Legislative Assembly Bill No. 10/2023, Indian Stamp (Tamil Nadu Amendment) Bill, 2023
The Government of Tamil Nadu published Legislative Assembly Bill No. 10/2023 on 17 April 2023, sponsored by the Minister for the Commercial Taxes and Registration Department, to propose changes to stamp duty under the Indian Stamp Act, 1899, as it applies in Tamil Nadu. The bill would revise fixed duties and valuation rules for several documents, including certain powers of attorney and company documents. The supplied text is a bill published for public information, not an enacted amendment, although it proposes immediate commencement if enacted.
What the bill covers
Legislative Assembly Bill No. 10/2023 would amend Schedule I of the Indian Stamp Act, 1899, for the whole of Tamil Nadu. It was introduced in the Tamil Nadu Legislative Assembly and published for public information on 17 April 2023.
The statement of reasons says that stamp duty for most documents had not been revised since 2001, while the cost of printing non-judicial stamp papers had increased substantially. The Government of Tamil Nadu therefore proposed revising the duty on selected documents.
Main proposed changes
Legislative Assembly Bill No. 10/2023 proposes:
- Replacing several existing fixed duties with higher amounts. The changes shown in the text include increases from Rs. 100 to Rs. 1,000, Rs. 20 to Rs. 200, Rs. 20 to Rs. 500, and Rs. 80 to Rs. 1,000 for different document categories.
- A duty of Rs. 200 for a company's memorandum of association, with an exemption for an association not formed for profit and registered under the Companies Act, 2013.
- A duty of Rs. 500 for every Rs. 10 lakh, or part of it, of share capital under a company's articles of association, subject to a maximum of Rs. 5 lakh. An exemption applies to qualifying associations not formed for profit.
- Changing wording relating to advances so that refundable or non-refundable advances or deposits are covered.
- Using the market value of the amount or immovable property in specified provisions instead of the earlier wording.
- Including the legal heirs of a deceased family member in specified explanations concerning family members.
Powers involving immovable property
Legislative Assembly Bill No. 10/2023 proposes specific duties where authority is given without consideration to sell immovable property:
- Rs. 1,000 where the authorised agent is a family member.
- One rupee for every Rs. 100, or part of Rs. 100, of the property's market value where the authorised agent is not a family member.
- Rs. 1,000 for each authorised person in any other case covered by the provision.
For this purpose, the meaning of “family” would be the same as the meaning given in the explanation to Article 58.
Who may be affected
Property owners and buyers may be affected when executing powers of attorney or other documents involving immovable property. Companies, associations, trustees, beneficiaries and people executing other listed instruments may also face revised stamp duty if the bill is enacted.
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Common questions
Were these stamp duty changes already law when the document was published?
The supplied document is Legislative Assembly Bill No. 10/2023, published for public information after its introduction on 17 April 2023. The text does not show that it had been enacted.
What stamp duty is proposed for giving a non-family member authority to sell immovable property?
Where the authority is given without consideration, the proposed duty is one rupee for every Rs. 100, or part of Rs. 100, of the immovable property's market value.
What is proposed when the authorised agent is a family member?
Where authority to sell immovable property is given without consideration to an agent who is a family member, the proposed duty is Rs. 1,000.
Does the bill include heirs of a deceased family member?
Yes. Legislative Assembly Bill No. 10/2023 proposes adding the legal heirs of a deceased family member to the meaning used in specified explanations.
