Stamp Duty and Registration Charges in Chennai

Stamp Duty and Land Registration Charges in Chennai

✓ Home Loan from ₹2 Lakhs To ₹15 Cr ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.50%

Every property, be it land or building, that you buy in Chennai has to be registered at the respective sub-registrar’s office. Without proper registration, the purchase and transfer of ownership would not be complete. 

 

That said, to register a property in your name, you would have to pay stamp duty and registration charges. These charges vary depending on the state and are levied as a percentage of the market value of the property in question. 

 

Stamp duty and registration charges in Chennai come into play not only when you buy a property, but also in certain other situations. They are payable in the case of gift, exchange, mortgage, partition or settlement of a property as well. 

 

The state of Tamil Nadu has clearly laid out the stamp duty and property registration charges in Chennai that you would have to pay. Find out what they are in the next section. 

Land Registration Fees in Chennai

The registration charges and stamp duty in Chennai tends to vary depending on the kind of transaction that takes place. For instance, sale transactions carry the highest amount of fees, whereas partitions and settlements in favour of family members carry the least amount of fees. The table below has been designed to give you an idea of the charges prevalent in 2022. 

Document Classification

Stamp Duty

Registration Fee

Conveyance (Sale)

7% of the property’s market value 

4% of the property’s market value

Gift

7% of the property’s market value

4% of the property’s market value 

Exchange

7% of the market value of the property with the greater value

4% of the market value of the property with the greater value

Simple mortgage

1% of the amount of loan (up to a maximum of ₹40,000)

1% of the amount of loan (up to a maximum of ₹10,000)

Mortgage with possession

4% of the amount of loan

1% of the amount of loan (up to a maximum of ₹2,00,000)

Sale agreement

₹20

  • 1% of the advance money paid
  • If possession is given, 1% of  the total consideration 

Building construction agreement

1% of the proposed cost of construction, consideration mentioned in the agreement or the value of construction, whichever is higher

1% of the proposed cost of construction, consideration mentioned in the agreement or the value of construction, whichever is higher

Cancellation

₹50

₹50

Partition

Partition among family members

1% of the property’s market value (up to a maximum of ₹25,000 for each share)

1% of the market value of the property (up to a maximum of ₹4,000 for each share)

Partition among non-family members

4% of the property’s market value for separated shares

1% of the property’s market value for separated shares

Power of Attorney

General Power of Attorney to sell an immovable property 

₹100

₹10,000

General Power of Attorney to sell an immovable property (if provided to a family member)

₹100

₹1,000

General Power of Attorney to sell a movable property and for other purposes

₹100

₹50

General Power of Attorney given for consideration

4% of the consideration 

1% of the consideration (up to a maximum of ₹10,000)

Settlement 

In favour of family members

1% of the property’s market value (up to a maximum of ₹25,000)

1% of the property’s market value (up to a maximum of ₹4,000)

In other cases

7% of the property’s market value 

4% of the property’s market value 

Source: Registration Department, TN

Property Registration Charges in Chennai

Fortunately, the registration charges in Chennai are the same for both rural and urban areas. Similarly, the plot registration charges in Chennai are the same for men and women. The registration charges in Chennai for a resale flat is 4% of market value of the property. 

 

It is advisable to conduct a thorough inspection of the property before entering into a property sale agreement. This will ensure that you make an informed purchase decision. That said, here’s something that you should keep in mind. In the city of Chennai, a property must be registered within four months of the execution of the sale agreement. And the registration should be done at the registrar or sub-registrar’s office in charge of the jurisdiction where the property is located.

 

Here’s an example to help you understand how stamp duty and registration charges for land in Chennai work. Let’s say that you wish to buy a piece of land in the city whose market value is currently ₹30 Lakhs. According to the table mentioned above, you have to pay the following charges to register the land documents in your name.

Property registration charges in Chennai

4% of the property’s market value

₹1,20,000 

(₹30,00,000 * 4%) 

Stamp duty in Chennai

7% of the property’s market value

₹2,10,000

(₹30,00,000 * 7%) 

Effective cost of the property

Property value + registration charges + stamp duty

₹33,30,000

(₹30,00,000 + ₹1,20,000 + ₹2,10,000)

Stamp Duty Charges in Top Cities of Tamil Nadu

The stamp duty charges proposed by the state of Tamil Nadu are applicable to all its cities. Here is a preview of the stamp duty charges in the top cities of Tamil Nadu in the case of sale or resale of a property. 

City

Stamp Duty 

Chennai

7% of the property’s market value

Coimbatore

7% of the property’s market value

Madurai

7% of the property’s market value

Salem

7% of the property’s market value

Tiruchirapalli

7% of the property’s market value

Procedure for Property Registration in Chennai

When it comes to property registration in Chennai, it is important for you to know what the procedure is. This will help you speed up the process and prevent unnecessary rejections. Let’s take a look at the process that you would have to follow to get a property like a flat, oor instance, registered in Chennai. 

 

  • Step 1: Prepare an agreement of sale between you, the buyer, and the seller, clearly mentioning all of the details of the property. Make sure to prepare the agreement on a stamp paper of appropriate value. 

  • Step 2: Make the payment of stamp duty and registration charges online and take a print out of the acknowledgement that you receive. In this case, since it is an apartment, the flat registration charges in Chennai would come up to 4% of its market value. The stamp duty for the same would be 7% of its market value. 

  • Step 3: Attach this payment receipt and other relevant documents to the agreement of sale. 

  • Step 4: Book an appointment with the concerned registrar’s office. 

  • Step 5: Complete the property registration by visiting the registrar’s office on the day of the appointment along with the seller.

Documents Required for Land Registration in Chennai 

Take a look at the primary property documents and instruments required for land registration in Chennai, and the stamp duty charges applicable on them. 

 

  • Proof of identity of all the parties involved: PAN, Aadhaar, Driving Licence, Voter’s ID, or Passport

  • Proof of address of all the parties involved: Aadhaar, Driving Licence Voter’s ID, Passport, Ration Card, or the latest utility bills 

  • Receipt acknowledging the payment of stamp duty and property registration charges in Chennai 

  • Two passport size photographs of all the parties involved 

  • Sale deed, settlement deed, partition deed, release deed or any other relevant property document 

  • Original property title deed 

  • Latest encumbrance certificate

  • Patta document

  • If applicable, a No Objection Certificate (NOC) on a stamp paper of appropriate value 

  • Property tax card, electricity card and water tax card, along with the latest receipts

Stamp Duty Document Charges in Chennai

Document Classification

Stamp Duty

Partnership deed where the capital does not exceed ₹500

₹50

Partnership deed (other cases)

₹300

Memorandum of Deposit of Title Deeds

0.5% on loan amount, subject to a maximum of ₹30,000

Release among family members (coparceners)

1% on the market value under ₹25,000

Release among non-family members (co-owner and benami release)

7% on the market value 

Lease below 30 years

1% on the total amount of rent, premium, fine, etc.

Lease up to 99 years

4% on the total amount of rent, premium, fine, etc.

Lease above 99 years or perpetual leave

7% on the total amount of rent, fine, premium of advance, if any, payable

Declaration of trust (if property is there, it would be considered as a sale)

₹180

Source: Registration Department, TN

How to Calculate Stamp Duty Value of Property in Chennai

Several factors determine the stamp duty you have to pay for the property. It includes:

 

  • Location of the property

  • Market value of the property

  • Usage of the property, whether it is used for residential or commercial purposes

  • Type of property and the number of floors

  • Age and gender of the property owner

To make your job easier, you can simply use a free online calculator to determine the amount you have to pay as a stamp duty in Chennai. All you have to do is enter the property details like the state in which it is located and the value of the property.

How to Pay Stamp Duty and Registration Charges Online

The stamp duty and registration charges in Chennai can be paid to the sub-registrar at the registrar’s office of the jurisdiction where the property was bought. Alternatively, the stamp duty and registration charges in Chennai can be paid online as well.

 

  • E-Stamping: You can go to the official website of Stock Holding Corporation of India Limited  (SHCIL) and pay the stamp duty and registration charges through e-stamping. Make sure to follow the instructions given in the website to obtain an e-stamp. 

  • ePayment System: On the other hand, you can also use the ePayment system provided by the government of Tamil Nadu. In this case, you can make the payment via one of the two following methods. 

  • Through internet banking

  • By downloading an offline challan from the Registration Department’s website and making payment in the partner bank branches

  • Physical Stamp Paper: Alternatively, you can also pay the stamp duty and registration charges in Chennai in cash by physically visiting the sub registrar’s office and paying the required fee.

Registration of Settlement Deed in Tamil Nadu 

A settlement deed is a legal document that’s executed between two or more family members with a view to amicably distribute assets between them. For instance, a father could equally distribute the assets held by him to his only two children by executing a settlement deed. 

 

In the case of a settlement deed involving an immovable property, it is mandatory to register the document at the concerned registrar’s office. Without registration of the same, the document would be invalid. Here’s what you would have to do to register a settlement deed in the state of Tamil Nadu. 

 

  • Step 1: Execute a settlement deed, clearly specifying the details of the property being settled, on a stamp paper of appropriate value. 

  • Step 2: Pay the stamp duty and registration charges online. For instance, if the settlement deed is for a plot in Chennai, you would have to pay 1% of the property’s market value (up to a maximum of ₹25,000) as stamp duty. And 1% of the property’s market value (up to a maximum of ₹4,000) as plot registration charges in Chennai. 

  • Step 3: Print the receipt that you get after making the payment of the stamp duty and registration charges.

  • Step 4: Attach the receipt along with other documents to the settlement deed.   

  • Step 5: Book an appointment with the concerned registrar’s office online. 

  • Step 6: Visit the registrar’s office on the appointment day and complete the registration formalities.

How do I Get a Refund on Stamp Duty in Chennai

In case of any excess stamp duty payment, cancellation of a document or agreement, etc., you can claim a refund of your fee within 6 months. The amount will be refunded after a deduction of 10% from the total stamp duty paid. Follow the steps mentioned below to claim a refund of your stamp duty and registration charges.

 

  • Step 1: On the official portal of stamp duty charges, tap on the ‘Application for Refund of payment’ option.

  • Step 2: Fill in the information like number, year, GRN (Government reference number), and payment details. 

  • Step 3: In case there is any refund applicable to the entered query number, the amount will be directly credited to the bank account which was mentioned while the payment of the stamp duty and registration charges in Chennai.

How to Check Market Value of Properties in Chennai

To find the guideline value or market value for a property, here is what you need to do.

 

  • Step 1: Visit the Tamil Nadu Registration Department’s website.

  • Step 2: On the left side of the window, select the zone for which the guideline value is required.

  • Step 3: Select search by street name on the right-side pane. 

  • Step 4: Enter the name of the street or part of the street’s name.

  • Step 5: Now, click search to find the guideline value of a property, which will be displayed on the next screen. 

  • Step 6: The search query provides details of the guideline value, including street’s name, village’s name, sub-registrar’s office, guideline value, and property classification.

Properties Exempted from Stamp Duty in Chennai

All the transactions regarding the transfer of ownership are levied with stamp duty and registration charges in Chennai. The first sale of newly constructed residential apartments has been exempted from the payment of stamp duty and registration charges in Chennai. This is applicable to the whole state of Tamil Nadu, but the benefit will be limited to the first instance of sale only.

Tax Benefits Available for Paying Stamp Duty Charges in Tamil Nadu

According to section 80C of the Income Tax Act, 1961, you can claim stamp duty and registration charges as deductions from your total taxable income. The maximum amount that you can claim, however, is restricted to ₹1,50,000. Also, these charges need to be claimed for the financial year during which you paid them and cannot be carried forward to another financial year. 

Stamp Duty in Chennai: Grievance Redressal

All the grievances related to stamp duty and registration charges in Chennai will be addressed if relevant issues are raised through the official website of Tamil Nadu registration department. Log in to your account and file an online petition regarding your issue on the Chief Minister's Special Cell.  You can always track the status of your grievances here. 

 

Disclaimer: The information provided here is for informational purposes only. Please visit the official website and do your research before you avail of any services.

Conclusion

Failure to pay stamp duty or other relevant charges at the time of registration of newly bought property can make you liable to pay hefty penalties. In some cases, a lawsuit may be filed against you as well. Hence, it is important for you to make appropriate arrangements for the same when the time arrives. Especially since these charges could easily go up to a few lakhs, or crores, of rupees, depending on your property value. 

 

However, these costs can be easily taken care of with the help of a home loan. At Bajaj Markets, you can get a house loan at low interest rates and with repayment tenures of up to 30 years, provided you meet the basic home loan eligibility criteria and have all the home loan documents at your disposal.

Other Cities Stamp Duty and Property Registration Charges

Stamp Duty in Chennai FAQs

  • ✔️What is the current stamp duty in Chennai?

    The current stamp duty rate in Chennai is 7 percent of the market value of the property.

  • ✔️What is the stamp duty for gift deeds in Chennai?

    The stamp duty for gift deeds in Chennai is 7 percent of the market value of the property.

  • ✔️How do I calculate the registration charges in Chennai?

    Stamp duty is calculated based on the market value or the consideration value of the property, whichever is higher.

  • ✔️How can I check ownership of land in Chennai?

    You can check the ownership of land in Chennai via this link:

    https://eservices.tn.gov.in/eservicesnew/land/poramboke.html?lan=en

  • ✔️What factors can affect stamp duty in Tamil Nadu?

    There are many factors that influence the value of stamp duty to be paid for a property in Tamil Nadu. Some of them include the value of the property, the type of property and the usage of the property.

  • ✔️What are the stamp duty and registration charges for women in Chennai?

    The stamp duty and registration charges are the same for both men and women in Chennai. In the case of a sale, the stamp duty would be 7 percent of the market value of the property. The registration charges would amount to 4 percent of the market value of the property.