Tamil Nadu govt revises stamp duty by 10-33 times

CHENNAI: State Registration department has amended the Indian Stamp Act, 2023 and has increased the stamp duty manifold times for each category.

"The rate of stamp duty for most of the instruments have not been revised since 2001. The cost of printing of physical non-judicial stamp papers have increased manifold times since then. The government, therefore, decided to review the rate of stamp duty for some of the instruments by amending Schedule-I of the Indian Stamp Act, 1989, suitably. These amendments came into effect from May 3, 2024," a gazette notification issued by Tamil Nadu government read.

Based on the Bill tabled in the TNLA last year, the state government has increased the stamp duty for various instruments including affidavit, contract and general power of attorney manifold times.

Accordingly, the pre-adoption stamp duty of Rs 100 has been increased to Rs 1,000 and stamp duty for affidavits and agreements from Rs 20 to Rs 200.

The stamp duty for registration of association of a company has been increased from Rs 300 to Rs 500 for every Rs 10 lakh, cancellation of deed from Rs 50 to Rs 1,000, duplicate deed from Rs 20 to Rs 100 and photocopying from Rs 25 to Rs 500.

For the memorandum of association of the company, Rs 200 or Rs 500 has been fixed at Rs 200.

For non-family partition, 4 per cent per share has been revised to 4 per cent of the market value of each share.

Similarly, when partition is made to members of a family, if one of them is not alive, his/her legal heirs are treated as non-family earlier.

But, now, those legal heirs have also been brought as family members and the fee for shareholder registration has increased from Rs 300 to Rs 1,000.

Also, in respect of general power of attorney, the fee for special general power of attorney issued for purchase of one or more properties in one registration has been increased from Rs 5 to Rs 500.

Also, for 5 persons acting jointly or severally stamp duty has been fixed as Rs 1,000.

Stamp duty for sale of immovable property to a family member has been fixed at Rs 1,000 and for non-family at 1 per cent of the market value of the property.

Stamp duty for redemption of property mortgage is Rs 80 to Rs 1,000 and for surety bond Rs 80 to Rs 500.

Thus, the stamp duty for withdrawal of settlement is increased from Rs 80 to Rs 1,000 and the stamp duty for surrender of lease is increased from Rs 40 to Rs 1,000.

Further, the stamp duty on transfer of ownership from one trustee of a trust to another trustee or a beneficiary of the same trust is increased from Rs 30 to Rs 1,000.

Stamp duty for establishment of trust is increased from Rs 180 to Rs 1,000, for dissolution of a trust is hiked from Rs 120 to Rs 1,000.

Exuding displeasure, OK Selvaraj of OK Builders Private Limited told DT Next that the stamp duty hike of manifold times will affect the public in every way.

"The situation of paying manifold times when buying a property, selling it and renting it, will definitely affect people from all walks of life, " he opined.