Stamp duty is a legal tax that a property buyer is liable to pay to the State Government to register the property. Stamp duty acts as evidence to legalise property ownership. Among other states in India, the stamp duty charge in Tamil Nadu is on the higher side.
Stamp duty in Chennai is 7% of the property’s market value. The State Government imposes stamp duty fee and registration charge at the time of property transaction.
Factors determining stamp duty charges in Chennai
Stamp duty acts as proof of ownership in court as well. One is considered to be the property owner when the sale agreement is signed and registered, and the stamp duty and the registration fee are paid to the State Government.
Stamp duty and registration fees in Chennai are the same in both rural and urban areas, even for men and women. Furthermore, the stamp duty is the same for resale properties as well.
However, certain parameters affect the stamp duty in Chennai:
- Age of property: Property’s age plays a significant role in determining the stamp duty. New properties are more expensive than older ones.
- Owner’s age: State Government grants subsidies on stamp duty for senior citizen.
- Property type: One will have to bear more stamp duty fees for a flat or apartment as compared to an independent house.
- Purpose of the property: Commercial property attracts more stamp duty charges than residential buildings.
- Property Amenities: Stamp duty charge of a property is highly influenced by the number of amenities that a property possesses. Amenities like swimming pool, sports area, gym, community hall etc., will demand more stamp duty charges from an individual.
Stamp duty fee of a property depends on the ready reckoner rate and agreement value of the property. Property buyers can use stamp duty calculator to know the exact amount that an individual needs to pay as stamp duty in any state.
Documents required to pay stamp duty in Chennai
Individuals need to keep the following documents ready to successfully register a property:
- Signed stamp duty or any paper stating that the stamp duty has been paid.
- PAN card
- Identity proof
- No objection certificate
- Tax clearance certificate
- Pattadar passbook
- Other necessary documents like sale deed/ conveyance deed/ power of attorney
Once the stamp duty has been paid, the property needs to be registered at the concerned jurisdiction’s sub-registrar office for the entire process of property transaction to get completed. The registration fee is 1% of property’s present market value.
Chennai has one of the highest stamp duty and property registration charges among other places in India. One who wishes to buy a property needs to keep aside a substantial amount for stamp duty and registration fee. Borrowers can also avail a home loan to back the additional charges.
By availing a home loan one can easily reduce the monetary burden levied by stamp duty fee and registration charge. However, a potential borrower must meet home loan eligibility criteria to avail of a home loan.
It is important to note that home loans do not cover the charge levied by stamp duty and registration fees.
People thinking about how to apply for home loan easily must have a satisfactory CIBIL score and chose the repayment tenor wisely. People opting for short repayment tenors are offered lower interest rates on the loan amount.
One must try to keep a 750 CIBIL score for a home loan. This score determines the credibility of a borrower.
An individual with a lower CIBIL score can improve it by paying out the EMIs on time. Borrowers can use the home loan EMI calculator to compute EMI amount beforehand, which will help them manage their finances even better.
Furthermore, borrowers can check the pre-approved offers extended by the leading financers on products, such as home loans, loans against property etc. These offers expedite the lending process. Individuals can check the pre-approved offers by entering their details like name and contact details.
Overall, the stamp duty in Chennai is one of the significant aspects that are taken into consideration while registering a property. The above factors will help an individual to plan the final pricing of the property.
