Official guidance, Tamil Nadu land law
The Indian Stamp (Tamil Nadu Amendment) Act, 2023 (Tamil Nadu Act 13 of 2024) (6 May 2024)
The Office of the Inspector General of Registration, Chennai, issued Endorsement No. 28442/C1/2018 dated 6 May 2024, forwarding the Government of Tamil Nadu Law Department memorandum and the Indian Stamp (Tamil Nadu Amendment) Act, 2023 for information and necessary action. The Act amends Schedule I to the Indian Stamp Act, 1899 throughout Tamil Nadu by revising stamp duty for specified instruments and changing provisions concerning powers of attorney, deposits, company documents, family members and trust property. The text states that the Act comes into force at once.
What the document does
The Office of the Inspector General of Registration, Chennai, issued Endorsement No. 28442/C1/2018 dated 6 May 2024 to all Deputy Inspectors General of Registration, District Registrars and Sub Registrars. It forwards Government of Tamil Nadu Law Department Memorandum No. 8707/CT&R-Dfg/2023-1 dated 3 May 2024, concerning publication of the Indian Stamp (Tamil Nadu Amendment) Act, 2023 (Tamil Nadu Act 13 of 2024).
The Indian Stamp (Tamil Nadu Amendment) Act, 2023 amends Schedule I to the Indian Stamp Act, 1899 across Tamil Nadu. The stated reason is that stamp duty for most instruments had not been revised since 2001 and the cost of printing physical non-judicial stamp papers had increased substantially.
Who may be affected
The Indian Stamp (Tamil Nadu Amendment) Act, 2023 affects people and organisations executing instruments covered by the amended Schedule I articles. Property owners and buyers may be particularly affected when granting powers of attorney connected with immovable property. Companies, associations, trustees, beneficiaries and parties to instruments involving an advance or security deposit may also be affected.
Key provisions
- Several fixed duties are increased. These include changes in Articles 3, 4, 5, 17, 24, 25, 42, 46, 48, 54, 57, 58, 61 and 64.
- Articles of association of a company are charged at five hundred rupees for every ten lakh rupees of authorised capital or part, subject to a maximum of five lakh rupees.
- A company memorandum of association is charged at two hundred rupees.
- Articles and memoranda of associations not formed for profit and registered under the Companies Act, 2013 are exempt under the relevant provisions.
- Article 35 replaces the reference to an advance payable with an advance or security deposit, whether repayable or not.
- A power of attorney given without consideration to a family member to sell immovable property is charged at one thousand rupees.
- A power of attorney given without consideration to a person who is not a family member to sell immovable property is charged at one rupee for every one hundred rupees or part of the property’s market value.
- Other cases under the substituted power of attorney provision are charged at one thousand rupees for each person authorised.
- Relevant family explanations are expanded to include the legal heirs of a deceased family member.
- Transfer of trust property between trustees, or from a trustee to a beneficiary of the same trust, is charged at one thousand rupees or a smaller amount chargeable under the specified related clause.
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 amendment apply throughout Tamil Nadu?
Yes. The Indian Stamp (Tamil Nadu Amendment) Act, 2023 states that it extends to the whole of Tamil Nadu and comes into force at once.
What is the stamp duty for a power of attorney allowing a family member to sell immovable property?
When it is given without consideration and authorises a family member to sell immovable property, the stated duty is one thousand rupees.
What applies if the person authorised to sell the property is not a family member?
For a power of attorney given without consideration to a person who is not a family member, the duty is one rupee for every one hundred rupees or part of the market value of the immovable property.
Does the document change stamp duty for company formation documents?
Yes. It sets duty for articles of association based on authorised capital, subject to a stated maximum, and sets two hundred rupees for a memorandum of association. Qualifying associations not formed for profit are exempt.
