loader
Post Property

What are the stamp duties and registration charges in Chennai?

What are the stamp duties and  registration charges in Chennai?

 

If you are thinking of buying a home or property in Chennai, paying the stamp duty and registration fee to the government is an integral part of the process. Unless the stamp duty and registration fee are paid, the property registration will be null and void. Team HonestBroker throws light upon the stamp duty and registration charges for the flats for sale in Chennai.

Stamp duty is a state levy tax and is applicable on the registration for flats for sale in Chennai on the transfer of property. Typically, this is a fixed amount and varies according to the market rate or agreed value of the property and ownership status. Stamp duty rates and registration charges differ from state to state. Once the stamp duty is paid, the transaction needs to be registered with the Sub-Registrar's office.

 

Stamp duty charges in Chennai:-

The registration fee is collected when the buyer transfers/purchases the property and goes to register the property in their name. Tamil Nadu collects one of the highest stamp duty and registration charges among Indian states, i.e. 7% and 1%, respectively.

How to calculate stamp duty & registration charges:- 

For example, a property worth Rs 1 crore will attract a stamp duty rate of Rs 7 lakh, followed by Rs 1 lakh as a registration fee.

Stamp duty= 10000000 * 7% = 700000 rs

Registration charge= 10000000 * 1% = 100000 rs

Now, the total cost of the property = 800000 rs

NOTE:- For more and latest updates, you can visit the official government website

 

Registration Fee for Resale Property:-

The registration fee for a resale property is 1% of the market value or the contract value of the property. The stamp duty levied on it is 7%.

 

Record-high registrations in October 2020:-

In October 2020, the registration department witnessed an all-time high registration of 20,307 documents at sub-registrar offices. 123.35 crores per day from the sale of stamp duty and registration fees. Estimated October stamp duty collection was Rs 1,096 crore, which is encouraging for real estate.

 

Will Tamil Nadu reduce stamp duty?

Industry body the “Confederation of Real Estate Developers Association of India (CREDAI)” has said that it has discussed the possibility of a reduction in stamp duty at a high-level meeting chaired by the state Deputy Chief Minister. The state and its economy, which was hit hard after the 2015 floods that devastated the livelihoods of many, suffered another setback in 2020 following the COVID-19 pandemic. Hence, the industry body feels that to relieve potential home buyers, the authorities should act soon.

From 11% {stamp duty and registration fee}, we have requested a permanent reduction of 5% stamp duty and 1% registration fee, and as a short-term measure, we have reduced the stamp duty to 4% and 1%. Has asked to pay the registration fee by March 31, 2021," said CREDAI President.

 

What are the documents required to pay stamp duty in Chennai?

  To successfully register the property with the Registrar, the following documents are required-

  1. Signed stamp duty/receipt stating that stamp duty has been duly paid
  2. pan card
  3. ID Proof:- Aadhar Card, PAN Card, Driving License, Voter ID, Passport, etc.
  4. two passport size photographs
  5. No Objection Certificate (NOC), if applicable.
  6. Tax Clearance Certificate/ No Dues Certificate, if applicable.
  7. Relevant property documents like sale deed/vehicle deed/power of attorney
  8. Pattadar Passbook

Though the process of paying stamp duty and registration fees in Chennai is relatively simple, you can take the help of a lawyer in case of any confusion regarding property registration.

 

HonestBroker