G.O. (Ms.) No.63, Reduction of Stamp Duty and Registration Fee on Rental Agreements, 2020
The Commercial Taxes and Registration (J1) Department issued G.O. (Ms.) No.63, printed as dated 20 March 2020, reducing stamp duty and registration fees for residential leases and rental agreements lasting up to five years. The accompanying Registration Department communication refers to the order as dated 16 March 2020 and states that the changes take effect from publication in the Tamil Nadu Government Gazette on 21 March 2020. The registration fee reduction amends the existing Table of Fees.
What the government order covers
G.O. (Ms.) No.63 of the Commercial Taxes and Registration (J1) Department applies to residential rental arrangements lasting up to five years. It covers:
- Leases for residential purposes.
- Under-leases and sub-leases for residential purposes.
- Agreements to let or sub-let residential property.
The reduction was announced to encourage voluntary registration and help landlords and tenants obtain the benefits of registration under the new tenancy law. The source does not extend the reduction to property sales or to non-residential leases.
Stamp duty reduction
G.O. (Ms.) No.63 reduces the stamp duty on a qualifying residential rental document to 25 paise for every Rs.100, or part of Rs.100, of the amount payable.
The amount used for calculating stamp duty includes:
- Total rent.
- Fine, if any.
- Premium, if any.
- Advance, if any.
The Budget Speech quoted in the order describes this as a reduction from 1 percent to 0.25 percent for residential rental agreements lasting up to five years.
Registration fee reduction
G.O. (Ms.) No.63 amends the existing Table of Fees so that the registration fee for a qualifying residential lease or rental agreement is 25 paise for every Rs.100, or part of Rs.100, of the total rent, fine, premium or advance payable.
The registration fee is subject to a maximum of Rs.5,000. The stated maximum applies to the registration fee. The notification does not state a corresponding maximum for stamp duty.
Commencement and administration
G.O. (Ms.) No.63 directs publication of the notifications in an extraordinary issue of the Tamil Nadu Government Gazette dated 21 March 2020. The accompanying communication from the Additional Inspector General of Registration states that the arrangement comes into force from publication on 21 March 2020.
The communication instructs registration officials to collect stamp duty and registration fees according to the relevant type of document. It was circulated to Deputy Inspectors General of Registration, District Registrars and Sub-Registrars for information and compliance.
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 to every rental agreement?
No. G.O. (Ms.) No.63 covers leases and agreements to let or sub-let for residential purposes where the rental period is up to five years.
How are the stamp duty and registration fee calculated?
Each is calculated at 25 paise for every Rs.100, or part of Rs.100, of the total rent, fine, premium or advance payable. The registration fee is capped at Rs.5,000.
Does the Rs.5,000 maximum also apply to stamp duty?
The source places the Rs.5,000 maximum on the registration fee. It does not state a maximum amount for stamp duty.
When did the reduced charges come into force?
The accompanying Registration Department communication states that the changes come into force from publication in the Tamil Nadu Government Gazette on 21 March 2020.
