G.O. (Ms.) No.60, Upper cap on Stamp Duty and Registration Fee in respect of Mortgage Deeds, 2020
The Government of Tamil Nadu, Commercial Taxes and Registration (J1) Department, issued Government Order (Ms.) Number 60 dated 16 March 2020, increasing the maximum stamp duty and registration fee for mortgage deeds executed to secure the full amount of debentures to Rs.10 lakh and Rs.1 lakh respectively. The Government Order amends earlier notifications and took effect upon publication in the Tamil Nadu Government Gazette on 17 March 2020.
What the Government Order changes
Government Order (Ms.) Number 60 dated 16 March 2020 changes the upper limits on stamp duty and registration fees for a specific category of mortgage deed. It applies to mortgage deeds without possession that are executed to secure debentures.
The earlier upper ceilings for mortgage deeds without possession were:
- Maximum stamp duty of Rs.40,000.
- Maximum registration fee of Rs.10,000.
For mortgage deeds executed to secure the full amount of debentures, the revised ceilings are:
- Maximum stamp duty of Rs.10 lakh.
- Maximum registration fee of Rs.1 lakh.
These figures are maximum limits. The Registration Department instructed its offices to collect stamp duty and registration fees according to the applicable category of document.
Why the limits were revised
The Commercial Taxes and Registration (J1) Department recorded that corporate borrowers were executing simple mortgage deeds and paying stamp duty under the earlier ceiling. The Inspector General of Registration proposed higher ceilings to limit this concession in commercial transactions and increase government revenue.
The Government of Tamil Nadu accepted the proposal and directed that the revised limits apply to mortgage deeds securing the full amount of debentures.
Who is affected
Government Order (Ms.) Number 60 principally affects:
- Corporate borrowers executing mortgage deeds to secure debentures.
- Lenders and other parties involved in debenture secured borrowing.
- Professionals preparing or presenting these mortgage deeds for registration.
- District Registrars, Sub Registrars and other Registration Department officials responsible for collecting duty and fees.
The source does not apply the revised ceilings to every property mortgage. Its specific wording concerns mortgage deeds without possession that are executed for securing debentures.
Legal and administrative effect
The notifications appended to Government Order (Ms.) Number 60 amend earlier Commercial Taxes Department notifications governing the maximum duty and fee for mortgage deeds without possession. One notification sets the maximum stamp duty for qualifying debenture mortgage deeds at Rs.10 lakh. The other sets the maximum registration fee at Rs.1 lakh.
The Registration Department circular dated 17 March 2020 sent the Government Order to registration officials for information and compliance. It states that the change took effect from its publication in the Tamil Nadu Government Gazette on 17 March 2020.
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 ceiling apply to every mortgage deed?
No. The revised ceiling stated in Government Order (Ms.) Number 60 applies specifically to mortgage deeds without possession executed to secure debentures.
What is the maximum registration fee for a qualifying debenture mortgage deed?
The maximum registration fee is Rs.1 lakh for a mortgage deed without possession executed to secure debentures.
When did the revised ceilings take effect?
The Registration Department communication states that the Government Order took effect upon publication in the Tamil Nadu Government Gazette on 17 March 2020.
Are Rs.10 lakh and Rs.1 lakh fixed charges for every qualifying deed?
They are stated as maximum ceilings for stamp duty and registration fees. Registration officials were instructed to collect the applicable amounts according to the category of document.
