G.O. (Ms.) No.63, Stamp Duty and Registration Fee on Rental Agreements, 2020
The Commercial Taxes and Registration (J1) Department issued G.O. (Ms.) No.63 on 20 March 2020 to reduce stamp duty and registration fees for residential leases and rental agreements lasting up to five years. It also amends the Table of Fees for registration, and the reductions took effect upon publication in the Tamil Nadu Government Gazette on 21 March 2020.
What the government order changes
G.O. (Ms.) No.63, issued by the Commercial Taxes and Registration (J1) Department on 20 March 2020, implements an announcement in the Budget Speech for 2020 to 2021. The stated purpose is to encourage voluntary registration and help landlords and tenants receive the benefits of registration under the new Tenancy Act.
The appended notifications reduce the charges for specified residential lease documents and amend the existing Table of Fees used for registration.
Documents covered
The concessions under G.O. (Ms.) No.63 apply when all of the following conditions are met:
- The document is a lease, under lease, sub-lease, agreement to let or agreement to sub-let.
- The property is let for a residential purpose.
- The lease period is up to five years.
The notifications do not describe a reduced rate for leases exceeding five years or for non-residential purposes.
Stamp duty
For a qualifying residential lease or rental agreement, stamp duty is reduced to 25 paise for every Rs.100, or part of Rs.100, of the amount payable.
The amount used for this calculation includes:
- Total rent.
- Fine, if any.
- Premium, if any.
- Advance, if any.
The stamp duty notification does not state a maximum amount for the reduced duty.
Registration fee
For the same qualifying residential documents, the registration fee 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.
G.O. (Ms.) No.63 makes this change by inserting a proviso into the Table of Fees previously published for registration.
Commencement and administration
The Government directed that the notifications appended to G.O. (Ms.) No.63 be published in an extraordinary issue of the Tamil Nadu Government Gazette dated 21 March 2020. The Registration Department communication states that the government order takes effect from its Gazette publication on 21 March 2020 and instructs registration officers to collect stamp duty and registration fees according to the relevant document type.
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. The reduction in G.O. (Ms.) No.63 covers leases and agreements to let or sub-let for residential purposes where the lease period is up to five years.
What is the registration fee for a qualifying residential rental agreement?
It is 25 paise for every Rs.100, or part of Rs.100, of the total rent, fine, premium or advance payable, subject to a maximum of Rs.5,000.
Is the stamp duty also capped at Rs.5,000?
The notification states a maximum of Rs.5,000 only for the registration fee. It does not state a maximum for the reduced stamp duty.
When did the reduced charges take effect?
The Registration Department communication states that G.O. (Ms.) No.63 took effect from its publication in the Tamil Nadu Government Gazette on 21 March 2020.
