Stamp Duty and Registration Charges in Tamil Nadu 2024

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If you are planning to buy a property in Tamil Nadu, it is essential to understand the additional costs associated with the property purchase. Stamp duty and registration charges are some of those additional costs that are mandatory and are imposed by the state government to legalize property transactions. All properties for sale, including plots, villas, and flats, are subject to these fees. Here’s a comprehensive guide to help you navigate these charges in Tamil Nadu for 2024.

What are Stamp Duty and Registration Charges?

• Stamp Duty: Stamp duty charges are the fee paid by the buyers, in other terms, a tax collected by the government on property transactions. It’s applicable for all legal property transactions to validate the property documents.
• Registration Charges: When the buyer buys or transfers the property and has it registered in his or her name, a registration fee is paid. These fees are paid for registering the property in your name and updating the government records.

Stamp Duty and Registration Charges in Tamil Nadu Based on Documents

Here’s a detailed look at the stamp duty and registration charges for various types of property transactions in Tamil Nadu:

Document Type	Stamp Duty Charges in Tamil Nadu	Registration Charges in Tamil Nadu
Conveyance (Sale)	7% of the property’s market value	4% of the property’s market value
Gift	7% of the property’s market value	4% of the property’s market value
Exchange	7% of the property with the higher value’s market value	4% of the property with the higher value’s market value
Agreement to Sale	Rs 20	1% on the money advanced (1% on total consideration if possession is given)
Cancellation	Rs 50	Rs 50
Simple Mortgage	1% of the total loan amount, up to a maximum of Rs 40,000	1% of the total loan amount, up to a maximum of Rs 10,000
Mortgage with Possession	4% of the total loan amount	1% subject to a maximum of Rs 200,000
Partition among Family Members	1% on the market value of the property subject to a maximum of Rs 40,000 for each share	1% subject to a maximum of Rs 10,000 for each share
Partition among Non-Family Members	4% on the market value of the property for separated shares	1% on the market value of the property for separated shares
General Power of Attorney to Sell Immovable Property	Rs 100	Rs 10,000
General Power of Attorney to Sell Immovable Property (Given to Family Member)	Rs 100	Rs 1,000
General Power of Attorney to Sell Movable Property and for Other Purposes	Rs 100	Rs 50
General Power of Attorney Given for Consideration	4% on the consideration	1% on the consideration or Rs 10,000, whichever is higher
Partnership Deed where the Capital does not exceed Rs 500	Rs 50	1% on the capital invested
Partnership Deed (Other Cases)	Rs 300	1% on the capital invested
Settlement in Favour of Family Members	1% on the market value of the property but not exceeding Rs 40,000	1% on the market value of the property subject to a maximum of Rs 10,000
Settlement in Other Cases	7% on the market value of the property	4% on the market value of the property
Memorandum of Deposit of Title Deeds (MODT)	0.5% on loan amount subject to a maximum of Rs 30,000	1% on loan amount subject to a maximum of Rs 6,000
Release among Family Members (Coparceners)	1% on the market value of the property but not exceeding Rs 40,000	1% on the market value of the property subject to a maximum of Rs 10,000
Release among Non-Family Members (Co-owner and Benami Release)	7% on the market value of the property	1% on the market value of the property
Agreement Relating to Construction of Building	1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher	1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher

Stamp Duty and Registration Charges in Tamil Nadu Based on Category

Category	Stamp Duty Charges in Tamil Nadu	Registration Charges in Tamil Nadu
Men	4% of the total property value	0.5% of the property value
Women	4% of the total property value	0.5% of the property value
Joint Owners	4% of the total property value	0.5% of the property value

How Are Stamp Duty and Registration Charges Calculated?

The stamp duty and registration charges is to be paid by the buyers as defined by the Tamil Nadu state government. Guideline value of the property is used to calculate the stamp duty and registration charges which can also impact the overall cost of the purchase.

For example, if someone is buying an apartment for 80 lakhs they must pay stamp duty and registration charges as below,

• Stamp duty charges- The stamp duty to be paid is 5,60,000 INR which is 7% of the guideline value of the property.
• Registration Charges- The registration charges to be paid is 3,20,000 INR which is 4% of the guideline value of the property.

In other cases, if someone is buying a villa for 30 lakhs, below the guideline value then they must pay the stamp duty and registration charges based on the higher value which is 40,000 INR. The charges they must pay are,

• Stamp duty charges- The stamp duty to be paid is 2,80,000 INR, which is 7% of the higher value.
• Registration charges- The registration charges to be paid is 1,60,000 INR, which is 4% of the higher value

How to Pay Stamp Duty and Registration Charges in Tamil Nadu

Stamp duty and registration charges in Tamil Nadu can be paid in both online and offline modes. Here’s a detailed explanation of how to pay them on both modes.

Online Mode

One can pay the stamp duty and registration charges in Tamil Nadu using e-stamping facilities offered by Stock Holding Corporation of India Limited (SHCIL), which is a central record-keeping agency. Steps involved in paying stamp duty and registration charges in online mode is as follows,

• Step 1: Go to the SHCIL official website
• Step 2: Select e-stamp services
• Step 3: Choose Tamil Nadu from the drop-down menu
• Step 4: Fill the application form with all the necessary details
• Step 5: Click on download tab and take a print out of this form
• Step 6: Visit nearby SHCIL branch with the downloaded form to make payment
• Step 7: Make payment with various modes like RTGS, Cheque, Demand Draft, Cash, NEFT, or account-to-account transfer.

Offline Mode

To pay the stamp duty and registration charges in offline mode one must visit the sub-registrar’s office. On visiting the office of the sub-register one must fill the relevant application form and make payment. The payment can be made with various modes like RTGS, Cheque, Demand Draft, Cash, NEFT, or account-to-account transfer.

Benefits of Paying Stamp Duty and Registration Charges

Paying stamp duty and registration charges encompasses various benefits. Some of them are listed,

• It stands as a proof of legal documentation of the property, acting as a proof of ownership.
• Ensuring appropriate registration aids in the prevention of fraudulent transactions and property ownership issues.
• It is easier to sell and transfer properties that are registered.
• It is easier to acquire a bank loan with your property as a collateral if its registered properly.
• Courts will accept papers that have been registered, giving them legal protection against disagreements. Registered papers are essential evidence in any legal dispute.
• When property is registered, ownership history may be traced more easily since the transaction is guaranteed to be documented in official government documents. It also offers better transparency over the ownership.
• A property’s official worth is documented when it is registered, and this information may come in handy for taxation and future transactions.
• It is simpler for heirs to assert their legitimate ownership when there is proper registration, as it facilitates inheritance and succession procedures.

When buying or selling real estate in Tamil Nadu, having a better understanding of these stamp duty and registration charges aids in financial planning. To guarantee compliance and save expenses, always seek advice from a property adviser or legal specialist. Visit Tamil Nadu’s official Registration Department website for additional in-depth information.

Frequently Asked Questions

1. Is it mandatory to pay stamp duty and registration charges in Tamil Nadu?

Yes, it is mandatory to pay the stamp duty and registration charges in Tamil Nadu while purchasing a property. The Indian Stamp Duty Act 1899 and Tamil Nadu Stamp Act 2019 proposes it is mandatory for every buyers to pay these charges.

2. Who should pay the stamp duty and registration charges?

During the purchase of a property, the property buyer should pay the stamp duty and registration charges. The buyer is supposed to pay these charges as determined by the Tamil Nadu state government.

3. Can I obtain a refund on stamp duty?

Yes, you can obtain a refund on the stamp duty charges if the transaction of the property is cancelled within 6 months. Even then, there would be a deduction of 10% on the stamp duty charges paid earlier for the administrative charges.

4. Do stamp duty and registration have GST charges?

No, the stamp duty and registration charges do not have any GST charges. As the stamp duty and registration charges are imposed by the state government they are not classified under goods or services.

5. Can I claim tax deductions on stamp duty and registration charges?

Yes, Section 80C allows the deduction of stamp duty and registration charges, along with other costs directly associated with the property transfer. This section’s maximum deduction amount is limited to Rs. 1,50,000.