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Glossary

Stamp Duty

A state tax levied on property transactions, calculated as a percentage of the property's guideline value or sale consideration, whichever is higher.

What is Stamp Duty?

Stamp duty is a mandatory state tax levied on property instruments, with the valuation basis and rate set by the applicable state and instrument rules. The buyer typically pays stamp duty, though the responsibility can be contractually allocated. For a standard Tamil Nadu Conveyance (Sale), the statutory breakdown is 5% stamp duty + 2% transfer duty + 2% registration fee = 9% total on the applicable market value under TNREGINET's valuation rules; TNREGINET currently groups the first two components as 7% under “Stamp Duty.” Payment is made through e-stamping at authorized franking centers or through the TNREGINET online portal.

Stamp duty in Tamil Nadu

Per the official Tamil Nadu Budget Speech, a standard Conveyance (Sale) attracts 9% total on the applicable market value under TNREGINET's valuation rules — 5% stamp duty + 2% transfer duty + 2% registration fee. TNREGINET currently displays the first two components together as 7% under “Stamp Duty.” Tamil Nadu has announced conditional registration-fee concessions for women buyers; the standard 5% stamp-duty component itself does not have a gender-based concession. Confirm current eligibility, value thresholds, and rates on TNREGINET before relying on a concession. Agricultural land transfers, powers of attorney, gift deeds, partition deeds, transfers of development rights, and joint development agreements each follow their applicable instrument-specific rates and valuation rules.

Impact on land acquisition costing

Stamp duty is a significant cost that must be factored into the acquisition budget from the outset. Since guideline value determines the minimum stamp duty regardless of the actual sale price, the effective stamp duty cost may be higher than expected in areas where guideline values have been recently revised upward. When structuring deals involving multiple parcels or phased acquisitions, the cumulative stamp duty cost can be substantial. Consider the stamp duty implications when choosing between deal structures — a direct sale deed versus a development agreement may have significantly different stamp duty obligations.

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