The government of Tamil Nadu recently decided to amend the state's stamp duty and registration fees. The Tamil Nadu government determined to lower the registration fees to 2 percent when it submitted its annual budget for 2023–2024 on March 20, 2023. Sale deeds, gift deeds, exchange deeds, and a 5 percent stamp duty will be all valid from April 1, 2023
At the time when real estate transfers, the state government collects stamp tax and registration fees. The price of a specific piece of property differs from state to state. One such state that is well-known for its expensive stamp tax and plot application fees is Tamil Nadu. Therefore, purchasers of real estate in Tamil Nadu should be prepared to work over a sizeable sum for registration and stamp duties. Due to the reduction in stamp duty and filing fees, this move will help the Tamil Nadu real estate market. The stamp duty charges in Tamil Nadu are 7% of the property’s market value. The registration fee for the same is 4% of the market value.
The amount of stamp duty can be calculated by considering various aspects of the property, including its age, location, the intent of usage, number of floors, and type of use.
With effect from 09-06-2017, the guideline valuation of property, which was increased on 01.04.2012, has been uniformly decreased by 33 percent.Also, the registration fee for the sale, donation, transfer, and non-arrangement documents between family members has been increased from one percent to four percent.Numerous parties have repeatedly demanded that the guide value be increased to reflect the market worth and that the registration charge be lowered.
The government has formed a group to suggest changes to the guideline value in response to these requests. The group will need time to number-wise revise the property assessment. As a result, the Government has chosen to raise the guideline value in comparison to the guideline value that was observed until 8.6.2017, awaiting the report of this committee, due to a substantial increase in the value of properties on the open market. To reduce the stress on property purchasers, the government has also chosen to lower the registration charge from 4% to 2%.
Henceforth, 5 percent stamp duty, 2 percent property transfer tax, and 2 percent registration fee will be payable on the guide value up to 8-6-2017 for documents relating to the Sale Deed, Gift Deed, and Exchange Deed of the property. 7 percent stamp duty and 2 percent registration fee for arrangement-documents not between family members
The measures will considerably benefit the lower and middle classes, particularly those who borrow money from banks to purchase homes