Circular No. 25735/C1/2017, Reduced Market Value Guidelines and Revised Registration Fee, 2017
The Tamil Nadu Registration Department issued Circular No. 25735/C1/2017, dated 8 June 2017, to reduce market value guidelines by 33 per cent across Tamil Nadu from 9 June 2017. It also raises the registration fee from 1 per cent to 4 per cent only for conveyance, exchange, gift and settlement in favour of non-family members.
What the circular changes
Circular No. 25735/C1/2017, dated 8 June 2017, directs registration officials to implement two changes simultaneously from 9 June 2017:
- Market value guidelines are reduced by 33 per cent for all village survey numbers, streets and localities within Tamil Nadu's 50 registration districts.
- Registration fees increase from 1 per cent to 4 per cent only for conveyance, exchange, gift and settlement in favour of non-family members.
The reduced guideline value applies to all types of documents presented for registration from 9 June 2017. The higher registration fee applies only to the four document types listed above.
How revised values are calculated
The Tamil Nadu Registration Department requires the revised square metre value to be 67 per cent of the value shown online on 8 June 2017. Square metre values must be rounded up to the next 5 rupees, while hectare values must be rounded up to the next 500 rupees.
For buildings, registration officers must not insist on using the building value stated in an earlier document. A value based on the current Public Works Department schedule of rates is sufficient.
Treatment of earlier documents and valuation cases
Circular No. 25735/C1/2017 provides the following valuation safeguards:
- Documents registered or presented on or before 8 June 2017 and pending valuation must be handled using the earlier guideline value.
- Documents presented from 9 June 2017 must use the revised guideline value.
- A higher value recorded in an earlier document, or previously fixed by a revenue or stamp authority, must not by itself be used to start undervaluation action for documents presented from 9 June 2017.
- Pre-9 June 2017 registration statistics, nearby values or survey number values must not be used for valuation cases concerning documents presented after that date.
- Higher values arising after 9 June 2017 may be considered under the departmental instructions identified in the circular.
Agreements affecting market value
Circular No. 25735/C1/2017 generally prevents officers from relying on values in earlier documents. However, if a valid agreement concerning the property states a value higher than the revised guideline value, the agreement value must be treated as the market value. Officers must not insist on a value from an agreement that has been cancelled, even where the parties remain the same.
Temporary cash payment facility
The Tamil Nadu Registration Department allowed Sub-Registrars to collect stamp duty and registration fees in cash without an upper limit for registrations from 9 June 2017 to 13 June 2017.
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 33 per cent guideline value reduction apply across Tamil Nadu?
Yes. It applies from 9 June 2017 to all village survey numbers, streets and localities within the 50 registration districts.
Is the 4 per cent registration fee charged on every registered document?
No. It applies only to conveyance, exchange, gift and settlement in favour of non-family members.
Which guideline value applies if my document was presented before 9 June 2017 but valuation is still pending?
Documents registered or presented on or before 8 June 2017 and pending valuation must be handled using the earlier guideline value.
Can a Sub-Registrar insist on the higher property value shown in an earlier deed?
No. For documents presented from 9 June 2017, an earlier higher value must not by itself be used to take undervaluation action. A valid agreement stating a value above the revised guideline value is an exception.
