Stamp Duty in Tamil Nadu: Rates, Calculation, and Payment Guide

When buying a property, one of the key costs that you need to factor in is stamp duty. In Tamil Nadu, stamp duty is a mandatory tax levied by the state government on property transactions. Understanding how stamp duty in Tamil Nadu works will help you better plan your property purchase and avoid unexpected costs. This guide will walk you through the rates, calculation methods, and payment procedures associated with stamp duty in Tamil Nadu.

What is stamp duty?

Stamp duty is a tax imposed by the government on legal documents, particularly those related to property transactions. The stamp duty paid serves as legal proof of property ownership and ensures that the document is admissible as evidence in court. In Tamil Nadu, stamp duty is applicable on various documents such as sale deeds, loan agreements, gift deeds, and rental agreements.

Importance of stamp duty in Tamil Nadu

Stamp duty is a crucial aspect of property transactions in Tamil Nadu, as it legally validates the transfer of ownership. When you pay the stamp duty, it ensures that the document is admissible in court as evidence, making your property purchase secure and legally binding. It also serves as a significant revenue source for the state government. Understanding the rates and knowing the e-stamp process in Tamil Nadu is essential for buyers, as it directly impacts the total cost of purchasing a property.

Current stamp duty rates in Tamil Nadu

Stamp duty rates in Tamil Nadu differ based on the type of property being transacted. Below is a breakdown of the stamp duty rates for residential, commercial, and agricultural properties.

Residential property stamp duty rates

Transaction type	Stamp duty rate	Registration fee
Sale deed	7%	1%
Gift deed	7%	1%
Exchange of property	7%	1%
Mortgage without possession	1%	0.50%

Commercial property stamp duty rates

Transaction type	Stamp duty rate	Registration fee
Sale deed	7%	1%
Lease deed (below 30 years)	1%	1%
Lease deed (above 30 years)	7%	1%
Mortgage without possession	1%	0.50%

Agricultural land stamp duty rates

Transaction type	Stamp duty rate	Registration fee
Sale deed	7%	1%
Gift deed	7%	1%
Partition deed	1%	1%
Release deed	1%	1%

How to calculate stamp duty in Tamil Nadu

Calculating stamp duty in Tamil Nadu involves considering the market value of the property or the transaction amount, whichever is higher. For instance, if you are purchasing a property valued at Rs. 50 lakh, the stamp duty would be:

• Stamp duty: 7% of Rs. 50 lakh = Rs. 3.5 lakh

• Registration charges: 1% of Rs. 50 lakh = Rs. 50,000

• Total charges: Rs. 4 lakh

It is essential to get an accurate property valuation to ensure that you are paying the correct stamp duty. Over- or under-valuation can lead to penalties or legal complications.

You can also use an online stamp duty and registration calculator to quickly and accurately determine the stamp duty payable based on the property’s market value and applicable rates, helping you budget effectively and avoid underestimating your costs.

Factors affecting stamp duty in Tamil Nadu

The amount of stamp duty in Tamil Nadu can vary based on several factors:

1. Property location: Stamp duty rates can differ depending on whether the property is in an urban or rural area.

2. Type of property: Residential and commercial properties may attract different stamp duty rates.

3. Purpose of transaction: Whether the property is being bought, sold, gifted, or mortgaged can impact the applicable rates.

4. Property’s market value: The higher the market value, the higher the stamp duty payable.

Payment methods of stamp duty in Tamil Nadu

Paying stamp duty in Tamil Nadu can be done through various methods:

1. e-Stamping: This is the most convenient method where you can pay online through authorized portals like Stock Holding Corporation of India Limited (SHCIL). Once payment is made, you receive an e-stamp certificate, which serves as proof of payment.

2. Non-judicial stamp paper: You can purchase non-judicial stamp papers from authorized vendors. These are then used to prepare the property documents.

3. Franking: Some banks offer franking services where they imprint a stamp on the document, indicating that stamp duty has been paid.

4. Sub-registrar’s office: You can pay directly at the Sub-Registrar’s office during the property registration process.

Additional Read: Encumbrance certificate Tamil Nadu

Explore Bajaj Housing Finance Home Loan

If you are planning to purchase a property in Tamil Nadu and need a home loan, Bajaj Housing Finance offers a range of tailored home loan solutions to meet your needs. With competitive interest rates, long repayment tenure, and quick disbursal, Bajaj Housing Finance can help you navigate the complexities of property transactions with ease.

Here are a few reasons why you should choose Bajaj Housing Finance Home Loan:

1. Competitive interest rates: Bajaj Housing Finance offers some of the most competitive home loan interest rates in the market, ensuring that your home loan remains affordable throughout its tenure.

2. Flexible repayment options: With flexible repayment options, borrowers can choose a plan that best fits their financial situation, making it easier to manage monthly payments.

3. Quick and easy processing: The application process for a Bajaj Housing Finance Home Loan is streamlined and user-friendly, ensuring quick approval and disbursement.

Explore Bajaj Housing Finance Home Loan today and experience a seamless way to finance your dream home.