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Stamp Duty and Registration Charges in Chennai

About Stamp Duty & Property Registration Charges

One of the 4 major metropolitan cities of India, Chennai houses properties with varying rates across different locations. However, complete legal ownership of property involves a lot more than just property cost. In this aspect, potential buyers must have a detailed knowledge of applicable stamp duty and registration charges in Chennai, if they are buying a house by availing of a home loan from financial institutions.

What is Stamp Duty?

Stamp duty is a type of tax applicable on property purchases under Section 3 of the Indian Stamp Act, 1899. Payment of stamp duty acts as a legal evidence of property purchase. Individual State governments are responsible for deciding these charges. Therefore stamp duty in Chennai might vary from the same fees in other Indian states.

Additionally, these rates can also vary depending on several other factors such as:

  1. Age of property
  2. Property type
  3. Usage of property
  4. Property amenities
  5. Ownership status

Upon payment of stamp duty, individuals need to register the property at the concerned jurisdiction’s sub-registrar office. This is when buyers need to pay land registration fees Chennai. Note that this is a separate charge apart from stamp duty.

The registration and stamp duty charges in Chennai together make up the applicable property tax.

What is the Stamp Duty on Property in Chennai?

Stamp duty, along with registration charges in Chennai, can add up significantly to the final price of a property. Therefore, potential buyers must have a detailed knowledge of the same beforehand. Stamp duty remains uniform for all areas within a state.

Purchasing a property in Chennai entails a stamp duty worth 7% of the property’s market value. This is irrespective of this property’s area of location, urban or rural.

Besides stamp duty, buyers also need to pay property registration charges in Chennai. This is applicable at 1% of property’s market value.

Individuals need to pay both charges in addition to the original property price.

How are Stamp Duty Charges Calculated?

To understand the final value of a property, individuals need to understand the calculation of stamp duty and registration charges in Chennai. Following is a simple example of the calculation process.

If an individual buys a property worth Rs.25 lakh in Chennai, they must bear stamp duty at 7%. Therefore, the amount of stamp duty will be 7% of Rs.25 lakh, i.e., Rs.1.75 lakh. The buyer also needs to bear flat registration charges in Chennai in addition to stamp duty. This constitutes 1% of property value Rs.25 lakh, resulting in Rs.25,000.

Therefore, the total applicable stamp duty and registration charges in Chennai against this property purchase make up Rs.2 lakh. Hence, the buyer must pay this price in addition to original property cost.

Individuals finding this calculation cumbersome can use a Stamp Duty Calculator in Chennai to estimate such expenses instantly

Note that individuals need to pay the total amount comprising stamp duty and house registration cost in Chennai when making down payment.