According to the Indian Stamp Act, 1899, and the Tamil Nadu Stamp Duty Act 2019, a homebuyer has to pay stamp duty and registration charges whenever a property transaction is involved. In the case of partition, lease, sale, and resale of the property, stamp duty is paid.
Stamp duty and registration charges play a significant role in property registration. It is a charge you must pay when buying a property. At the time of a property transaction, the state government imposes stamp duty and registration charges. This value varies from state to state. Similarly, if you have bought a property in Tamil Nadu, you will have to pay stamp duty according to the Tamil Nadu Stamp Duty Act.
This southern state is one of India’s states with the highest stamp duty and registration charges. So, property buyers in Tamil Nadu should be ready to pay a notable amount while registering the property. Generally, around 1% of the property value is paid as a registration charge. However, in Tamil Nadu, it is 4% of the property value.
Tamil Nadu Registration Charges:
The Tamil Nadu government has revised the registration charges for the transfer of power of attorney to non-family members by 1% of the property’s market value, according to media reports. Currently, the rate for this service is Rs 10,000. The fee hike will come into effect on July 10, 2023. This may lead to an increase in the cost of redeveloping and developing a property. Further, the state registration department has increased the registration fees and stamp duty for 20 services provided by the department under Section 78 of the Registration Act 1908. The revision comes after a gap of 20 years.
The covers searching of the registers for making or granting copies of reasons, entries, or documents, before or after registration; for the safe custody and return of documents, etc. The registration department has also increased the charges for the receipt document for a mortgage from Rs 20 to Rs 200. The registration charges for partition, family settlement, and release of documents are from Rs 4,000 to Rs 10,000. The stamp duty for the same has increased from Rs 25,000 to Rs 40,000. The fee for individual plot registration has been increased from Rs 200 to Rs 1,000.
Therefore, if a property is about to be purchased, the registration fees will be 4% of the property price and the stamp duty will be 7% of the property price according to Tamil Nadu Stamp Duty Act.
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