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.
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.
|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)|
|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|
Here’s a snapshot of the stamp duty and registration charges applicable on some common types of properties:
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.
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
Stamp duty and registration charges are imposed on the value higher of the two-
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.
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.
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.
To pay the stamp duty of your property, visit the official website of SHICL.
Scroll down to select ‘E-Stamp Services’
A new page will open. Scroll down and select ‘e-Stamping’.
A new page will open. Select ‘Online Payment’
If you are already registered, use your ID and password to login. Or click on ‘Register Now’ to register yourself.
Select the state as Tamil Nadu.
Fill out the application form and click on ‘Download.’
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.
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.
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:
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.
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.
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:
You will be required to furnish the following documents to the registrar while applying for property registration:
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.
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.
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.
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.
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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