The Tamil Nadu government has announced a major relief measure for homebuyers by allowing a set-off on stamp duty and registration fees, addressing long-standing concerns related to double payment during property registration. The move is aimed at reducing the financial burden on buyers of residential properties such as apartments, flats, villas, row houses and villaments across the state.
Under the new government order, homebuyers who had registered construction agreements on or before November 30, 2023, will be eligible to adjust the stamp duty and registration charges already paid against the amount payable during the registration of the composite sale deed. The benefit applies to composite sale deeds registered on or after December 1, 2023, ensuring that buyers are not required to pay these statutory charges twice for the same property transaction.
This decision follows the implementation of composite sale deed registration in line with the Real Estate (Regulation and Development) Act, 2016. While the regulation brought greater transparency and compliance to property transactions, it also led to situations where buyers had to pay stamp duty once during the construction agreement stage and again during the final sale deed registration. The latest order formally resolves this issue by standardising the set-off mechanism across all registration offices in Tamil Nadu.
The proposal for the relief was initiated by the Inspector General of Registration and subsequently approved by the state government. Registration officials have now been instructed to uniformly implement the set-off system, ensuring clarity and consistency during property registrations. Homebuyers claiming the benefit will be required to submit proof of earlier stamp duty and registration fee payments at the time of executing the composite sale deed.
The measure is expected to improve affordability, simplify registration procedures and provide greater confidence to homebuyers entering the residential real estate market. By eliminating double levies, the policy also reduces the scope for disputes and procedural delays, contributing to smoother property transactions in the state.
Real estate stakeholders have noted that the relief provides clarity on statutory charges and aligns registration practices with buyer-friendly reforms. The move is seen as a step toward improving ease of doing property transactions while maintaining regulatory compliance.
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