G.O. Ms. No. 96, Commercial Taxes and Registration (J1), 7th July 2009
The Commercial Taxes and Registration Department, Government of Tamil Nadu, issued G.O. Ms. No. 96, Commercial Taxes and Registration (J1), dated 7th July 2009, to reduce and cap stamp duty and registration fees for specified mortgage related instruments. It amends earlier notifications dated 12th February 2004 and introduces additional reductions, all effective from 8th July 2009.
What the notification governs
G.O. Ms. No. 96, Commercial Taxes and Registration (J1), dated 7th July 2009, deals with stamp duty under the Indian Stamp Act, 1899 and registration fees under the Registration Act, 1908. The Commercial Taxes and Registration Department issued four connected notifications covering mortgage deeds, further charges on mortgaged property, and specified security bonds.
The changes took effect on 8th July 2009.
Stamp duty changes
The stamp duty provisions apply to specified mortgage instruments where possession of the property is not given or agreed to be given.
Key changes are:
- For a mortgage deed covered by Article 40(b) of the Indian Stamp Act, 1899, the maximum stamp duty was increased from Rs. 20,000 to Rs. 40,000.
- For an instrument imposing a further charge on mortgaged property under Article 32(b)(ii) of Schedule I, where possession is not given, the reduced duty is one rupee for every Rs. 100 or part of the amount secured.
- The maximum stamp duty for that further charge instrument is Rs. 40,000.
Registration fee changes
The registration fee provisions set maximum fees for specified instruments under the Registration Act, 1908.
Key provisions are:
- For a mortgage deed under Article 40(b), where possession is not given or agreed to be given, the maximum registration fee was increased from Rs. 5,000 to Rs. 10,000.
- For an instrument imposing a further charge on mortgaged property under Article 32(b)(ii), where possession is not given, the maximum registration fee is Rs. 10,000.
- For a security bond or mortgage deed described under Article 57 of Schedule I to the Indian Stamp Act, 1899, the maximum registration fee is Rs. 10,000.
Who may be affected
G.O. Ms. No. 96 may affect property owners, borrowers, lenders and professionals dealing with the execution or registration of the listed mortgage related instruments in Tamil Nadu. The applicable amount depends on the type of instrument, whether possession is given, and the amount secured by the document.
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 is the maximum stamp duty for a mortgage deed when possession is not given?
For the mortgage deed described under Article 40(b), the notification substitutes a maximum stamp duty of Rs. 40,000 for the earlier maximum of Rs. 20,000.
What duty applies when an existing mortgaged property is charged further?
Where possession is not given, the duty is one rupee for every Rs. 100 or part of the amount secured, subject to a maximum of Rs. 40,000.
What is the maximum registration fee for the listed mortgage instruments?
The maximum registration fee is Rs. 10,000 for the specified mortgage deed without possession, a further charge without possession, and a security bond or mortgage deed described under Article 57.
When did these stamp duty and registration fee changes take effect?
All the changes stated in the notifications came into force on 8th July 2009.
