The Tamil Nadu Budget 2020 has proposed a reduction of Stamp Duty for rental agreements to promote voluntary compliance and to enable both the landlords and tenants to realize the full benefits of registration.
The reduction is applicable for rental agreements for residential property for a period of up to five years, from the current 1 percent to 0.25 percent. The Registration Charges on such agreements will also be reduced from 1 percent to 0.25 percent subject to a maximum of Rs.5,000.
The Tamil Nadu Regularization of Rights of Landlords and Tenants Act, 2017 has come into force and all existing tenancies need to be registered under the Act before the extended date of 19th September 2020. Stamp duty is payable on all rental agreements including those which are of less than one year.
All tenancy acts are regulated under the TNRRRLT Act which has come into force on Feb 22nd, 2019. An exclusive portal www.tenancy.tn.gov.in has also been launched along with it to ensure better felicitation of housing opportunities and to safeguard the rights of property owners and tenants of the State.