
₹ 50 |
₹ 50 |
|
Partition among family members |
1% of the market value subject to a maximum of ₹25000 for each share |
1% subject to a maximum of ₹4000 for each share |
|
Non-family members partition |
For separated shares around 4% on the market value of the property is considered |
For separated shares 1% on the market value of the property is considered |
|
General Power of Attorney (POA) to sell immovable property |
₹100 |
₹10000 |
|
General POA to sell immovable property (power is given to family member) |
₹100 |
₹ 1000 |
|
General POA to sell a movable property for other purposes |
₹ 100 |
₹ 50 |
|
General POA given for consideration |
4% on consideration |
1% on consideration or ₹10000 whichever is higher |
|
Partnership deed where the capital is within Rs 500 |
₹ 50 |
1% on capital invested |
|
Partnership deed in other cases |
₹ 300 |
1% of capital invested |
So, if you are interested to know more about land registration fees in Tamil Nadu, visit Tamil Nadu Registration Department.
Note that no rebate is available for women on the ownership of property in Tamil Nadu. Unlike other states, women and men must pay the same stamp duty of 7% and property registration charges of 4% in Tamil Nadu.
How to Calculate Registration Charges and Stamp Duty in Tamil Nadu?
Stamp duty in Tamil Nadu is applicable on the property consideration value or guideline value/ ready reckoner rate, whichever is higher.
In case the agreement value for a house is ₹60 lakhs, and guideline value is ₹50 lakhs, stamp duty will be measured at ₹60 lakhs, which is the higher value.
Now, let us see the calculation process for registration fees and stamp duty on the property’s final price.
For example: Ram purchased a residential property in Chennai, having a guideline value of ₹50 lakhs (say, it is the higher value). He will be paying the below-mentioned charges:
Guideline Value: ₹50 lakhs
Stamp Duty: 7% of ₹50 lakhs = ₹350000
Registration Fee: 4% of ₹50 lakhs = ₹200000
Total Amount: (5000000+350000+200000) = ₹5550000
How to Pay Stamp Duty and Registration Fees in Tamil Nadu?
You should follow the steps below to register the property –
Online Procedure
- Step 1: Go to the website of Stock Holding Corporation of India Limited or SHCIL. Enter your state’s name.
- Step 2: Choose Secure login to access the e-stamping system.
- Step 3: Follow the instructions to pay stamp duty via E-stamping.
Offline Procedure
You can pay registration charges and stamp duty at the Sub-Registrar’s Office of the division, using non-judicial stamp papers.
What Are the Factors That Affect Stamp Duty in Tamil Nadu?
Rates of stamp duty in Tamil Nadu are dependent on the following factors -
- Property Location- Stamp duty in Tamil Nadu is different for properties located within and outside a city's municipal boundaries. Charges are higher within a city’s municipal limits. The stamp duty depends on whether you buy a property in a suburb, metropolitan, rural area, or city.
- Project Amenities- The amenities included in your property determine the stamp duty charged. Suppose you have bought an apartment in a housing complex in Chennai. You are facilitated with swimming pools, community halls, elevators, a gym, a clubhouse, and many more. In this case, your stamp duty will be more.
- Property Type- Properties are bought either for commercial use or residential purposes. The stamp duty of a commercial property is always more than that of a residential building.
What Are the Factors That Affect Registration Fees in Tamil Nadu?
You should keep several factors in mind to measure registration charges, depending on the kind of property you are purchasing. The main factors which determine calculation are as follows-
- If the office/apartment you are purchasing is a unit of a multi-storey plot, the calculation takes place keeping in mind the super built-up portion.
- For plots or lands, the guideline value of the land is multiplied by the total square foot area of land.
- If your property is an independent house or a villa, then your registration fee gets calculated on the overall constructed area.
Are Tax Benefits Available on Stamp Duty and Registration Charges in Tamil Nadu?
To reduce the financial burden of property owners, the government has included stamp duty and registration charges as a part of deduction under Section 80C of the Income Tax Act, 1961. As per Section 80C, the maximum tax deduction that can be permitted to a property buyer for these additional expenses is ₹ 1,50,000.
People who can claim tax benefits are as follows:
- Hindu undivided families
- Individuals
Visit Income Tax Department Portal to know about the situations in which a person can claim a tax deduction.
So, before purchasing a property in Tamil Nadu, carefully check the stamp duty rates, registration fees and guideline value to avoid hassles.
