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Stamp Duty and Property/Flat Registration Charges in Chennai
Purchasing a property in the respective state is a smart way of securing assets. However, every property buyer is obligated to pay a specific amount to the State Government to gain ownership.
For instance, a resident of Chennai has to pay applicable stamp duty and registration charges in Chennai.
However, this amount can vary according to property size, location and purpose. Keep reading to learn more about the stamp duty and registration charges
What Are the Stamp Duty And Registration Charges in Chennai?
The state collects the highest stamp duty and registration charges compared to other Indian states. The stamp duty rates are around 7% in Chennai.Hence, for a property worth ₹ 1 Lakh, an individual may have to pay a stamp duty of up to ₹ 49,000. While, registration charges are 4%.
Present Registration and Stamp Duty Charges in Chennai
Let’s check the registration and stamp duty charges in Chennai based on gender.
Stamp Duty and Registration Charges in Chennai for Different Genders
Individuals should know that the stamp duty and registration charges in Chennai are similar for urban and rural areas. These charges remain similar for all genders.
The table explains the concept better.
|
Buyer |
Stamp Duty |
Registration Charges |
|
Men |
7% of the market value of a property |
1% of market value of a property |
|
Women |
7% of the market value of a property |
1% of market value of a property |
|
Joint owners |
7% of the market value of a property |
1% of market value of a property |
Stamp Duty on Different Property Deeds in Chennai
Take a look at the current stamp duty and registration charges in Chennai as per document classification in the table illustrated below.
|
Documents |
Registration Fee |
Stamp Duty |
|
Gift |
4% of a property’s market value |
7% of a property’s market value |
|
Sale |
4% of a property’s market value |
7% of a property’s market value |
|
Mortgage with possession |
1% (limit is up to ₹ 2 lakhs) |
4% of the loan amount |
|
Exchange |
4% of a property’s market value |
4% of the loan amount |
|
Mortgage |
1% on the loan amount to a maximum of ₹10,000 |
1% on the loan amount |
|
Partition among family members |
1% on the market value of the property( up to ₹ 4,000) |
1% on the market value of the property (up to ₹ 25,000) |
|
Cancellation |
₹ 50 |
₹ 50 |
|
Sale Agreement |
1% on the money advanced |
₹ 20 |
|
Construction of a building |
1% on the cost value of construction |
1% on the cost value of construction |
|
Non-family partition |
1% on the market value of the property |
4% on the market value of the property |
|
Power of attorney of immovable property |
₹ 10,000 |
₹ 100 |
|
Power of attorney to sell movable property |
₹ 50 |
₹ 100 |
|
Power of attorney (when given to a family member) |
₹ 1,000 |
₹ 100 |
|
Power of attorney for consideration |
1% on the consideration or ₹10,000 whichever is higher |
4% on the consideration |
|
Settlement in case of family members |
1% on the market value of the property |
1% on the market value of the property |
|
Settlement in other cases |
4% on the market value of the property |
7% on the market value of the property |
|
Deposit of Title Deeds (Memorandum) |
1% on loan amount |
0.5% on loan amount |
Let’s check how to calculate registration and stamp duty charges for residential and commercial property in Chennai. This will help in understanding this concept better.
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How to Calculate the Registration And Stamp Duty Charges in Chennai?
Individuals should know that the market value of a property significantly impacts the stamp duty and registration charges in Chennai. Here the market value refers to the Government based guideline value. The zone or location of the property also impacts this price.
Let’s look at an example to understand the calculation of stamp duty and registration charges in Chennai for resale flat or transfer of a property.
An individual bought a property in Chennai with the guideline value of around ₹ 5 lakhs.
The Chennai stamp duty charges will be –
|
Stamp Duty Charges |
7%of ₹ 5,00,000 = ₹ 35,000 |
|
Registration Charges |
1% of ₹ 5,00,000 = ₹ 5,000 |
|
Total of Stamp Duty and Registration charges |
₹ 35,000+ ₹ 5,000= ₹ 40,000 |
Here the total stamp duty and registration charges are needed.However, a manual calculation can be time straining and filled with errors. It is beneficial to use a convenient tool such as online stamp duty and registration calculator.
How to Use a Stamp Duty Calculator in Chennai?
Individuals can find a stamp duty calculator and registration charge calculator on financial websites or private websites. This tool is free to use and offers precise results within seconds.
The steps to use this smart tool are as follows-
- Step 1: Visit the website offering a stamp duty online calculator.
- Step 2: Click on region type such as city corporation, panchayat, municipal corporation, etc.
- Step 3: Enter the property value and market value to get applicable stamp duty in that area.
Let’s check how to pay property registration fees and stamp duty charges for resale property in Chennai.
How to Pay Stamp Duty and Registration Fees in Chennai Online?
The steps to pay registration fees and stamp duty in Chennai online are as follows.
Step 1: Visit the official SHCIL or Stock Holding Corporation of India Limited website and select the state from the menu.
Step 2: Individuals must download the specific form from the download tab and follow e-stamping guidelines.
Step 3: After selecting the e-stamping option, a new page will appear on the screen , where you need to select ‘online payment’.
Step 4: For registered users, login with ID and password. Or else, click on “Register now” to register.
Step 5: Select the state as Tamil Nadu and fill out the application form and click on “Download”.
Step 6: Fill in the form and submit it along with relevant documents to the nearest branch of SCHIL branch
Step 7: The challan number and a receipt will be given to an individual.
Individuals who aren’t comfortable with online methods can check these offline processes.
How to Pay Stamp Duty and Registration Fees in Chennai Offline?
The steps to pay registration fees and stamp duty in Chennai offline are as follows-
- Individuals can pay stamp duty and registration charges in Chennai by going to the sub registrar’s office and paying the required fee.
- They can visit the nearest Stock Holding Corporation of India Limited office and pay the charges.
Individuals may need to bring two witnesses to complete this procedure. The sub-registrar will give the registration document after verification.
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Points to Consider before Paying Stamp Duty in Chennai
Here are a few essential points you need to consider before paying stamp duty in Chennai -
- The stamp paper should have the name of the house buyer and other parties involved in the transaction.
- Individuals must remove adhesive stamp during registration.
- Assets applicable for stamp duty must be done before final registration.
- The date of issued stamp paper must not be more than six months from the transaction date.
- The property must be registered within four months of execution of the sale agreement in Chennai.
Let’s check the factors that impact stamp duty and registration fees in Chennai.
What Are the Factors That Affect Stamp Duty and Registration Charges in Chennai?
Factors that affect stamp duty in Chennai are as follows -
|
Factors |
Effect on Stamp Duty Rates and Registration Charges in Chennai |
|
Age and Gender |
Senior citizens have to pay a lower stamp duty charge in Chennai. This factor affects the expenses significantly. However, there are no concessions for women property buyers in Chennai. Men, Women and joint homeowners are bound to pay 7% stamp duty. |
|
Property location |
Stamp duty charges are usually higher in urban areas, while properties outside these areas enjoy lower stamp duties. However, this factor is subject to Government guidelines. |
|
Property age |
The stamp duty charges depend on property age. Individuals should know that older properties are less expensive than newer ones. |
|
Basic amenities |
Properties surrounded with basic amenities such as elevators, swimming pools, etc., have higher stamp duty. These facilities uplift the property value. |
What Are the Tax Benefits on Stamp Duty and Registration Charges in Chennai?
Residents of Chennai can claim tax exemptions on stamp duties and registration charges payment. Section 80C of the Income Tax Act 1961 allows tax deductions up to ₹ 1,50,000 on the expenses concerning registration fees.
However, commercial houses, resale property and residential plots are not eligible for this tax deduction. Individuals can claim tax exemptions only on new properties.
These are some essential details on stamp duty and registration charges in Chennai. Individuals should keep a tab over the Government updates to streamline their payment accordingly.