Registration Department Guidance on Amended Stamp Duty Rates
The Tamil Nadu Registration Department, through the Inspector General of Registration, issued guidance number 28442/C1/2018 dated 8 May 2024 on stamp duty rates amended by Tamil Nadu Act 13 of 2024. It states that the amended rates apply across Tamil Nadu from 3 May 2024 and directs public offices, banks and other listed bodies to verify that instruments carry sufficient stamp duty.
What the guidance does
Registration Department guidance number 28442/C1/2018 dated 8 May 2024 communicates revised stamp duty rates for specified instruments under the Indian Stamp Act, 1899. The changes were made by Tamil Nadu Act 13 of 2024, which was notified on 3 May 2024 after receiving the President of India's assent. The revised rates apply in Tamil Nadu from 3 May 2024.
The guidance was sent to bodies including the Lead Bank, State Industries Promotion Corporation of Tamil Nadu, Small Industries Development Corporation of Tamil Nadu, Tamil Nadu Electricity Board, Chennai Metropolitan Development Authority, Directorate of Town and Country Planning and the Registrar of the High Court of Madras.
Who may be affected
Registration Department guidance number 28442/C1/2018 may affect individuals, businesses, property owners, banks, public authorities, trusts and partnerships executing listed instruments. It is particularly relevant to people preparing powers of attorney, leases, non-family partitions, mortgage reconveyances, settlement revocations or trust documents.
Some listed instruments are not compulsorily registrable under Section 18 of the Registration Act, 1908. The guidance states that they must still be written on sufficient stamp paper or otherwise bear the required stamp duty.
Key changes
The revised structure includes:
- Adoption instruments, Rs.1,000.
- Affidavits and specified agreements, Rs.200 each.
- Cancellation instruments, Rs.1,000.
- Indemnity bonds and security bonds, Rs.500 each.
- Non-family partitions, 4 per cent of the market value of separated shares.
- Special powers of attorney, Rs.500.
- General powers of attorney other than for selling property, Rs.1,000.
- Powers of attorney to sell immovable property for consideration, 5 per cent of market value.
- Powers of attorney to sell immovable property to a family member, Rs.2,000.
- Powers of attorney to sell immovable property to a non-family member, 1 per cent of the property's market value.
- Reconveyance of mortgaged property, revocation of settlement and surrender of lease, Rs.1,000 each.
For leases, security deposits, whether repayable or not, are included in addition to rent, fine, premium or advance.
Payment and verification
Registration Department guidance number 28442/C1/2018 lists three payment methods:
- Non-judicial stamp paper purchased from a treasury or stamp vendor.
- Non-judicial e-stamp paper purchased from Stock Holding Corporation of India.
- Payment through a District Registrar, followed by the prescribed certificate.
Public officers are instructed to verify sufficient stamp duty before filing, acting upon, registering or authenticating an instrument.
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
When did the revised stamp duty rates start applying in Tamil Nadu?
The guidance states that the amended rates apply from 3 May 2024.
Does an instrument that does not require compulsory registration still need stamp duty?
Yes. The guidance states that some instruments may not be compulsorily registrable, but they must still be written on sufficient stamp paper or bear the required stamp duty.
What stamp duty applies to a power of attorney to sell property to a non-family member?
The listed rate is 1 per cent of the market value of the property.
How can stamp duty be paid under the guidance?
It may be paid using non-judicial stamp paper, non-judicial e-stamp paper from Stock Holding Corporation of India, or through a District Registrar with the prescribed certificate.
