Indian Stamp (Tamil Nadu Amendment) Act, 2023
The Indian Stamp (Tamil Nadu Amendment) Act, 2023, Act No. 13 of 2024, was enacted by the Tamil Nadu Legislative Assembly and published after receiving the assent of the President on 04th March 2024. It applies to the whole of the State of Tamil Nadu and comes into force at once. It amends Schedule I of the Indian Stamp Act, 1899 as applied in Tamil Nadu by changing stamp duty amounts and some wording for several types of instruments, including company documents and powers of attorney involving immovable property.
What this document is
The Indian Stamp (Tamil Nadu Amendment) Act, 2023, Act No. 13 of 2024, is a law made by the Tamil Nadu Legislative Assembly. It amends Schedule I to the Indian Stamp Act, 1899 in its application to the State of Tamil Nadu. The publication states it received the assent of the President on 04th March 2024.
Where it applies and when it starts
- Extent, It extends to the whole of the State of Tamil Nadu.
- Commencement, It shall come into force at once.
Who is likely to be affected
This amendment matters to anyone who prepares, signs, or registers instruments that attract stamp duty under Schedule I in Tamil Nadu, including:
- Property owners and buyers using powers of attorney for immovable property.
- Companies and associations filing constitutional documents.
- Families dealing with documents where the definition of family members and legal heirs is relevant.
Key changes made in Schedule I (high level)
The Act substitutes amounts and updates wording in multiple Articles in Schedule I, including Articles 3, 4, 5, 10, 17, 24, 25, 35, 39, 42, 45, 46, 48, 54, 55, 57, 58, 61, 62 and 64.
Company related instruments
- Article 10 (Articles of Association of a company) is substituted with a new stamp duty structure linked to authorised capital, with a stated maximum, and an exemption for associations not formed for profit and registered under the Companies Act, 2013.
- Article 39 (Memorandum of Association of a company) is substituted, and it also includes an exemption for associations not formed for profit and registered under the Companies Act, 2013.
Powers of attorney and immovable property
- Article 48 is amended, including changing the basis in clause (e) to refer to the market value of the immovable property.
- Article 48 also substitutes clauses for cases where a power of attorney is given without consideration and authorises sale of immovable property, with different treatment depending on whether the attorney is a family member or not, and a separate provision for other cases.
- Article 48 adds Explanation II stating that for this Article, the word family has the same meaning as defined in the Explanation to Article 58.
Legal heirs included in family member references
The Act adds wording in explanations so that references include the legal heirs of a deceased family member, if any, in Article 45, and similarly in Article 55, and also in an Explanation under Article 24 clause B.
Issuing authority named in the publication
The publication is issued under the line, By order of the Governor, and is signed by S. George Alexander, Secretary to Government, Law Department.
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Common questions
Does this amendment apply across Tamil Nadu, or only in certain districts?
It extends to the whole of the State of Tamil Nadu.
When does the Indian Stamp (Tamil Nadu Amendment) Act, 2023 start operating?
It shall come into force at once.
Does it change stamp duty rules for powers of attorney involving sale of immovable property?
Yes. Article 48 is amended, including provisions for powers of attorney given without consideration that authorise sale of immovable property, and it refers to the market value of the immovable property in clause (e).
Are non profit associations registered under the Companies Act, 2013 given any exemption for company constitutional documents?
Yes. The substituted Article 10 and substituted Article 39 both provide an exemption for articles or memorandum of any association not formed for profit and registered under the Companies Act, 2013.
