Stamp Duty and Registration Charges in Chennai Latest Update

1. Meaning of Stamp Duty and Registration Charges

Stamp Duty
Stamp duty is a state government tax levied on property-related legal documents. It gives legal validity to the transaction and makes the document admissible as evidence in court.
Without paying stamp duty:

• The sale deed has no legal value
• Ownership transfer is invalid
• The document cannot be enforced legally

Registration Charges
Registration charges are paid to officially record the transaction in government land records through the Registration Department.
Registration ensures:

• Public notice of ownership
• Protection against future disputes
• Legal recognition of buyer’s title

Both stamp duty and registration are compulsory under:

• Indian Stamp Act
• Registration Act, 1908
• Tamil Nadu State Amendments

2. Latest Stamp Duty and Registration Rates in Chennai

The following rates are currently applicable in Chennai and throughout Tamil Nadu:
Standard Sale Deed (Residential / Commercial)
Component
 

These rates apply to:

• Flats
• Independent houses
• Plots / land
• Commercial buildings
• Office spaces
• Shops

3. Value Used for Calculation

Stamp duty and registration charges are calculated on the higher of:

1. Declared Sale Consideration (price mentioned in sale deed), OR
2. Guideline Value fixed by the Tamil Nadu Registration Department

Guideline Value

• Minimum value fixed by the government for every street, locality, and survey number
• Updated periodically
• Used to prevent undervaluation and tax evasion

If the sale price is lower than the guideline value, authorities will ignore the sale price and calculate charges on the guideline value.

4. Detailed Calculation Examples

Example 1: Sale Price Higher than Guideline Value

• Sale price: Rs 60,00,000
• Guideline value: Rs 55,00,000

Calculation on Rs 60,00,000:

• Stamp Duty (7%): Rs 4,20,000
• Registration Fee (4%): Rs 2,40,000
• Total: Rs 6,60,000

Example 2: Guideline Value Higher than Sale Price

• Sale price: Rs 50,00,000
• Guideline value: Rs 58,00,000

Calculation on Rs 58,00,000:

• Stamp Duty: Rs 4,06,000
• Registration Fee: Rs 2,32,000
• Total: Rs 6,38,000

5. Stamp Duty for Different Property Documents

Sale Deed

• Stamp Duty: 7%
• Registration: 4%

Gift Deed (Between Close Family Members)

• Stamp Duty: Concessional (usually around 1% subject to cap)
• Registration Fee: Nominal

Applicable for transfer between:

• Parents and children
• Spouses
• Siblings
• Grandparents and grandchildren

Settlement Deed

• Used to transfer property within family during lifetime.
• Stamp duty is lower than sale deed
• Charges depend on relationship

Partition Deed
Used when joint family property is divided.

• Stamp duty depends on:

1. Whether partition is among family members
2. Whether property is divided by metes and bounds

• Registration fee is minimal

Release Deed
When one co-owner releases his/her share.

• Stamp duty depends on share value
• Lower than sale deed

Also Read: Indian Stamp Act 1899 + Tamil Nadu Stamp Amendment Rules

6. Concessions and Special Provisions

Women Buyers

• Stamp duty remains 7%
• Registration charges reduced by 1% (subject to conditions and property value limits)

First-Time Home Buyers (Construction Agreement)

• Stamp duty paid on registered construction agreement can be adjusted against final sale deed
• Prevents double taxation
• Proof of earlier payment required

7. Payment Process in Chennai

Step 1: Stamp Duty Payment
Stamp duty can be paid through:

• Online payment via TN Registration portal
• E-stamping
• Demand Draft (as permitted)

Step 2: Registration Appointment

• Appointment booked at Sub-Registrar Office
• Buyer, seller, and witnesses must be present

Step 3: Registration Process

• Biometric verification
• Document verification
• Photograph and thumb impression
• Registration fee payment confirmation

Step 4: Document Registration

• Document scanned and stored digitally
• Registered sale deed issued
• Entry made in government records

8. Documents Required for Registration

• Original sale deed
• Previous title deeds
• Encumbrance Certificate
• Identity proof (Aadhaar, PAN)
• Address proof
• Passport-size photos
• Proof of stamp duty & registration fee payment
• Patta / land records (if applicable)
• Witness identity proofs

9. Legal Consequences of Non-Payment

If stamp duty is not paid or is insufficient:

• Heavy penalties imposed
• Interest charged
• Document treated as invalid
• Registration refused

10. Refund of Stamp Duty

Refund is allowed only in limited cases:

• Document cancellation
• Execution failure
• Court order

Refund is:

• Partial
• Subject to deduction
• Time-bound

Conculsion 

• Stamp Duty in Chennai: 7%
• Registration Charges: 4%
• Calculated on: Higher of sale price or guideline value
• Mandatory for legal ownership
• Applies to all property types
•  

 Frequently Asked Questions (FAQs)

Q1. Is stamp duty compulsory for all properties?
Yes. All property transfers must pay stamp duty.

Q2. Can stamp duty be paid after registration?
No. Stamp duty must be paid before or at the time of registration.

Q3. Is GST included in stamp duty?
No. GST and stamp duty are separate charges.

Q4. Are stamp duty charges same for land and flats?
Yes. Rates are the same; value differs.

Q5. Can stamp duty be paid in installments?
No. It must be paid in full.

Q6. Does stamp duty vary by city within Tamil Nadu?
Rates are the same; guideline value differs.

Q7. Are registration charges refundable?
Generally no, except in rare legal cases.

Q8. Is power of attorney required for registration?
Only if buyer or seller cannot be present.

Q9. Do NRIs pay higher stamp duty?
No. Same rates apply.

Q10. Is registration compulsory even after stamp duty?
Yes. Stamp duty alone does not transfer ownership.

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