A multi-fold increase in the stamp duty has been effected for several transactions.
The hike came into effect from May 3, according to a gazette notification. The changes cover nearly 15 types of instruments.
For example, for an adoption deed, the present stamp duty was ₹100. This has been revised to ₹1,000. In respect of an affidavit, the old and new rates are ₹20 and ₹200. In the case of the cancellation of instruments, the duty of ₹50 has gone up to ₹1,000. For the revocation of settlement, the existing and fresh rates are ₹80 and ₹1,000.
The stamp duty for registration of an instrument regarding power of attorney (POA) for the sale of immovable property for consideration was originally fixed at 4% on the value of consideration. Now, it has been determined as 4% of the market value. If POA is to be carried out in favour of a family member, the rate is ₹1,000. If it is to be done for a non-family member, it will be 1% on the market value of the property.
The revision has been justified on the ground that the rates for many instruments were fixed more than 20 years ago. A senior government official explains that the amendment to the Indian Stamp Act, 1899, (in application to Tamil Nadu) has been done not just for the hike in stamp duty but also for streamlining the process of registration in respect of certain transactions.
For example, children of one of the owners of land or house were considered outside the ambit of the definition of “family” in the event of the death of the owner in question. Now, they will come under the definition.
The hike in the duty, the official emphasised, will, at most, yield approximately ₹50 crore. Through stamps and registration, the annual revenue during 2023-24 was around ₹ 19,000 crore, of which nearly four-fifths come through the levy of stamp duty.
(The full list of changes in the stamp duty for various instruments can be accessed here: http://thlink.in/StampDuty)
