How To Pay Registration And Stamp Duty Charges in Chennai – Fees And Tax Benefits
To get your property officially registered under your name in Chennai, you must pay stamp duty and property registration charges in Chennai. While stamp duty is applicable in every State, Chennai being a metropolitan city, the quantum of stamp duty charges may be said to be on the higher side, at 7% of market value. It has to be paid mandatorily, failing which, registration of the property shall be deemed void under Registration Act, 1908. Thus, if you plan to own a property in Chennai, set aside an appropriate corpus for it. Read on to get all the details about stamp duty in Chennai.
What are the Stamp Duty and Registration Rates in Chennai
The Registration Department of Tamil Nadu releases the applicable stamp duty and registration charges. Chennai’s stamp duty and registration charges vary depending on the property purchased and its location. For instance, registration charges for land in Chennai will differ from apartment registration charges in Chennai. The following table summarizes the various stamp duty charges in Chennai.
1. Present Stamp Duty and Registration Charges in Chennai
| Property Type | Stamp Duty | Registration Charges |
| Conveyance/Sale | 7% of the market value of the property. | 4% of the market value of the property |
| Gift | 7% on property market value | 4% on property market value |
| Exchange | 7% on the market value or consideration, whichever is higher. | 4% on the market value or consideration, whichever is higher. |
| Mortgage with possession | 4% on loan value | 1% on loan value (up to Rs.2 lakh) |
| Simple Mortgage | 1% on loan value (up to Rs.40000) | 1% on loan value (up to Rs.10000) |
| Sale Agreement | Rs.20 | 1% on advance money (if possession is allowed, then 1% on total value) |
| Cancellation | Rs.50 | Rs.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 |
| For selling immovable property, general power of attorney (POA) | Rs.100 | Rs.10000 |
| Property partition among non-family members | 4% on the market value of the property ( in case of separated shares) | 1% on the market value of the property ( in case of separated shares) |
| For selling immovable property, general POA (power given to any family member) | Rs.100 | Rs.1000 |
| For consideration, general POA | 4% of the consideration | 1% of Rs.10,000 or on the consideration, whichever is higher |
| Partnership deed ( for a capital of up to Rs.500) | Rs.50 | 1% of capital invested |
| Partnership deed in all other cases | Rs.300 | 1% of capital invested |
2. Stamp Duty and Registration Charges for different properties in chennai:
Here’s a snapshot of the stamp duty and registration charges applicable on some common types of properties:
- Mortgaged Property: both Stamp duty and registration charges are applicable at 1% of the loan amount.
- Property under the Agreement: stamp duty is payable at 1% of the amount advanced for the agreement and flat Rs.20 registration charges are applicable.
- Property under Partition: Stamp duty is payable at 1% of the market value of the property while registration charges are payable at 4% of the market value of the property.
- Property with the Power of Attorney: stamp duty is payable flat at Rs.10,000 while registration charges are payable at Rs.100
- Sale Deed Registration Charges in Chennai: stamp duty is payable at 1% of the amount advanced for the agreement and flat Rs.20 registration charges are applicable.
- Chennai Land Registration Fee for Resale Property: stamp duty is payable at 7% of the property’s market value and registration charges are payable at 1% of the property’s market value.
- Land/Property Registration Fees in Chennai: stamp duty is payable at 7% of the property’s current valuation while registration charges are payable at 1% of the property’s market value.
- GST for Land Registration in Chennai: not only in Chennai but across India GST does not subsume the registration charges. Thus registration charges in Chennai would continue to apply at the respective rates decided by the Tamilnadu Registration department.
What are the Stamp Duty and Registration Charges for Women in Chennai
Tamil Nadu Registration Department is gender-neutral in collecting stamp duty and registration charges. Unlike some states where women owners are offered concessional stamp duty rates, no such rebate or concession is offered to women property owners in Chennai. Thus, women owners in Chennai must pay plot registration charges in Chennai at the same rate as the male owners.
Stamp Duty and Registration of Resale Flat in Chennai
Buyers of resale properties are always in a dilemma whether to pay stamp duty and resale property registration charges in Chennai or not. Because it’s a property undergoing resale, previous buyers must have paid stamp duty and registration charges at the time of original purchase. So is it mandatory to pay stamp duty and resale flat registration charges in Chennai at the time of resale?
The answer is yes; the Registration Department in Tamil Nadu has made it mandatory for buyers of resale properties too. Buyers must pay stamp duty at 7% of the property’s market value and resale house registration charges in Chennai at 1% of the property’s market value.
Also Read: DDA Housing Scheme: Eligibility, Documentation And Registration Process
How to Calculate Registration and Stamp Duty Charges in Chennai?
Stamp duty and registration charges are imposed on the value higher of the two-
- The purchase consideration of the property
- Guideline value/ ready reckoner rate
We have already discussed the rates applicable to different properties. Thus to calculate the stamp duty and registration charges payable, simply multiply the higher of the above two values by the applicable rate.
Example:
The sale consideration for a second-hand house property is Rs 20 lakhs. The guideline value, however, for the same property is Rs 30 lakhs.
Here, Rs 30 lakhs will be considered for stamp duty and registration charges calculation.
Registration charges for a second-hand flat in Chennai are 4% of the property value, and stamp duty is applicable @ 7% on the property value.
Thus, stamp duty payable= 30 lakhs × 7%= Rs 2.10 lakhs
Second hand flat registration charges in chennai = 30 lakhs × 4%= Rs 1.20 lakhs.
How to Pay Stamp Duty and Registration Fees in Chennai Online?
The central government extended the facility to pay stamp duty online to property owners across the nation. The central government has authorized Stock Holding Corporation of India Limited (SHCIL) with the record-keeping duties and issuing e-stamp certificates in India. Before making the stamp duty payment, you must fill out an application at the Authorized Collection Center that has to be submitted along with the online payment.
- Step 1: Visit SHICL
To pay the stamp duty of your property, visit the official website of SHICL.
- Step 2: Select e-stamp services.
Scroll down to select ‘E-Stamp Services’
- Step 3: Select ‘e-Stamping’
A new page will open. Scroll down and select ‘e-Stamping’.
- Step 4: Select ‘Online Payment’
A new page will open. Select ‘Online Payment’
- Step 5: Log in or register
If you are already registered, use your ID and password to login. Or click on ‘Register Now’ to register yourself.
- Step 6: Select State
Select the state as Tamil Nadu.
- Step 7: Fill out the form
Fill out the application form and click on ‘Download.’
- Step 8: Submit the application
You must submit this application form to the nearest SCHIL branch in your location.
Payments for E-stamp can be made by cash or any electronic payment modes, including NEFT, RTGS, pay order, demand draft, cheque, and account-to-account transfer.Though stamp duty can be paid online, for paying flat registration charges in Chennai, you still have to visit the office of the sub-registrar whose jurisdiction your property is covered under.
How to Pay Stamp Duty and Registration Fees in Chennai Offline?
The offline procedure for paying Chennai’s stamp duty and registration charges is tricky. You should get in touch with your lawyer, who has in-depth knowledge of the procedural part.
To pay stamp duty and registration charges offline, you must fill out an application form and submit it along with the applicable stamp duty and registration charges to the registrar. You might also be asked to produce supporting documents like sale deeds, KYC documents, etc.
The offline payment can be made in any form, including cash, demand draft, NEFT, RTGS, debit/ credit card, cheque, etc.
Once the process is completed, the registrar will issue a stamp duty certificate of the property.
Factors Affecting Stamp Duty and Registration Charges in Chennai
Stamp duty is not purely value-based; many other factors are considered when deciding the stamp duty for different properties. Following are the factors that affect the stamp duty charges in Chennai:
- Intended use: Chennai’s stamp duties for commercial and residential properties are different. If you plan to use the property for commercial dwelling, be prepared to pay stamp duty at a slightly higher rate.
- Project amenities: the stamp duty is calculated considering the inherent benefits the property owner will derive from the property. For instance, stamp duty and registration charges for apartments in Chennai are always on the higher side, considering the buyer will avail of the facilities like garden, gym, clubhouse, swimming pools, lifts, etc., offered by the housing project.
- Location: stamp duty and registration charges are higher for properties covered in the municipal boundaries of Chennai. Thus if your property is in one of the hotspots, metropolitan areas, or suburbs, you shall pay higher stamp duty and registration charges. On the contrary, if your property is situated in rural areas or outside the municipal boundaries of Chennai, stamp duty and registration charges shall be collected at a lower rate.
Tax Benefits on Stamp Duty and Registration Charges in Chennai
Stamp duty and registration charges paid in Chennai are tax-deductible! Section 80C of the Income Tax Act, 1961 allows a deduction of up to Rs.1,50,000 on the stamp duty and registration charges paid for property owners in Chennai. This deduction can only be claimed in the year when actual expenses were made.
This deduction is only available to individuals and HUF assesses. However, if you examine the scope of Section 80C, you’d find that most taxpayers already claim the maximum permissible deduction under the section. Thus for many property owners already claiming full deduction under Section 80C, this benefit might not be useful.
How to Get a Refund on Stamp Duty in Chennai?
Yes, you can claim a refund of the stamp duty paid within 6 months of the payment. The need for a refund may arise when the purchase agreement is cancelled.
However, your refund will be processed after deducting 10% of the stamp duty paid.
To claim your refund, find the icon “Application for Refund of payment” on the official website of SCHIL. Click on it and provide the payment details and your GRN (Government reference number).
Submit the application form, and if there’s any eligible refund against your application, the same will be credited to your bank account from which the payment of stamp duty was made.
What is the Procedure for Property Registration in Chennai?
Payment of registration charges for new flats in Chennai is the last step in the chain for securing a clean title of a property. There’s a lot to be done on your part before the payment of registration charges.
Here is how the process of property registration in Chennai happens:
- Step 1: Property inspection
When you have shortlisted a property in Chennai, it is advisable to conduct an extensive inspection of the property before making price negotiations and drawing the paperwork. It is important that you seek the services of a lawyer who majors in property transactions for the same. - Step 2: Prepare the sale deed
The sale deed is prepared after you have inspected the property and have decided to move forward with it. The sale deed must be executed on a stamp paper, the value of which is determined by the applicable property registration charges. - Step 3: Registration of the property
It is important that you register your property in your name by paying the stamp duty and registration charges within 4 months from the date the sale deed is executed.
The property has to be registered at the Registrar or the Sub-Registrar’s office whose jurisdiction lies in the area the property was purchased in.
Documents Required for Property Registration in Chennai
You will be required to furnish the following documents to the registrar while applying for property registration:
- Stamp duty certificate duly signed as proof of payment of stamp duty charges.
- KYC documents such as PAN card, voter ID card, passport, Aadhaar card, et cetera, for the person applying for registration.
- Two passport-size photographs of both the parties, i.e., the claimant and the executant.
- Two witnesses are required.
- One identity proof of each witness, along with two passport-size photographs.
- No Objection Certificate (NOC), wherever applicable
- No due certificate/Tax clearance certificate
- Property documents as proof of ownership such as sale deed/conveyance deed/power of attorney, etc.
Properties Exempted from Stamp Duty in Chennai
To infuse some spark in Chennai’s otherwise dull real estate sector, the government waived off the registration charges and stamp duty on the first sale of newly constructed buildings and residential properties.
This announcement directly reduces 8% (7% stamp duty and 1% registration charges) of home buying costs.
For example, you constructed a house a year ago and are offering it for sale. The sale of this house will be exempt from stamp duty and registration charges when you offer it for sale. However, it will attract stamp duty and registration charges at the time of resale.
Also Read: Gift Tax: Meaning, Different Gift Tax Rates & Stamp Duty Provisions In India.
Stamp Duty in Chennai: Grievance Redressal
The grievances related to registration and stamp duty in Chennai can be lodged on the official website of the Tamil Nadu Registration department. For raising grievances you need to log in to your account and file an online petition describing your issue. You can even check the live status of the petition from your account.
What is the Chennai Stamp Duty Act?
Stamp duty in Chennai is levied in compliance with the provisions of the Indian Stamp Act 2019. Section 3 of the act deals with the collection of stamp duty as a source of revenue for local bodies.
Final Word
Entering an agreement with the seller and executing a sale deed is not all that is required on your part for property purchase. You must conduct registration for your property with the government to mutate the property in your name and avail yourself of benefits such as water, electricity, gas and sanitation facilities. Registering property also protects your property against illegal occupation and eviction and fraudulent activities apart from some criminal proceedings too. The property can be registered by paying the prevalent stamp duty, and registration fees on the property acquired. The stamp duty and registration fees in Chennai are 7% and 4% of the market value, respectively. So if you want to own a property in Chennai, these are additional charges you will have to cough up apart from the amount you shall pay to the seller as per the sale deed entered.
Paying the stamp duty is mandatory and only then can the property be registered when you buy real estate in Chennai. Note that even though stamp duty can be paid online and the challan accessed online when purchasing property in Chennai, registration requires your physical presence in front of the sub-registrar under whose jurisdiction the location of the property falls.
Stamp Duty Charges in Your City
FAQs
Ans: Yes, the Indian Stamp Act, 1899, makes it mandatory for every citizen to pay stamp duty at applicable rates for any property across India.
Similarly, the Registration Act, 1908, makes it mandatory to pay registration charges. Failing to pay either would render your registration void ab initio.
Ans: You can pay stamp duty using both the online mode and the offline mode.
For online mode, you can opt for the e-stamping facility available countrywide at the website of Stock Holding Corporation of India Limited (SHCIL).
For offline payments, you can visit the registrar’s office, which holds jurisdiction over your property.
Ans: Yes, for every rental agreement, stamp duty is payable at 1% of the agreed rent coupled with the deposit amount. The lease term has no bearing on the stamp duty for rental agreements.
Ans: Stamp duty is calculated at prescribed rates on the higher market value or consideration value. For example, if the consideration paid is Rs.40 lakh and the market value is Rs.50 lakh, stamp duty will be calculated at Rs.50 lakh.
Ans: Resale properties are subject to a stamp duty of 7%. Moreover, registration charges of 1% are applicable as well.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
