Stamp Duty and Property Registration Charges in Tamil Nadu

stamp duty in tamil nadu — (Source: housing.com)

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, Tamil Nadu should understand the details of these mandatory charges.

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.

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Type of Property Deeds	Stamp Duty	Registration Charges
Exchange	7% on the market value of greater value property	4% on the market value of greater value property
Gift	7% on property market value	4% on property market value
Conveyance/Sale	7% of property market value	4% on property market value
Mortgage with possession	4% on the loan value	1% on loan value (up to ₹ 2 lakhs)
Simple mortgage	1% on loan value (up to ₹ 40,000)	1% on loan value (up to ₹ 10,000)
Sale Agreement	₹ 20	1% on advance money (if possession is allowed, then 1% on total value)
Cancellation	₹ 50	₹ 50
Building construction	1% of consideration specified in the agreement or on construction value, whichever is higher	1% of consideration specified in the agreement or on construction value, whichever is higher
Partition in family	1% of market value (up to ₹ 25,000 each share)	1% of market value (up to ₹ 4000 each share)
For selling immovable property, general power of attorney (POA)	₹ 100	₹ 10,000
Partition among non-family members	4% on property market value ( in case of separated shares)	1% on property market value ( in case of separated shares)
For selling immovable property, general POA (power given to a family member)	₹ 100	₹ 1000
For selling movable property for other usages, general POA	₹ 100	₹ 50
For consideration, general POA	4% of the consideration	1% of ₹ 10,000 or on consideration, whichever is higher
Partnership deed (capital of up to ₹ 500)	₹ 50	1% on capital invested
Partnership deed for other cases	₹ 300	1% of capital invested

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 and property registration charges in Tamil Nadu. For instance, in Delhi male homebuyers pay 6% as stamp duty while women pay 4% as stamp duty.

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’s see the calculation process for registration fees and stamp duty on the property’s final price.

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 = ₹ 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

How to Pay Stamp Duty and Registration Fees in Tamil Nadu?

You should follow the steps below to register the property –

Online Procedure

Go to the website of SHCIL
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 this section, 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 –

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.

Frequently Asked Questions

✓ Is there any stamp duty and registration charge for resale property in Tamil Nadu?

The stamp duty levied on resale property in Tamil Nadu is 7% of the property’s agreement value or market value. The registration charge for the same is 1% of the property’s agreement value or market value.

✓ What is the guideline value in Tamil Nadu?

Government fixes a property’s value, below which the property cannot be registered. This value is known as the guideline value. The purpose of this rate is to prevent the avoidance of stamp duty. The value depends on past transactions at a particular street or survey number, development of a locality, etc.

✓ What is the timing for property registration in Tamil Nadu?

A person should complete the registration of his property within 4 months of execution of the sale deed. In case registration is delayed, you will have to pay the following penalties-