Property Registration Cost In Tamil Nadu

Property Registration Cost In Tamil Nadu

Tamilnadu levis one the highest stamp duties and registration fees among Indian states. With 4% registration fees and 7% stamp duty, Tamil Nadu charges one of the highest registration fees and stamp duties among Indian states. As per the list of Indian states that has been compiled based on the percentage of property registation charge levied, Bihar is the state that tops the charts with 16% charges while Tamil Nadu occupies the second spot. The other Indian states that come third and fourth after Tamil Nadu are Kerala and Puducherry, both of which levy a total of 10% registration charge.

Tamil Nadu does not wish to slash registration fees and stamp duty as registration is the second highest source of revenue within the state. A senior beaureucrat said that the state is being revenue-centric but what it should do instead is to decrease the rates to bring bouyancy in the economy. Doing so will promote revenue and growth as such a move would stimulate transactions.

The Current Situation in Tamil Nadu

Even after charging high registration fees and stamp duties, Tamil Nadu has seen a 16% rise in the count of registered documents as per the last financial year. The state also saw a 21% rise in registration revenue.

However, a Chennai-based developer has quoted that the high stamp duty and registration fees might hinder growth in Tamil Nadu.

The Centre has already provided incentives such as decreased GST (1%) and exemption of income tax in order to give the affordable housing segment a push, and it is about time that Tamil Nadu looks into the matter of reducing the registration cost for property purchase.

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