Official guidance, Tamil Nadu land law
G.O. (Ms.) No.131, Deed of First Sale and Fixation of Composite Value, 2023
The Commercial Taxes and Registration (J1) Department issued G.O. (Ms.) No.131 on 1 December 2023, introducing composite valuation for the first sale of newly developed flats and apartments and reducing the applicable stamp duty for eligible value slabs. The concession applies only when the flat or apartment is registered with its undivided share of land on the first sale, and it does not apply to a second sale.
What the document changes
G.O. (Ms.) No.131 of the Commercial Taxes and Registration (J1) Department, dated 1 December 2023, changes how eligible first sales of newly developed flats and apartments are valued and registered. Instead of registering the undivided share of land and the building through two separate documents, the Registration Department must collect stamp duty and registration fee on a composite value covering both the land share and building.
The composite value is calculated using the super built-up area. The value used for charging duty and fees is the composite value or the value stated in the document, whichever is higher.
Who is affected
G.O. (Ms.) No.131 affects:
- Buyers purchasing a newly developed flat or apartment from promoters or landowners for the first time.
- Promoters and landowners selling newly developed flats or apartments.
- Registration officers who value and register these transactions.
- The Central Valuation Committee, which is authorised to create the methodology and guidelines for fixing composite values based on existing market value.
The final eligibility statement limits the concession to flats and apartments registered together with the undivided share of land on the first sale. It expressly excludes second sales. Although the valuation table also names villas, row houses and villaments, the closing concession statement refers only to flats and apartments.
Rates for eligible first sales
G.O. (Ms.) No.131 sets the following proposed charges based on the composite value or document value, whichever is higher:
- Below Rs.50 lakhs: stamp duty 2.86%, transfer duty 1.144% and registration fee 2%, with total payable stated as 6%.
- Rs.50 lakhs to Rs.3 crore: stamp duty 3.575%, transfer duty 1.43% and registration fee 2%, with total payable stated as 7%.
- Above Rs.3 crore: stamp duty 5%, transfer duty 2% and registration fee 2%, with total payable stated as 9%.
Registration administration
The Inspector General of Registration circulated G.O. (Ms.) No.131 to all Deputy Inspectors General of Registration, District Registrars and registering officers for action and acknowledgement. The document was also sent to the computer software section for uploading to the website, and its appended notification was directed to be published in the Extraordinary issue of the Tamil Nadu Government Gazette dated 1 December 2023.
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 rate apply when I buy a resale flat?
No. G.O. (Ms.) No.131 expressly says the concession does not apply to the second sale of a flat or apartment.
How will my new flat be valued for registration?
The undivided share of land and the building are valued together using the composite value based on super built-up area. Charges are based on that composite value or the value stated in the document, whichever is higher.
Must the undivided share of land be included to receive the concession?
Yes. The concession applies only when the flat or apartment is registered along with its undivided share of land on the first sale.
Does the document clearly extend the first-sale concession to villas and row houses?
The valuation table names villas, row houses and villaments, but the final eligibility statement says the concession applies only to flats and apartments registered with the undivided share of land on the first sale.
