CHENNAI: After 21 years, the state government decided to increase the stamp duty for more than 20 types of legal transactions. The steep hike, however, will have no impact on stamp duty for property registrations, sources said.
Commercial Taxes, Registration and Stamp Law Minister P Moorthy, while introducing the Indian Stamp (Tamil Nadu Amendment) Act 2023 Bill in the Assembly on Monday, said the proposal was aimed at cutting the expenses incurred for printing stamp papers of lower denominations. Kilvelur CPM MLA V P Nagaimaali opposed the bill and said the proposed duty hike will burden middle-class and lower-middle-class people.
According to the bill, stamp duty levied for adoption deed (other than a Will) will go up from Rs 100 to Rs 1,000 and duty for affidavits, including affirmation or declaration, will be hiked from Rs 20 to Rs 200. The charge for duplication of agreement has been increased from Rs 20 to Rs 500.
Stamp duty for several other documents, cancellation of agreements, and memoranda of association for companies (registered under Companies Act) has also been increased. Stamp duty is charged on various commercial transactions between individuals and companies, such as affidavits, leases, bills of exchange, bonds, mortgages, conveyances, receipts, debentures, shares, insurance policies, and partnership deeds etc.
The duty is collected through non-judicial stamp paper for property transfer agreements, leasing agreements, affidavits, and other purposes.
Registration department sources told TNIE that the increase in stamp duty will not impede people from accessing stamp papers of lower denominations. “The minimum denomination of non-judicial stamp paper will be `100. However, people can still obtain Rs 20 or Rs 50 stamp paper by paying electronically at any sub-registrar’s office. They will be issued a blank paper with a seal and serial number,” explained a senior official.
The proposed bill seeks to broaden the definition of ‘family’ to include women who marry the male heirs of a family. Hence, the stamp duty for sale deed within a family will attract lower stamp duty, the official said.
WHAT’S GONE UP
Stamp duty levied for adoption deed (other than a Will) will go up from Rs 100 to Rs 1,000
Duty for affidavits, including affirmation or declaration, hiked from Rs 20 to Rs 200
Charge for duplication of agreement increased from Rs 20 to Rs 500
Stamp duty for cancellation of agreements and memoranda of association for companies also increased