Reduction of Stamp Duty in Respect of Certain Instruments Under the Indian Stamp Act
The Commercial Taxes and Registration Department of the Government of Tamil Nadu issued G.O. Ms. No. 94, Commercial Taxes and Registration (J 1), dated 7 June 2016, reducing stamp duty on six listed types of instruments to seven rupees for every Rs.100 or part thereof on the applicable amount or market value. The notification supersedes Commercial Taxes Department Notification No. II(2)/CT/779(d-2)/2003, published in the Tamil Nadu Government Gazette Extraordinary dated 21 November 2003.
What the notification does
G.O. Ms. No. 94, Commercial Taxes and Registration (J 1), dated 7 June 2016, was issued by the Commercial Taxes and Registration Department of the Government of Tamil Nadu. Exercising powers under the Indian Stamp Act, 1899, the Governor of Tamil Nadu reduced the stamp duty for the listed instruments to seven rupees for every Rs.100 or part thereof on the amount or market value stated in the relevant articles of Schedule I to that Act.
The notification was published in the Tamil Nadu Government Gazette Extraordinary on 8 June 2016 as No. II(2)/CTR/355(a)/2016.
Instruments covered
G.O. Ms. No. 94 applies to the following six categories:
- A lease where the lease period is above ninety-nine years, under Article 35(c).
- Dissolution of a partnership involving division of the firm’s immovable properties among partners who are not family members, under Article 46 B(i).
- Release of a benami right in favour of the real owner, under Articles 55 B(a) and 55 B(b).
- Release of a right in favour of a co-owner, under Articles 55 C(i) and 55 C(ii).
- Release of a right in favour of a partner who is not a family member, under Article 55 D(ii).
- Settlement in favour of non-family members, under Articles 58(a)(ii)(A) and 58(a)(ii)(B).
The reduced duty is stated only for these listed instruments. The notification does not provide a general reduction for every property document or every type of lease, release, settlement or partnership transaction.
Who may be affected
G.O. Ms. No. 94 is relevant to people executing any of the six listed instruments, including parties to very long leases, partners dividing a firm’s immovable property, co-owners releasing rights, and people making settlements in favour of non-family members.
The notification also matters to property professionals assessing stamp duty for these transactions. It replaces the earlier Commercial Taxes Department notification published on 21 November 2003, so the earlier notification should not be treated as the governing notification for the six categories listed here.
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
What stamp duty does the notification set for the listed instruments?
It sets stamp duty at seven rupees for every Rs.100 or part thereof on the amount or market value stated in the relevant Schedule I article.
Does the reduced duty cover every lease?
No. The listed lease category is limited to a lease where the period is above ninety-nine years.
Does the notification cover settlements made to family members?
The listed settlement category is specifically for settlements in favour of non-family members. The notification does not state the treatment of settlements in favour of family members.
Did this notification replace an earlier stamp duty notification?
Yes. It supersedes Commercial Taxes Department Notification No. II(2)/CT/779(d-2)/2003, published in the Tamil Nadu Government Gazette Extraordinary dated 21 November 2003.
