Indian Stamp (Tamil Nadu Amendment) Act, 2023 Bill
The Government of Tamil Nadu, through Commercial Taxes and Registration, published Gazette No. 129 on 17 April 2023 containing a Bill introduced in the Tamil Nadu Legislative Assembly to amend Schedule I of the Indian Stamp Act, 1899 in Tamil Nadu. The Bill proposes revised stamp duties for several instruments and changes affecting leases, powers of attorney, company documents and trust property, but the publication is a Bill and does not state that it had been enacted or brought into force.
What the document is
The Government of Tamil Nadu, through Commercial Taxes and Registration, published Gazette No. 129 on 17 April 2023. No separate government order number is printed. The Gazette publishes a Bill introduced in the Tamil Nadu Legislative Assembly on 17 April 2023, together with its Statement of Objects and Reasons, for general information.
The Bill is called the Indian Stamp (Tamil Nadu Amendment) Act, 2023. It proposes to amend Schedule I of the Indian Stamp Act, 1899 throughout Tamil Nadu. Although the Bill says the proposed Act would come into force at once, the Gazette text does not state that the Bill had received assent or become law.
What it would change
The Bill proposes revised fixed or value-based stamp duties for a range of instruments. Key provisions include:
- Several existing fixed duties would increase, commonly to Rs. 500 or Rs. 1,000, depending on the relevant Schedule I article.
- Articles of association would attract Rs. 500 for every Rs. 10 lakh of authorised capital or part of it, subject to a maximum of Rs. 5 lakh.
- A company memorandum of association would attract Rs. 200.
- Articles and memoranda of associations not formed for profit and registered under the Companies Act, 2013 would remain exempt under the proposed provisions.
- For specified lease provisions, the calculation would refer to an advance or security deposit, whether repayable or not.
- An instrument authorising a family member, without consideration, to sell immovable property would attract Rs. 1,000.
- An instrument authorising a person who is not a family member, without consideration, to sell immovable property would attract one rupee for every Rs. 100 or part of the property's market value.
- In other power of attorney cases covered by the replacement clause, the duty would be Rs. 1,000 for each person authorised.
- References to family in specified provisions would include legal heirs of a deceased family member.
- Transfer of trust property between trustees, or from a trustee to a beneficiary of the same trust, would attract Rs. 1,000 or any smaller amount chargeable under the referenced clause.
Who should check it
Property owners and buyers should note the proposals concerning powers of attorney to sell immovable property, market value, leases and security deposits. Companies, non-profit associations, trustees and beneficiaries may also be affected by the proposed revised duties.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Did this Gazette notification itself make the revised stamp duties effective?
The source publishes a Bill introduced in the Tamil Nadu Legislative Assembly. It does not state that the Bill received assent or became law, even though the Bill says the proposed Act would come into force at once.
What stamp duty is proposed for authorising a family member to sell immovable property without consideration?
The Bill proposes a duty of Rs. 1,000 where the authorised attorney is a family member.
How would the proposal treat a power of attorney given to a non-family member to sell immovable property?
Where it is given without consideration, the proposed duty is one rupee for every Rs. 100 or part of the market value of the immovable property.
Would non-profit company documents remain exempt?
The proposed provisions exempt articles and memoranda of an association not formed for profit and registered under the Companies Act, 2013.
