G.O. Ms. No. 72, Reduction of Stamp Duty for Government Agencies, 2013
The Government of Tamil Nadu, through the Commercial Taxes and Registration Department, issued G.O. Ms. No. 72, Commercial Taxes and Registration (J1), dated 21 June 2013. It reduces stamp duty on instruments executed by specified government departments, local bodies and public agencies when the guideline market value of the property is higher than the value stated in the instrument.
What the notification governs
G.O. Ms. No. 72, Commercial Taxes and Registration (J1), dated 21 June 2013, concerns stamp duty under the Indian Stamp Act, 1899. The Governor of Tamil Nadu issued the reduction using the power under clause (a) of sub-section (1) of Section 9 of that Act.
The reduction applies when:
- An instrument is executed by a government department, local body or one of the public agencies named in the notification.
- The property guideline market value is higher than the value stated in the instrument.
- The guideline market value comes from the market value guidelines prepared by the Valuation Committee constituted under Section 47-AA of the Indian Stamp Act, 1899.
In that situation, the duty is reduced to the duty chargeable on the value stated in the instrument.
Organisations covered
The stamp duty treatment applies to instruments executed by:
- Any Government Department.
- Any local body in Tamil Nadu.
- Chennai Metropolitan Development Authority.
- Tamil Nadu Housing Board.
- Tamil Nadu Slum Clearance Board.
- Tamil Nadu Police Housing Corporation.
- Tamil Nadu Small Industries Development Corporation.
- State Industries Promotion Corporation of Tamil Nadu.
- Tamil Nadu Industrial Investment Corporation.
- Tamil Nadu Industrial Development Corporation.
- Electronics Corporation of Tamil Nadu.
The notification does not extend the list to private developers, companies or individuals acting independently of these bodies.
Effect on property transactions
G.O. Ms. No. 72 addresses the difference between the value written in an instrument and the higher market value shown by the applicable property guideline. For a qualifying instrument executed by a listed body, stamp duty is based on the value set out in that instrument rather than the higher guideline market value.
A property buyer, owner or professional should therefore check both the identity of the body executing the instrument and the value recorded in it. A private party is not named as a separate beneficiary, so the key question is whether the instrument itself is executed by one of the listed government or public bodies.
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 stamp duty reduction apply to every property document in Tamil Nadu?
No. It applies to instruments executed by a Government Department, a local body in Tamil Nadu or one of the public agencies specifically listed in the notification.
What happens when the guideline value is higher than the value in the instrument?
For a qualifying instrument, the duty is reduced to the duty chargeable on the value stated in the instrument.
Are instruments executed by the Tamil Nadu Housing Board covered?
Yes. The Tamil Nadu Housing Board is expressly included among the covered bodies.
Who prepares the market value guidelines referred to in the notification?
The guidelines are prepared by the Valuation Committee constituted under Section 47-AA of the Indian Stamp Act, 1899.
