Once acquired, registering the property is essential to establish legal ownership. Throughout the property purchase process, you would have come to realize the significance of various documents and paperwork. Among these, property registration and stamp duty play a crucial role as they provide proof for legitimate possession of the asset. While many are aware of this already, a few of us would want to know about the property registration charges in Chennai, which requires further detailed research to understand how they are calculated in Tamil Nadu. Let us present you with an in-depth view on property registration in Chennai.
Why Is Property Registration Important?
Registration of a property under the Registration Act of 1908 is mandatory in Chennai and all over India, and you must register if you buy a property within the city by paying stamp duty charges in Chennai within four months from the date of acquiring the asset.
Property registration and stamp duty are crucial for establishing legal ownership, safeguarding property rights, preventing fraud, and ensuring transparency in real estate transactions. It is essential to comply with these processes to secure your investment and enjoy a hassle-free property ownership experience.
How Is Stamp Duty Charges calculated in Chennai?
Stamp duty is a state-imposed fee on property registrations, typically calculated as a fixed amount based on either the property's market value or the agreed-upon transaction value. Stamp duty and Chennai land registration charges may change as per new amendments and laws though. Once the stamp duty is paid, the transaction must be registered at the Sub-registrar's office to ensure its legal validity.
How Much Are the Stamp Duty and Land Registration Charges in Chennai?
Registration charge is applied when the seller transfers the property to the buyer and approaches the sub-registrar to legalize the transaction. The stamp duty charges in Chennai amount to 7% of the property value, and property registration charge is calculated as 4%.
Registration vs. Stamp Duty Charges in Chennai: The Key Difference
Land registration charges are the fee collected for property registration involves the formal process of documenting the transfer of ownership from the seller to the buyer and creating an official record of the transaction with the government authority. Its primary objective is to validate and recognize the change of ownership, providing transparency and clarity in property rights. On the other hand, stamp duty is a tax levied by the government on specific legal documents, including property agreements, to make them legally valid.
Stamp Duty and Registration Charges in Chennai for Plots
Here's a table summarizing the stamp Duty and land registration charges in Chennai for different document types:
|Documents||Stamp Duty Charges||Land Registration Fees in Chennai|
|Conveyance (Sale)||7% on the market value||4% on the market value|
|Gift||7% on the market value||4% on the market value|
|Exchange||7% on the market value of the greater value||4% on the market value of the greater value property|
|Simple Mortgage||1% on the loan amount (max. Rs 40,000)||1% on the loan amount (max. Rs. 10,000)|
|Mortgage with Possession||4% on the loan amount||1% (max. Rs. 2,00,000)|
|Agreement to Sale||Rs. 20||1% on total consideration if possession is given|
|Agreement relating to the construction of a building||1% on the cost of the proposed construction/the value of construction/ the consideration specified in the agreement, whichever is higher||1% on the cost of the proposed construction/the value of construction/ the consideration specified in the agreement, whichever is higher|
|Cancellation||Rs. 50||Rs. 50|
|Partition||1% on the market value of the property (max. Rs. 25,000 for each share)||1% (max. Rs. 4,000 for each share)|
|Partition among non-family members||4% on the market value of the property for separated shares||1% on the market value of the property for separated shares|
|General Power of Attorney (Power is given to family member)||For this, stamp duty charges is Rs. 100||For this, land registration fees in Chennai is Rs. 1,000|
|General Power of Attorney (For movable property and other purposes)||Rs. 100||Rs. 50|
|General Power of Attorney (Given for consideration)||4% on consideration or Rs. 10,000, whichever is higher||1% on consideration or Rs. 10,000, whichever is higher|
|Settlement (In favour of family members)||1% on the market value of the property (not exceeding Rs. 25,000)||1% on the market value of the property (max. Rs. 4,000)|
|Settlement (Other Cases)||7% on the market value||4% on the market value|
For example, if you are registering residential plots in Mangadu , you must pay the relevant stamp duty and registration fee at the sub-registrar's office within four months after acquiring the property from the seller.
What Are the Documents Required for Property Registration in Chennai?
For the registration of a land for sale in Chennai you will require the following documents for verification during property registration.
- PAN Card
- Identity proof of the seller
- Identity proof of two witnesses
- Passport-sized photographs of all parties involved, including the witnesses
- Stamp duty receipt
- No Objection Certificate (NOC)
- Sale deed
- Power of attorney, if applicable
- Utility and municipal tax bills, in case of a resale property
What Are the Land Registration Charges For Property in Chennai?
For paying the property registration charges and stamp duty in Chennai, both the buyer and seller must visit the sub-registrar's office along with the aforementioned documents and two witnesses. The sub-registrar's office carefully examines the paperwork before proceeding with the registration.
Upon successful verification, the sub-registrar will issue a registration certificate and inform the buyer accordingly. The buyer can collect the certificate from the sub-registrar's office. It is crucial to keep this legal document safe to avoid future disputes or discrepancies.
The property registration process in Chennai follows similar procedures as in other parts of the country. Registering the property establishes the buyer as the rightful owner and should never be overlooked.
How to Pay the Property Registration Charges in Chennai
To pay the land registration fees, you can visit the sub-registrar office of the jurisdiction of the property or you can go to the SHCIL (Stock Holding Corporation of India) office and pay the property registration charges and stamp duty.
To pay the property registration charges in Chennai, you have the following options.
Option 1: Visit the sub-registrar office within the jurisdiction of the property location. Submit the required supporting documents as proof of personal details and property acquisition. You can pay the registration fee using non-judicial stamp papers available at the Sub-Registrar's office.
Option 2: The SHCIL branch in Chennai provides a convenient method to pay the necessary duty/fees. Payment can be made at the respective office using RTGS, NEFT, cash, or demand draft (DD).
How to Pay Stamp Duty Charges Online in Chennai?
Option 3: To pay stamp duty charges online in Chennai, follow these steps
Step 1: Visit the official website of SHCIL.
Step 2: Choose the 'e-stamp services' option.
Step 3: Select the respective state from the drop-down menu.
Step 4: Complete the application form and click on the 'Download' tab.
Step 5: Submit the downloaded form to the nearest SHCIL branch.
Step 6: Pay the property registration charges along with stamp duty through NEFT, RTGS, cheque, cash, demand draft, or account transfer.
Key Points on Stamp Duty and Registration Charges in Chennai
- In Chennai land registration fees and stamp duty is charged on property registration, calculated based on market value or the agreed-upon value of the property. Registration fees differ from state to state.
- In Chennai, properties must be registered within 4 months from the date of executing the sales deed.
- To pay the property registration fee in Chennai, visit the Sub-Registrar office in the property's jurisdiction carrying along required documents.
- Stamp duty and property registration charges can be paid with the help of non-judicial stamp papers available at the Sub-Registrar's or SHCIL office. Alternatively, fees can be paid at the SHCIL branch in Chennai using RTGS/NEFT/CASH/DD.
- You can also pay stamp duty charges online by visiting the official website of SHCIL and following the directions mentioned in this article.
- Making property registration charges on time is essential to establish legal ownership, protect your rights as a property owner, and prevent potential disputes.