G.O. (Ms.) No.60, Upper cap on Stamp Duty and Registration Fee for Mortgage Deeds, 2020
The Commercial Taxes and Registration (J1) Department, Government of Tamil Nadu, issued G.O. (Ms.) No.60 dated 16 March 2020, amending earlier notifications to set higher maximum stamp duty and registration fee limits for mortgage deeds executed to secure debentures. The maximum stamp duty is Rs.10 lakh and the maximum registration fee is Rs.1 lakh, effective from publication in the Tamil Nadu Government Gazette on 17 March 2020.
What the government changed
G.O. (Ms.) No.60 dated 16 March 2020, issued by the Commercial Taxes and Registration (J1) Department, changes the maximum stamp duty and registration fee payable for a specific type of mortgage deed. It applies to mortgage deeds without possession that are executed to secure debentures.
The Government of Tamil Nadu accepted a proposal from the Inspector General of Registration and amended earlier stamp duty and registration fee notifications. The stated reason was to limit the use of the earlier concession for large commercial borrowing transactions and increase government revenue.
Documents covered
G.O. (Ms.) No.60 applies where all of the following are present:
- The document is a mortgage deed without possession.
- The mortgage deed falls under Article 40(b) of the Indian Stamp Act, 1899.
- The mortgage deed is executed for securing debentures.
The order refers to corporate borrowers executing simple mortgage deeds and to mortgages securing the full amount of debentures. It does not state that the new limits apply to every mortgage deed or to ordinary property sale documents.
Maximum amounts
For a mortgage deed covered by G.O. (Ms.) No.60:
- The maximum stamp duty payable is Rs.10,00,000, meaning Rs.10 lakh.
- The maximum registration fee payable is Rs.1,00,000, meaning Rs.1 lakh.
The earlier government order had capped stamp duty at Rs.40,000 and registration fee at Rs.10,000 for mortgage deeds without possession. G.O. (Ms.) No.60 adds specific higher maximums for mortgage deeds executed to secure debentures.
When it took effect
The Commercial Taxes and Registration (J1) Department directed that the amendment notifications be published in an extraordinary issue of the Tamil Nadu Government Gazette dated 17 March 2020. The communication from the Registration Department states that the revised treatment takes effect from that Gazette publication date.
Who may be affected
The change is relevant to corporate borrowers, lenders, debenture trustees, document preparers and registration professionals dealing with mortgage deeds used to secure debentures. The Registration Department instructed its officers to collect stamp duty and registration fees according to the relevant document category and the government order.
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 Rs.10 lakh stamp duty cap apply to every mortgage deed?
No. G.O. (Ms.) No.60 specifically sets the cap for mortgage deeds without possession executed to secure debentures.
What is the maximum registration fee for a covered mortgage deed?
The maximum registration fee is Rs.1 lakh for a mortgage deed executed to secure debentures and covered by the amendment.
When did the revised limits take effect?
The Registration Department communication states that the revised limits took effect from publication in the Tamil Nadu Government Gazette on 17 March 2020.
Did G.O. (Ms.) No.60 replace the earlier Rs.40,000 and Rs.10,000 limits for all mortgages?
The source does not state that those earlier limits were replaced for all mortgages. It adds higher maximums of Rs.10 lakh for stamp duty and Rs.1 lakh for registration fees for mortgage deeds executed to secure debentures.
