What is the stamp duty rates in Chennai?

Chennai, the capital of Tamil Nadu, boasts the second-largest IT hub in the country, leading to a surge in interest among individuals looking to invest in properties in the region. To facilitate a successful property registration in Chennai, prospective buyers are required to pay the applicable stamp duty and registration charges.

The charges for stamp duty and registration in Chennai are determined based on various factors, including the property's agreement value and ownership status. These payments are compulsory as they serve as legal evidence of property transactions, be it sales or purchases.

The stamp duty and registration charges in Chennai are as follows

Documents Stamp duty Registration fees
Sale 7.00% 4.00%
Exchange 7.00% 4.00%
Simple mortgage 1% on the loan amount with a maximum limit of Rs. 40,000, 1% on the loan amount with a maximum limit of Rs. 10,000
Mortgage with possession 4.00% 1% on the loan amount with a maximum limit of Rs. 2,00,000
Sale agreement Rs. 20  1% on the advance money paid

Knowing these charges is also essential when applying for a home loan. Pay stamp duty and registration fees in Chennai both online and offline. Visit SHCIL official website to know the collection centers. Fill up the form and submit it at ACC (Authorised Collection Centre).

Or opt for the e-stamping system, RTGS, NEFT, etc., for online stamp duty payment in Chennai. Simplify the calculation process with our online stamp duty calculator.

Procedure for property registration in Chennai

Follow the below steps for property registration in Chennai:

  • Visit shcilestamp website (https://www.shcilestamp.com/)
  • Select Tamil Nadu from the dropdown menu of states list
  • Update your details in the stamp duty application form and download it
  • Check your Authorised Collection Centre (ACC) on the tnreginet portal (https://tnreginet.gov.in/portal/)
  • Pay the stamp duty and get the e-stamp certificate
  • Save and file the receipt

You can also visit the sub-registrar’s office and fill the application form, pay the stamp duty via cash, demand draft, NEFT, or RTGS, and get the stamp duty certificate.

How to calculate stamp duty value of property in Chennai

Calculating the stamp duty value of a property in Chennai involves determining the fair market value of the property as per the Stamp Duty Ready Reckoner or Circle Rates set by the respective state government. The stamp duty value is used to calculate the stamp duty and registration charges payable during property transactions.

Follow the below steps to calculate the stamp duty of a property in Chennai:

  1. Check the Ready Reckoner or Circle Rates, which provide minimum valuations for properties
  2. Visit the Sub-Registrar's Office or the official Tamil Nadu government website for guideline values
  3. Identify the specific locality or area where the property is situated
  4. Refer to the guideline value for the locality and property type
  5. Calculate the stamp duty by applying the stamp duty rate (percentage) to the guideline value
  6. Calculate registration charges by applying the registration charge rate (percentage) to the guideline value
  7. Add the stamp duty and registration charges to determine the total amount payable

How to pay stamp duty and registration charges online

  1. Calculate the stamp duty and registration charges based on the property's guideline value and applicable rates
  2. Visit the official website of the state government or the local Sub-Registrar's Office
  3. Look for the e-stamping or online stamp duty payment section
  4. Fill in property details and generate an online challan or choose online payment options
  5. Pay the stamp duty online using internet banking, credit card, or debit card
  6. Save or print the online receipt for stamp duty payment
  7. Navigate to the section for registration charges on the online portal
  8. Provide property details, calculate registration charges, and make the online payment
  9. Save or print the online receipt for registration charges
  10. Submit the necessary documents, including online payment receipts, to the Sub-Registrar's Office for verification

How do I get a refund on stamp duty in Chennai

To get a refund on stamp duty in Chennai, you can follow the below steps:

  1. Identify valid grounds for a refund, such as the cancellation of a property deal or payment errors
  2. Submit a refund application to the Sub-Registrar's Office where the property was registered
  3. Include details like the reason for the refund, proof of payment, and supporting documents in the application
  4. Adhere to the specified time limit for submitting the refund application
  5. The Sub-Registrar's Office will conduct a verification process to assess the validity of the refund request
  6. If approved, a refund order will be issued
  7. The refund amount will be processed and credited to the specified account
  8. Stay in contact with the authorities and follow up on the status of the refund application

Properties exempted from stamp duty in Chennai

Some potential scenarios for exemptions or reduced rates include transactions involving agricultural land, transfers within family, gift transactions, properties used for charitable purposes, government transactions, and certain specified instruments like those related to affordable housing. However, the specific conditions and eligibility criteria are subject to change.

Tax benefits available for paying stamp duty charges in Tamil Nadu

Stamp duty is a state subject, and the regulations regarding stamp duty are determined by the respective state government. In the context of Tamil Nadu, the state government sets the stamp duty rates and rules.
However, it's important to note that while there may not be direct tax benefits associated with stamp duty payments, there are other tax-related considerations in property transactions. For example:

1. Income tax deduction on home loan interest

  • Tax benefits are available on the interest paid on home loans under Section 24(b) of the Income Tax Act. This deduction is applicable on the interest portion of the EMI (Equated Monthly Instalment) paid on the home loan.

2. Income tax deduction on principal repayment

  • Deductions are available on the principal repayment of a home loan under Section 80C of the Income Tax Act. This includes payments towards the principal amount of the loan.

3. First-time homebuyer benefits

  • First-time homebuyers may be eligible for additional benefits under Section 80EEA, which provides an additional deduction on interest for home loans sanctioned in certain specified cases.

While these tax benefits are not directly related to stamp duty charges, they are relevant to the overall financial aspects of a property transaction.

Stamp duty in Chennai: Grievance redressal

If you have grievances related to stamp duty in Chennai, it's important to follow the appropriate grievance redressal procedures outlined by the authorities. Here are general steps you can take:

1. Contact the Sub-registrar's office

  • Reach out to the Sub-registrar's office where the property transaction was registered. This office is responsible for stamp duty and registration-related matters.

2. Submit a written complaint

  • Prepare a written complaint detailing the nature of your grievance. Include relevant details such as the property information, transaction details, and the specific issues you are facing.

3. Include supporting documents

  • Attach any supporting documents that substantiate your grievance. This could include copies of the property documents, payment receipts, or any other relevant paperwork.

4. Meet with officials

  • If necessary, schedule a meeting with the officials at the Sub-registrar's office to discuss your grievance in person. This can provide an opportunity for clarification and resolution.

5. Follow up

  • Stay proactive in following up on your complaint. Check the status regularly and request updates from the concerned authorities.

6. Use grievance portals

  • Some states or municipalities provide online grievance redressal portals. Check if there is an online platform where you can submit and track your complaint.

7. Contact higher authorities

  • If your grievance is not resolved at the Sub-registrar's office, you may consider escalating the matter to higher authorities within the Revenue Department or the concerned government department.

8. Seek legal advice

  • If your grievance persists, consider seeking legal advice. Consult with a legal professional who specializes in property transactions and stamp duty matters.

9. Consumer forums

  • In certain cases, where applicable, you may explore the option of approaching consumer forums or ombudsman offices for dispute resolution.

10. RTI application

  • As a last resort, you can file a Right to Information (RTI) application seeking information on the status and resolution of your grievance.

Remember that specific procedures and channels for grievance redressal may vary, and it's advisable to check the official guidelines of the Tamil Nadu government or the Sub-Registrar's Office in Chennai for the most accurate and updated information.