Registration department of TN hikes fees for 20 services that they offer

The Government of Tamil Nadu has recently implemented a revision in the registration charges, significantly impacting property redevelopment and development costs within the state. Under Section 78 of the Registration Act 1908, the registration department has announced an increase in the registration fees and stamp duty for 20 services offered by the department, marking the first adjustment in two decades.

These alterations encompass various aspects such as searching of registers, making or granting copies of reasons, entries, or documents before or after registration, as well as the safe custody and return of documents, among others. Notably, the state registration department has specifically amplified the charges for private attendance by the sub-registrar at residences from Rs. 200 to Rs. 1000. Furthermore, the fees for the receipt of mortgage documents have been augmented from Rs. 20 to Rs. 200. Additionally, registration charges related to partition, family settlement, and release of documents have experienced a substantial surge, rising from Rs. 4,000 to Rs. 10,000. Simultaneously, the stamp duty for these services has been raised from Rs. 25,000 to Rs. 40,000.

While these modifications are expected to generate increased revenue for the registration department, their implementation poses potential challenges for projects planned for joint development or redevelopment. Furthermore, end users, including prospective home or plot buyers, may encounter difficulties due to the anticipated escalation in costs.

The revision of registration charges and stamp duty fees in Tamil Nadu signifies the government’s response to the changing economic landscape and the need for adequate revenue generation. By adjusting these charges after a prolonged interval, the state aims to align the fees with the prevailing market dynamics and ensure a more equitable and sustainable framework for property registration.

However, the impact of these alterations on joint development and redevelopment projects cannot be overlooked. Consequently, this may potentially impede the progress of ongoing or future projects, impacting the overall growth of the real estate sector in the state.

Furthermore, the amplified costs associated with property registration may pose challenges for end users, including individuals or families seeking to purchase homes or plots. The anticipated surge in expenses could strain their financial capabilities, potentially dissuading them from investing in real estate or delaying their purchase decisions. This, in turn, may have wider ramifications on the real estate market, slowing down transactions and impeding the overall growth of the sector.

A comprehensive evaluation of the impact of these changes is necessary, along with collaborative measures to ensure a balanced and sustainable environment for property transactions in the state.