Notification under the Indian Stamp Act and Notification under the Registration Act
The Government of Tamil Nadu, through the Commercial Taxes and Registration Department, issued G.O. Ms. No. 112, Commercial Taxes and Registration (J1), dated 31 August 2021, reducing both stamp duty and registration fees to 50 percent for specified original allotments by the Tamil Nadu Adi Dravidar Housing and Development Corporation. The reductions apply to sale, lease and lease cum sale instruments for industrial lands, plots and sheds allotted to Adi Dravidar entrepreneurs, and are deemed effective from 27 April 2021.
What the notifications do
G.O. Ms. No. 112, Commercial Taxes and Registration (J1), dated 31 August 2021, contains two related notifications from the Commercial Taxes and Registration Department. One reduces the stamp duty chargeable under the Indian Stamp Act, 1899, and the other reduces the fee payable under the Registration Act, 1908.
Both amounts are reduced to 50 percent when the stated eligibility conditions are met. The reductions are deemed to have taken effect from 27 April 2021.
Transactions covered
The stamp duty and registration fee reductions apply only to instruments that meet all of these conditions:
- The instrument is a sale, lease or lease cum sale.
- It is executed by the Tamil Nadu Adi Dravidar Housing and Development Corporation.
- It concerns industrial land, a plot or a shed in an industrial estate developed by that Corporation.
- The property is allotted in favour of an Adi Dravidar entrepreneur.
- The transaction takes place at the time of original allotment.
- The amount is based on the transfer value fixed by the Tamil Nadu Adi Dravidar Housing and Development Corporation or the Government.
Who is affected
The notifications directly affect Adi Dravidar entrepreneurs receiving an original allotment of qualifying industrial property from the Tamil Nadu Adi Dravidar Housing and Development Corporation. The Corporation, registration officials and professionals handling eligible sale, lease or lease cum sale instruments also need to apply the reduced amounts.
The notifications do not state that the reductions apply to later resales, transfers between private parties, residential property or industrial property outside estates developed by the Tamil Nadu Adi Dravidar Housing and Development Corporation.
Practical point for buyers and allottees
An allottee should check the allotment documents to confirm that the property is in an industrial estate developed by the Tamil Nadu Adi Dravidar Housing and Development Corporation and that the transaction is the original allotment. The instrument should also reflect the transfer value fixed by the Corporation or the Government, because that value forms part of the stated basis for the concession.
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 notification reduce both stamp duty and registration fees?
Yes. Stamp duty and the fee payable under the Registration Act are each reduced to 50 percent for transactions meeting the stated conditions.
Does the concession apply when I buy a Tamil Nadu Adi Dravidar Housing and Development Corporation industrial plot from an earlier allottee?
The notifications cover instruments executed by the Corporation at the time of original allotment. They do not state that the concession applies to a later purchase from an earlier allottee.
Which types of property qualify for the reduction?
Industrial lands, plots and sheds in industrial estates developed by the Tamil Nadu Adi Dravidar Housing and Development Corporation may qualify when originally allotted to Adi Dravidar entrepreneurs.
From what date is the reduction effective?
Both notifications are deemed to have come into force from 27 April 2021.
