Stamp duty and registration fees in Chennai are determined based on the property's market value.
Buying property in a particular state is a wise investment in securing assets. Yet, every purchaser of property must remit a certain sum to the State Government to officially acquire ownership. Take Chennai, for example, where residents need to cover the relevant stamp duty and registration fees. The exact amount can differ based on factors like the size and location of the property, as well as its intended use. Continue reading for detailed insights into stamp duty and registration charges.
Certainly, when buying a resale property in Chennai, you must account for a registration charge, which is 1% of the property's market or agreement value. Additionally, a stamp duty of 7% is applicable.
Registering a property in Chennai involves several key steps:
Property Inspection: Conduct a thorough check and due diligence with a property lawyer.
Sale Deed Preparation: Draft the sale deed on proper stamp paper.
Registration: The property must be registered at the local Registrar/Sub-Registrar’s office within four months of sale deed execution.
| Document type | Stamp duty in Tamilnadu | Registration charges in Tamilnadu |
|---|---|---|
| Conveyance (Sale) | 7% of the market value of the property | 4% of the market value of the property |
| Gift | 7% of the market value of the property | 4% of the market value of the property |
| Exchange | 7% of the market value on the property that has the greater value | 4% of the market value on the property that has the greater value |
| Simple mortgage | 1% on the loan amount, subject to a maximum of Rs 40,000 | 1% on the loan amount, subject to a maximum of Rs 10,000 |
| Mortgage with possession | 4% of the loan amount | 1%, subject to a maximum of Rs 2,00,000 |
| Agreement to sale | Rs 20 | 1% on the money advanced (1% on total consideration if possession is given) |
| Agreement relating to construction of building | 1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher | 1% on the cost of the proposed construction or the value of construction or the consideration specified in the agreement, whichever is higher |
| Cancellation | Rs 50 | Rs 50 |
| Partition among family members | 1% on the market value of the property, subject to a maximum of Rs 40,000 for each share | 1%, subject to a maximum of Rs 10,000 for each share |
| Partition among non-family members | 4% on the market value of the property for separated shares | 1% on the market value of the property for separated shares |
| i) General Power of Attorney to sell the immovable property | Rs 100 | Rs 10,000 |
| ii) General Power of Attorney to sell the immovable property (Power is given to a family member) | Rs 100 | Rs 1,000 |
| iii) General Power of Attorney to sell the movable property and for other purposes | Rs 100 | Rs 50 |
| iv) General Power of Attorney given for consideration | 4% on the consideration | 1% on the consideration or Rs 10,000, whichever is higher |
| Settlement in favour of family members | 1% on the market value of the property but not exceeding Rs 40,000 | 1% on the market value of the property, subject to a maximum of Rs 10,000 |
| Settlement in other cases | 7% on the market value of the property | 4% on the market value of the property |
| Partnership deed where the capital does not exceed Rs 500 | Rs 50 | 1% on the capital invested |
| Partnership deed (other cases) | Rs 300 | 1% on the capital invested |
| Memorandum of Deposit of Title Deeds (MODT) | 0.5% on loan amount, subject to a maximum of Rs 30,000 | 1% on loan amount, subject to a maximum of Rs 6,000 |
| i) Release among family members (coparceners) | 1% on the market value of the property but not exceeding Rs 40,000 | 1% on the market value of the property, subject to a maximum of Rs 10,000 |
| ii) Release among non-family members (co-owner and benami release) | 7% on the market value of the property | 1% on the market value of the property |
| Lease below 30 years | 1% on the total amount of rent, premium, fine, etc. | 1%, subject to a maximum of Rs 20,000 |
| Lease up to 99 years | 4% on the total amount of rent, premium, fine, etc. | 1%, subject to a maximum of Rs 20,000 |
| Lease above 99 years or perpetual leave | 7% on the total amount of rent, fine, premium of advance, if any, payable. | 1%, subject to a maximum of Rs 20,000 |
| Declaration of trust (if property is there, it would be considered as sale) | Rs 180 | 1% on the amount |
Source: Registration Department, TN
Payment of these charges is typically done at the Registrar/Sub-Registrar’s office where the property is located. Online payment is also possible through E-stamping on the SHCIL website.
Essential documents include:
Paid stamp duty receipt
PAN card and other identity proofs
Property documents like sale deed
No Objection Certificate, if applicable
In summary, understanding the stamp duty and property registration charges in Chennai is crucial for any real estate transaction in the city. It ensures that buyers are well-informed and can budget accordingly. For those looking to finance their property purchase, Tata Capital offers competitive home loan products that cater to diverse needs. Additionally, their home loan EMI calculator is a valuable tool for planning your finances effectively, enabling you to estimate monthly repayments with ease. Remember, a well-planned home-buying journey, equipped with the right financial tools, can make your dream of owning a home in Chennai a smooth and fulfilling experience.
In Chennai, the stamp duty rate is 7% of the property's market value, and the registration fee is set at 1% of the property's value.
Stamp duty in Tamil Nadu is computed based on the higher value between the market value and the consideration value of the property. For instance, if a property is worth Rs.60 lakh, the stamp duty would be 7% of Rs.60 lakh.
The fee for registering a property is calculated based on its market value. For example, if a property is valued at Rs.50 lakh, the registration fee would be 1% of Rs.50 lakh.
In Tamil Nadu, the stamp duty for rental agreements typically amounts to 1% of the sum of rent plus deposit, regardless of the lease duration.
The current rate of stamp duty in Chennai is 7% of the property’s market value.
Yes, stamp duty and registration fees can be paid online via the SHCIL website.
No, the charges for stamp duty and registration are uniform throughout Chennai, irrespective of whether the property is in an urban or rural area.
Failing to register your property by the deadline can result in penalties and may complicate legal matters related to the property.