CHENNAI : Tamil Nadu government has increased stamp duty and registration fee on agreements relating to deposit of title deeds by RS 5,000 and RS 1,000 which could possibly make smaller loans dearer. According to sources, a government order has been issued by Commercial Taxes and Registration Department wherein the maximum ceiling limit on stamp duty and registration fee with respect of agreements relating to deposit of title deeds be fixed as RS30,000 and RS 6,000 where the repayment period of loan is either beyond or within three months.
Usually for obtaining loan on property, to secure the loan, agreements depositing the original title deeds with the bank are registered and the stamp duty with respect to these deeds is collected in two categories. Once when the loan is repaid within three months and the second one when loan is repaid beyond that period.
Usually, the upper limit on such agreements was RS 25,000 as stamp duty and RS 5,000 as registration fee. Now, this has been revised and an upper cap of RS 30,000 and RS 6,000 has been fixed as stamp duty and registration fee payable on such agreements where the repayment period is either within or above three months. Ajit Kumar Chordia, president, Confederation of Real Estate Developers Association of India (CREDAI), Tamil Nadu, dismissed the rise in stamp duty and registration fee as having any impact on realty sector. “It will have only a minimal impact on those taking small loans,” he said.