G.O. Ms. No. 95, Commercial Taxes and Registration (J1), 7th July 2009
The Government of Tamil Nadu, Commercial Taxes and Registration Department issued G.O. Ms. No. 95, Commercial Taxes and Registration (J1), dated 7th July 2009, reducing stamp duty and maximum registration fees for specified mortgage related instruments. The stamp duty reduction applied from 12th February 2004 through 7th July 2009 and has expired, while the source text gives no commencement or end date for the registration fee reduction.
What the government order covers
G.O. Ms. No. 95, Commercial Taxes and Registration (J1), dated 7th July 2009, contains two Government of Tamil Nadu notifications. One reduces stamp duty under the Indian Stamp Act, 1899. The other reduces maximum registration fees under the Registration Act, 1908.
The reductions concern instruments that impose a further charge on property already mortgaged where possession is not given. The registration fee notification also covers specified security bonds or mortgage deeds.
Reduced stamp duty
The Commercial Taxes and Registration Department notification sets the following duty for an instrument imposing a further charge on mortgaged property where possession is not given:
- One rupee for every Rs.100, or part of Rs.100, of the amount secured by the deed.
- Maximum stamp duty of Rs.20,000.
The stamp duty notification was deemed to have come into force on 12th February 2004. It remained in force only up to and including 7th July 2009. The source therefore does not establish that this reduced stamp duty applies to instruments executed after that date.
Reduced registration fees
The Commercial Taxes and Registration Department notification reduces the maximum registration fee to Rs.5,000 for each of the following:
- Instruments imposing a further charge on mortgaged property where possession is not given, as described in the notification.
- Security bonds or mortgage deeds described under Article 57 of Schedule I to the Indian Stamp Act, 1899.
The source text does not state a commencement date, an expiry date or any later amendment for the registration fee reduction.
Who may be affected
G.O. Ms. No. 95 may be relevant to owners, borrowers, lenders and professionals dealing with an additional charge over already mortgaged property without transfer of possession. It may also be relevant when registering the specified security bonds or mortgage deeds. Anyone relying on the stamp duty concession should note that its stated validity ended on 7th July 2009.
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
Does the reduced stamp duty still apply to a new further charge on mortgaged property?
The notification states that the reduced stamp duty remained in force only up to and including 7th July 2009. The source does not extend it beyond that date.
What was the reduced stamp duty for a further charge without possession?
It was one rupee for every Rs.100, or part of Rs.100, of the amount secured, subject to a maximum of Rs.20,000.
What maximum registration fee does the notification specify?
The maximum fee is Rs.5,000 for a qualifying further charge on mortgaged property without possession, and Rs.5,000 for the specified security bond or mortgage deed.
Does the source give an expiry date for the reduced registration fee?
No. The supplied source text does not state a commencement or expiry date for the registration fee reduction.
