New Flats Registration Process Simplified in Tamil Nadu
The Commercial Tax and Registration Department Secretary has announced a new procedure for the registration of flats in Tamil Nadu, scheduled to go into effect on December 1.
Presently, in Tamil Nadu, two documents are required for the registration of documents for flats: one for the purchase of an undivided part of the land and one for the construction agreement for the building area. This results in two separate documents and different stamp duty and registration fees.
In an effort to simplify the process and bring it in line with other states, the government has decided to change the system. Flats will now be registered as a single sales document based on the combined value of the building and the subsoil, with reduced stamp duty for certain value ranges.
The stamp duty on flats worth up to Rs.50 lakh will be reduced from 7% to 4%, while for flats between Rs.50 lakh to Rs.3 crore, the stamp duty will be reduced from 7% to 5%.
This new offer, applicable only to the first sale of flats, will greatly benefit middle-class individuals buying new flats with a bank loan, according to the Commercial Tax and Registration Secretary.
The new practice of levying flats on the basis of the combined value of the land, along with the stamp duty concessions, will come into effect on December 1. After this date, the permission for resale of flats registered as construction contract documents will be withdrawn.
Overall, the government’s move to simplify the registration process and provide stamp duty concessions is expected to benefit buyers of new flats in Tamil Nadu.