Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Tamil Nadu government has introduced a relief measure allowing first-time homebuyers to offset stamp duty and registration fees paid on construction agreements against amounts payable during sale deed registration. This applies to first-sale apartments, villas, flats, row houses, and villaments where construction agreements were registered before late November 2023 and composite sale deeds registered afterward. The move prevents double payments under RERA regulations and responds to buyers concerns. Developers note the relief comes late, as many buyers who paid fees earlier may have already completed registration.
Homebuyers in Tamil Nadu registering first-sale apartments, villas, flats, row houses, or villaments can now benefit from a government order that allows them to set off stamp duty and registration fees previously paid on construction agreements against the charges due during the registration of the composite sale deed. This relief applies to agreements registered before late November 2023 and sale deeds registered on or after December 1, 2023. Advertisement
The policy ensures that buyers do not pay the same fees twice, especially after the introduction of composite sale deeds under the Real Estate (Regulation and Development) Act, 2016. Composite sale deeds cover both the undivided share of land and the building, and the earlier system had raised concerns about double payment for those who had already paid fees on construction agreements. An official from the registration department explained that the order addresses these concerns, which buyers and developers had raised for clarity in first-sale property registrations.
The measure was implemented based on a proposal from Dinesh Ponraj Oliver, the Inspector General of Registration. The order specifies that both stamp duty under the Indian Stamp Act, 1899, and registration fees under the Registration Act, 1908, can be adjusted against previously paid amounts. All district registrars, deputy inspectors general, and registering officers are directed to apply the order immediately and uniformly across the state.
Developers have welcomed the relief but pointed out that it comes after a significant delay. Many homebuyers who paid stamp duty and registration fees two years ago have already completed registration, which reduces the number of beneficiaries.
Stamp duty in Tamil Nadu is generally around 7% of the property value, while registration fees are approximately 4%, making these charges a substantial part of the overall cost. The new set-off mechanism provides significant financial relief for eligible buyers, reducing the overall burden and aligning registration procedures with RERA guidelines.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
