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Our Bureau

Chennai, July 7 The Tamil Nadu Government plans to give statutory backing to the guideline value as fixed by the Registration Department.

It also plans to make registration of instruments of power of attorney compulsory, according to the Minister for Registration, Mr Sureshrajan.

Moving the demand for grants to his Department, the Minister said the State Government has also fixed the stamp duty and registration fee for instruments, creating further charge on mortgaged properties and security bonds.

The Minister said the amendment to Section 47A of the Indian Stamp Act, 1899, to make guideline value of land statutory will soon be brought into force. Statutory committees would be constituted for determination of guideline value.

The Act provides for the levy of Stamp Duty (8 per cent plus 1 per cent registration fee) on the market value of the properties under transaction.

The State Government will soon cut by half the annual interest of 24 per cent levied on disputed portion of the Stamp Duty on properties under appeal.

The Stamp Duty for instruments creating further charge on mortgaged properties has been fixed at 1 per cent up to a maximum of Rs 20,000 as compared to 4 per cent earlier, and the registration fee is fixed at Rs 5,000.

This would come into effect with retrospective effect from February 12, 2004, in line with the Stamp Duty and registration fee on mortgage instruments. On Security Bond, the Stamp Duty is fixed at Rs 5,000.

In the current year, for those instruments over five years for which the maximum duty and registration fee is to be charged, the maximum Stamp Duty is capped at Rs 40,000 and registration fee at Rs 10,000.

The registration of instruments of Power of Attorney would also be made compulsory.

These instruments will have to be registered in the sub-registrar office that has jurisdiction over the property. The objective is to curb the irregularities in property deals through Power of Attorney, he said.

According to the policy note on Stamps and Registration for 2009-2010, for the first time in five years the revenue from registration has registered a decline for 2008-09.

The revenue from stamp duty and registration fee for 2008-09 was Rs 4,099.54 crore, a 3 per cent drop compared to Rs 4,232 crore in the previous year. Since 2004-05 the revenue has shown a notable increase year on year. The note attributes the drop in revenue to the economic slowdown.

More Stories on : Policy | Real Estate & Construction | Tamil Nadu

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