D.Dis.No. 5708/P1/2018, Sale Deed Stamp Duty Appeal, 2023
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings D.Dis.No. 5708/P1/2018 dated 8 September 2023, dismissing an appeal by Bhaktavatsalam Educational Trust concerning the stamp duty on sale deed document number 2685/2015 registered at Joint 1 Sub Registrar, Chengleput. The proceedings uphold the District Registrar, Chengleput's decision that the charitable or religious purpose concession under G.O.Ms.No.1224, Revenue, dated 25 April 1966, read with G.O.Ms.No.224, Commercial Taxes Department, dated 11 December 2003, applies to gift or settlement deeds, not sale deeds.
What the proceedings decide
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No. 5708/P1/2018 dated 8 September 2023. The authority dismissed the appeal filed by Bhaktavatsalam Educational Trust and upheld the District Registrar, Chengleput's demand for deficit stamp duty of Rs.6,99,000 on sale deed document number 2685/2015.
The authority found that the stamp duty concession relied on by the trust applies only to instruments of gift or settlement for charitable or religious purposes. It does not apply to a sale deed.
Property and transaction covered
Sale deed document number 2685/2015 was registered at Joint 1 Sub Registrar, Chengleput, and was executed on 9 September 2015. The transaction involved:
- Land measuring 5,202 square feet and an existing building measuring 396 square feet.
- A sale by Mr. Thiyagarajan, represented by his power agent Mr. N. Raghunthan, to Bhaktavatsalam Educational Trust, represented by its President, Mr. Vamanan.
- A declared property market value of Rs.2,00,00,000.
- Stamp duty of Rs.7,01,000 borne by the document.
- A deficit stamp duty determination of Rs.6,99,000 by the District Registrar, Chengleput.
Why the appeal failed
Bhaktavatsalam Educational Trust argued that it was a registered public charitable and educational trust, had registration under section 12AA of the Income Tax Act, and should receive concessional stamp duty. It also relied on concessions allegedly given in similar cases and a Madras High Court judgment concerning a gift deed.
The Chief Controlling Revenue Authority and Inspector General of Registration concluded that:
- G.O.Ms.No.1224, Revenue, dated 25 April 1966, read with G.O.Ms.No.224, Commercial Taxes Department, dated 11 December 2003, provides reduced duty only for gift or settlement instruments.
- The document must first be a gift deed or settlement deed before charitable purpose and approval under section 80G of the Income Tax Act become relevant.
- Registration or exemption under the Income Tax Act does not bring a sale deed within the concession.
- The Madras High Court judgment relied on by the trust concerned a gift deed and did not apply to this sale deed.
Who may be affected
Charitable or educational trusts purchasing property through a sale deed should not assume that their charitable status alone qualifies the transaction for the concession considered in these proceedings. The decision directly concerns document number 2685/2015 and confirms the deficit duty demand in that case.
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
Can a charitable trust claim this stamp duty concession when buying property through a sale deed?
No. The Chief Controlling Revenue Authority and Inspector General of Registration found that the concession applies only to gift or settlement deeds, not sale deeds.
How much deficit stamp duty was upheld for document number 2685/2015?
The deficit stamp duty upheld was Rs.6,99,000.
Does registration under the Income Tax Act make a sale deed eligible for the concession?
No. The authority found that Income Tax Act status made no difference because the document was a sale deed rather than a gift or settlement deed.
What happened to Bhaktavatsalam Educational Trust's appeal?
The appeal was dismissed, and the District Registrar, Chengleput's order was upheld.
