CHENNAI: The state government has notified an increase in rate of stamp duty for more than 20 types of legal agreements. The bill regarding this was passed in the state assembly last year. The hike is aimed at cutting the expenses incurred for printing stamp papers of lower denominations.
This would mean people will now be paying more to avail the list of 20 services in the schedule of fees and rates of registration and stamp duty provided by registration department.
This is for the first time after over 20 years that the registration department has brought in changes in the fee for services. 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. The 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.
The duty is collected through non-judicial stamp paper for property transfer agreements, leasing agreements, affidavits, and other purposes.
Similarly, the rate of stamp duty for plot registration has been increased from Rs 200 to Rs 1,000.