WHAT IS STAMP DUTY AND REGISTRATION FEES IN TAMILNADU

WHAT IS STAMP DUTY AND REGISTRATION FEES IN TAMILNADU

Stamp duty, as a form of tax on all types of properties, including agricultural and non-agricultural land, freehold or leasehold units, residential flats, independent villa or house and commercial buildings. Among Indian states, stamp duty charges on property transactions are quite high in Tamil Nadu. This means, when you buy a property in the state capital Chennai, for example, you will need to reserve a significant amount towards the mandatory stamp duty and registration charges.

What is a Registration Charge?

Although paid for the same property value the reason for paying and the ways to calculate stamp duty and registration charge, vary. How much stamp duty you are required to pay completely depends upon the transaction value of your property, however, the registration charge is a fixed cost property buyers pay for the service of adding a deed or contract in government records.

Someone bought a property in Chennai that has a guideline value of Rs 40 lakhs. He will have to pay the following charges:

• Registration fee: 4% of Rs 40 lakhs = Rs 1,60,000

• Stamp duty: 7% of Rs 40 lakhs = Rs. 2,80,000

Hence, the effective cost of owning this property comes to Rs 44.40 lakhs.

The registration charge for a resale property

The registration charge for a resale property is 1% of market value or the agreement value of the property. The stamp duty that will be levied on the same is 7%.

ocuments required for registration of property

You will need the stamp duty receipt, your PAN card, government ID proofs of all parties, including the witnesses, two passport-sized photographs, NOC, no dues certificate, sale deed, POA, pattadar passbook, etc. You can either pay the stamp duty at the registrar/sub-registrar’s office or avail of the e-stamping facility.

Location of the property:

Stamp duty is different for the properties that are considered inside the municipal limits of a city, as compared to the properties that fall outside the municipal limits. The charges are higher in case of the former. Also, whether the property you are planning to buy is a part of a city, a rural area, a metropolitan, or a suburb, will have a certain amount of impact on the value of stamp duty that you need to pay.

Project amenities:

The amenities you are receiving with the purchase of the unit change the calculation of stamp duty in some states of the country. For example, you are purchasing a unit from a housing project in Chennai and they are offering you high-end amenities like a clubhouse, gym, elevators, community halls, swimming pools and more, you will have to pay additional stamp duty.

Registration Charge Calculation

To calculate registration fee, various factors are taken into consideration, based on the type of property you are buying and the city/state laws. The main factors used in the calculation of property registration free are:

• If the apartment/office you are buying is a part of a multi-storey building, the super built up area is considered for calculation.

• For lands or plots, the total square footage area is multiplied by the guideline value of the same land.

• If the property is a villa or independent house, then you need to calculate the registration fee on the total constructed area.

Stamp duty on Commercial Property:

Whether you are purchasing the property for residential use or commercial use creates a difference. Stamp duty on commercial properties is always higher than that of residential property.