Letter No. 28442/C1/2018, Amended Stamp Duty Rates
The Tamil Nadu Registration Department, through the Inspector General of Registration, issued Letter No. 28442/C1/2018 dated 8 May 2024 to communicate stamp duty rates amended by Tamil Nadu Act 13 of 2024 and applicable across Tamil Nadu from 3 May 2024. It directs public authorities, banks and registration offices to verify that instruments filed with them or used for official work carry the required stamp duty.
What the letter governs
The Tamil Nadu Registration Department's Letter No. 28442/C1/2018 dated 8 May 2024 explains the stamp duty changes made to the Indian Stamp Act, 1899 by Tamil Nadu Act 13 of 2024. The amendment received the assent of the President of India and was notified on 3 May 2024, from which date the revised rates apply in Tamil Nadu.
The letter was circulated to banks, public authorities, registration officials, planning bodies and other government organisations. They are instructed to check the stamp duty on instruments submitted for filing or used in carrying out official work.
Key changes affecting property and related documents
The amended stamp duty structure includes the following changes:
- A power of attorney to sell immovable property for consideration changes from 4 percent on the consideration to 5 percent on the market value.
- A power of attorney to sell immovable property in favour of a family member carries duty of 2,000.
- A power of attorney to sell immovable property in favour of a person who is not a family member carries duty of 1 percent on the property's market value.
- A general power of attorney other than one for selling property carries duty of 1,000.
- A special power of attorney carries duty of 500.
- For a non-family partition, duty remains 4 percent, but it is calculated on the market value of the separated shares.
- Lease duty includes the security deposit, whether repayable or not, in addition to the existing rent, fine, premium or advance.
- Reconveyance of mortgaged property, revocation of settlement and surrender of lease each carry duty of 1,000.
- Cancellation instruments increase from 50 to 1,000, while indemnity bonds and security bonds increase from 80 to 500.
- Agreements within the listed general category increase from 20 to 200. The category excludes examples such as construction agreements, purchase of shares and government securities.
Documents that are not compulsorily registrable
The Inspector General of Registration states that some listed instruments are not compulsorily registrable under the Registration Act, 1908. However, they must still be written on sufficient stamp paper or bear the required stamp duty.
An instrument that is not duly stamped cannot be admitted in evidence, acted upon, registered or authenticated in the circumstances described in the letter.
Payment methods
The Registration Department identifies three ways to pay stamp duty:
- Purchase non-judicial stamp paper from a treasury or stamp vendor.
- Purchase non-judicial e-stamp paper from Stock Holding Corporation of India.
- Pay through a District Registrar and obtain the relevant certificate under the Indian Stamp Act, 1899.
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
From what date do the amended stamp duty rates apply?
The amended rates apply in Tamil Nadu from 3 May 2024, the date on which Tamil Nadu Act 13 of 2024 was notified.
What is the stamp duty for a power of attorney to sell property to a non-family member?
The duty is 1 percent of the market value of the property.
Does a document need stamp duty if registration is not compulsory?
Yes. The letter states that instruments which are not compulsorily registrable must still be written on sufficient stamp paper or bear the required stamp duty.
Is a refundable security deposit included when calculating stamp duty on a lease?
Yes. The revised lease provision includes the security deposit, whether repayable or not, along with rent, fine, premium or advance.
